A. Kalavathi, W/o. Bhaskar, aged 50 years, Household and A. Raja Gangu, W/o. Sayanna, aged 70 years, Household and V. Gayathri, W/o. Srinivas, aged 29 years, Household and G. Uma, W/o. Ajay, aged 27 years, Household and A. Srikanth, S/o. Bhaskar, aged 25 years, Occ: Nil V. The New India Assurance Company Limited, Divisional Office, Zilla Parishad Office, Subhash Nagar, Nizamabad - 503 002 and V Shekar, S/o. Sayanna, aged 22 years, R/o. Velmal Village, Nandipet Mandal, Nizamabad District

MACMA/4123/2008

AI Insights

This case involves an appeal by the claimants against the award and decree dated 30-10-2006 by the Motor Accident Claims Tribunal, which granted a compensation of Rs.6,66,168 for the death of the deceased, Andhe Bhaskar, in a road accident. The accident occurred on 15-07-2002 when an auto, in which the deceased was a passenger, collided with a Swaraz Mazda vehicle. The claimants, being the family members of the deceased, sought a higher compensation of Rs.15,00,000, arguing that the Tribunal had undervalued the loss of dependency and other conventional heads of damages. The insurance company contested the claim, citing non-joinder of necessary parties and argued that the claimed amount was excessive. The High Court, after re-evaluating the evidence and applying the appropriate legal principles, increased the compensation amount significantly, acknowledging the deceased's role as a government employee and the financial dependency of his family on his income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798638 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 02-02-2023
• Assessment Year: misc
• Other Referred Cases: Smt. Sarla Varma v Delhi Transport Corporation
• Laws Referred To: M.V Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: KOTA RAO
• Assessee Lawyers: P REDDY
• Keywords: Compensation; Death; Insurance; Motor Accident; Negligent driving
• Section: 173

