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.604 of 2019 DATE: 26.03.2026 Between:

Smt. Kanneboina Eedamma and two others.

…..Appellants AND Marri Laxman Reddy Institute of Management Rep. by its correspondent/Proprietor Srinivas Reddy and another.

….Respondents

JUDGMENT

This appeal is filed by the appellants/claimants challenging the order and decree dated 24.09.2018 passed in M.V.O.P.No.604 of 2013 by the Motor Accidents Claims Tribunal-cum-I Additional Chief Judge, Ranga Reddy District at L.B.Nagar (for short “the Tribunal”), whereby the Tribunal awarded a compensation of Rs.4,40,000/- with interest at 7.5% per annum from the date of petition till realization against the claim of Rs.14,00,000/- for the death of one K.Sathish (hereinafter referred as “the deceased”), in a motor vehicle accident.

2. The learned counsel for the appellants/claimants contended that the Tribunal erred in taking the notional income of the deceased as Rs.30,000/- per annum as against the evidence that the deceased was a brilliant Engineering student earning Rs.10,000/- per month through tuitions. It is further contended that the Tribunal failed to properly apply the principles regarding future prospects as per the settled law of the Hon’ble Apex Court and awarded a meagre amount under conventional heads.

3. On the other hand, the learned Standing Counsel for Respondent No.2/Insurance Company contended that in the absence of any cogent documentary evidence or examination of students/parents to prove the alleged tuition income, the Tribunal rightly assessed the notional income. He further submitted that the compensation awarded is just and reasonable and requires no interference.

4. As seen from the material placed on record, the accident occurred on 14.02.2013 at about 16:30 hours. While the deceased was standing at the Gate of Marri Laxman Reddy Institute of Management, Dundigal, a bus bearing No.AP 10V 0487, driven in a rash and negligent manner, hit and ran over him, resulting in his instantaneous death. The police of Dundigal PS registered a case in Crime No.117 of 2013 and filed a charge sheet against the driver of the offending bus. There is no dispute regarding the manner of the accident or the involvement of the crime vehicle. The primary grievance of the appellants is the inadequate quantum of compensation. The claimants asserted that the deceased was aged 19 years and was a B.Tech I- year student earning Rs.10,000/- per month. The Tribunal, in the absence of proof of income, fixed the notional income at Rs.30,000/- per annum.

Considering that the deceased was a 19-year-old Engineering student and taking into account the potential future earnings of a technical student and the cost of living in the year 2013, this Court deems it appropriate to fix the monthly income at Rs.5,000/-. As per the decision of the Hon’ble Supreme Court in National Insurance Co. Ltd. v. Pranay Sethi, 1(2017) 16 SCC 680, an addition of 40% towards future prospects is warranted. Thus, the monthly income comes to Rs.7,000/- (Rs.5,000/- + Rs.2,000/-). Since the deceased was a bachelor, 50% is deducted towards personal and living expenses, making the monthly contribution to the family to Rs.3,500/-. The annual contribution is Rs.42,000/-. Applying the appropriate multiplier of '18' for the age group of 15-20 years as per Sarla Verma v. Delhi Transport Corporation², the total loss of dependency is assessed at Rs.7,56,000/- (Rs.42,000/- x 18). Further, the Tribunal awarded only Rs.50,000/- towards conventional heads. Following the principles laid down in Pranay Sethi’s case (supra), the claimants are entitled for Rs.91,000/- (Rs.70,000/- + 10% enhancement for every three years) under the conventional heads. The total compensation comes to Rs.8,47,000/- (Rs.7,56,000/- + Rs.91,000/-).

5. In the result, this appeal is partly allowed by enhancing the compensation from Rs.4,40,000/- to Rs.8,47,000/- with interest at