IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
U. DURGA PRASAD RAO, G. RAMAKRISHNA PRASAD, JJ.
Reliance General Insurance Company - Appellant
Versus
Smt. Borra Gowri Ratna Kumari, W/o Late Venkata Madana Mohana Rao - Respondent
M.A.C.M.A.No.665 of 2018
Decided on : 11-07-2022
MOTOR VEHICLE ACCIDENT - COMPENSATION - LIABILITY - DEPENDENCY - DEDUCTION OF PERSONAL EXPENSES - LEGAL REPRESENTATIVES - INTERPRETATION OF SECTIONS 166(1)(C) AND (D) OF THE MOTOR VEHICLES ACT, 1988.
Fact of the Case:
A motor vehicle accident resulted in the death of the deceased, leading to a claim for compensation by his wife and children. The insurance company contested the claim, arguing that the deceased was responsible for the accident and that the claim was excessive.
Finding of the Court:
The court found that the lorry driver was responsible for the accident and that the deceased was not at fault. It also held that the deceased's gross monthly salary was Rs.32,285/- and that the deduction towards his personal expenses should be 1/3rd, instead of 1/4th, as the 2nd claimant, a married daughter, was not a dependant.
Issues: 1. Whether the lorry driver was responsible for the accident or the deceased was at fault? 2. Whether the deceased's gross monthly salary was Rs.32,285/-? 3. Whether the deduction towards the deceased's personal expenses should be 1/3rd or 1/4th?
Ratio Decidendi: 1. The court relied on the evidence of an eye witness and the charge sheet filed against the lorry driver to conclude that the lorry driver was responsible for the accident. 2. The court considered Ex.X2-Salary Certificate, which showed the deceased's gross salary for the month prior to his death, and Ex.X3-Service Register, which showed his enhanced pay, to determine that the deceased's gross monthly salary was Rs.32,285/-. 3. The court referred to the decisions in Ramanbhai Prabhatbhai and Sarla Verma to hold that the 2nd claimant, a married daughter, was a legal representative of the deceased and entitled to compensation, but that she was not a dependant and therefore the deduction towards the deceased's personal expenses should be 1/3rd.
Final Decision: The court allowed the appeal to the extent of modifying the compensation awarded by the lower Tribunal. The total compensation payable to the claimants was fixed at Rs.32,01,627/- with costs and interest @ 7.5% p.a. from the date of the claim petition till the date of realization.
JUDGMENT :
U.DURGA PRASAD RAO, J.
The challenge in this appeal at the instance of the Insurance Company is to the order dated 27.11.2017 in M.V.O.P.No.162/2014 passed by the learned Chairman, MACT-Cum-VII Additional District and Sessions Judge, West Godavari, Eluru awarding compensation of Rs.20,92,204/-to the claimants, who are the wife and children of one Borra Venkata Madana Mohana Rao, who died in a motor vehicle accident on 07.10.2013, when he was proceeding from Samisrigudem to Tanuku on his motor cycle bearing No.AP 37VK 7581 along with one Matta Nagendra as pillion rider and when they crossed NH-16 road to enter Tanuku town from Undrajavaram Junction side, the lorry bearing No.WB 23C 2745 dashed the motor cycle causing the death of the said Mohan Rao. Alleging that the lorry driver was responsible for the accident and due to the death of the deceased, his family lost the breadwinner, claimants filed M.V.O.P.No.162/2014 claiming Rs.26.00 lakhs as compensation against respondents 1 to 3 who are driver, owner and insurer respectively of the offending lorry.
2. The respondents 1 and 2 remained ex parte and the 3rd respondent/Insurance Company contested the O.P. Its main contention is that the deceased himself was responsible for the accident, as he suddenly tried to cross the NH-16 road and therefore, the respondents are not answerable to the claim. It is further contended that the claim is highly excessive and exorbitant. The Tribunal having regard to the evidence on record, negatived its contention and awarded compensation as stated supra.
Hence, the instant appeal.
3. Heard arguments of Sri Gudi Srinivasu, learned counsel for appellant, and Sri Kambhampati Ramesh Babu, learned counsel for the respondents 1 to 4/claimants.
4. Severely fulminating the award, learned counsel for the appellant would firstly argue that the Tribunal erred in fastening liability on the lorry driver without having regard to the facts and evidence, as they would clearly depict that the fault in the accident squarely lies with the deceased himself, inasmuch as, he suddenly tried to cross the NH-16 road unmindful of the vehicles passing on either side and hit the lorry. Thus the trial Court ought to have held the deceased was responsible for the accident and dismissed the claim of the claimants.
(a) Nextly, he argued, Tribunal erred in accepting the gross salary of the deceased as Rs.32,285/-basing on Ex.X2-Salary Certificate though Ex.X3-Service Register shows that the pay of deceased was Rs.27,500/-w.e.f. 01.08.2013 and thereby compensation was unduly escalated.
(b) Learned counsel further argued that the Tribunal erred in deducting 1/4th of the income of the deceased towards his personal expenditure on the premise that his dependants were four in number, though, the 2nd respondent-claimant is a married daughter and not a dependant of the deceased. The Tribunal therefore ought to have deducted 1/3rd, instead of 1/4th, to arrive at his net contribution to the family. He placed reliance on Oriental Insurance Company Limited v. P.Sathyavathamma, MANU/AP/0677/2009 = 2010 (3) ALT 433. He thus prayed to allow the appeal.
5. Per contra, learned counsel for the respondents 1 to 4 Sri Kambhampati Ramesh Babu would argued that the Tribunal having regard to the evidence on record, particularly that of PW2 – eye witness, has held that the lorry driver was responsible for the accident and therefore, it is preposterous to contend that the deceased himself was at fault. Nextly he would argue that the Tribunal while fixing the monthly income of the deceased, has rightly taken into consideration Ex.X2-Salary Certificate which depicts the gross salary of the deceased for the month of September, 2013 i.e., previous month of his death. He would further submit that on the other hand, Ex.X3-Service Register shows only the enhanced pay of the deceased as Rs.27,500/- w.e.f. 01.08.2013. Since the said amount is only ‘basic pay’ without other allowances, the said amount of Rs.27
Gujarat State Road Transport Corporation, Ahmedabad v. Ramanbhai Prabhatbhai
AI
The main legal point established in the judgment is the application of legal principles from relevant judgments to determine just and reasonable compensation in motor vehicle accident cases.
The insurance company is liable to pay compensation at the first instance and recover the same from the owner of the offending vehicle.
Legal representatives, including married daughters and major sons, are entitled to claim compensation under the M.V. Act, emphasizing a broad interpretation of dependency and representation.
The judgment emphasizes that income tax deductions must be based on actual tax paid and ex gratia amounts cannot be deducted from compensation unless stipulated by law.
Court emphasized 'just compensation' principles, adjusting compensation for loss of dependency and conventional heads, thereby enhancing the award significantly to reflect adequate and fair remunerat....
The court established that all legal representatives suffering from a victim's death in a motor vehicle accident are entitled to compensation, emphasizing a broad interpretation of dependency.
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