SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(AP) 1287

2025 APHC 43508
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
CHALLA GUNARANJAN, J.
Atla Ramachandra Reddy S/o Malakonda Reddy – Appellant
Versus
Kanchupati Kiran Kumar S/o Ruben – Respondent
Motor Accident Civil Miscellaneous Appeal No. 311 of 2022
Decided On : 23-09-2025
Advocates Appeared : 
For the Appellant : Nuthalapati Krishna Murthy
For the Respondent : Kotha Rama Mohan

Advocates:
For the Appellants/Petitioners: NUTHALAPATI KRISHNA MURTHY
For the Respondents: KOTHA RAMA MOHAN, GUDI SRINIVASU

Court determined that the compensation for deceased must reflect her academic merit and future earnings potential, thereby enhancing the award significantly.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for death in motor accident - Claimants appealed challenging the Tribunal's award of Rs.10,73,400/- as insufficient against their claim of Rs.25,00,000/- - The Court re-evaluated the deceased's income, fixing it at Rs.15,000/- per month based on her academic merit, awarding total compensation of Rs.24,01,100/- along with interest at 7.5% p.a. from the date of petition till realization. (Paras 14, 15)

(B) Compensation Assessment - The legal principle stated that the determination of compensation must reflect the deceased's future earnings potential and merit in education, which should not be undervalued. (Paras 10, 11)

Facts of the case:
The case arose from an accident involving a bus and a parked truck resulting in the death of an 18-year-old pharmacy student who was passing through her village. The claim was for compensation from the bus driver, owner, and insurers due to alleged negligence. (Paras 1, 3)

Findings of Court:
It was determined that the Tribunal’s assessment of the deceased's income was too low given her prospects. The final compensation calculated, factoring in loss of dependency and conventional heads, was significantly higher than the Tribunal's ruling. (Paras 12, 14)

Issues: The core issue was whether the Tribunal rightly assessed the deceased's income and consequently the compensation owed to the claimants. (Paras 8, 10)

Ratio Decidendi: The court clarified that academic performance and prospective earnings must be weighed in compensation assessments, reinforcing the need for fair and just compensation consistent with similar cases. (Paras 11, 12)

Result: Appeal allowed; compensation enhanced to Rs.24,01,100/-.

Table of Content
1. facts of the accident (Para 1 , 3)
2. arguments for higher compensation (Para 5 , 6)
3. determining disputed income (Para 8 , 9 , 10)
4. final ruling and compensation awarded (Para 15)

JUDGMENT :

CHALLA GUNARANJAN, J.

1. The appellants/claimants, being dissatisfied with the quantum of compensation awarded, assail the order dated 28.02.2022 passed in M.V.O.P.No.158 of 2019 by the Motor Accidents Claims Tribunal-cum-Principal District Judge’s Court, Prakasam at Ongole. By the said order, compensation of Rs.10,73,400/- was awarded to the claimants, who are father and mother of the deceased, along with proportionate costs and interest at the rate of 7.5% per annum from the date of petition till realization, as against the claimed amount of Rs.25,00,000/-.

2. Parties will be hereinafter referred to as they were arrayed before the Tribunal, for the sake of convenience.

3. Brief facts of the case are as follows:

(i) The deceased was stated to be pursuing first year of B. Pharmacy course at K.V.S.R. Siddardha College, Vijayawada. On 11.10.2018, she was going to her native village in a bus bearing registration No.AP27TY 1881. After passing Kanigiri and just before the deceased was to deboard, the bus dashed a stationed lorry from behind, as a result of which the deceased sustained severe injuries and died on the spot. The deceased was stated to be aged 18 years as on the date of accident, with an expectancy of income of about Rs.1,00,000/- per month. Therefore, the claimants preferred claim for compensation of Rs.25,00,000/-.

(ii) The 2nd respondent-owner of the bus filed counter, which was adopted by the 1st respondent-driver of the bus, stating that the bus was hired to 4th respondent-Corporation and insured with the 3rd respondent and that there was also negligence on the part of the deceased which contributed to the accident.

(iii) The 3rd respondent–insurer filed written statement disputing the liability and contended that as the bus was hired by 4th respondent-Corporation and no additional premium was paid for such third-party hire, it is not liable to pay any compensation. It was also contended that the compensation claimed was highly excessive.

(iv) The 5th respondent-Regional Manager of APSRTC also filed written statement, which was adopted by the 4th respondent, denying the manner in which the accident occurred and contending that there was no negligence on the part of the driver of the bus.

(v) Based on the pleadings of the parties, the Tribunal has framed following issues:

“1. Whether the accident occurred due to the rash and negligent driving of the driver of APSRTC Hire Bus bearing No. AP 27 TY 1881?

2. Whether the deceased Atla Lakshmi Jayasree, died in a road accident?

3. Whether the petitioners are entitled to compensation? If so, to what amount and against whom?

4. To what relief?”

(vi) In order to prove the claim, 1st claimant got himself examined as P.W.1, besides examining the conductor of the offending bus as P.W.2, and got marked Exs.A1 to A10. On behalf of respondents, the officer of insurer and officer of 4th respondent- Corporation were examined as R.Ws.1 and 2 respectively, and Exs.B1 and B2 were marked.

(vii) The Tribunal, after exhaustively considering the evidence on record, came to conclusion that the accident occurred on account of rash and negligent driving of the driver of offending bus. In reaching the said conclusion, the Tribunal had relied on Exs.A1 to A5, besides the evidence of P.W.2. While coming to the aspect of determination of compensation, basing on Ex.A6- SSC Certificate and also Ex.A3- Postmortem Report, the age of the deceased came to be determined as 18 years. For the purpose of assessing the income of the deceased, though the claimants claimed that her expected income would be Rs.1,00,000/- per month, the Tribunal, considering the totality of circumstances and precedents cited before it, has assessed her monthly income as Rs.7,000/-. By applying the relevant multiplier of 18 and awardin

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top