Citation : 2025 Latest Caselaw 1889 Tel
Judgement Date : 7 February, 2025
THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA
M.A.C.M.A.No.525 of 2020
JUDGMENT:
The appellants/claimants filed the present appeal against the
Award and decree passed by the Chairman, Motor Accident Claims
Tribunal (District Judge), Khammam, (hereinafter referred to
'Tribunal') in M.V.O.P.No.343 of 2017, dated 26.12.2019.
2. The brief facts of the case are that appellants/claimants
earlier filed M.V.O.P.No.343 of 2017 under Section 166 of the
M.V.Act, 1988 seeking compensation for the death of the deceased
i.e., mother of the appellants/claimants, who died in the accident
alleged to have caused due to rash and negligent manner of the
JCB driver while demolishing the compound wall. Learned counsel
for the appellants/claimants submits that, on 25.12.2015 at about
04.00 p.m., the deceased was standing near the compound wall,
however, the driver of the JCB without taking proper care
demolished the compound wall resulting which the compound wall
fell on the deceased and the deceased died on the spot. The Police
registered a case, vide Crime No.291/2015, under Section 304(A) of
IPC against the driver and owner of the JCB. The
appellants/claimants claimed Rs.10,00,000/- for the above death
of the deceased under various heads, as compensation.
3. Before the Tribunal, respondent No.1 (owner of JCB) and
respondent No.2 (Driver of the JCB) remained exparte. Respondent
No.3 filed a counter-affidavit denying all the allegations made in the
petition.
4. After going into the entire material placed on record and the
evidences placed by both the parties, the Tribunal allowed the
claim in part and granted compensation of Rs.4,90,000/- along
with interest @ 7.5% per annum.
5. Being aggrieved by the compensation amount awarded by
the Tribunal, the present appeal is filed assailing the same on
the ground that deceased was working as coolie and earning
Rs.9,000/- per month, but the Tribunal without considering the
deceased occupation has fixed the income of the deceased at
Rs.4,000/- per month which is meager and the same is
contrary to law, evidence on record. The Tribunal has not
awarded interest from 13.03.2019 to 26.12.2019 on the
compensation awarded is without any reason and the Tribunal
ought to have awarded interest since the date of petition to its
realization and further argued that the Tribunal ought not have
computed the payment of amount of Rs.1,00,000/- which is
paid by the owner of the neighbor house.
6. Learned counsel for the appellants/claimants further
contended that the Tribunal has examined the PW2 who is eye-
witness to the accident and come to conclusion that accident
occurred due to rash and negligence on the part of driver of the
JCB and also due to account of lack of forewarning. However,
while granting compensation to the appellants/claimants, the
Tribunal has failed to follow the guidelines of the High Court
and Hon'ble Supreme Court as well as settled legal position.
Learned counsel for the appellants/claimants relied on the
judgment passed by the Hon'ble Supreme Court in Reliance
General Insurance Comp. Ltd vs Shashi Sharma & Ors 1
regarding payment of amounts as ex-gratia.
7. Learned counsel for the appellants/claimants would further
submit that without any basis, the Tribunal fixed the deceased's
AIR 2016 SC 446
total income as Rs.5,000/- per month, on the ground that the
appellants/claimants have not produced the Income Certificate of
the deceased and further contended that the Tribunal has not
awarded just compensation under different heads; and therefore,
the amount awarded by the Tribunal is very meager and
unjustifiable.
8. Learned Standing Counsel appearing for respondents submits
that after considering the evidence available on record, the Tribunal
has awarded just compensation, which needs no interference.
9. The finding of the Tribunal with regard to the manner in
which the accident took place has become final, as the respondents
did not choose to challenge the same.
10. The only point arises in this appeal is only with regard to the
monthly income of the deceased and the entitlement of enhanced
compensation, as the respondent have not raised any objection
with regard to age, avocation of the deceased or the place of the
accident
11. Admittedly, the deceased died due to accident and the
deceased was aged about 45 years as per postmortem report
(Ex.A4). PW2, who is the eye-witness to the accident has narrated
the incident before the Tribunal. The evidence of eye witness
coupled with findings of final investigation clearly establishes rash
and negligence on the part of the driver of the JCB. Since, deceased
was self-employed and working as 'coolie, the claimants could not
produced the Income certificate to substantiate her claim. In this
regard, it is imperative to look into the settled law laid down by the
Hon'ble Supreme Court in Latha Wadhwa vs. State of Bihar 2
held that even when there is no proof of income and earnings, the
income can be reasonably estimated and assessed regarding the
ground realities.
12. In so far as the quantum of compensation is concerned,
and for considering the quantum of compensation, it is necessary
to ascertain the actual income of the deceased. The
appellants/claimants stated that the deceased was earning
Rs.9,000/- per month by doing coolie, but the Tribunal fixed the
monthly income of the deceased at Rs.4,000/-, which is very
meager and in the absence of any proof of income, considering the
deceased age as 45 years and deceased avocation as coolie. It is not
2001(8) SCC 197
in dispute that deceased was working as coolie. Hence considering
the ground realities and that the women of age of 45 years who is
hale and health would obviously would earn Rs.250/- per day and
the monthly income would be Rs.7,500/-. Hence, the deceased
income can be notionally taken as Rs.7,500/-. Apart from that, as
per the decision of Hon'ble Supreme Court in National Insurance
Company Limited Vs. Pranay Sethi and others 3 and considering
the age of the deceased as 45 years, additional 25% of the income
would be added towards future prospect to the monthly income of
the deceased. Therefore, the monthly income of the deceased would
come to Rs.9,375/- (Rs.7,500/- + Rs.1,875/-). The annual income
of the deceased would come to Rs.1,12,500/- (Rs.9,375/- X 12)
and, out of which, 1/3 has to be deducted towards the personal
expenses of the deceased as the dependants are two in number.
