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2025 Supreme(Online)(Tel) 65111

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
G.M.Mohiuddin, J
Shaik Mahmud Pasha – Appellant
Versus
Insurance Company – Respondent
M.A.C.M.A.No.198 OF 2020



Advocates:
For the Appellants/Petitioners: S Mohd. Abdul Kareem Khan
For the Respondents: V.Venkatarami Reddy

The court held that compensation in motor vehicle accident cases must be 'just' and 'reasonable', entitling minor children of a deceased to 'parental consortium' in addition to other conventional heads, and that courts should adopt a liberal approach for the unorganized sector when calculating income and future prospects.

Headnote:(A) Motor Vehicles Act, 1988 - Section 168 - Quantum of compensation - Enhancement - Deceased aged 30 at time of accident - Future prospects @ 40% added to monthly income - Multiplier of 17 applied appropriately - Conventional heads enhanced to Rs.77,000/- as per established jurisprudence - Entitlement to parental consortium for minor children affirmed - Total compensation enhanced to Rs.20,29,700/- from Rs.17,83,600/- with interest at 9% per annum. (Paras 16, 20, 22, 23)

Facts of the case:
Appellants sought enhancement of compensation awarded by the Tribunal for the death of the deceased in a motor vehicle accident. The deceased was earning through self-employment, and the Tribunal had fixed income at a lower rate. The appeal contested the adequacy of compensation under conventional heads, specifically regarding parental consortium for the minor children of the deceased.

Findings of Court:
The court found that the tribunal erred in not granting parental consortium to the minor children. Upon recalculation including future prospects and adjustment of conventional heads, the total compensation was enhanced to Rs.20,29,700/-, noting the beneficial nature of the legislation.

Issues: Whether the claimants were entitled to enhanced compensation, specifically under the heads of parental consortium for minor children and income assessment.

Ratio Decidendi: Referring to settled law, the court held that parental consortium is a crucial component of just compensation for minor children who lose a parent, and that liberal approaches must be adopted for the unorganized sector consistent with welfare legislation principles.

Result: Appeal allowed.

Table of Content
1. summary of facts, initial tribunal order, and procedural history. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. assessment of income and justification for 'just compensation' in the unorganized sector. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. apportionment of consortium and final calculation of enhanced compensation. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)

Dissatisfied with the quantum of compensation awarded by the Chairman, Motor Accidents Claims Tribunal-cum-III Additional District Judge at Karimnagar (hereinafter “Tribunal” for brevity) in M.V.O.P.No.474 of 2014 by the order and decree dated 09.07.2019, the petitioners have filed the present Appeal seeking enhancement of compensation.

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

3. The brief facts of the case as can be seen from the record are that the petitioners have filed claim petition claiming compensation of Rs.20,00,000/- (Rupees twenty lakhs only) from the respondent Nos.1, 2 and 3 for the death of one “Shaik Mahmud Pasha” (hereinafter ‘deceased’ for brevity). Petitioner No.1 is the wife of the deceased, petitioner Nos.2 and 3 are the daughters of the deceased and petitioner No.4 is the mother of the deceased. The reason assigned by the petitioners for the death of the deceased is that on 05.09.2013, the deceased left his house on his motorcycle to install flexi of Jagadamba Cloth Show-room. After completion of work, while he was proceeding to Karimnagar on the motorcycle and when he reached near Alugunur bridge at about 6:00 P.M., a lorry bearing No.MH-06-HC-0663 driven by its driver i.e., respondent No.1 in a rash and negligent manner and with high speed dashed the motor cycle of the deceased from opposite direction. Due to the same, the deceased fell down on the road and sustained severe grievous injuries and succumbed to the injuries on the spot.

4. Based on a complaint, Police-L.M.D Colony P.S., registered First Information Report No.179/2013 under Section 304-A of I.P.C. against the driver of the crime vehicle i.e., lorry bearing No.MH-06-HC-0663 and after investigation filed Charge Sheet.

5. According to the petitioners, the deceased was aged about 30 years at the time of accident and was engaged in the work of installing flexies (digital advertisement printed on vinyl sheets) and stage decorations and used to earn Rs.15,000/- per month. It was stated that the petitioners were dependant on the income of the deceased and due to his sudden demise in the said accident, the family suffered a lot and lost a young earning family member, his love and affection, and were left in misery. Therefore, the petitioners as dependants of the deceased, filed claim petition seeking compensation of Rs.20,00,000/- (Rupees twenty lakhs only) against all the respondents jointly and severally.

6. The respondent Nos.1 and 2 filed counter denying the allegations of the petitioners and materially contended that respondent No.2 got insured the crime vehicle by respondent No.3 and the policy was subsisting at the time of accident. Respondent No.1 was holding valid driving license to drive the vehicle at the time of accident. Hence, the petition may be dismissed with costs.

7. The respondent No.3-Insurance Company filed counter denying the manner of accident, age, avocation, earning capacity, relationship of petitioners with the deceased, negligence, involvement of crime vehicle in the accident, rash and negligent driving of crime vehicle and called for strict proof of the same. It was contended that the recklessness and negligence of driver of the said lorry alone caused the collision between the crime vehicle and the motorcycle of the deceased. Further, the police complaint was filed after a lapse of one day and seriously disputed the issuance of any insurance policy by the respondent company in favour of owner of the crime vehicle, as it is not traceable in the office. It was further co

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