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2026 Supreme(Online)(Tel) 9665

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
B.R. Madhusudhan Rao, J
KONDURI ANJAMMA – Appellant
Versus
THE AP STATE ROAD TRANSPORT CORPORATION – Respondent
MACMA.No.685 of 2016



Compensation in motor accident claims is enhanced by correctly assessing the deceased's income based on evidence and applying mandatory additions for future prospects and conventional heads (consortium, loss of estate, funeral expenses) as per established judicial precedents.

Headnote:The appeal was filed under Section 173 of the Motor Vehicles Act, 1988, challenging an award passed by the Motor Accident Claims Tribunal in OP No. 600 of 2012. The appellant sought enhancement of compensation, contending that the Tribunal undervalued the income of the deceased and failed to award consortium and funeral expenses. The court found that the Tribunal's assessment of income at Rs. 3,000 per month was inadequate given the evidence of the deceased's business activities. The primary issues concerned the correct assessment of the deceased's monthly income and the entitlement to future prospects and conventional heads of compensation. The court reasoned that based on the evidence, the income should be fixed at Rs. 8,000 per month. Following the principles laid down in National Insurance Company Limited Vs. Pranay Sethi and Smt. Sarla Verma, the court added 40% for future prospects and deducted 50% for personal expenses, while also awarding amounts for consortium, loss of estate, and funeral expenses. In the result, MACMA.No.685 of 2016 is allowed and the compensation awarded by the Tribunal i.e., Rs.3,00,000/- is enhanced to Rs.11,45,200/- together with costs and interest at the rate of 7.5% per annum from the date of filing the petition till payment.

Table of Content
1. summary of the claim petition and the initial award granted by the motor accident claims tribunal. (Para 1 , 2 , 3 , 5 , 6 , 7)
2. reassessment of the deceased's income and entitlement to future prospects and conventional damages. (Para 4 , 8 , 9 , 10)
3. application of the multiplier method and statutory deductions to calculate enhanced compensation. (Para 11)
4. final adjudication on interest rates and the modification of the tribunal's award. (Para 12 , 13)

JUDGMENT

1. This Memorandum of Motor Accident Civil Miscellaneous Appeal is filed under Section 173 of Motor Vehicles Act, 1988 (for short ‘MV Act’) assailing the award passed by the Motor Accident Claims Tribunal cum I Additional District Judge at Mahabubnagar in OP No.600 of 2012, dated 24.07.2014.

2. Appellant is the petitioner, respondent is the respondent in the O.P.

3. Notice got issued to the sole respondent in the Appeal is served but none appeared.

4. Learned counsel for the appellant-petitioner submits that the Tribunal failed to consider the income of the deceased and wrongly taken at Rs.3,000/- per month. The Tribunal failed to consider that the deceased was doing business and was earning an amount of Rs.15,000/- per month, which ought to have taken in total, the Tribunal has awarded less amount towards funeral expenses and failed to award consortium and prayed to enhance the amount.

5. Appellant-petitioner filed claim petition under Section 140, Section 166 of the Motor Vehicles Act, 1988 r/w Rules 455 of A.P.M.V. Rules, 1989 , claiming compensation of Rs.5 Lakhs with interest @ 18% per annum.

6. Appellant is examined as PW.1, examined PW.2-Mangali Balraj, PW.3-Mohd. Sardhar and got marked Exs.A1 to A7. Sole respondent did not lead any evidence.

7. The learned Tribunal after analyzing the evidence adduced by the appellant has taken the income of the deceased as Rs.3,000/- per month and arrived at annual income at Rs.36,000/- (Rs.3,000/- x 12), deducted 50% as he is a bachelor and arrived at income @ Rs.18,000/- per annum (Rs.36,000/- x 50/100). The Tribunal has taken the age of the deceased as 31 years and applied multiplier ‘16’, arrived at Rs.2,88,000/- (Rs.18,000/- x 16) and awarded Rs.2,000/- towards transportation, Rs.10,000/- towards love and affection and the total compensation awarded by the Tribunal is Rs.3,00,000/- with interest @ 7.5% from the date of accident till the date of deposit of amount.

8. It is stated in the claim petition that the deceased K.Veeresh was aged about 25 years as on the date of the accident and was earning Rs.15,000/- per month by doing petty business like selling vegetables, onions, ginger and other eatables in the Village-Sandies and transport in his own Trolley Auto by driving personally. PW.1 has also deposed the same with regard to the income of the deceased. The learned Tribunal ought to have considered the evidence of the appellant-petitioner and ought to have fixed appropriate amount towards the income of the deceased. This Court fixed the income of the deceased at Rs.8,000/- per month.

9. The Tribunal has not awarded any amount towards future prospects, consortium, loss of estate & funeral expenses and they are entitled for the same as per the decision in National Insurance Company Limited Vs. Pranay Sethi and others , (2017) 16 SCC 680

10. This Court is not disturbing the age and multiplier applied by the Tribunal as the appellant’s counsel has not disputed.

11. The calculation arrived by this Court is as under:

Sl.No. Name of the head Compensation awarded by this Court
1. Income Rs. 8,000/-
2 Add 40% future prospects (as per Pranay Sethi) Rs.11,200/-

(8,000/- + 3,200/-)

(8,000/- x 40% = 3,200/-)

3. 50% deduction towards personal expenses (as per Smt.Sarla Verma and others Vs. Delhi Transport Corporation and another, (2009) 6 SCC 121) Rs. 5,600/-

(11,200/- x 50% = 5,600/-)

4. Annual Income Rs.67,200/-

(5,600 x 12)

5. Multiplier ‘16’ Rs.10,75,200/-

(67,200/- x 16)

6. Consortium Rs. 40,0

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