Citation : 2025 Latest Caselaw 3848 Tel
Judgement Date : 12 June, 2025
THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA
M.A.C.M.A.No.176 of 2020
JUDGMENT:
The appellants/claimants filed the present appeal against the
Award and decree passed by the Chairman, Motor Accident Claims
Tribunal-cum-I Additional District Judge, Karimnagar, (hereinafter
referred to 'Tribunal') in M.V.O.P.No.697 of 2012, dated 16.10.2017,
wherein claimants/petitioners had filed the claim petition, seeking
compensation of Rs.8,00,000/- on account of death Sri Lakpathi,
(herein after referred to as 'the deceased') who died in accident occurred
on 07.02.2012.
2. The brief facts of the case are that appellants/claimants earlier
filed M.V.O.P.No.697 of 2012 under Section 166(1)(c) of the M.V.Act,
1988 seeking compensation for the death of the deceased, who died in
the accident alleged to have caused due to rash and negligent manner of
the lorry driver. It is contended that on 07.02.2012, the deceased was
proceeding on his two wheeler Bajaj CT 100 Motor Cycle bearing No.AP-
23-L-8522 and when he reached at the outskirts of Konayapalli Village,
the driver of the Lorry bearing No.AP-15-X-2475 had parked the lorry in
the middle of the road without taking any precautions and without
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switching on the parking lights or indictors. While, the deceased was
proceeding on motor cycle, due to focus of opposite coming vehicles, the
deceased went to the back side of the parked lorry and hit the stationed
lorry, as a result, the deceased fell down on the ground and sustained
grievous injuries all over the body and died on the spot. The Police
registered a case in Crime No.35 of 2012 under Section 304-A of IPC
against the respondent No.1/driver of offending vehicle and seized the
said lorry. The appellants/claimants claimed an amount of
Rs.8,00,000/- as compensation for the death of the deceased under
various heads.
3. The contention of the claimants/appellants before the Tribunal,
was that as on the date of accident the deceased was aged about 35
years and was earning Rs.8,000/- per month by doing business at
Vemulawada temple by selling puffed rice (pelalu) and fried Bengal
gram (putnalu). Due to the said accident, the petitioners lost their
dependency.
4. Before the learned Tribunal, respondent No.1-owner of the lorry
and respondent No.2-driver of the lorry remained ex-parte. Respondent
No.3 - Reliance General Insurance Company Limited, file counter-
affidavit, denying all the averments made in the claim petition, including
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the manner in which the accident took place, age, avocation and income
of the deceased and submitted that driver of the offending lorry bearing
No.AP-15-X-2475 as well as the deceased who was rider Bajaj CT-100
motor cycle bearing No.AP-23-L-8522 both were not holding valid
driving license at the time of accident and the said vehicles were not
road worthy to ply and further contended that the compensation
claimed is excessive and prayed to dismiss the claim petition.
5. Basing on the pleadings and averments made by both the
counsels, the learned Tribunal framed the following issues which reads
as under:
i) Whether the ACCIDENT HAD occurred due to rash and negligent driving of the offending vehicle i.e., Lorry bearing No.AP-15-X-2475 driven by its driver/R.1?
ii) Whether the petitioners are entitled for compensation, If so, what amount and from whom?
iii) To what relief?
6. After perusing the oral and documentary evidences and going into
the entire record and the evidences placed by both the parties, the
learned Tribunal allowed the claim in part and granted compensation of
Rs.6,70,000/- along with interest @ 7% per annum.
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7. Being aggrieved and unsatisfied by the compensation amount
awarded by the learned Tribunal, the present appeal is filed by the
claimants/petitioners on the ground that at the time of the accident, the
deceased was aged 35 years and was doing business in selling the
puffed rice and dried Bengal gram, thereby earning Rs.8,000/- per
month and also doing agriculture, but the learned Tribunal did not
consider the above averments and fixed the income of the deceased at
Rs.5,000/- which is very meager and the learned Tribunal has not
awarded just and fair compensation amount under other heads.
