1983 Supreme(AP) 485
Andhra Pradesh High Court
Judges : RAGHUVIR SRIRAMULU, RAMASWAMY
Erukulapati Lakshmisaraswathi - Appellant
Versus
State Bank of India - Respondent
Decided On : 12-19-83
The main legal point established in the judgment is the determination of compensation for motor accident victims based on income and loss of consortium, and the establishment of a mandatory procedure for claimants to open bank accounts to receive compensation.
Headnote:
Compensation - Motor Accident - The court held that the claimants were entitled to higher compensation than awarded by the Tribunal, based on the deceased's income and loss of consortium. The court also directed the claimants to open bank accounts to receive the compensation, establishing this as a mandatory procedure for all Tribunals.
Fact of the Case:
The deceased, a vegetable vendor and farmer, died in a motor accident. The claimants, including the deceased's father, wife, and three minor children, sought higher compensation than awarded by the Tribunal.
Finding of the Court:
The court found that the compensation awarded by the Tribunal was unjustified and held that the claimants were entitled to a higher amount. The court also directed the claimants to open bank accounts to receive the compensation, establishing this as a mandatory procedure for all Tribunals.
Issues: The main issue was the determination of the compensation payable to the claimants for the death of the deceased in a motor accident.
Ratio Decidendi: The court's decision was based on the deceased's income, loss of consortium, and the mandatory procedure for claimants to open bank accounts to receive compensation, which was established as a rule for all Tribunals.
Final Decision: The appeal was allowed, and the claimants were entitled to higher compensation. The court also directed the claimants to open bank accounts to receive the compensation, establishing this as a mandatory procedure for all Tribunals.
( 1 ) THIS appeal relates to the compensation payable on the death of a vegetable vendor and farmer who is aged about 35 years. He was involved in an accident on the high way of Tenali- nandivelugu. The accident occurred on 9th February, 1963, between 9-30 and 10 A. M. The deceased was riding over a cycle and was hit from behind and three days later he died.
( 2 ) HIS father, wife and three mino children claimed Rs. 34,900 towards compensation. The Tribunal awarded Rs. 9. 400 hence the appeal by the claimants.
( 3 ) IT is seen that the deceased was owning land and from out of the vegetables grown in his land, be was vending them and making his livelihood. As he was only 35 years old, his yearly income was determined as Rs. 3,000. From the above facts it is seen from any stand point of view. , awarding of compensation of Rs. 9,400 cannot be justified.
( 4 ) FOLLOWING the principles laid down in the decision reported in Polavarapu somarajam and others v. A. P. S. R. T, corporation loss of consortium would be rs. 4,000 and the balance of the amount even on the basis of the income of the deceased was Rs, 3,000 as accepted by the lower Tribunal, and applying the multipller ard guiding principles in the above decision, they will be entitled for more than the amount that is claimed. Therefore, we have no hesitation to hold that the Tribunal ought to have granted Rs 34,900 as claimed by the claimants. The appeal is restricted only to rs. 22,500. Therefore we have no hesitation to hold that the appellants are entitled to Rs. 22, 500 with interest from the date of appeal i. e. , 4th May, 197.
( 5 ) AGAINST the State Bank of India, Tenali who is a financier, the claim was dismissed. We confirm th same though the Bank is again made a respondent in this appeal.
( 6 ) THIS court has been voi ing its agony and concern on the persistent rumours about the malpractices percolating in the adjudi- catora process by the Tribunals constituted to determine compensation to the victims of motor accidents or other claims under Land acquisition Act, etc and its adverse affect on the efficacy of adjudicatory process and of the confidence by the litigant public in the courts and the rule of law as a whole. As a solution, this court in Polavarapu somaraiyam and others and Srisaliam devasthnam v. Bhavani Pramilamma, has envisaged the procedure, directing the claimants to open an account in either a nationalised bank or the nearest post office and to furnish the number of the account to the Tribunal The Tribunal were directed to credit the amount to their credit, except the costs so that the fruits of the result of the adjudication would be reaped by the claimants and thereby the effect on vital veines of the adjudicatary efficacy would be remedied. We are informed that the directions had their solitary effect and the tribunals are adhering to the same as a rule. Therefore it has become incumbent to all the Tribunals concerning determinations of the compensation, be they Motor accidents Claims Tribunals or Civil Court s dealing under the acquisition or requisition act, etc. to follow the above procedure so that the persistent criticism against the courts would be effectively silenced Under these circumstances, it must be held that the procedure indicated by this court had transformed into a rule or practice to be followed by all the Tribunals as a matter of law to direct the parties concerned to open an account in a nationalised bank or the nearest post office convenient to them and to furnish the number of the account to the Tribunal or court and the court or the tribunal to deposit their respective claims amounts to the said accounts Accordingly we hold that this solitary rule or procedure shall bd followed by all the Tribunal concerned. In the view we direct that Tribunnl shall direct the first and fifth appellants to open savings Bank account either joint account or individual accounts as per their convenience in the nearest nationalised ba