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2023 Supreme(AP) 1510

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
DUPPALA VENKATA RAMANA, J.
A. NAWAB KHAN - Appellant
Versus
P. CHANDRASEKHARA REDDY AND 3 OTHERS - Respondent
C.M.A.No.4902 of 2004
Decided On : 18-10-2023

Court emphasized 'just compensation' principles, adjusting compensation for loss of dependency and conventional heads, thereby enhancing the award significantly to reflect adequate and fair remuneration for losses incurred.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 163 and 166 - Appeal against compensation awarded by Motor Accident Claims Tribunal - Tribunal awarded Rs.2,59,000/- as compensation with 9% interest, against which claimants sought enhancement. (Para 1)

(B) Compensation assessment - Court reassessed income and applied proper multiplier based on guidelines from Supreme Court's Sarla Verma case, determining loss of dependency and adjusting heads for loss of estate and funeral expenses. (Para 11)

(C) Court's findings - Lack of documentary evidence for deceased's income was noted, but Court determined Rs.3,000/month was reasonable. Also set standard deductions based on deceased's bachelor status. (Paras 10 and 15)

(D) Court addressed the principle of 'just compensation', indicating that the award should not only match claims but reflect what is fair and adequate under circumstances. (Paras 20 and 22)

Findings of Court:
The Court allowed the appeal enhancing the compensation to Rs.4,40,000/- recognizing the delay in processing the claim and misassessing previous compensation.

Issues: Whether the compensation awarded was just and required enhancement; whether the Tribunal's findings supported by evidence.

Ratio Decidendi: The Court emphasized the methodical assessment of compensation based on age, income, and dependency, advocating for a fair application of judicial principles in awarding damages. (Paras 18-19)

Result: Appeal allowed; compensation increased to Rs.4,40,000/- with 9% interest.

Table of Content
1. court reviewed an accident case leading to a compensation claim. (Para 1 , 2)
2. counsels for both parties presented their positions. (Para 3 , 4)
3. claim details and oppositions highlighted by parties. (Para 5 , 6 , 7)
4. issues framed by the tribunal for deciding liability. (Para 8 , 10 , 11)
5. court confirms tribunal's findings on negligence. (Para 9 , 12)
6. court establishes compensation principles utilizing prior case law. (Para 13 , 14 , 15 , 16)
7. court analyzes conventional compensation heads applicable to the case. (Para 18 , 19)
8. a review of the necessity for 'just compensation' reflections. (Para 20 , 21)
9. court determined enhancement of compensation warranted. (Para 22 , 23)
10. final ruling on enhancement and payment directives issued. (Para 24)

JUDGMENT :

(Duppala Venkata Ramana, J.)

By way of this appeal, the appellants/claimants have challenged the Award dated 23.08.2004 passed by the Motor Accident Claims Tribunal-cum-District Judge, Chittoor, (for short “the Tribunal”), in M.V.O.P.No.67 of 2000 awarding a sum of Rs.2,59,000/- with proportionate costs and with interest @ 9% per annum from the date of the petition till the date of payment, against respondents 3 and 4 jointly and severally, while dismissing the petition against Respondents 1 and 2.

2. For the sake of convenience, the parties are referred to as they are arrayed before the Tribunal.

3. Heard Sri S.S.Bhatt, learned counsel for the appellants and Smt.S.A.V.Ratnam, learned counsel for the 4th respondent/Oriental Insurance Company.

4. The accident is not in dispute. The lorry bearing No.ABC5252 (hereinafter referred to as “the offending vehicle”) being insured and there being no breach of policy conditions, is a finding in Para No.16 of the Award, which had attained finality. The 4th respondent/Oriental Insurance Company Limited has not challenged its liability. The appellants having not satisfied with the quantum of compensation granted by the Tribunal, filed the present appeal.

5. The brief facts of the case are that the petitioners/claimants filed a Claim Petition before the learned Tribunal with the averments that the deceased was working as a driver in Mini Van bearing No.AP 03 U 2203 belongs to the 1st respondent for the last four years prior to his death. He was hale and healthy and aged about 23 years and used to earn Rs.5,000/- per month. While so, on 22.08.1999 night time, while the deceased was driving the said Van and when they reached near Chippalamadugu bus stop on Kadiri-Anantapur road, at about 6.30 a.m., a lorry bearing No.ABC-5252 (hereinafter referred to as “the offending vehicle”) belongs to the 3rd respondent driven by its driver rash and negligently, came in opposite direction and dashed on the right side of the Van as a result, the deceased sustained grievous head injury and died on the spot. The cleaner, who is the brother of the deceased, also sustained injury and he was shifted to the Government Hospital. The matter was reported to the Police by the brother of the deceased alleging that the accident took place as a result of rash and negligent driving of the offending vehicle by its driver. Based on the same, a case in Crime No.34 of 1999 for the offence under Sections 337 , 338 and 304-A IPC was registered by Patnam Police Station, Anantapur District and after investigation of the case, a charge sheet was submitted against the accused-driver of the offending vehicle for having committed the offence punishable under , 338 and 304-A .

(ii) At the time of the accident, the deceased was aged about 23 years, hale and healthy and he used to earn Rs.5,000/- per month. He was unmarried and was contributing his entire income to the family of the petitioners/claimants. The parents of the deceased filed an application claiming compensation of Rs.4,00,000/- before the Tribunal on account of the death of the deceased in the alleged road accident.

(iii) The 1st respondent/ owner of the Mini Van bearing No.AP 03 U 220

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