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The New India Assurance Company Ltd., vs Battu Manasa Thulasamma 2 Others
2023 Latest Caselaw 5938 AP

Citation : 2023 Latest Caselaw 5938 AP
Judgement Date : 8 December, 2023

Andhra Pradesh High Court - Amravati

The New India Assurance Company Ltd., vs Battu Manasa Thulasamma 2 Others on 8 December, 2023

       THE HON'BLE SRI JUSTICE A.V. RAVINDRA BABU

                        M.A.C.M.A. No.1114 OF 2016

JUDGMENT:

-

This Motor Accident Claims Miscellaneous Appeal is

directed against the award, dated 14.03.2013 in M.V.OP.No.295

of 2011, on the file of Motor Accidents Claims Tribunal-cum-

Family Court-cum-VI Additional District Judge, Kadapa

("Tribunal" for short). The present appeal is filed by the

appellant who was arrayed as second respondent/Insurance

Company in the aforesaid M.V.O.P.

2) The parties to this MACMA will hereinafter be

referred to as described before the Tribunal for the sake of

convenience.

3) The respondent Nos.1 and 2 herein were the

claimants in M.V.O.P.No.295 of 2011, who filed the claim under

Section 166 of Motor Vehicles Act, claiming compensation being

the legal heirs of one B. Venkata Prasad Babu (hereinafter will

be referred to as "deceased") in the motor vehicles accident that

took place on 07.09.2009 in which the Lorry bearing

Registration No.A.P-12-V-0224 ("offending lorry" for short) had

involved.

4) The case of the claimants, in brief, as set out in the

claim filed before the Tribunal is as follows:

(i) On 07.09.2009 the deceased was travelling as a pillion

rider from Malakpet to M.G. Bus Station (CBS), Hyderabad on

his uncle‟s Motorcycle bearing Registration No.A.P-11-N-3030,

driven by his uncle in a normal speed. The Motorcycle was

moving on the extreme left side of the road, observing traffic

rules and regulations. At about 7-00 a.m., they reached Saleem

Cross Roads on Malakpet to M.G. Bus Station. In the meantime,

the offending Lorry came from back side of the deceased, driven

by its driver in a rash and negligent manner at high speed

without blowing horn and dashed against the Motorcycle. In

view of the said accident, the deceased and his uncle received

serious injuries and the deceased died on the spot. The accident

was occurred due to rash and negligent driving of the driver of

the offending Lorry.

(ii) The deceased was aged about 35 years, hale and

healthy and well built body at the time of accident and he was

working as A.R. Police Constable in D.A.R. Station, Kurnool. He

was earning Rs.12,240/- per month towards his salary. He was

contributing the entire amount to the claimants who are only

legal heirs and dependants of the deceased. The deceased is

having 23 years of service and had prospect of becoming the

Inspector rank. He was also entitled to higher salary. Because

of untimely death, the claimants were denied the pleasure and

company of the deceased and they were deprived of their

maintenance. The deceased would have lived up to 90 years of

his age and would have contributed more amounts, if he had not

met with accident. The father of the deceased died after the

death of the deceased.

(iii) The first respondent is the owner of the offending

Lorry, which is insured with the second respondent. Hence, the

respondent Nos.1 and 2 are liable to pay compensation jointly

and severally. Hence, the claim for awarding a sum of

Rs.25,00,000/- towards compensation.

5) The first respondent-owner of the offending Lorry

remained exparte before the Tribunal.

6) The second respondent/Insurance Company got filed

a counter contending in substance that the claimants are put to

strict proof of the manner of the accident and the cause of

death. They have to prove that the offending Lorry in question

is covered with the insurance policy and that the driver had the

driving license. The accident was occurred due involvement of

two vehicles i.e., Hero Honda Motorcycle bearing Registration

No.A.P.-11-N-3030 on which the deceased was travelling and

the offending Lorry. Hence, it is just and necessary to add the

owner and insurance company of the Hero Honda Motorcycle as

parties. Otherwise, the O.P. is bad for non-joinder of proper

parties. The claimants have to prove the income of the deceased

by filing necessary and acceptable documents. The offending

Lorry is insured with the second respondent under valid policy

No.612800/31/08/02/00007918. It was in force from

17.11.2008 to 16.11.2009 subject to the terms and conditions.

The compensation claimed by the claimants is excessive and

exorbitant. The first respondent is not cooperating with the

second respondent to contest the case, as such, the second

respondent can be permitted to take available defences. Hence,

the petition is liable to be dismissed.

7) Basing on the above pleadings, the Tribunal settled

the following issues for trial:

(1) Whether the accident occurred was due to rash and negligent driving of the driver of the Lorry bearing No.A.P-

12-V-0224, resulting into the death of deceased by name B. Venkata Prasad Babu on 07.09.2009?