8. Learned counsel for the appellants/claimants submits that there
is no dispute with regard to accident, the injuries sustained by the
deceased and the death of the deceased. During the course of enquiry,
PW1 & PW2 were examined and Exhibits A.1 to A.7 were marked.
Learned counsel further contended that PW1 is the wife of the deceased
who explained the whole incident, but she is not eye-witness. PW2-Sri
Malyala Malliah, who is eyewitness to accident narrated the said
accident and deposed that the accident occurred only due to negligence
of the driver of the offending lorry .
9. It is further contended that the learned Tribunal having accepted
the fact that deceased died due to rash and negligent driving of Lorry,
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but without considering the evidence in proper manner with regard to
income of the deceased, the learned Tribunal has fixed the deceased's
income at Rs.5,000/- per month and also not awarded just
compensation under the various head as per the judgment of Hon'ble
Apex Court in National Insurance Company Limited Vs. Pranay
Sethi and others 1.
10. Learned counsel for the respondent No.3 has supported the
Awarded and submits that after considering the entire evidence
available on record, the learned Tribunal has awarded just
compensation, which needs no interference.
11. None appeared on behalf of respondent No.1 & 2.
12. Heard Sri Mahboob Hussain, learned counsel for the
appellants/petitioners and Sri A.Ramakrishna Reddy, learned counsel
for the respondent No.3- Reliance General Insurance Company Limited.
Perused the material on record.
13. Admittedly, the respondents have not filed cross-appeal against
the Award passed by the learned Tribunal. As such, there is no dispute
1 2017 ACJ 2700
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regarding liability of the respondents, age of the deceased and accident.
The only point arouse before this Court in this appeal is that:
i) Whether the petitioners are entitled for the enhanced compensation, if so, to what extent?
Point No.1:
14. Admittedly, the deceased died due to injuries sustained by him in
the accident occurred on 07.02.2012. The petitioners claimed that the
deceased used to earn Rs.8,000/- per month, however, no income
certificate has been produced and also there is no other documentary
proof such as relevant account books or bank entries in proof of
deceased earning of Rs.8,000/- per month. But looking at the records
available and the averments made by both the learned counsels before
this Court, it is evident that the deceased was doing business in selling
the puffed rice and dried Bengal gram which is neither disputed nor
rebutted. Hence, consider the decision of the Hon'ble Supreme Court in
the case of Latha Wadhwa vs. State of Bihar 2 wherein the Hon'ble
Apex Court held that even when there is no proof of income and
earnings, the income can be reasonably estimated by the Court and can
be assessed considering the ground realities.
2 2001(8) SCC 197
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15. The learned Tribunal fixed the monthly notional income of the
deceased at Rs.5,000/- appears to be reasonable, as the deceased was
un-skilled labourer and the same was admitted by the petitioners, hence
considering the ground realities and facts of the case, this Court do not
find any reason to interfere with the finding of the learned Tribunal in
fixing the monthly income of the deceased at Rs.5,000/-. However, the
Tribunal did not add income under future prospects to the monthly
income of the deceased in terms judgment passed by Hon'ble Supreme
Court in National Insurance Company Limited Vs. Pranay Sethi
and others 3 and also not awarded just compensation under various
conventional heads.
16. In view of the same, this Court is inclined to reassess the
compensation by taking notional income of the deceased at Rs.5,000/-
per month. Apart from that, as per the decision of Hon'ble Supreme
Court in National Insurance Company Limited Vs. Pranay Sethi
and others 4 and considering the age of the deceased as 35 years as per
PME report, an additional 40% of the income has to be added towards
future prospects to the monthly income of the deceased. Therefore, the
monthly income of the deceased would come to Rs.7,000/- (Rs.5,000/- +
3 2017 ACJ 2700
4 2017 ACJ 2700
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Rs.2,000/-). The annual income of the deceased would come to
Rs.84,000/- (Rs.12,600/- X 12) and, out of which, 1/4 has to be
deducted towards the personal expenses of the deceased as there are
five dependants in number. Then the actual annual income would come
to Rs.63,000/- (Rs.84,000/- (-) Rs.21,000/-) for assessing the
compensation.