Judgement Text

" [ 3230 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENW THREE PRESENT THE HONOURABLE SMT JUSTICE LALITHA KANNEGANTI M.A.C.M.A.No:4123 OF 2008 Appeal filed under Section 173 of M.V Act., against the order dated 30-10-2006, passed in O.P. No. 1290 of 2OO2 on the file of the Court of the Motor Accidents Claims Tribunal Vlll Additional District Judge, at Nizamabad. Between: 1 . A. Kalavathi, W/o. Bhaskar, aged 50 years, Household, 2. A. Raja Gangu,, W/o. Sayanna, aged 70 years, Household, 3. V. Gayathri,, W/o. Srinivas, aged 29 years, Household, 4. G. Uma,, W/o. Ajay, aged 27 years, household, 5. A. Srikanth,, S/o. Bhaskar, aged 25 years, Occ: Nil All are Fl/o. H.No. 1 1 -1-2140, New NGO's Colony, Subhashnagar, Nizamabad. ...APPELLANTS/PETITION ERS AND 1. The New lndia Assurance Company Limited, Divisional Offie, Zilla parishad Office, Subhash Nagar, Nizamabad - 503 002 2. V Shekar,, S/o. Sayanna, aged 22 years, Ryo. Velmal Village, Nandipet Mandal, Nizamabad District. ...RESPONDENTS/RESPONDENTS Counsel for the Appellants: SRI P. LAXMA REDDY Counsel for the Respondent No. 'l: SRI KOTA SUBBA RAO The Court delivered the following: JUDGMENT / THE HONOURABLE SMT JUSTICE LALITHA KANNEGANTI M.A.C.M.A.No.4123 ol 2OOI JUDGMENT: This appeal is preferred by the claimants aggrieved by the award and decree dated 30-10-2006 in O.P.No.1290 ol 2002 on the file of the Motor Accident Claims Tribunal-cum-Vlll Additional District Judge, Nizamabad. 2. Heard learned counsel for the appellants-claimants Mr. P. Laxma Reddy and learned Standing Counsel for respondent No.1- lnsurance Company Mr. Kota Subba Rao and perused the record. 3. The brief facts are that on 1 5-07-2002 at about 1 1-1 5 am, while the deceased Andhe Bhaskar was travelling as passenger in the auto bearing No.AP 25U 2617 along with two other passengers from Kanteshwar to Armoor and when it reached near Vijaya Sai Hotel, Mubharaknagar, the driver of the auto drove it in a rash and negligent manner and dashed against Swaraz Mazda bearing No.AP 25U 3006, which is coming in opposite direction, as a result, said Bhaskar has sustained injuries and died on the spot and other passengers have received injuries. The deceased was aged 56 years and earning a sum of Rs.13,370lper month as Dy.tVRO in the Office of tVlRO, Makloor. The claimants being wife, mother, daughters and son of the deceased filed the said OP, ctaiming compensation of Rs. i 5,00,0001 for the death of the deceased in the accident. j I LK, J MA CMA.No.4123 of 2008 4. The respondent-lnsurance Company filed counter denying the manner of accident, rash and negligent driving of the driver of the crime vehicle resulting the death of the deceased. lt is stated that the driver, owner and the insurer of Swaraz Mazda are necessary parties to the claim petition and the petition is liable to be disrnissed due to non- joinder of necessary parties and the amount claimed is highly excessive and exorbitant. 5. The Tribunal on analyzing the oral and documentary evidence has granted compensation of Rs.6,66,168/- with interest at 7 .5o/o per annum from the date of petition till the date of deposit. 6. Learned counsel for the appellants-claimants submits that the husband of the 1't claimant died in the accident on 15-07-2002 and at the time of accident, he was aged 55 years 5 months old and the claimants are 5 in number i.e., wife, mother, two daughters and one son. He submits that the deceased was a Government employee and earning an amount of Rs.13,7631 per month, but the Tribunal has taken his net salary of Rs.10,175/- and instead of applying the multiplier '11' the Tribunal has applied '8' and further deducted 1/3d instead of 1i4th toward personal expenses as the claimants are 5 in number ahd granted an amount of Rs.6,51 ,168/- towards loss of dependency. He further submits that the compensation under the conventional heads was not granted and only a sum of Rs.15,000/- was granted towards non-pecuniary damages. Learned counsel submits that for the loss of a person aged about 55 years and is a Governmenl Employee, the Tribunal has awarded very meager 2 LK, J MA CMA.No.4123 of 2008 amounts and it is not.iust and reasonable compensation. He submits that the entire family is depending upon the income of the deceased. 7. Learned Standing Counsel for the respondent-lnsurance Company submits that as the deceased was aged about 56 years old at the time of accident, as per the judgment of the Apex Court in Smt.Sarla Varma v Delhi Transport Corporationl, the multiplier is '9' and even as per the settled law, an amount of 10% has to be deducted towards tax. He submits that the Tribunal after considering all the aspects has granted lust and reasonable compensation 8. ln this factual backdrop, the point that arises for determination is whether the compensation awarded by the Tribunal to the claimants is just and proper. 