(2) Whether the claimants are entitled for compensation and, if so, to what amount and from whom?

(3) To what relief?

8) During the course of enquiry, on behalf of the

claimants, P.W.1 to P.3 were examined and Ex.A.1 to A.5 and

Ex.X.1 and Ex.X.2 were marked. The second respondent did not

examine any witnesses.

9) The Tribunal on hearing both sides and on

considering the oral as well as documentary evidence, answered

the issue Nos.1 and 2 in favour of the claimants and against the

contesting respondent and accordingly awarded a sum of

Rs.21,96,000/- as compensation to the claimants payable by the

respondent Nos.1 and 2 along with interest at 6% per annum

from the date of petition till the date of deposit and directing the

respondents to deposit the amount within one month and after

deposit, the second claimant can withdraw Rs.10,00,000/- with

interest thereon and the first claimant is entitled for the balance

amount with interest thereon and that the first claimant is

permitted to withdraw Rs.6,00,000/- and the second claimant is

permitted to withdraw Rs.5,00,000/- and the balance amount of

the claimants shall be kept in fixed deposit for a period of two

years and thereafter they can withdraw the same. Felt aggrieved

of the aforesaid award of the Tribunal, the unsuccessful second

respondent i.e., New India Assurance Company Limited in the

capacity of appellant filed the present MACMA.

10) Now in deciding this MACMA, the points that arise

for consideration are as follows:

(1) Whether the award, dated 14.03.2013 in M.V.O.P.No.295 of 2011, on the file of Motor Accidents Claims Tribunal-cum-Family Court-cum-VI Additional District Judge, Kadapa, is sustainable under law and facts

and whether there are any grounds to interfere with the same?

(2) To what relief?

Point Nos.1 and 2:

11) P.W.1 is no other than the first claimant i.e., the

wife of the deceased and she filed her chief examination affidavit

putting forth the facts in tune with the pleadings. Through her

examination, Ex.A.1 to Ex.A.5 are marked. Ex.A.1 is attested

copy of FIR in Crime No.309 of 2009 of Malakpet Police Station,

Hyderabad. Ex.A.2 is attested copy of Inquest Report. Ex.A.3 is

attested copy of postmortem certificate. Ex.A.4 is attested copy

of charge sheet. Ex.A.5 is pay slip issued by Kurnool District

Police. Further the claimants examined P.W.2, who is a direct

witness to the occurrence.

12) The chief examination of P.W.2 is that he knows the

deceased B. Venkata Prasad Babu. He knows the claimants, who

are legal heirs of the deceased. He witnessed the accident. On

07.09.2009 the deceased was travelling as a pillion rider from

Malakpet to M.G. Bus Station (CBS) on motorcycle bearing

Registration No.A.P-11-N-3030, driven by his uncle T.

Satyanarayana in a normal speed, on extreme left side of the

road, observing the traffic rules and regulations. At about 7-00

a.m., they reached Saleem Nagar Cross roads on Malakpet to

M.G. Bus Station. In the meantime, one Lorry bearing

Registration No.A.P-12-V00224 with a load of wood came from

back side of the deceased driven by its driver in a rash and

negligent manner and at high speed without blowing horn and

dashed against the said Motorcycle. As a result of which, both

the deceased and the said T. Satyanrayana fell down and the

said Lorry ran over the deceased and the deceased died on the

spot. The rider of the motorcycle also received injuries. He was

examined by the police.

13) P.W.3 was the Head Constable in A.R. Headquarters.

The claimants examined him to prove the salary of the

deceased. According to the evidence, their office received

summons for production of Service Register extract of late B.V.

Prasad Babu, P.C.1697. He is authorized by the Superintendent

of Police, Kurnool to attend the Court and to give evidence. The

authorization letter given to him is Ex.X.1. The attested copy of

Service Register extract is Ex.X.2. As per the Service Register of

B.V. Prasad Babu, his date of birth is 01.09.1970. As per the

endorsement of the proceedings, dated 22.09.2009, B.V. Prasad

Babu, ARPC.1697 died on 07.09.2009 due to motor vehicles

accident. The entry is made on 17.04.2010. As per the entry,

dated 04.02.2009, the basic pay of the deceased B.V. Prasad

Babu was Rs.7,570/- as on 01.12.2008. Ex.A.5 was issued by

their office.