17. As per the column No.4 of Table prescribed fixed in the judgment
of the Hon'ble Apex Court in Sarla Verma v. Delhi Transport
Corporation 5, and considering the age of the deceased as 35 years, the
appropriate multiplier applicable for the deceased's age is '16'. Thus,
the total loss of dependency to the petitioners would come to
Rs.10,08,000/- (63,000/- x 16) (Annual Income x relevant Multiplier).
18. 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's Judgment (cited supra).
19. Further, considering the appellant No.1 being the wife of deceased,
appellant No.1 is entitled to a sum of Rs.48,400/- under the head of
5 2009 ACJ 1298 (SC)
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'loss of spousal consortium' as per Pranay Sethi's Judgment (cited
supra).
20. Appellant Nos. 2 & 3 being children of the deceased, the appellant
No. 2 & 3 are entitled for compensation to a sum of Rs.96,800/-
(Rs.48,400 x 2) under the head of 'loss of parental consortium', as per
Magma General Insurance Company Limited Vs.Nanu Ram alis
Chuhru Ram 6
21. Appellant Nos.4 & 5 being the parents of the deceased, the
appellant Nos.4 & 5 are entitled for compensation to a sum of
Rs.96,800/- (Rs.48,400 x 2) under the head of 'loss of filial consortium'
as per Magma's Judgment (cited supra)
22. 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."
23. On overall re-appreciation of the pleadings, material on record and
the law laid down by the Hon'ble Supreme Court in the above cited
2018 (18) SCC 130
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decisions. I am of the opinion that the claimants are entitled for
enhancement of compensation as modified and recalculated as above
and given in the table below for easy reference
24. Considering the above assessment made by this Court, appellants
would be entitled to as follows:
i) Annual Income (of the deceased)
Rs.5,000/- X 12 = Rs.60,000/-
ii) Total Annual Income = Annual Income + Future
Prospects (Annual Income X 40%) =
Rs.60,000/- + Rs.24,000/- = Rs.84,000/-
iii) Annual Dependency = Total Annual Income - 1/4
deduction towards personal expenses of the deceased = Rs.84,000/- (-) Rs.21,000/- = Rs.63,000/-
iv) Total Dependency = Annual Dependency x Applied Multiplier = Rs.63,000/- x 16 = Rs.10.08,000/-
v) Claimants' entitlement towards conventional heads = Loss of Estate + Funeral Expenses + loss of spousal consortium + loss of filal consortium + Parental Consortium = Rs.2,78,300/-
Rs.18,150/- + Rs.18,150/- + Rs.48,400 + Rs.96,800 + 96,800 =
Total Rs.12,86,300/-
25. By considering the observation of Hon'ble Apex Court in Nagappa
Vs.Gurudayal Singh 7, the compensation can be awarded more than
the claimed amount". Therefore, the petitioners/ appellants/claimants
2003 (2) SCC 274
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are entitled to the enhanced compensation of Rs.12,86,300/- as
against the awarded amount of Rs.6,70,000/- by the learned Tribunal.
26. Considering the circumstances of the case, the learned Tribunal
has rightly awarded the rate of interest i.e., at 7 % per annum, which
needs no interference. Hence, this Court is of the opinion that the
petitioners/claimants are entitled to interest @ 7 % on the enhanced
amount.
27. Accordingly, the M.A.C.M.A is allowed in part. The claimants are
entitled for an enhanced compensation of Rs. 12,86,300/-, enhancing
the compensation from Rs. 6,70,000/- to Rs. 12,86,300/- (Rupees
Twelve Lakhs Eighty Six Thousand and Three Hundred rupees only)
with interest at the rate @ 7 % 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 a period of
two months from the date of 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
learned Tribunal. However, the petitioners are directed to pay the Deficit
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Court Fee on the enhanced amount within two months from the date of
receipt of a copy of this judgment. There shall be no order as to costs.
28. Miscellaneous petitions, if any are pending, shall stand closed.
_________________________________ NARSING RAO NANDIKONDA, J 12.06.2025 SHA
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