2010 Supreme(AP) 639
2011 (3) ALD 586
High Court of Andhra Pradesh
GHULAM MOHAMMED
United India Insurance Company Limited represented by its Senior Divisional Manager
Versus
Akbar Khan & Another
MACMA No. 674 of 2004
Decided on : 22-07-2010
2011 (3) ALD 586
High Court of Andhra Pradesh
GHULAM MOHAMMED
United India Insurance Company Limited represented by its Senior Divisional Manager
Versus
Akbar Khan & Another
MACMA No. 674 of 2004
Decided on : 22-07-2010
For the Petitioner:Ravi Shankar Jandhyala, Advocate.
For the Respondents:A. Madhava Reddy, Advocate.
Headnote:
Motor Vehicles Act, 1988 – Accident – Grievous hurt – Compensation granted – Liability of Insurance company – When liable – Petition was filed for claimant was employed as driver on the lorry in the first respondent and is a workman within the meaning of the Act – While he was proceeding as driver on the said lorry from Thandur towards Hyderabad with load of Thandur stones in the lorry and on reaching near Yenkepally gate, at Culvert No. 211, a RTC Bus coming from opposite direction being driven by its driver in a rash and negligent manner dashed against his lorry resulting which, applicant received grievous injuries and was shifted to Hospital, for treatment and the applicant received fracture of right leg both bones, amputation of left leg big toe and other grievous injuries – Applicant stated that said accident occurred out of and during the course of employment – He stated that he was drawing wages at the time of accident – It is also stated that the owner of the RTC bus is a necessary party for the proceedings and it is stated that the Insurance Company was neither informed by the applicant nor by the first respondent, which indicates clear collusion between them to cause loss to Insurance Company and the amount claimed is also excessive, exorbitant – Held, It is no doubt true that accident occurred due to rash and negligent driving of the driver of accident lorry, first respondent and the appellant herein, being owner and insurer respectively of the lorry are jointly and severally liable to pay compensation to the claimant – It is also no doubt true that the deceased was working as driver on the lorry and getting salary of Rs. 4,000/-per month – While the doctor examined on behalf of second respondent-Insurance Company assessed it around 25% to 30% and both doctors opined that it will be difficult for the applicant to drive a vehicle with these injuries – But the Commissioner wrongly taken the loss of earning capacity as 100% - Hence, loss of earning capacity should be taken as 40% and the Commissioner for the purpose of calculation taken the wages of the claimant at Rs. 3,175/-out of that the disability of 40% if deducted, the net amount comes to Rs. 1,270/-( 3,175 x 40/100). The total amount entitled by the claimant comes to Rs. 1,67,602/- (1,270 x 60/100x 219.95) – Reducing the amount of compensation granted by the Commissioner – However, the amount already withdrawn by the claimant cannot be recovered – As far as the rate of interest is concerned, counsel appearing for the appellant contended that the rate of interest granted by the Tribunal at 9% per annum, from the date of petition till the date of payment is on high side and requested to reduce the same – Civil Miscellaneous Appeal is allowed in part.
1. United Insurance Company is the appellant who filed the appeal challenging the award and decree passed in WC No. 55 of 2002 dated 22.12.2003 on the file of the Commissioner for Workmens’ Compensation and Assistant Commissioner of Labour – III, Hyderabad in WC No. 55 of 2002 dated 22.12.2003, in granting compensation of Rs. 4,20,345/- for the injuries suffered by the claimant.
2. The brief facts of the case are as follows:
The claimant stated that he was employed as driver on the lorry bearing No. AP 13 T 3801 in the first respondent and is a workman within the meaning of the Act. On 20.2.2002 while he was proceeding as driver on the said lorry from Thandur towards Hyderabad with load of Thandur stones in the lorry and on reaching near Yenkepally gate, at Culvert No. 211, a RTC Bus bearing No. AP 10Z 4478 coming from opposite direction being driven by its driver in a rash and negligent manner dashed against his lorry resulting which, the applicant received grievous injuries and was shifted to Osmania General Hospital, Hyderabad for treatment and the applicant received fracture of right leg both bones, amputation of left leg big toe and other grievous injuries. The police at Vikarabad Police Station registered a case in Crime NO. 30 of 2002 under Section 337 of IPC. The applicant stated that the said accident occurred out of and during the course of employment. He stated that he was drawing wages of Rs. 4,000/-per month and he was aged about 22 years at the time of accident. Therefore, he claimed Rs. 5,00,000/- as lumpsum compensation against the first respondent-owner of the lorry and also against the second respondent-Insurance Company.
3. The first respondent-owner of the lorry bearing No. AP 13 T 3801 admitted that the applicant was employed by him about one month prior to the accident and the accident occurred on 20.2.2002 and the applicant was aged 22 years and he is aware of the accident and visited the applicant and he stated that the lorry was insured with the second respondent-Insurance Company.
4. The Second respondent-Insurance Company filed its counter denying the averments in the petition and submitted that the applicant was not employed by the first respondent-owner of the lorry, to drive the vehicle. It is also stated that the owner of the RTC bus is a necessary party for the proceedings and it is stated that the Insurance Company was neither informed by the applicant nor by the first respondent, which indicates clear collusion between them to cause loss to the Insurance Company and the amount claimed is also excessive, exorbitant.
5. On behalf of claimants, he himself examined as AW-1 and Exs A1 to A8 were marked. On behalf of respondents none were examined but Ex. D1 insurance policy was marked.
6. On the basis of the above pleadings, the following issues were settled for trial.
1. Whether the applicant Sri Akbar Khan met with an accident on 20.2.2002 while he was driving the vehicle bearing No. AP 13 T 3801 in the employment of first opposite party as driver and sustained injuries in the accident which arose out of an in the course of his employment?
2. If yes, what is the percentage of physical disability and the consequent loss of earning capacity?
3. who are liable to pay compensation to the applicant? And
4. what is the amount of compensation entitled by the applicant.
7. On consideration of the oral and documentary evidence, the Commissioner came to the conclusion that since the accident occurred due to rash and negligent driving of the driver of the accident lorry, the respondents 1 and 2 being owner and insurer respectively of the lorry, are jointly and severally liable to pay the compensation to the claimant. In order to determine the compensation, the Commissioner taken into consideration of the G.O.Ms.No. 30 LET & F (Lab II) dated 27.7.2000 wherein the Government of Andhra Pradesh has fixed the Minimum Rates of Wages, for employees working in the employment of public motor transpo