9. As per Ex.A-7-salary certificate, the monthly income of the deceased was at Rs.13,7631 and after deductions, the Tribunal has taken at Rs.10,175l-. As the deceased was aged about 55 years 5 months as on the date of his death, the multiplier ''1 1\" has to be applied, then the loss of dependency comes to Rs13,43,100/- Taking into consideration the age of the deceased, 15% future prospects i'e , Rs2,01,456/- are granted to the claimants, which comes to Rs.15,44,556/- and if 1/4th amount i.e., Rs.3,86,141/- is deducted, it comes to Rs.11,58,415/-. As ther:e are 5 dependants, compensation towards consortium i.e, Rs.44,0001x5=2,20,0001- is granted. Towards loss of estate and funeral expenses, an amount of Rs.33.0001 is ., 2009(6) SCC 121 LK, J irA CMA.ito.4123 of 20Oa granted to the claimants. Thus, in total, the compensation of Rs.14,11 ,4151- is granted to the claimants. 10. Leamed Standing Counsel for the lnsurance Company submits that 10% of the income tax has to be deducted even as per the law laid down by the Apex Court in Smt Sarla Varma's case (supra), wherein it was observed that when the actual salary is taken into consideration, the income tax has to be deducted at 10%. 8ut the Tribunal as well as this Court has taken the monthly salary of the deceased after deductions ie., Rs.10,175/-. ln view of the same, this Court is not inclined to deduct income tax from the compensation amount that is anived at. 11. ln the light of the above discussion, the appellants-claimants are entitled for compensation under the following heads; 4 1. Loss of dependency 2. Future prospecls 3. Deduction at 1/4th 4. Loss of consortium 5. Loss of estate & Funeral expenses Rs.13,43,100/- Rs. 2,01,4561 Rs.15,214,556 -Rs.3,86,1411 Rs. 11,58,415/- + Rs. 2,20,000/- + Rs. 33,000/- Total Rs. 14,11,415/- LK, J MA CMA No 4123 of 2008 12. ln the result, the Appeal is par y allowed enhancing the compensation amount awarded by the Tribunal from Rs.6,66,16g1 to Rs.14,11,4151-. (a) The enhanced amount shall carry interest at 7.5o/o per annum from the date of petition till the date of realization. (b) The respondenlinsurance company shall deposit the compensation within a period of 8.weeks from the date of receipt of a copy of this judgment. On such deposit, the claimant is permitted to withdraw the compensation without fumishing any security. 13. Miscellaneous petitions, if any pending in this appeal shall stand closed 5 To, karl ,t I //TRUE COPY// 1. The Motor Accidents Claims Tribunal Vlll Additionat Nizamabad. (with records, if any) 2. One CC to SRt P LAXMA REDDY, Advocate tOpUCl 3. One CC to SRl. KOTA SUBBA RAO, Advocate [OpUC] 4. Two CD Copies Sd/. P. CH. NAGABHUSHAMBA ASSISTANT REGISTRAR SECTI N OFFICER District Judge, at +-- HIGH COURT DATED: 0210212023 JUDGMENT MACMA.No.4123 of 2008 THE APPEAL IS PARTLY ALLOWED :.,, .1$i S l-a i ci. i I .) 0 5 lilAY z[In il t Ci;l OE 5 P .J IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENW THREE PRESENT THE HONOURABLE SMT JUSTICE LALIHA KANNEGANTI M.A.C.M .A.No:,1 123 0F 2008 Between: 1. A. Kalavathi, Wo. Bhaskar, aged S0 years, Household, 2. A. Raja Gangu,, Wo. Sayanna, aged 70 years, Household, 3_ V. Gayathri,, W/o. Srinivas, aged 29 years, Household, 4. G. Uma,, Wlo. Ajay, aged 2Z years, household, 5. A. Srikanth,, S/o. Bhaskar, aged 25 years, Occ: Nil All are Rt/o. H.No. 11_1_2t40, New NGO,s Colony, Subhashnagar,. Nizamabad. AND ...APPELLANTS/PET|TIoNERS 1 The New rndia Assurance- company Limited, Divisionar office, Zira parishad of f i ce, S u bha sh rua ga r, t r izi ma-oid, _-6iji oiji'' , M,il:il,[,;]f;FjJ?jlL?# ed 22 years, R/o. Verma r Vilase, Na nd ipet ...RESPONDENTS/RESPONOENTS Appear fired under section r73 0f M.V Act., against the order dated 30-10-2006, passed in o'p No. 1290 0f 2002 0n the fire oi the court of the Motor Accidents Claims Tribunal Vlll Additional District Judge, at N2amabad. ORDER: This appeal coming on for. hearing and upon perusing the grounds of appear' the Judgment and Decree of the Low& c\"rrt Iro the materiar papers in the case and upon hearino the a;.gurnsnls of SRI p. f-eXn fn REDDY, Advocate for the Appellants and SRt xO,-rn Sue'en neb, aJr\"*iJ\"rihe nesponoent ruo. r This Court doth Order and Decree as follows: 1 That the MACMA be and hereby is parfly allowed; 2. fhat the amount awarded' Oy ttre frlLr.irr from Rs.6,66,168t to R.s 14'11,4r5l- (Rupees Fourteen Lar