IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. MALLIKARJUNA RAO, J.
United India Insurance Co. Ltd. – Petitioner
Versus
Bathineni Krishna Murthy S/o Kotaiah – Respondent
Motor Accident Civil Miscellaneous Appeal No. 1922 of 2012
Decided On : 04-11-2022
Motor Vehicles Act - Compensation - Section 166 - [MOTOR VEHICLES ACT, 1988, Section 166] - The court awarded compensation under Section 166 of the Motor Vehicles Act, 1988, based on the deceased's age and earnings, following the principles laid down by the Apex Court in Sarla Verma vs. Delhi Transport Corporation, Royal Sundaram Alliance vs. Mandala Yadagari Goud, Sube Singh vs. Shyam Singh, Reshma Kumari vs. Madan Mohan, and National Insurance Company Ltd. vs. Pranay Sethi. The court held that the age of the deceased, not the parents' age, is the factor to determine the multiplier to be applied for calculating the compensation amount. The court also considered the deceased's earnings and future prospects, as well as the deduction towards personal expenses, in line with the principles established by the Apex Court.
Fact of the Case:
The Claimant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, for a compensation amount of Rs.5,00,000/- on account of the death of his son in a motor vehicle accident. The Tribunal awarded compensation of Rs.4,39,000/- to the Claimant with interest @ 6% per annum from the date of petition till the date of realization.
Finding of the Court:
The court found that there was no serious dispute about the death of the deceased due to injuries sustained in the accident and the respondent's liability to pay compensation. The court also held that the Tribunal's assessment of the deceased's age, earnings, and deduction towards personal expenses was in line with the legal principles established by the Apex Court.
Issues: The main issue was whether the Tribunal awarded a just and reasonable compensation amount or needed reduction.
Ratio Decidendi: The court applied the legal principles established by the Apex Court in Sarla Verma vs. Delhi Transport Corporation, Royal Sundaram Alliance vs. Mandala Yadagari Goud, Sube Singh vs. Shyam Singh, Reshma Kumari vs. Madan Mohan, and National Insurance Company Ltd. vs. Pranay Sethi to determine the compensation amount under Section 166 of the Motor Vehicles Act, 1988.
Final Decision: The court dismissed the appeal, finding it devoid of merits, and upheld the compensation amount awarded by the Tribunal.
JUDGMENT :
T. MALLIKARJUNA RAO, J.
1. Aggrieved by the order dated 06.11.2009 in M.V.O.P. No. 500 of 2007 passed by the Chairman, Motor Accidents Claims Tribunal-cum-I Additional District Judge, Ongole the 2nd respondent-M/s. United India Insurance Company Ltd. Nellore, represented by its branch manager, Nellore, has filed this appeal questioning the quantum of compensation awarded by the Tribunal.
2. The parties will be referred to as arrayed in the M.V.O.P. for convenience.
3. The Claimant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, for a compensation amount of Rs.5,00,000/- on account of the death of his son-Bathineni Anil, in a motor vehicle accident that occurred on 13.04.2004. The said Bathineni Anil would hereinafter be referred to as 'the deceased.
4. On the factual side, on 13.04.2004, the deceased travelled with a load of brandy bottles from Hyderabad to Ongole in a lorry bearing registration No. A.P. 16 U 0023, at about 5.15 AM, a lorry bearing No. A.P. 31 T 5502, driven by the driver-3rd respondent, came in the opposite direction at high-speed rashly and negligently dashed against the lorry in which Claimant was travelling. As a result, the deceased, who sat in the lorry's cabin, sustained fatal injuries and died on the spot.
5. Respondents 1 and 2 filed their respective written statements.
6. Respondent No. 3 adopted the written statement filed by the first respondent. It is contended in the written statements that the driver of the lorry bearing No. A.P. 16 U 0023 drove rashly and negligently, without blowing the horn, and dashed the lorry bearing No. A.P. 31 T 5502. There was no negligence on the part of the 3rd respondent. The driver of the lorry bearing No. A.P. 16 U 0023 is only responsible for the accident. It also submitted that the said lorry driver did not have a valid and effective driving licence, a valid permit to ply or a valid insurance policy. It is further contended that the Claimant is not dependent upon the deceased's income.
7. Based on the pleadings, the Tribunal formulated relevant issues. During the trial, PWs. 1 and 2 got examined, marked Exs.A.1 to A.5. On behalf of the respondents, they let in no oral evidence; however, marked a copy of the policy as Ex.B.1.
8. On appreciation of oral and documentary evidence, Tribunal awarded compensation Rs.4,39,000/- to the Claimant with interest @ 6% per annum from the date of petition till the date of realization.
9. Heard the counsel for the 2nd respondent/appellant and the counsel for the claimant/1st respondent. Perused the material on record.
10. Learned counsel for the 2nd respondent, the appellant herein, has contended that the Claimant did not produce any documentary evidence to prove the income of the deceased. However, the Tribunal erred in considering the monthly earnings of the deceased at Rs.3,000/-. It is further contended that as the deceased was unmarried, the age of the deceased's parents is relevant in the choice of the multiplier, and the learned Tribunal erred in deducting 1/3rd of the monthly earnings of the deceased. The Tribunal should have deducted 50% of the deceased's monthly earnings as it is a case of a bachelor's death.
11. Learned counsel for the Claimant has supported the Tribunal's findings and prayed to dismiss the appeal.
12. The point for consideration is whether the Tribunal awarded a just and reasonable compensation amount or needs reduction.
13. After reading the evidence on record and considering submissions made on either side, this Court is of the view that there is no serious dispute about the death of the deceased due to injuries sustained in the accident. There is no dispute about the accident happening and the respondent's liability to pay compensation. The claimants have not preferred any appeal or cross-objections questioning the finding and observations made by the Tribunal. The learned counsel for the 2nd respondent addressed his argument only regarding the quantum of the compensation amo
Lakshmi Devi and Others vs. Mohammad Tabber
National Insurance Company Ltd. vs. Pranay Sethi
The court clarified the standards for fixing compensation in motor vehicle accident cases, emphasizing proper income assessment and dependency considerations per established legal precedents.
The appropriate income, future prospects, and multiplier for calculating compensation under the Motor Vehicles Act were determined based on legal principles established in previous cases.
The court's decision emphasized the importance of accurately determining the deceased's income for calculating compensation, relying on bank statements and considering fluctuations and deductions.
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