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2025 Supreme(AP) 446

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, NYAPATHY VIJAY, JJ.
The New India Assurance Co.Ltd. - Appellant 
Versus
D. Subramanyam and Others – Respondents
Motor Accident Civil Miscellaneous Appeal No. 490 Of 2021
Decided On : 28-01-2025

Advocates Appeared:
For the Appellant : C. Prakash Reddy
For the Respondents: K.V. Raghu Veer

Delay in lodging FIR does not invalidate a claim for compensation in motor vehicle accidents; proper assessment of permanent disability's impact on earning capacity is essential for calculating compensation.

Headnote:

(A) Motor Vehicles Act, 1988 - Section 166(1)(a) - Claim for compensation due to injuries sustained in a motor vehicle accident - Claimant suffered serious injuries including amputation of the right leg - Tribunal awarded compensation of Rs.72,85,000/- with interest @ 9% p.a. - Insurance Company contended that the delay in lodging the FIR and filing the claim petition rendered the claim suspicious - Court held that delay in lodging FIR is not fatal to the claim, emphasizing the need for medical attention over immediate reporting to police - Methodology for calculating compensation for disability was found inconsistent with established legal principles, necessitating a reassessment of the compensation awarded. (Paras 1-35)

(B) Compensation - The court reiterated that the assessment of permanent disability must consider its impact on earning capacity, and the multiplier method should be applied for calculating attendant and conveyance charges. (Paras 12-32)

(C) The court also highlighted the psychological impact of physical injuries, awarding compensation for pain and suffering. (Paras 30-32)

Facts of the case:
The Claimant was injured in an accident involving a lorry, resulting in serious injuries and amputation. The Tribunal initially awarded Rs.72,85,000/- as compensation.

Findings of Court:
The court found the Tribunal's methodology for calculating compensation flawed and reassessed the total compensation to Rs.47,52,574/-.

Issues: The main issues were whether the delay in lodging the FIR was fatal to the claim and whether the compensation methodology was sustainable.

Ratio Decidendi: The court ruled that delay in lodging the FIR does not invalidate the claim and emphasized the need for a proper assessment of permanent disability's impact on earning capacity.

Result: The appeal is partly allowed.

JUDGMENT :

(Nyapathy Vijay, J.)

The present M.A.C.M.A is filed questioning the Judgment and Decree dated 25.05.2021 in M.V.O.P.No.494 of 2016 passed by the Motor Accidents Claims Tribunal-cum-I Additional District Judge, Kurnool.

2. The Insurance Company is the Appellant herein.

3. The brief facts of the case are as follows:-

On the intervening night of 21/22.06 .2015, the Claimant along with his friend by name M.V. Raghava Satish went to Chennamma Circle, Kallur Estate of Kurnool Town on his motor cycle. While the Claimant was waiting by the side of his motorcycle on the road side margin, the offending lorry bearing No.AP 02 X 8995 owned by the Respondent No.1 and driven by the Respondent No.3 came from Gooty Town side in a rash and negligent manner dashed the Claimant and also the motorcycle. As the Claimant suffered serious injuries, he was immediately taken to Government General Hospital, Kurnool for medical treatment. On the medical advice, the Claimant was shifted to Krishna Institute of Medical Sciences (hereinafter called as “KIMS”) at Secunderabad, where he took medical treatment and was discharged on 30.06.2015. The M.V.O.P was filed under Section 166(1)(a) of the Motor Vehicles Act, 1988 claiming compensation of Rs.80,00,000/- for the injuries sustained by him in the accident. As per the particulars furnished in the claim petition, no injuries were mentioned as fracture of right hand wrist, right leg, the segmental fracture of bones of right leg, lacerated wound over right elbow and grievous and bleeding injuries on the entire body. In the claim petition, it was mentioned that due to the accident, the Claimant is unable to sit or stand without the help of walking stick.

4. The Insurance Company filed its counter contending that the offending lorry was not involved in the accident at all and the Claimant had colluded with the Police and had foisted a criminal case against the driver of the lorry for the purpose of claiming compensation. It was also pleaded that the accident occurred on 22.06.2015, but the criminal complaint was lodged on 13.07.2015 and there was a delay of 23 days in lodging the complaint. It is further pleaded that the accident had occurred on 22.06.2015, but the Petitioner filed the claim petition in the month of October, 2016 and there was no reason, which is forthcoming for the delay in lodging the criminal case, the delay in filing the claim petition and the other aspects of the claim there also.

5. The Respondent Nos.1 & 3 i.e. owner and driver of the offending vehicle respectively remained ex parte and did not contest the case. On the basis of the pleadings, the Tribunal framed the following issues for trial:-

1) Whether the accident occurred on 22.06.2015 at 12.10 a.m. midnight near Chennamma Circle, Kallur Estate of Kurnool Town due to rash and negligent driving of R3 being driver of lorry bearing No.AP 02 X 8995 wherein petitioner sustained injuries?

2) Whether the petitioner is entitled to compensation? If so, to what amount and from whom?

3) To what relief?

6. In the course of trial, the Claimant examined P.Ws 1 to 4 and got marked Exs.A.1 to A.24 to support his claim. Ex.X.1 and Ex.C.1 were also marked in support of the claim. On behalf of the Insurance Company, R.W.1 was examined and Exs.B.1 to B.5 were marked.

7. The Tribunal considering that the right leg of the Claimant was amputated and he had underwent two surgeries in KIMS Hospital, Hyderabad (as per the evidence of P.W.3) granted compensation of Rs.60,00,000/- due to loss of earnings on account of partial/permanent functional disability and in total awarded compensation of Rs.72,85,000/- with interest @ 9% p.a. Hence, the present M.A.C.M.A is filed.

8. Heard Sri C. Prakash Reddy, learned counsel for the Appellant and Sri K.V. Raghuveer, learned counsel appearing for the Respondent No.1.

9. Learned counsel for the Insurance Company contended that the manner in which the delay in registering the F.I.R. after lapse of 23 days from the date of acc

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