Then the actual annual income would come to Rs.75,000/-
(Rs.1,12,500/- (-) Rs.37,500/-). As per the column No.4 of
schedule fixed in the judgment of the Apex Court in Sarla Verma
v. Delhi Transport Corporation 4, and the age of the deceased
being 45 years, the appropriate multiplier applicable for the
2017 ACJ 2700
2009 ACJ 1298 (SC)
deceased's age is '14'. Thus, the total loss of dependency would
come to Rs.10,50,000/- (75,000/- x 14).
13 The appellants/claimants are further entitled to Rs.18,150/-
(Rs.15,000/- + 10% + 10%) towards loss of estate and Rs.18,150/-
(Rs.15,000/- + 10% + 10%) towards funeral expenses. as per
Pranay Sethi (supra).
14. Further, considering the fact that appellants/claimants being
son and daughter of the deceased is entitled to a sum of
Rs.48,400/- each i.e., to a sum of Rs.96,800/- (2 x 48,400) towards
loss of parental consortium, as per Pranay Sethi (supra).
15. As rightly held by the Tribunal, that Rs.1,00,000/- was
received by the appellants/claimants from the owner of the
compound wall (house owner) and not paid by the owner of the
vehicle. Therefore, there is no obligation on the part of respondent
No.3 to reimburse such amount to the owner of the house, hence
Rs.1,00,000/- will be deducted from the compensation amount and
the judgment which is relied upon by the appellants in National
Insuance Co.Ltd v. Bindender and others 5 is of not much help to
2020 (2) ALD 14 (SC)
the appellants as the facts being totally different with that of the
present case on hand, I do not see any error committed by the
Tribunal in deducting the said amount as the said amount are
received consequent to the said accident which led to fatality of the
deceased.
16. In Sarla Verma's case (cited above), the Hon'ble Apex
Court, while elaborating the concept of 'just compensation'
observed as under:
"Post compensation is adequate compensation which is fair and
equitable on the facts and circumstances of the case, to make good
the loss suffered as a result of the wrong, as far as money can do
so, by applying, the well settled principles relating to award of
compensation. It is not intended to be a bonanza, largesse or source
of profit."
17. On overall re-appreciation of the pleadings, material on record
and the law laid down by the Hon'ble Supreme Court in the
aforesaid cited decisions. I am of the definite opinion that the
claimants are entitled to enhancement of compensation as modified
and recalculated as above and given in the table for easy reference
18. Considering the above assessment made by this Court,
appellants would be entitled to as follows:
i) Annual Income (of the deceased)
Rs.7,500/- X 12 = Rs.90,000/-
ii) Total Annual Income = Annual Income + Future
Prospects (Annual Income X 25%) =
Rs.90,000/- + Rs.22,500/- = Rs.1,12,500/-
iii) Annual Dependency = Total Annual Income - 1/3 deduction towards personal expenses of the deceased = Rs.1,12,500/- (-) Rs.37,500/- = Rs.75,000/-
iv) Total Dependency = Annual Dependency x Applied Multiplier = Rs.75,000/- x 14 = Rs.10,50,000/-
v) Claimants' entitlement towards conventional heads = Loss of Estate + Funeral Expenses + + Parental Consortium = Rs.18,150/- + Rs.18,150/- + Rs.96,800/- = Rs.1,33,100/-
Total: Rs.11,83,100
vi) Already amount received by appellant (-) 1,00,003/-
Total Rs.10,83,097/-
19. Thus, the appellants/claimants are entitled to the enhanced
compensation of Rs.10,83,097/- as against the awarded amount of
Rs.4,90,000/- by the Tribunal.
20. Considering the circumstances of the case, the Tribunal has
rightly awarded the rate of interest at 7.5 % per annum and the
same needs no interference by this Court. Except coming to the
aspect of disallowing of the interest for the period of 13.03.2019 to
26.12.2019, as seen from the Award there is no reason cited why
the said interest part for the said period was disallowed. In the
absence of any reason, the same has to be restored back. Hence,
this Court is of the opinion that the petitioner is entitled for interest
for the said period.
21. Thus, the appellants/claimants are entitled to the enhanced
compensation of Rs. 10,83,097/- as against the awarded amount
of Rs.4,90,000/- by the Tribunal.
22. Hence, the claimants are entitled for an enhanced
compensation of Rs. 10,83,097/-. Accordingly, the M.A.C.M.A is
allowed, enhancing the compensation from Rs.4,90,000/- to Rs.
10,83,097/- (Rupees Ten Lakhs Eighty Three Thousand and Ninty
Seven rupees only) with interest at the rate of 7.5% p.a. on the
enhanced amount from the date of petition till the date of
realization. The respondents are directed to deposit the said
amount together with costs and interest after giving due credit to
the amount already deposited, if any, within two months from
receipt of a copy of this judgment. The compensation amount shall
be apportioned among the appellants/claimants in the same
manner and ratio as ordered by the Tribunal. There shall be no
order as to costs.
16. Miscellaneous petitions, if any are pending, shall stand
closed.
_________________________________ NARSING RAO NANDIKONDA, J 07.02.2025 SHA
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