Citation : 2023 Latest Caselaw 5089 AP
Judgement Date : 18 October, 2023
THE HON'BLE SRI JUSTICE V.GOPALA KRISHNA RAO
M.A.C.M.A No.640 of 2023
JUDGMENT:
Aggrieved by the impugned Award dated
14.07.2014, passed in M.V.O.P.No.187 of 2011, on the
file of the Motor Accidents Claims Tribunal-cum-
IV Additional District, Nellore, whereby an amount of
Rs.4,40,000/- with subsequent interest @ 7.5% per
annum was ordered by the Tribunal. Aggrieved thereby,
the claimants preferred this instant appeal for
disallowing portion of the claim of the claimants.
2. For the sake of convenience, both the parties in
the appeal will be referred to as they are arrayed in
claim application.
3. The aforesaid M.V.O.P.No.187 of 2011 was
preferred by the legal heirs of deceased Sri Narala
Sudhakar Reddy, under Section 166 of the Motor
Vehicles Act, 1988 (for short "the Act"), for granting 2 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
compensation of Rs.5,00,000/- in a road accident that
occurred on 17.07.2009.
4. Facts germane to dispose of the appeal may be
briefly stated as follows:-
On 17.07.2009, at about 04.30 a.m., while
Sudhakar Reddy, was going to Municipal Market,
Nellore, on his motorcycle bearing No.AP-26-B-6732 to
purchase vegetables, at about 5.00 a.m., when he
reached near Pitchireddy Kalyana Mandapam, Nellore,
meanwhile, the driver of the Auto bearing
No.AP-26-U-5510 has driven in a rash and negligent
manner with high speed and dashed the motorcycle of
Sudhakar Reddy, resulting which, he fell down with
injuries. He was shifted to Government Hospital, later
he was shifted to Bollineni Hospital, Nellore, for better
treatment, where he succumbed with injuries, while
undergoing treatment.
5. The 1st respondent/owner of the offending Auto
remained ex parte.
3 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
6. The 2nd respondent filed a written statement with
a plea that the claimants are not entitled any
compensation and there was a contributory negligence
on the part of the deceased in driving the two wheeler.
7. Based on the above pleadings of both the parties,
the Tribunal framed the following issues for trial:-
1. Whether the accident was took place due to rash and negligent driving of the Auto driver bearingNo.AP-26-U-5510 and caused death of Narala Sudhakar Reddy?
2. Whether the claimants are entitled for compensation, to what amount and from whom?
3. Whether the driver of the crime Auto was not possessing valid driving license as on the date of accident?
4. To what relief?
8. During the course of enquiry, on behalf of the
petitioners, PWs.1 to 2 are examined and marked as
Ex.A-1 to A-4. On behalf of the 2nd respondent R.W.1 4 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
and 2 are examined and marked as Ex.B.1 and so also
Ex.X.1 and Ex.X.2 are marked.
9. At the culmination of the enquiry, on appreciation
of the entire evidence on record, the Tribunal awarded
an amount of Rs.4,40,000/- and liability is fixed on the
both insured and insurer. Aggrieved thereby, this
instant appeal is preferred by the claimants for
disallowing portion of the remaining compensation of
Rs.60,000/- in the claim application.
10. Now the points for determination are:
1. Whether the order of the Tribunal needs any interference? If so, to what extent?
2. Whether the appellants/claimants are entitled for the remaining balance compensation as prayed for?
POINTS 1 and 2:
11. In order to prove the rash and negligent driving of
the driver of the offending vehicle/Auto, the petitioner
relied on his evidence of P.Ws.1 and 2. Admittedly,
P.W.1 is not an eyewitness to the accident. P.W.2 is an
eyewitness to the accident, as per his evidence the 5 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
accident in question occurred due to rash and negligent
driving of the driver of the offending vehicle/Auto.
Ex.A.1 attested copy of FIR, Ex.A.4 xerox copy of charge
sheet clearly goes to show that the case was registered
against the driver of the offending vehicle/Auto by the
Sub Inspector of Police, later after completion of
investigation, laid charge sheet against the driver of the
offending vehicle/Auto. The Tribunal on considering
the entire material on record came to a conclusion that
the accident in question occurred due to rash and
negligent driving of the driver of the offending
vehicle/Auto. I do not find any legal flaw or infirmity in
the said finding given by the Tribunal.
12. Coming to the compensation, the claim of the
claimants is that the deceased used to earn an amount
of Rs.300/- per day (Rs.300/- x 30 = Rs.9,000/-) i.e.,
Rs.9,000/- per month. The accident in question
occurred in the year 2009 by assailing reasons, the
Tribunal arrived at a conclusion that the monthly
income of the deceased is Rs.3,000/- per month. As per 6 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
the decision of Sarla Verma and others Vs. Delhi
Transport Corporation and another 1, the Tribunal
deducted 1/4th amount towards personal expenses of
the deceased. If 1/4th amount is deducted, the amount
comes to Rs.27,000/- (Rs.36,000/- ÷ 4 = Rs.9,000/-).
As per the decision of Sarla Verma, the Tribunal rightly
applied the multiplier of „16‟ and awarded an amount of
Rs.4,32,000/- towards loss of dependency. Further, an
amount of Rs.40,000/- is awarded to the 1st claimant,
who is the wife of the deceased towards loss of
consortium, an amount of Rs.15,000/- towards funeral
expenses and amount of Rs. 15,000/- towards loss of
estate by applying the decision of Apex Court in
National Insurance Company Limited Vs. Pranay
Sethi and others,2. In total, the appellants/claimants
are entitled for an amount of Rs.5,02,000/-, their claim
is only Rs.5,00,000/-. Therefore, the claim of the
appellants is restricted to Rs.5,00,000/-.
2009 ACJ 1298
2017 ACJ 2700
7 VGKR, J
M.A.C.M.A.(SR)No.38137 of 2014
13. The offending vehicle/Auto is insured with the
insurer under Ex.B.1 and the policy is in force. The
contention of the Insurance Company is that the driver
of the offending vehicle/Auto is not having valid and
effective driving license. The Tribunal also arrived at
the same conclusion and by applying the principle laid
down in the decision of the Apex Court directed the
insurer to pay the total compensation amount and
recover the same from the insured. The principle laid
down in National Insurance Company Limited Vs.
Swaran Singh and others3 case is that even in case of
absence, fake or invalid license or disqualification of the
driver for driving, the Insurance Company is liable to
implement the award in favour of 3rd party at the first
instance and later, recover the award amount from the
owner of the offending vehicle, even when the Insurance
Company could establish breach of terms of policy on
the part of the owner of the vehicle. The Tribunal has
applied "pay and recover" principle and directed the
insurer to deposit the quantum of amount of
2004 ACJ (1) (SC) 8 VGKR, J M.A.C.M.A.(SR)No.38137 of 2014
Rs.4,40,000/- as awarded by the Tribunal and later
recover the same from the owner of the offending
vehicle/Auto. I do not find any illegality in the above
finding given by the Tribunal. Therefore, the 2nd
respondent/Insurance Company is directed to deposit
the enhanced compensation of Rs.60,000/- with
interest @ 7.5% per annum from the date of petition till
the date of realization within two (02) months before the
Tribunal, later the 2nd respondent/insurer is at liberty
to recover the same from the owner of the offending
vehicle/1st respondent by filing an execution petition
and without filing any independent suit.
14. Therefore, with these above observations, the
appeal is allowed.
As a sequel, miscellaneous petitions, if any,
pending shall stand closed.
____________________________________ JUSTICE V.GOPALA KRISHNA RAO
06.10.2023 CVD
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