SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2001 Supreme(AP) 1028

Andhra Pradesh High Court
Judges : M.NARAYANA REDDY, R.M.BAPAT
Oriental Insurance Co., Limited, Kurnool - Appellant
Versus
G.Seshamma - Respondent
C.M.A.No.2829/01
Decided On : 09-19-01
Advocates Appeared :
Mr. Kota Subba Rao,Mr. S. Ashok Anand Kumar

Headnote:MOTOR VEHICLES ACT, 1988, Sec. 166 - CIVIL PROCEDURE CODE, Or.41, R.37 - Using of reasonable multiplier - Stated - Deceased, Executive Engineer died in motor accident - Tribunal awarded compensation of Rs.18,01,608/- lakhs by using multiplier 13 - Insurance Company contends that compensation is exorbitant and multiplier used, totally wrong - Tribunal has power to apply reasonable and relevant multiplier depending upon facts of each case - In computing multiplier persons, who like professionals, can earn for all their lives and there is no retirement, multiplier can be increased approximately by 1 or 2 points - Appropriate multiplier in this case is 12 instead of 13 as used by Tribunal - Compensation modified accordingly to Rs.16,47,792/- deducting 1/3rd towards personal expenses.

       Court can enhance compensation only if claimant filed Cross-objections and not otherwise.

RAMESH MADHAV BAPAT, J.

( 1 ) THIS appeal is filed by the Oriental Insurance company Limited aggrieved by the award passed by the Motor Accidents Claims tribunal-cum-District Judge, Kurnool in OP no. 946 of 1999 awarding compensation of rs. 18,01,608/- with interest at the rate of 9% p. a. from the date of petition till the date of payment.

( 2 ) THE main contention raised by the learned Standing Counsel Mr. Kola Subba rao appearing on behalf of the appellant that the compensation paid to the claimants in the aforesaid OP is exorbitant. Moreover, the multiplier used by the Tribunal is totally wrong. The multiplier used by the Tribunal is 13 as against 10. 45. As per the manner in which the accident was concerned, it is not disputed by the learned Standing Counsel for the appellant. Even the age of the deceased as 45 is not disputed by the learned standing Counsel for the appellant. While opposing the arguments of the learned standing Counsel for the appellant, the learned Counsel for the respondents/ claimants submitted at the Bar that the compensation awarded by the Tribunal is correct. The learned Counsel further submitted that the higher multiplier used by the Tribunal considering the prospects which the deceased could have got it if he would not have died in the motor accident. Therefore, it is submitted by the learned counsel for the respondents that the appeal filed by the Insurance Company be dismissed.

( 3 ) THE learned Counsel for the respondents relied upon a ruling reported in jyothi Kaul and others v. State of M. P and another, AIR 2000 SC 3582, in which their lordships were pleased to hold that the principles of multiplier depends upon facts and circumstances of each case. Deceased was the Executive Engineer in Irrigation department, who was aged about 50 years at the time of his death and in good health. Considering his chances of promotion, his increments and what he would have received after retirement, compensation is computed. Predecessor of deceased lived for more than 80 years. The multiplier of 13 applied by the Tribunal based on sound reasoning.

( 4 ) THE learned Counsel for the respondents further submitted at the Bar that the deduction of 1/3rd income towards personal expenses of the deceased is always not advisable. It can be even less than 1/3rd. We are not in agreement with the submission made by the learned Counsel for the respondents. It has been the practice in all the reported cases that 1/3rd income is to be deducted for the expenses of the deceased while computing the compensation payable to the legal representatives of the deceased. The learned Counsel for the respondents further submitted that the multiplier used by the Tribunal is correct. In order to substantiate his contention, he relied upon a ruling reported in APSRTC v. Patan Shamshad Begum and others, 2000 (1) ALT 117 (DB), in which the Division bench of this Court was pleased to hold that the Claims Tribunal has power to apply the reasonable and relevant multiplier in determining compensation under the head "loss of dependency" unlike in mathematical calculations depending upon the facts of each case. We agree with the principle laid down by the Division Bench of this court. But the learned Standing Counsel appearing for the appellant could not place any material on record, which would weigh in our minds to apply the higher multiplier than the table of multiplier given in Bhagwan das v. Mohd. Arif a case reported in 1987 (2) ALT 137. The learned Counsel further relied upon a ruling reported in U. P State road Transport Corporation and others v. Trilok Chandra and others, (1996) 4 SCC 362, in which their Lordships held that second Schedule suffers from several defects, Courts and Tribunals cannot go by the ready reckoner. It can only be used as a guide. Therefore, the learned Counsel submitted that the Second Schedule can be used in finding of the appropriate multiplier.

( 5 ) THE learnd Counsel further relied upon a ruling reported in




Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top