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2023 Supreme(AP) 1068

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. MALLIKARJUNA RAO, J.
United India Insurance Co. Ltd. – Petitioner
Versus
R.L. Narasaiah @ R.L. Narasaiah Chowdary S/o Lingam Naidu – Respondent
M.A.C.M.A. No. 125 of 2014, M.A.C.M.A. No. 565 of 2022
Decided On : 02-03-2023

Advocates:
Advocate Appeared:
For the Petitioner: Challa Srinivasa Reddy.
For the Respondent: T.C. Krishnan.

Headnote:

Motor Vehicles Act - Compensation Claim - Section 166 (1) (c) - 1989 - [MOTOR VEHICLES ACT] - [SECTION 166 (1) (c)] - The court held that the accident occurred due to the rash and negligent driving of the offending vehicle’s driver. The insurance company was directed to pay and recover the compensation from the 1st respondent despite holding that the offending vehicle’s driver had a fake driving licence. The quantum of compensation awarded by the Tribunal was enhanced from Rs.16,95,050 to Rs.24,16,968.

Fact of the Case:

The claimants filed an application under Section 166 (1) (c) of the Motor Vehicles Act, 1989, claiming compensation of Rs.20,00,000/- on account of the death of R. Hema Kumar in a motor vehicle accident. The tribunal held that the accident occurred due to the rash and negligent driving of the offending vehicle’s driver and awarded compensation of Rs.16,95,050 payable by respondents 1 and 2 jointly and severally.

Finding of the Court:

The court found that the accident occurred due to the rash and negligent driving of the offending vehicle’s driver. The insurance company was directed to pay and recover the compensation from the 1st respondent despite holding that the offending vehicle’s driver had a fake driving licence. The court also enhanced the compensation from Rs.16,95,050 to Rs.24,16,968.

Issues: The issues considered by the court were: 1. Whether the accident occurred due to the rash and negligent driving of the offending vehicle’s driver. 2. Whether the insurance company was justified in directing the insurance company to pay and recover the compensation from the 1st respondent despite holding that the offending vehicle’s driver had a fake driving licence. 3. Whether the quantum of compensation awarded by the Tribunal was just and reasonable and required modification.

Ratio Decidendi: The court held that the accident occurred due to the rash and negligent driving of the offending vehicle’s driver. It also found that the insurance company was justified in directing the insurance company to pay and recover the compensation from the 1st respondent despite holding that the offending vehicle’s driver had a fake driving licence. The court also concluded that the quantum of compensation awarded by the Tribunal was just and reasonable and required modification.

Final Decision: The appeal preferred by the second respondent was dismissed, and the appeal preferred by the claimants was allowed by enhancing the compensation from Rs.16,95,050 to an amount of Rs.24,16,968 with interest at 7.5% per annum as awarded by the Tribunal. The respondents were directed to deposit the balance compensation amount, if any, after excluding the amount deposited, within two months of receipt of a copy of this order. The claimants were entitled to the apportionment as per the ratio made by the Tribunal. There was no order as to costs in both appeals.

JUDGMENT :

T. MALLIKARJUNA RAO, J.

1. Challenging the award and decree dated 24.07.2013 in M.V.O.P. No. 333 of 2008 passed by the Chairman, Motor Accidents Claims Tribunal-cum-IV Additional District Judge, Tirupati, (for short “the tribunal”) the second respondent, M/s. United India Insurance Company Limited, Divisional Manager, Tirupati, Chittoor District, has preferred the appeal, vide M.A.C.M.A. No. 125 of 2014, questioning the liability fastened on it. On the other hand, the claimants have preferred the appeal, vide M.A.C.M.A. No. 565 of 2022, seeking enhancement of compensation.

2. For convenience, the parties will hereinafter be referred to as arrayed in the M.V.O.P.

3. The claimants had filed an application under Section 166 (1) (c) of the Motor Vehicles Act, 1989, claiming compensation of Rs.20,00,000/- on account of the death of R. Hema Kumar (hereinafter referred to as “the deceased”) in a motor vehicle accident that occurred on 13.04.2008.

4. The claimant’s case is that on 13.04.2008 at 10.45 a.m., the deceased was a rider of the two-wheeler bearing R. No. TN 20 AF 9383 and his friend, Jyothi, as a pillion rider, were proceeding from Uthukottai to Kalki Bhagavan Ashramam near Varadaiahpalem. When they reached near Tirupati-Mudaliar mango garden, Palagunta, on Sathyavedu- Varadaiahpalem main road, a lorry bearing R.No. ABW 4819, hereinafter referred to as “the offending vehicle”, driven by its driver in a rash and negligent manner, came in the opposite direction dashed against the motorcycle, due to which the deceased and Jyothi fell on the road, sustained multiple injuries and died on the spot. Based on the complaint, a case in crime No. 14 of 2008 for the offence under Section 304-A of I.P.C. against the driver of the offending vehicle. The deceased was 27 years old, hale and healthy. It is further averred that the deceased did his B.B.A. degree course at Madras University and diploma course in C.S.C. computer education in computer application and also underwent a training course in Honours Diploma in Computer Hardware in Government of India Small Scale Industries Development Organisation, Chennai and he was working as System Administrator at Prathyusha Institute of Technology and Management, Aranvoyalkuppal and drawing a salary of Rs.16,275/- and was contributing the same to the welfare of the claimants. The claimants are the parents of the deceased.

5. The first respondent, the owner of the offending vehicle, appeared through his counsel and filed a written statement denying the material averments, including the age, occupation and earnings of the deceased; the offending vehicle was insured with the second respondent, and the policy was in force as of the date of the accident. At the time of the accident, the rider of the motorcycle drove it in a rash and negligent manner at high speed and dashed against the vehicle. The accident occurred due to the rash and negligent manner on the part of the deceased’s motorcycle. It is further contended that the motorcycle was not insured by any insurance company, and there was no policy by the accident date. Therefore, the claimants are not entitled to compensation.

6. The second respondent, the insurer of the offending vehicle, filed its counter on similar lines to the counter filed by the first respondent and further submitted that the offending vehicle was plied without any permit and registration in violation of the terms and conditions of the policy and prayed to dismiss the claim petition.

7. Based on the pleadings, the Tribunal framed relevant issues. To substantiate their claim, on behalf of the claimants, P.Ws.1 to 3 got examined and marked Exs.A.1 to A.13; on behalf of the respondents, RWs. 1 to 3 got examined and marked Exs.B.1 to B.4; and also marked Exs.X.1, X.1(a) and X.2 through the witnesses.

8. After appreciation of the evidence on record, the Tribunal, while answering issue No. 1, held that the accident in question occurred due to the rash and negligent driving of th

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