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2024 Supreme(AP) 894

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
A.V. RAVINDRA BABU, J.
Cholamandalam Ms General Insurance Co. Ltd. – Appellant
Versus
B. Shahnaz W/o B. Shabbir @ Basha – Respondent
Motor Accident Civil Miscellaneous Appeal No. 256 of 2017
Decided On : 24-06-2024

Advocates:
Advocate Appeared:
For the Appellant : Kota Subba Rao.
For the Respondent: B.S. Reddy.

IMPORTANT POINT
Compensation for minors in motor vehicle accidents should consider notional income and legal precedents to ensure just compensation.

Headnote:

Compensation - Motor Vehicle Accident - M.V. Act, 1988 Sections 163A, 166 - The court interpreted the provisions for compensation in motor vehicle accidents, emphasizing the need for just compensation while considering the notional income of minors and the impact of inflation on compensation amounts.

Fact of the Case:

The claimants sought compensation for the death of a 13-year-old boy in a motor vehicle accident caused by negligent driving. The Tribunal awarded Rs.4,65,000, which was contested by the insurance company as excessive.

Finding of the Court:

The court upheld the Tribunal's finding of negligence by the driver and the validity of the compensation awarded, but found the amount excessive and reduced it to Rs.3,10,000 based on established legal principles.

Issues: Whether the Tribunal's award of compensation was excessive and whether the driver was negligent in causing the accident.

Ratio Decidendi: The court affirmed the need for just compensation while adjusting the awarded amount based on the deceased's age, notional income, and applicable legal precedents.

Result: The appeal was allowed in part, reducing the compensation from Rs.4,65,000 to Rs.3,10,000.

JUDGMENT :

A.V. RAVINDRA BABU, J.

1. Challenge in this M.A.C.M.A. is to the award, dated 09.11.2015 in M.V.O.P. No. 69 of 2014, on the file of the Motor Accidents Claims Tribunal-cum-VIII Additional District Judge, Chittoor (“Tribunal” for short) whereunder, the Tribunal dealing with a claim of compensation made by the claimants for a sum of Rs.4,00,000/- with regard to the death of the B.Mohammad Siddiq @ Basha (hereinafter will be referred to as “deceased”) in a motor vehicle accident occurred on 02.12.2013 at 4.45 p.m. awarded a sum of Rs.4,65,000/- towards compensation.

2. The parties to this M.A.C.M.A. will hereinafter be referred to as described before the Tribunal for the sake of convenience.

3. The case of the petitioners in M.V.O.P. No. 69 of 2014, according to the averments set out in the claim before the Tribunal, in brief, is that:

    The petitioner Nos. 1 and 2 are the parents and the 3rd petitioner is the unmarried sister of the deceased B. Mohammad Siddiq Basha. The deceased was aged about 13 years and studying VII class in Z.P. High School, Doddipalli, Chittoor. On 02.12.2013 morning the deceased went to school at Doddipalli, Chittoor Mandal. After completion of school, he returned to the house in the RTC bus. He got down the bus at the Eguva Ponepalle bus stop on Penumur-Chittoor road along with other students. While he was crossing the road, one TATA ACE luggage auto bearing registration No. AP-03-TA- 6676 (hereinafter will be referred to as “offending vehicle”) driven by its driver in a rash and negligent manner, came at high speed and hit the deceased. As a result, he fell on the road and received a head injury. He was shifted to Government Head Quarters Hospital, Chittoor, in a private vehicle for treatment and from there he was shifted to SVRRGG Hospital, Tirupati. While undergoing treatment on 03.12.2013 he died. Petitioners spent Rs.20,000/- towards medical expenditure and transport charges. On the report lodged by one B. Nawab, who was an eye witness to the occurrence, police registered the FIR in Crime No. 105/2013, under Section 337 IPC against the driver of the offending vehicle and later altered the section of law on account of the death of the deceased. The police, after completion of the investigation, filed a charge sheet in C.C. No. 513 of 2013. The petitioners suffered a lot on account of the death of the deceased. The accident was occurred on account of the rash and negligent driving made by the driver of the offending vehicle. Hence, the petitioners are entitled to compensation.

4. Respondent No. 1 remained ex-parte.

5. Respondent No. 2 filed a counter contending in substance that the petitioners have to prove the manner of accident and negligence alleged against the driver in driving the offending vehicle and their entitlement to claim compensation.

6. On the basis of the above pleadings, the Tribunal settled the following issues for trial:

    (1) Whether the accident was occurred due to rash and negligent driving of the driver of the ACE auto bearing Reg. No. AP-03-TA-6676?

(2) Whether the petitioners are entitled to compensation, if so, to what amount and from whom?

(3) To what relief?

7. During the course of enquiry, on behalf of the petitioners, PWs. 1 to 3 were examined and Exs.A1 to A7 were marked. On behalf of the respondents, RW-1 was examined and Ex.B1 was marked.

8. The Tribunal on hearing both sides and on considering the oral as well as documentary evidence found that the accident was occurred on account of the rash and negligent driving made by the driver of the offending vehicle and awarded the compensation of Rs.4,65,000/-. Felt aggrieved of the same, the unsuccessful respondent No. 2/Insurance Company filed the present M.A.C.M.A.

9. Now, in deciding the M.A.C.M.A. the point that arises for determination is whether the award, dated 09.11.2015, in M.V.O.P. No. 69 of 2014, on the file of the Motor Accidents Claims Tribunal-cum-VIII Additional District Judge, Chittoor, is sustainable under law and

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