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2026 Supreme(Online)(AP) 11024

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APHC010450912025

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
(Special Original Jurisdiction)

[3558]

WEDNESDAY, THE EIGHTH DAY OF APRIL TWO THOUSAND AND TWENTY SIX

PRESENT
THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA

MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEAL NO: 819/2025

Between:
1. CHOLAMANDALAM MS GENERAL INSURANCE COMPANY, REPRESENTED BY ITSMANAGER (CLAIMS), HAVING ITS OFFICE AT SHOP NO-2, GROUND FLOOR, PSN COLONY,BESIDE HERO SHOWROOM, VISAKHAPATNAM-16.
...APPELLANT
AND
1. DONTALA GOVINDA RAO, S/O SURYANARAYANA HINDU, AGED 28 YEARS, RESIDING AT D.NO 1-189 BANTUPALLIVARIKALLALU, ANANDAPURAM MANDAL VISAKHAPATNAM.
2. PARTHIBAN P, S/O PERIYASWAMY.A, DRIVER OF LORRY BEARING REGISTRATION NO TN88 A9924, RESIDING D.NO KARAPPUR OMALLUR, SALEM,BARKATH D.S., SALEM TAMILNADU-636012. AT 19/101, NADAR STREET.
3. RAMASWAMY R, S/O RAMASWAMY.K, OWNER OF RESPONDENT NO. 1,2 LORRY BEARING REGISTRATION NOTN 88 A9924, RESIDING AT 2/18 WEST THOTTIPALAYAMSAMAYASANGILI,AGRAHARAM, TIRUCHINGODE, NAMAKKAL POST, TAMILNADU- 638008.
...RESPONDENT(S):

Advocates:
For the Appellants/Petitioners: Koraganti Sreenivasarao
For the Respondents: G Ramesh Babu

The determination of 'just compensation' in motor accident cases requires a pragmatic evaluation of the actual impact of permanent disability on an individual's earning capacity, rather than a mechanical application of disability percentages, ensuring the award reflects the claimant's real-world economic loss.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor Accident - Quantum of compensation - Permanent disability (80% amputation) - The Tribunal awarded Rs.61,89,998/- with 9% interest due to grievous injuries resulting in leg amputation and loss of earning capacity - Appellate court must rely on 'just compensation' principle as held in Pranay Sethi and Raj Kumar - Earning capacity is to be determined based on impact on professional life rather than automatic conversion of disability percentage - No evidence was adduced by the insurer to rebut the medical findings or the claimant's professional loss calculation.

Facts of the case:
The claimant, an MBA graduate and proprietor of a business, met with a motor vehicle accident on 08.12.2020 which resulted in the amputation of his right leg and multiple fractures of the left leg. The Motor Accidents Claims Tribunal awarded compensation of Rs.61,89,998/- along with interest at 9% per annum. The insurance company appealed, challenging the quantum of compensation and the liability.

Findings of Court:
The court affirmed the Tribunal's findings, noting that the insurer failed to provide substantial evidence to counter the proof of injury, treatment expenses, and economic loss. The calculation of compensation across several heads (pain and suffering, medical expenses, disability) was found to be sound and consistent with Supreme Court precedents.

Issues: Whether the compensation awarded by the Tribunal is excessive and whether the interest rate of 9% is justified in light of the injuries and evidence produced.

Ratio Decidendi: The Tribunal is required to determine 'just compensation' by assessing the actual impact of permanent disability on the claimant's earning capacity, independent of a fixed percentage, while maintaining a pragmatic approach to reality.

Result: Appeal dismissed; Tribunal judgment confirmed.

Appeal filed under Order 41 of CPC praying that the High Court may be pleased to allow the Appeal of Appellant / Respondent No 3 and set aside the Judgment and Decree dated 28th January, 2025, in MVOP.No.778 of 2021 before the Chairman, Motor Accidents Claims Tribunal - XII Additional District and Sessions Judge, Visakhapatnam and Pass

IA NO: 1 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of the Judgment and Decree dt.28th January, 2025, in M.V.O.P.No.778 OF 2021 before The Chairman, Motor Accidents Claims Tribunal - XII Additional District & Sessions Judge, Visakhapatnam, pending disposal of the above MACMA and pass

IA NO: 2 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to permit me to withdraw the amount deposited pursuant to the Order, dt.8.9.2025 passed in I.A.No.1/20025 in M.A.C.M.A.No.819/2025 and pass

Counsel for the Appellant:

1. KORAGANTI SREENIVASARAO

Counsel for the Respondent(S):

1. G RAMESH BABU

The Court made the following:

THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY

THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA

MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEAL NO.819 OF 2025

JUDGMENT: (Per Hon’ble Sri Justice Tuhin Kumar Gedela)

Heard,

Sri Koraganti Sreenivasa Rao, learned counsel for the appellant, and Sri G.Ramesh Babu, learned counsel for the respondent No.1/claimant.

1. The parties are arrayed as arrayed in the present appeal.

2. Dissatisfied with the Judgment and Decree dated 28.01.2025, passed in M.V.O.P.No.778 of 2021, by the Motor Accidents Claims Tribunal-cum-XII Additional District and Sessions Judge, Visakhapatnam (hereinafter referred to as “the Tribunal”), wherein a sum of Rs.61,89,998/- was awarded as compensation with subsequent interest @ 9% per annum from the date of petition i.e., 28.04.2021, till the date of payment, the Insurance Company preferred this appeal.

3. The facts germane to decide the issue are capsuled as hereunder:

(i) The respondent No.3 before the Tribunal is the appellant herein; the claimant before the Tribunal is respondent No.1 and respondent Nos.2 and 3 herein are the driver and owner of the lorry respectively.

(ii) The petition filed before the Tribunal was under Section 166 of Motor Vehicles Act, 1988, r/w Rule 455 of A.P. Motor Vehicle Rules, claiming compensation of Rs.1,00,00,000/- for the grievous injuries sustained in the accident occurred on 08.12.2020 at 08.40 p.m. at Vegetable Market, Anandapuram Mandal, Visakhapatnam District. The vehicle involved is a lorry bearing No.TN88A9924, driven by the driver-2nd respondent herein and the 3rd respondent herein is the owner of the lorry.

(iii) The claimant is an MBA graduate residing at Anandapuram village, aged about 28 years and unmarried. On the night of 08.12.2020, while he was returning from his work place i.e., Rushikonda to his house at Anandapuram on his motorcycle wearing a helmet and when he reached Vegetable Market, Anandapuram, Visakhapatnam District, at about 08:40 p.m., a goods carrier lorry bearing No.TN88A9924, driven by the driver in a rash and negligent manner at high speed came from the side of Pendurthi towards Anandapuram and dashed against the motorcycle of the petitioner from behind due to which the accident occurred rendering the legs of the petitioner crushed besides injuries, as a result the right leg of the petitioner above knee was amputated and the left leg is multiply fractured and has undergone several operations and hospitalized for 22 days.

(iv) The claimant further asserts that academically he stood in first division in the year 2016 and has bright academic record throughout and is in search of job. He attempted the State Service Examinations. The claimant is running a business of his own under a proprietary concern in the name and style of VIZAG BEACH

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2026 Supreme(Online)(AP) 11024

Cases Referred (4)