IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, NYAPATHY VIJAY, JJ.
APSRTC, Rep. by its Managing Director and Vice Chairman – Petitioner
Versus
Chalamchala Venkata Ramana Murthy S/o Krishna Murthy – Respondent
Motor Accident Civil Miscellaneous Appeal No. 2308 of 2017
Decided On : 30-08-2024
Motor Vehicles - Compensation - Motor Vehicles Act, 1988 - Sections 173 - The court interpreted the provisions of the Motor Vehicles Act regarding compensation for death due to negligent driving, emphasizing the need for just compensation and proper deductions for personal expenses.
Fact of the Case:
The claimants sought compensation for the death of a teacher in a bus accident, alleging negligent driving by the bus driver. The Tribunal awarded compensation, which the appellants challenged, claiming errors in income assessment and deductions.
Finding of the Court:
The court upheld the Tribunal's finding of negligence on the part of the bus driver and found the compensation awarded to be inadequate, necessitating adjustments for personal expenses and future prospects.
Issues: Whether the compensation awarded was just and fair, and whether the deductions for personal expenses were correctly applied.
Ratio Decidendi: The court ruled that deductions for personal expenses should be based on the number of dependents, and future prospects must be considered in compensation calculations.
Result: The appeal was dismissed, and the compensation was increased to Rs. 42,19,680 with 9% interest.
JUDGMENT :
RAVI NATH TILHARI, J.
1. Heard Sri M. Siva Prasad, learned counsel representing Sri M. Solomon Raju, learned standing counsel for APSRTC for the appellants and Sri Venkateswarlu Sanisetty, learned counsel for the respondents-claimants.
2. This appeal under Section 173 of the Motor Vehicles Act, 1988 (for short “the M.V Act”) was filed by the Andhra Pradesh State Road Transport Corporation (for short, the Corporation) and another challenging the award dated 09.01.2017, in M.V.O.P. No. 53 of 2016, passed by the Motor Vehicles Accident Claims Tribunal-cum-Principal District Judge, Ongole.
3. The 1st respondent is the husband of the deceased. The 2nd and 3rd respondents are the son and daughter respectively of the deceased. The 4th respondent is the mother of the deceased. The 4th respondent-mother also died pending the appeal and was substituted by the legal representatives respondents 6 to 8.
4. The 5th respondent is the driver of the A.P.S.R.T.C. Bus.
5. The claimants filed M.V.O.P. No. 53 of 2016 claiming compensation of Rs.50,00,000/- for the death of Annaluri Sri Lakshmi.
6. The case of the claimants is that the deceased met with the accident dated 06.12.2015 at about 6.30 a.m. at Post Office Centre, Kandukur, due to rash and negligent driving of the driver of the RTC Bus bearing No. AP 27Z 0129 of Chirala Bus Depot within the limits of Kandukur Town police station. The deceased was Post Graduate M.A. English and B.Ed and was working as Teacher. The age of the deceased was said to be 35 years.
7. The appellant Nos. 2 and 3 remained ex-parte before the Tribunal.
8. The 1st appellant filed counter denying the allegations and also the age, avocation and the income of the deceased as also rash and negligent driving of the driver of the bus. It was submitted that the accident occurred only due to rash and negligent driving of the deceased. Violation of the policy conditions that the deceased was not wearing helmet was also pleaded. The appellants were not liable to pay the compensation.
9. The Tribunal framed the following issues:
2. Whether the petition is bad for non-joinder of the owner and insurer of the Moped bearing No. AP 27 AW 4690?
3. Whether the petitioners are entitled for compensation? If so, to what amount and against whom?
4. To what relief?”
10. On behalf of the claimants, PWs. 1 to 3 were examined and Exs.A.1 to A.12 were marked. On behalf of the respondents, RW-1 was examined and no documents were marked.
11. The Tribunal recorded the finding that the accident took place only due to rash and negligent driving of the R.T.C. Bus driver. There was no contributory negligence on the part of the deceased.
12. On the point of compensation amount, the age of the deceased was held as 35 years. She was working as Primary In-charge in Sri Chaitanya School Techno Curriculum, Pamur Road, Kandukur for the last five years prior to her death. The gross salary of the deceased was taken as Rs.20,000/- per month and after deducting the professional tax, the monthly income was determined as Rs.19,800/- considering the Ex.A.8 salary certificate and original pay slip Ex.A.11 and Ex.A.12 for the months of October and November, 2015 respectively. The multiplier of 16 at the age of 31 to 35 was applied. The amount determined, after deducting 1/3rd towards personal expenses of the deceased came to Rs.24,34,400/-. To the said amount, an amount of Rs.10,000/- towards funeral expenses, Rs.20,000/- each for claimants 2 and 3 towards loss of
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Compensation for wrongful death must consider future prospects and appropriate deductions based on the number of dependents.
The court established that deductions for personal expenses must consider the number of dependents, and conventional heads should be enhanced based on established precedents.
Compensation for motor vehicle accidents must reflect just and equitable principles, recognizing future earnings potential, with interest rates aligned to judicial precedents.
The court emphasized the necessity of awarding just and fair compensation under the Motor Vehicles Act, considering future prospects and adjusting interest rates appropriately.
The court clarified that claims under Section 163-A of the Motor Vehicles Act are limited to no-fault liability, while Section 166 allows for claims based on negligence, impacting the compensation aw....
The main legal point established in the judgment is that the compensation awarded under Section 166 of the Act should account for loss of dependency, future prospects, consortium, estate, and funeral....
Claimants under the M.V. Act are entitled to just and fair compensation, which cannot be limited to the amount claimed, and benefits from compassionate appointments do not affect compensation.
Court determined that the compensation for deceased must reflect her academic merit and future earnings potential, thereby enhancing the award significantly.
The court established that future prospects should be included in compensation calculations, and deductions for personal expenses should be adjusted based on the number of dependents.
Income tax must be deducted from the deceased's income when calculating compensation under the Motor Vehicles Act.
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