The Oriental Insurance Company Limited vs Lunavath Suko And 4 Ors.
2024 Latest Caselaw 1274 Tel

Citation : 2024 Latest Caselaw 1274 Tel
Judgement Date : 22 March, 2024

Telangana High Court

The Oriental Insurance Company Limited vs Lunavath Suko And 4 Ors. on 22 March, 2024

        THE HON'BLE SRI JUSTICE K.SURENDER

                 M.A.C.M.A No.2191 OF 2012

JUDGMENT:

The appellant-Insurance Company filed this appeal

against the Order and Decree dated 19.12.2005 in O.P.No.405 of

2000 on the file of the Motor Vehicle Accident Claims Tribunal-

cum-II Additional District Judge, (FTC-I) at Khammam,

whereunder the Tribunal granted an amount of Rs.2,16,000/-

towards compensation along with interest @ 7.5% per annum

as against the claim of Rs.3,00,000/- on account of the death of

the deceased in motor vehicle accident.

2. Heard Sri Kota Subba Rao, learned counsel for the

appellant-Insurance Company, Sri G.V.L Murthy, learned

counsel for the claimants and perused the record.

3. The manner of the accident and the death of the deceased

due to the injuries sustained by him are not disputed by either

of the party. For the said reason, this Court is not inclined to

discuss the said issue.

4. Learned counsel appearing for the claimants submits that

in case of death where it is claimed that the deceased was a

computer operator and earning an amount of Rs.4,500/-, the

court below has taken his income notionally. He submits that

in case of Ramachandrappa Vs. Manager, Royal Sundaram

Alliance1, the Hon'ble Apex Court even in case of a daily

labourer without any evidence has taken income as Rs.4,500/-

per month. He submits that the court below ought to have

taken the said income. It is also submitted that under the other

conventional heads, appropriate amounts were not granted by

the court below, which is contrary to the law laid down by the

Hon'ble Apex Court.

5. In response to that, learned counsel for the insurance

company submits that the petitioner without filing the cross

(2011) 13 SCC 236

objections or an appeal cannot seek enhancement of the

amount in the appeal filed by the insurance company.

6. Learned counsel appearing for the claimants submits that

the Hon'ble Apex Court in several cases has held that even in

the absence of cross appeal, the court can consider the case of

the claimant and enhance the compensation. He has relied on

the judgement of the Hon'ble Apex Court in Surekha and

others Vs. Santosh and others 2, wherein it is held that the

claimants are entitled to just compensation even though there

is no cross appeal or cross objection, wherein, the High Court

had declined the request of the claimant as there was no cross

appeal. He has also relied on Ramla and others vs. National

Insurance company Limited and others3 and submits that

without there being a cross appeal, the claimant can seek

enhancement of compensation.

2020 ACJ 2156

(2019) 2 Supreme Court Cases 192

7. In this case, the deceased was working as a Mechanic.

According to the claimants, he was earning an amount of

Rs.4,500/- per month. No doubt, there is no evidence on

record about the income of the deceased. However, this court

applying the law laid down by the Hon'ble Apex Court in

Ramachandrappa's case (stated supra) is inclined to take the

income of the deceased at Rs.4,500/- per month.

8. The Hon'ble Apex Court in National Insurance Co. Ltd.

Vs. Pranay Sethi 4 held that while considering the

compensation in cases of death, the future prospects of the self

employed shall also be considered. Having regard to the age

and occupation of the deceased, 40 percent of the income has to

be included as future prospects. As per the decision of the

Hon'ble Supreme Court in Smt.Sarla Varma v Delhi Transport

Corporation5, 50% of the income has to be deducted towards

personal expenses as the deceased was a bachelor. Therefore,

the annual contribution of the deceased to the claimants comes

2017 (6) 170 (SC)

2009(6) SCC 121

to Rs.37,800/- (Rs.3150X12). The relevant multiplier for the age

of the deceased is '17'. Hence, the compensation under the

head of loss of dependency comes to Rs.6,42,000/-/-

(Rs.50,400/-X 17).

9. Further, under the other heads, the court below has

granted meager amounts. Relying on the ratio of Pranay Sethi

(stated supra), the claimants are granted Rs.33,000/- towards

conventional heads.

10. Therefore, the claimants are eligible for the compensation

as below:

      Head                           Compensation awarded

(1) Loss of dependency               Rs.6,42,000

(2) Conventional Heads               Rs. 33,000

Total compensation awarded Rs.6,75,000/-

11. In the result, the Motor Accident Miscellaneous Appeal is

dismissed by enhancing the compensation amount awarded by

the court below from Rs.2,16,0000/- to Rs.6,75,000/- as

hereunder:

(a) The enhanced amount shall carry interest at 7.5% p.a.

from the date of petition till the date of realization.

(b) The claimants shall pay the court fee on the enhanced

amount of compensation.

(c) The insurance company shall deposit the amount

within a period of (8) weeks from the date of receipt of

copy of judgment. On such deposit, claimants are entitled

to withdraw the entire amount without furnishing the

security.