Telangana High Court
The Oriental Insurance Company vs Mr. Laxman Rao, on 3 May, 2024
Author: N. Tukaramji
Bench: N.Tukaramji
THE HON'BLE SRI JUSTICE SUJOY PAUL
AND
THE HON'BLE SRI JUSTICE N. TUKARAMJI
M.A.C.M.A.No.1128 of 2023
JUDGMENT:
(Per Hon'ble Sri Justice N. Tukaramji)
Assailing the quantum of compensation granted in the
decree and order dated 07.09.2015 in M.V.O.PNo.2035 of 2009
passed by the Chairman, Motor Accidents Claims Tribunal-cum-
XVIII Additional Chief Judge-cum-IV additional Metropolitan
Sessions Judge, Hyderabad, the respondent No.2/insurer
preferred this appeal.
2. We have heard Mr. R. Sheetal Kumar, learned counsel for
the appellant/insurer and Mr. T. Bala Mohan Reddy, learned
counsel for the petitioners.
3. For the sake of convenience, the parties are referred to
with their rank before the Tribunal.
4. Briefly stated the relevant facts are that on 05.01.2008
while one Mr. Varun Kumar/deceased was proceeding to his
College i.e. Osmania Medical College on his motorcycle, on the
way a lorry bearing registration No.AP-11V 8404 of the GHMC
(for short, 'the lorry') driven by its driver in rash and negligent
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manner dashed the motorcycle and ran over his head, whereby
caused his instantaneous death. The Police, Nallakunta
registered crime and charge sheeted the driver. The father,
mother and sister pleading that the deceased was 23 years old,
meritorious student and was pursuing his IV Year of the MBBS in
Osmania Medical College and was planning to pursue his
Masters in United States of America. In addition, he was a sports
person and also was conducting coaching classes for the
students for preparing EAMCET examination. Therefore,
pleading that the death has caused their loss of dependency,
claimed compensation of Rs.40 lakhs. The tribunal on considering
the materials on record allowed the petition by granting Rs.40
lakhs with interest at 6% per annum from the date of the petition
till realisation.
5. In appeal, the learned counsel for the respondent
No.2/insurer (for short, 'the insurer') would contend that without
any convincing material the tribunal notionally assessed the
monthly income at Rs.20,000/- which is excessive on any
parameter. Further no proof is brought on to record either to
attest the sports performance or the earnings from tuitions as
stated. Moreover the tribunal failed to deduct personal expenses
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and granted amounts under the conventional heads beyond the
settled judicial pronouncements. Hence prayed for interference.
6. Learned counsel for the petitioners would submit that the
deceased was excelling in academics and securing a seat in
MBBS in Osmania Medical College itself is testimony. Further the
tribunal had considered all relevant facts as to earning capacity of
the deceased and reasonably fixed the notional income at
Rs.20,000/- and the assessment of compensation has been done
in accordance with the propositions laid down by the Courts. As
such, there is no illegality in accounting the compensation.
Therefore, no reasonable ground has been made out in the
appeal.
7. We have carefully considered the submissions and perused
the materials on record.
8. It is not in dispute that the deceased was pursuing IV Year
M.B.B.S. Course in Osmania Medical College and he had
secured up most rank in the entrance examination. However the
material placed before the tribunal are disclosing that there is
nothing on file to show any income out of coaching classes.
Further a Division Bench of the Hon'ble High Court of Andhra
Pradesh in B. Ramulamma and others v. Venkatesh, Bus Union
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and others - 2009 (6) ALT 784 (D.B.) had a similar issue of
B.Tech student and pointed that for final year student of B.Tech
Rs.12,000/- per month would be a reasonable notional income.
However considering the facts that the authority was examining a
situation of 1995 in 2006, academic performance of the deceased
and the probabilities of earning, fixing notional monthly income of
Rs.20,000/- is found reasonable. Thus we proceed to reassess
the compensation in terms of the authorities National Insurance
Company Ltd. vs. Pranay Sethi and others 1 and Sarla Verma and
others vs. Delhi Transport Corporation and another 2.
9. The annual income of the deceased would be of
Rs.2,40,000/-, which is within the taxable limit. Admittedly, the
deceased was bachelor. Hence as per the directives in Pranay
Sethi (supra), half of the income has to be deducted towards
personal living expenses of the deceased, as such the annual
contribution of the deceased would be Rs.1,20,000/-. For the age
and the self employed occupation of the deceased as per the
directives of the Hon'ble Supreme Court in Pranay Sethi (supra)
40% of income has to be added towards future prospects. Thus
(2017) 16 SCC 860
2009 ACJ 1298
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the annual income would be Rs.1,68,000/-. If this sum is
multiplied with the relevant multiplier, as prescribed in the
decision of Sarla Verma (supra), the total amount comes to
Rs.30,24,000/-. This amount would be the compensation for loss
of dependency.
10. In addition, as per the dictum in Pranay Sethi (supra), and
United India Insurance Company Ltd. v. Satinder Kaur @
Satwinder Kaur and others 3 the petitioner Nos.1 and 2 are
entitled for filial consortium at Rs.48,400/- each and Rs.36,300/-
towards loss of estate and the funeral expenses.
11. Consequently, the petitioners are entitled for compensation
of Rs.31,57,100/- (Rupees thirty one lakhs fifty seven thousand
and hundred only) with interest at 7.5% per annum from the date
of the petition till realization. The ratio of apportionment among
the petitioners shall remain in terms of the impugned order. The
respondent No.2/insurer is directed to deposit the compensation
amount within four weeks from the date of receipt of a copy of this
judgment.
12. Accordingly the impugned order stands modified.
2021(11) SCC 780
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13. Resultantly, the appeal is partly allowed. No costs.
As a sequel, pending miscellaneous petitions if any, stands
closed.
______________
SUJOY PAUL, J
_______________
N. TUKARAMJI, J
Date :03.05.2024
CCM