14) Smt. A. Jayanthi, learned counsel appearing for the

appellant, would contend that the contention of the appellant as

per the grounds of appeal is that according to the evidence of

P.W.1 in cross examination, she is receiving Family Pension of

Rs.7,000/- per month and the Tribunal did not deduct such an

amount while computing the compensation and it is against the

judgment of the Hon‟ble Supreme Court in Bhakra Beas

Management Board vs. Kanta Aggarwal (smt.) and

others 1 where the Hon‟ble Supreme Court held that benefits

which the claimants received on account of the death have to be

duly considered while fixing the compensation. As the Tribunal

did not deduct the said amount which is contrary to the

judgment of the Hon‟ble Supreme court and if that amount is

deducted, the compensation that is payable to the claimants by

the respondent/appellant would comes to Rs.13,19,940/- only,

as such, granting of a sum of Rs.21,96,000/- is excessive. In

support of the contention, the learned counsel would rely upon

the above said decision which is reported in 2008(11) SCC 366.

She would further rely upon the decisions in Vimal Kanwar

and others vs. Kishore Dan and others 2 and National

2008 ACJ 2372

(2013) 7 Supreme Court Cases 476

Insurance Company Limited vs. Rekhaben and others3 to

contend that the amounts that are being received by the first

claimant are liable to be deducted while awarding the

compensation.

15) Sri D. Kodandarami Reddy, learned counsel

appearing for the respondent Nos.1 and 2/claimants, would

contend that it is not a case where the first claimant was given

any compassionate appointment. The Hon‟ble Supreme Court in

Rekhaben's case (3 supra) distinguished in Kanta Aggarwal's

case (1 supra) and further the decision cited by the learned

counsel for the appellant are of no use to the appellant. The

decision in Vimal Kanwar's case (2 supra) and Rekhaben's case

(3 supra) will go against the contention of the appellant and

further Rekhaben's case (3 supra) would give clarity to nullify

the contention of the appellant by relying upon Kanta Aggarwal's

case (1 supra). He would further submit that in fact the last pay

drawn of the deceased was not considered by the Tribunal and

when the date of accident was on 07.09.2009 salary of the

deceased in September, 2008 alone was considered and this

Court has every power to enhance the compensation. The

compensation that is awarded to the claimants is liable to be

revised by enhancing the compensation. Though there is no

(2017) 13 Supreme Court Cases 547

cross objections, this Court has got power to do so and in

support of his contentions, he would rely upon the judgment of

this Court (DB) in MACMA No.945 of 2013.

16) According to the cross examination of P.W.1, she

was not a witness to the occurrence. P.W.2 was the direct

witness to the occurrence. The Tribunal on considering the

evidence of P.W.2, the direct witness, coupled with Ex.A.1-

attested copy of FIR, Ex.A.2-atested copy of Inquest Report,

Ex.A.3-attested copy of Postmortem Certificate and Ex.A.4-

attested copy of the charge sheet, came to a conclusion that the

accident occurred was due to rash and negligent driving of the

driver of the offending Lorry i.e., first respondent vehicle. The

finding the fact recorded by the Tribunal is not under challenge

in the grounds of appeal. As pointed out, the whole contention

of the appellant revolves around the fact that as the first

claimant is receiving pension of Rs.7,000/-, that amount is to be

deducted while computing the compensation and in support of

such a contention, the appellant would rely upon three

decisions. It is the quantum of compensation that was awarded

in favour of the claimants which is in dispute. Therefore, the

scope of the appeal is limited one.

17) Firstly, I would like to deal with the citations relied

upon by the learned counsel for the appellant. The decision in

Kanta Aggarwal's case (1 supra) was a case where when the

deceased met with death in a motor vehicles accident. The

owner of the vehicle who was an employer provided

compassionate appointment to the wife and when a claim was

laid before the Tribunal, the Tribunal awarded compensation.

When the matter was canvassed before the High Court, the High

Court dismissed the appeal. When the matter was canvassed

before the Hon‟ble Supreme Court, the Hon‟ble Supreme Court

made a finding that where the employer insures his employee,

as against injury or death arisen out of an accident, any amount

received out of such insurance on the happening of such incident

may be an amount liable for deduction. It is basing on this

citation, the appellant would seeks to deduct the so-called

pension being received from the compensation.

18) It is to be noted that even in the decision cited by

the learned counsel for the appellant in Rekhaben's case (3

supra), the question that arise before the Hon‟ble Supreme

Court is whether any pecuniary advantages received from other

source by reason of victim‟s death i.e., salary receivable by the

dependant claimant upon compassionate appoitnment due to

victim‟s death is liable to be deducted. The Hon‟ble Supreme

Court in Rekhaben's case (3 supra) when Kanta Aggarwal's case

(1 supra) was brought to the notice held that the above said

decision is distinguishable because the tortfeasor offered

employment on compassionate grounds to the wife of the

deceased, as such, the case in Kanta Aggarwal's case (1 supra)

is distinguishable to the case on hand.

19) Coming to the present case on hand, it is not a case

where the first claimant was provided with any compassionate

appointment. It is never the case of the second respondent that

the first claimant is receiving any amount under the head of

compassionate appointment. It is not a case where the first

respondent provided any compassionate appointment.

