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AP High Court Holds CA Student's at Rs 15,000, Awards Rs 25.38 Lakh
The has significantly enhanced the compensation awarded to the family of a 23-year-old Chartered Accountancy student who died in a road accident, raising it from Rs 8.80 lakh to Rs 25.38 lakh. Justice Tuhin Kumar Gedela, presiding over a , held that the failed to adequately consider the deceased's educational qualifications and bright future while assessing his . The Court fixed his monthly income at Rs 15,000, factoring in , and applied a of 18.
A Bright Future Cut Short
On , Dawood Hussain was travelling from Vijayawada to Hyderabad on his motorcycle when an APSRTC bus, driven rashly and negligently, struck him from behind near Chityala Bus Station. He succumbed to his injuries the same day. His parents and four brothers filed a claim petition seeking Rs 12 lakh compensation. The deceased had passed the Common Proficiency Test (CPT) conducted by the and was pursuing the Integrated Professional Competence Course (IPCC) at the , with aspirations of becoming a Chartered Accountant.
Tribunal's Conservative Assessment
The found the bus driver negligent based on his admission through a . However, it assessed the deceased's monthly income at just Rs 8,000, considering his qualifications but discounting future potential. After deducting 50% towards and applying a of 18, the Tribunal calculated at Rs 8.64 lakh, adding Rs 10,000 for and Rs 5,000 for —totaling Rs 8.80 lakh.
High Court's Intervention: Recognizing Professional Potential
The High Court found this assessment inadequate, noting that the Tribunal had not given due weight to the deceased's pursuit of a professional course. Relying on the 's decision in Navjot Singh v. Harpreet Singh (2020), where Rs 20,000 per month was awarded to an MBA student, and the judgment in United India Insurance Company Limited v. Susubelli Bapuji (2024), the Court held that a CA student's cannot be equated to an unskilled worker's minimum wage. The Court observed:
“This Court would construe that the deceased was pursuing his Chartered Accountancy course at , which substantiates that the deceased is having a bright future.”
It fixed the monthly income at Rs 15,000, added 40% towards as per National Insurance Company Limited v. Pranay Sethi (2017), and enhanced : at Rs 40,000 per claimant (six claimants, total Rs 2.40 lakh), Rs 15,000, and Rs 15,000.
Enhanced Compensation Breakdown
| Head | Calculation | Amount | |------|-------------|--------| | Annual income | Rs 15,000 × 12 | Rs 1,80,000 | | (40%) | Rs 1,80,000 × 40/100 | Rs 72,000 | | Annual income after | Rs 1,80,000 + Rs 72,000 | Rs 2,52,000 | | Deduction 50% | Rs 2,52,000 × 1/2 | Rs 1,26,000 | | (18) | Rs 1,26,000 × 18 | Rs 22,68,000 | | (6 claimants) | Rs 40,000 × 6 | Rs 2,40,000 | | | | Rs 15,000 | | | | Rs 15,000 | | Total | | Rs 25,38,000 |
Final Ruling and Implications
The appeal filed by the was dismissed. The Court directed the Corporation to deposit the enhanced compensation of Rs 25.38 lakh within eight weeks, after deducting any amount already deposited. No interest was awarded on the enhanced portion. The claimants were directed to pay the deficit court fee on the amount exceeding the claimed Rs 12 lakh. The judgment reinforces the principle that a student's must be realistically assessed, especially when pursuing professional courses, and that of compensation should align with the Pranay Sethi guidelines.
