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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON’BLE SRI JUSTICE C.V.BHASKAR REDDY

M.A.C.M.A.No.647 of 2019

DATE: 29.01.2026

Between:

Kandula Sarala (died) and four others

…..Appellants

AND

K. Hari Krishna and another

….Respondents

JUDGMENT

Being not satisfied with the quantum of compensation awarded

in the judgment and decree, dated 30.08.2012 passed in M.V.O.P.

No.1060 of 2004 by the Chairman, Motor Accidents Claims Tribunal

(I Additional district Judge), Khammam (for short “the Tribunal”), for

the death of the deceased-Kandula Suresh in a motor vehicle

accident, the appellants-claimants filed the present appeal seeking

enhancement of compensation.

2. The brief facts of the case are that on 22.02.2004 at about 9.00

am, the deceased was proceeding on a motorcycle bearing registration

No.AP-20-D-7098 from Ashwapuram Village towards Manuguru

Village and when he reached near CISF Quarters on R&B Road,

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Manuguru, a lorry bearing registration No.AP-20-T-6381 collided with

the motorcycle due to rash and negligent driving. The deceased

sustained grievous injuries and was initially shifted to hospital at

Manuguru and thereafter to Cure Emergency Hospital, Khammam,

where he succumbed to his injuries on 23.02.2004. The appellants-

claimants, being the wife, two daughters and son, and the mother of

the deceased, filed the aforesaid claim petition before the Tribunal

seeking compensation of Rs.6,00,000/- against respondent Nos.1 and

2 i.e., owner and insurer of the offending lorry respectively. The

Tribunal, after trial, held that the accident occurred due to rash and

negligent driving of the lorry and awarded a total compensation

of Rs.2,46,000/- with interest at 6% per annum from the date of the

petition till the date of realization. Aggrieved by the quantum of

compensation, the appellants-claimants filed the present appeal

seeking enhancement.

3. Learned counsel for the appellants vehemently contended that

the Tribunal erred in assessing the age of the deceased, ignoring the

documentary evidence (Post-Mortem Report) showing the deceased

was 34 years old at the time of death and the correct age was wrongly

assumed by the Tribunal to be 46–50 years. Learned counsel further

contended that Tribunal failed to take note of the principles laid down

by the Hon’ble Supreme Court in Shaikh Sadik Shaikh Rafique v.

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Reliance General Insurance Company Ltd¹., wherein it was held

that the income of an unskilled worker for the year 2004 shall be

Rs.4,500/- per month with an increment of Rs.500/- per month for

each successive year. Taking the accident year herein as 2004, the

learned counsel submits that the income ought to have been fixed at

Rs.4,500/- per month. It is further contended that the Tribunal failed

to award future prospects and conventional heads as mandated in

National Insurance Co. Ltd. v. Pranay Sethi, 2(2017) 16 SCC 680 and that as per the

decision of the Hon’ble Supreme Court in National Insurance

Company Ltd. vs. Mannat Johal and others, AIR 2019 SC 2079, the reasonable rate

of interest to be awarded in motor accident claim cases shall be 7.5%

per annum and therefore prayed this Court to modify the impugned

award and enhance the compensation.

4. On the other hand, learned Standing Counsel for the Insurance

Company supported the impugned award of the Tribunal and

contended that the income claimed by the appellants was not

supported by any documentary evidence and therefore the Tribunal

rightly adopted notional income. It is further contended that the

compensation awarded is just and reasonable and does not warrant

interference.

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2025 INSC 673

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5. So far as negligence and liability are concerned, the Tribunal’s

finding on rash and negligent driving of the lorry and liability of the

respondents is sustained.

6. Coming to assessment of compensation, on a careful reading of

the record discloses that the Tribunal correctly fixed the age of the

deceased between 46–50 years. However, the Tribunal adopted a

notional annual income of Rs.24,000/-, which