Therefore, Kanta Aggarwal's case (1 supra) is misquoted to the

present situation. The proposition in Rekhaben's case (3 supra)

is very clear that when the tortfeasor has not provided any

amount to the victim‟s family financial benefit of compassionate

appointment is not liable to be deducted. Hence, by relying upon

Kanta Aggarwal's case (1 supra) or Rekhaben's case (3 supra),

the appellant cannot support its contentions in anyway.

20) Turning to another decision cited by the learned

counsel for the appellant in Vimal Kanwar's case (2 supra), the

Hon‟ble Supreme Court clearly held that amounts such as

Provident Fund, Pension and Life Insurance received by the

claimants on account of the victim‟s death do not come within

the periphery of the Motor Vehicles Act to be termed as

„pecuniary advantage‟ liable for deduction.

21) It is no doubt true that the first claimant is receiving

pension. The observations of the Hon‟ble Supreme Court in

Vimal Kanwar's case (2 supra) are as follows:

18. The first issue is "whether provident fund, pension and insurance receivable by the claimants come within the periphery of the Motor Vehicles Act to be termed as „pecuniary advantage‟ liable for deduction".

19. The aforesaid issue fell for consideration before this Court in Helen C. Rebello v. Maharashtra SRTC4. In the said case, this Court held that provident fund, pension, insurance and similarly any cash, bank balance, shares, fixed deposits, etc., are all a "pecuniary advantage" receivable by the heirs on account of one‟s death but all these have no correlation with the amount receivable under a statue occasioned only on account of accidental death. Such an amount will not come within the periphery of the Motor Vehicles Act to be termed as "pecuniary advantage" liable for deduction".

Hence, the contention canvassed vehemently in the

grounds of appeal deserves no merits at all.

22) Now coming to the income of the deceased as

evident from the evidence let in, the last pay drawn was not

brought to the notice of the Tribunal. When the deceased died

in September, 2009, pay slip of September, 2008 could only be

filed. There is no dispute about the fact that the gross salary of

3 (1999) 1 SCC 90: 1999 SCC (Cri) 197

the deceased as on September, 2008 is Rs.12,331/- per month.

After deducting non-governmental deductions and profession

tax, the net salary was Rs.12,000/- per month. There is no

dispute that the deceased was a permanent government

employee who was drawing salary with certain scale which was

with annual increments. As the deceased was below the age of

40 years, the Tribunal taken into consideration 50% of the net

salary towards future prospectus, as such, added Rs.6,000/- to

Rs.12,000/-. Out of Rs.18,000/- towards the personal expenses

of the deceased because there are only two dependants,

Tribunal deducted 1/3rd of the total amount. Hence, the net

contribution to the family would be Rs.12,000/- per month, as

such, it comes to Rs.1,44,00/- per year. The proper multiplier

for the age group of the deceased is 15, as such, the Tribunal

calculated the net contribution of Rs.1,44,000/- x 15 and arrived

at the figure Rs.21,60,000/-. Further the Tribunal awarded

Rs.15,000/- towards loss of estate, Rs.3,000/- towards

transportation, Rs.3,000/- towards funeral expenses and

Rs.15,000/- towards loss of consortium. So, the Tribunal totally

awarded a sum of Rs.21,96,000/-. The net drawings of the

deceased as above are not in dispute. As the contention of the

appellant that pension that is being drawn by the first claimant

is liable to be deducted is rejected, now there remains no

tenable contention on the part of the appellant to interfere with

the award of the Tribunal.

23) As pointed out, a contention is canvassed on behalf

of the claimants that only the pay slip of September, 2008 could

be filed before the Tribunal and pay slip of September, 2009 i.e.,

the period of death of the deceased could not be filed and that

this Court has power to enhance the compensation. It is no

doubt true that by virtue of various judgments and settled legal

position, which is also dealt with in M.A.C.M.A.No.945 of 2013,

the Court has power to enhance the compensation though there

is no prayer, but there should be some basis for the claimants to

make such a contention. When the claimants could only rely

upon Ex.A.5, now they cannot canvass the contention that they

are entitled more compensation. Without any basis, the

contention of the claimants to enhance the compensation

deserves no merits.

24) Having regard to the overall facts and

circumstances, absolutely, there are no merits in the grounds of

appeal, as such, MACMA is liable to be dismissed. The

compensation that was awarded in favour of the claimants by

the Tribunal is just and reasonable which is not liable to be

interfered with.

25) In the result, the MACMA is dismissed. There shall

be no order as to costs.

Consequently, miscellaneous applications pending, if any,

shall stand closed.

________________________ JUSTICE A.V. RAVINDRA BABU Dt.08.12.2023.

PGR

THE HON'BLE SRI JUSTICE A.V. RAVINDRA BABU

Date: 08.12.2023

PGR

 
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