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2022 Supreme(AP) 722

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
DUPPALA VENKATA RAMANA, J.
The National Insurance Company Limited – Petitioner
Versus
Akula Reddemma – Respondent
M.A.C.M.A. No. 1624 of 2006, Cross-Objections No. 37170 of 2006
Decided On : 12-10-2022

Advocates:
Advocate Appeared:
For the Petitioner: T.S. Rayalu.
For the Respondent: K. Venugopal Reddy.

The compensation awarded by the Tribunal was inadequate and needed to be enhanced as the Tribunal failed to consider compensation on some of the conventional heads and committed an illegality in awarding a meager amount of compensation under the above conventional heads.

Headnote:

MOTOR VEHICLE ACCIDENT - COMPENSATION - QUANTUM - ENHANCEMENT - INJURED SUFFERED TWO GRIEVOUS INJURIES AND ONE CRUSH INJURY - TRIBUNAL FAILED TO CONSIDER COMPENSATION ON SOME OF THE CONVENTIONAL HEADS - TRIBUNAL COMMITTED AN ILLEGALITY IN AWARDING A MEAGER AMOUNT OF COMPENSATION - COMPENSATION ENHANCED FROM RS. 1,40,000/- TO RS. 3,13,400/-.

Fact of the Case:

The claimant, a labourer, sustained two grievous injuries and one crush injury in a road accident due to the rash and negligent driving of the offending lorry. She was hospitalized for 58 days and underwent treatment. The Tribunal awarded her compensation of Rs. 1,40,000/- under various heads, including pain and suffering, medical expenses, permanent disability, and loss of amenities. The claimant filed cross-objections seeking enhancement of compensation, while the insurance company filed an appeal challenging the quantum of compensation.

Finding of the Court:

The court held that the Tribunal failed to consider compensation on some of the conventional heads, such as loss of income during the period of treatment and loss of future earnings. It also found that the Tribunal had committed an illegality in awarding a meager amount of compensation under the above conventional heads. The court further held that the claimant was entitled to a further sum of Rs. 1,73,400/- under the following heads: medical expenses, attendant charges, extra nourishment, loss of amenities, loss of earnings during the period of treatment, and loss of future earnings.

Issues: 1. Whether the compensation awarded by the Tribunal is just and reasonable or needs interference? 2. Whether the compensation awarded by the Tribunal is not in accordance with the principles of law and requires enhancement?

Ratio Decidendi: The court relied on the judgments of the Supreme Court in Raj Kumar vs. Ajay Kumar and Kavita vs. Deepak and Others to hold that the compensation awarded by the Tribunal was inadequate. The court held that the claimant was entitled to compensation under various conventional heads, including loss of income during the period of treatment and loss of future earnings. The court also held that the Tribunal had committed an illegality in awarding a meager amount of compensation under the above conventional heads.

Final Decision: The court dismissed the appeal filed by the insurance company and allowed the cross-objections filed by the claimant in part. The court enhanced the compensation from Rs. 1,40,000/- to Rs. 3,13,000/- with interest at 7.5% per annum from the date of the petition till the date of realization against the respondents 1 and 2 jointly and severally.

JUDGMENT :

DUPPALA VENKATA RAMANA, J.

1. This appeal under Section 173 of Motor Vehicles Act, 1988 (for short ‘M.V. Act’) has been filed by the appellant/Insurer challenging the judgment and award dated 27.02.2006 delivered by the Motor Accidents Claims Tribunal-cum-District Judge, Kadapa in M.V.O.P. No. 308 of 2003 granting compensation of a sum of Rs. 1,40,000/- along with interest @ 7.5% per annum thereon from the date of filing of the petition till the date of deposit of the compensation amount to the claimant on account of injuries sustained by the claimant in a road accident occurred at Kadapa-Rayachoti Main Road on 02.12.2002.

2. For the sake of convenience, the parties are referred to as they are arrayed before the Motor Accidents Claims Tribunal (hereinafter referred to as “the Tribunal”).

3. The factual context of the case is as follows:

    (a) On 02.12.2002 the petitioner and her husband while returning from Kadapa to their village after getting treatment on their Hero Honda motorcycle, the petitioner was the pillion rider and her husband was riding the motorcycle, at about 1.30 p.m. when they reached near Nagireddy’s house, the rider of the motorcycle observing that a DCM lorry was ahead of them, had blown horn and while they were crossing the said DCM lorry, in the meanwhile the offending lorry bearing No. AP-27-T-9558 being driven by its driver, came in opposite direction in a rash and negligent manner and dashed the motorcycle as a result, the petitioner had fallen and sustained crush injury on right leg. She was shifted to the Government Hospital, Kadapa and she took treatment as in-patient from 02.12.2002 to 29.01.2003. The matter was reported to the Police alleging that the accident took place due to the rash and negligent driving of the offending lorry driven by its driver and based on the F.I.R. lodged by the husband of the petitioner/injured, a case in Cr. No. 105/2002 under Section 337 IPC was registered. After investigation of the case, charge sheet was submitted against the driver of the offending vehicle having committed the offence punishable under Section 338 IPC and Section 134(a)(b) read with 187 of M.V. Act. Later the injured filed an application claiming compensation of Rs. 3,50,000/- before the Tribunal on account of the injuries sustained by her in the said road accident.

(b) The 1st respondent/owner of the offending vehicle did not contest the matter. The 2nd respondent/Insurance Company filed written statement. It was pleaded that the petitioner is put to strict proof of involvement of the lorry bearing No. AP-27-T-9558 in the accident and sustained injuries. It was further pleaded that the husband of the petitioner in an effort to overtake the vehicle going ahead, suddenly increased the speed of the motorcycle without noticing the opposite vehicle. Even on seeing it by the driver of the offending vehicle, he cannot save from the accident. The husband of the petitioner suddenly passed the motorcycle in between the two lorries, as such, the carrier which is the last end of the motorcycle came into contact, as a result the petitioner had fallen. It is further pleaded that the petitioner is put to strict proof that the driver of the offending vehicle possessed valid driving licence on the date of accident. The petitioner had taken treatment in a Government Hospital at free of cost. However, in any event, the quantum of compensation claimed, is excessive. It was further pleaded that it was not liable to pay any compensation arriving out of the said accident.

(c) On the above pleadings, the Tribunal framed three issues as under:

(1) Whether the petitioner received injuries in motor vehicle accident on 02.12.2002 due to rash or negligent driving of the 1st respondent’s lorry bearing No. AP-27-T-9558 driven by its driver?

(2) Whether the petitioner is entitled for compensation, and if so, to what amount and

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