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2024 Supreme(AP) 1524

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI AND V. SRINIVAS, JJ.
APSRTC, Anantapur District – Appellant
Versus
J.V. Satyanarayana and others – Respondent
MACMA No.1505 of 2017
Decided on : 27-09-2024

Advocates:
Advocate Appeared:
For the Appellant : Aravala Rama Rao (SC for APSRTC KKAC)
For the Respondent: M. Karibasaiah

Compensation for motor vehicle accidents must reflect just and equitable principles, recognizing future earnings potential, with interest rates aligned to judicial precedents.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - An appeal was filed by APSRTC challenging the award of compensation for the death of a deceased School Assistant. The Tribunal initially awarded Rs.3,98,824/-, but the claimants sought Rs.35,00,000/- due to the deceased's loss of income and future prospects. (Paras 3, 8, 24)

(B) Just Compensation - The court found that the Tribunal's award failed to account for an adequate amount of future prospects, determining that 30% addition instead of 10% was justified for permanent employment. (Paras 17, 24)

(C) Non-implanted Parties - The court ruled the non-impleadment of the auto driver as a necessary party does not invalidate the claim against the APSRTC as the bus driver was found solely negligent. (Paras 14, 26)

(D) Rate of Interest - The court modified the award to provide for 9% interest on the compensation amount from the date of the claim petition in accordance with recent precedents. (Para 24)

Findings of Court:
The court awarded a total compensation of Rs.41,69,898/- with interest at 9%.

Result: The MACMA is dismissed, and enhanced compensation is awarded.

Table of Content
1. details of the accident and claimants' dependence. (Para 2 , 3)
2. arguments regarding the negligence and party impleadments. (Para 5 , 9 , 10)
3. arguments concerning the necessity of impleading the auto driver and adequacy of the awarded compensation are considered. (Para 11)
4. court's observations on necessity of parties and negligence. (Para 12 , 13 , 14)
5. determination of just compensation principles. (Para 17 , 18)
6. court critiques the compensation calculation, advocating for proper future prospects calculation. (Para 19)
7. calculation of compensation and interest. (Para 20 , 22 , 23)
8. final judgment and order of compensation. (Para 25 , 26)

JUDGMENT :

RAVI NATH TILHARI, J.

1. Heard Sri Aravala Rama Rao, learned Standing Counsel for the appellant/Andhra Pradesh State Road Transport Corporation and Sri M. Karibasaiah, learned Counsel for the respondent Nos.1 to 4/claimants.

2. This appeal under Section 173 of the MOTOR VEHICLES ACT (for short 'the M.V. Act') has been filed by the Andhra Pradesh State Road Transport Corporation (in short 'APSRTC'), challenging the award dated 14.10.2016 of the VI Additional District Judge, Anantapur at Gooty (in short 'the Tribunal') passed in OP No.2 of 2015, by which the claimants have been awarded a sum of Rs.3,98,824/- with interest at 7.5% p.a.

3. The claimants/respondent Nos.1 to 4 filed Original Petition No.2 of 2015 under Section 166 of MOTOR VEHICLES ACT (in short 'MV Act') seeking compensation of Rs.35,00,000/- due to death of wife of claimant No.1 and mother of claimant Nos.2 to 4 in Motor Accident on 07.03.2014 at about 04.30 p.m., near Chitravathi River Bridge of Kodikonda Village within the limits of Chilamathur P.S. The deceased was 45 years of age and she was working as School Assistant at ZPH School, Kodikonda Village and drawing salary of Rs.36,483/- and was looking after the family. The claimants were entirely depending on the earnings of deceased. While deceased was travelling in an auto Bearing No.AP02Y3049 from Kodikonda Village to Kodikonda Check Post, APSRTC bus Bearing No.AP8Z1291 driven by its driver in a rash and negligent manner with high speed came in the opposite direction and dashed against the auto. The deceased received fatal injuries and while undergoing treatment, she died. The deceased was likely to be promoted as Headmistress within short time and would have received revised salary and future increments.

4. Respondent No.2 in OP-Shaik Mahammad Ali, driver of the bus remained ex parte and did not file any counter.

5. Respondent No.1 in the OP-APSRTC filed counter denying the averments of the petition and asking that the claimants be put to strict proof thereof. It was further pleaded that the driver of the bus was not responsible for the accident. The bus was not being driven rashly and negligently. The accident occurred due to rash and negligent driving of the auto. The driver, owner and insurer of the auto should also have been added as respondent parties. The claim was highly exaggerated.

6. The Tribunal framed the following issues :

    (i) Whether the road accident occurred on 07.03.2014 at about 04.30 p.m., near Chitravathi River Bridge of Kodikonda Village due to rash and negligent driving of Bus Bearing No.AP28Z1291 as alleged by the petitioners?

    (ii) Whether the petitioners are entitled to claim compensation? If so, to what amount and from whom?

    (iii) To what relief?

7. The claimants to prove their case examined the claimant No.1 as PW1 and one independent witness as PW2. They relied upon Exs.A1 to A7. The APSRTC examined the RW1 and got marked Ex.B1-the judgment in CC No.310/2014.

8. The Tribunal recorded finding that the accident occurred due to rash and negligent driving of RTC Bus by its driver. On the point of compensation, the Tribunal recorded finding that the deceased was working as School Assistant. As per the service register the date of birth of the deceased was 12.06.1966. On the date of accident i.e., 07.03.2014 the decease

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