As per case facts, the deceased N. Goverdhan Reddy died in a motor accident due to rash and negligent driving by a lorry driver while returning home on a motorcycle. ...
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
FRIDAY,THE FOURTH DAY OF JULY
TWO THOUSAND AND TWENW FIVE
PRESENT
THE HONOURABLE SR!JUSTICE NARSING RAO NANOIKONDA
MOTOR ACCIDENTctvlLMISCELLANEOUSAPPEALNO: 1789oF 2018
Appeal filed under section 173 of M.v.Act, against order and Decree
dated 12.09.2017 passed in o.p.No.427 of 2014 on the file of the court of the
chairman, Motor Accident craims Tribunar (prr. District Judge), Nargonda.
Between:
1. Na.ndyala lndiramma, Wo. Late Goverdhan Reddy, Age. 43 years, Occ. House
hold,
2. Nandyala Radhika, D/o. Late Goverdhan Reddy, Age. 24years, occ. student
3. Nandyala Ram Reddy, s/o. Late Goverdhan Reddy, Age.23 years, occ. student
R/o. Choudampally Village, Narketpally Mandal, Nalgonda District.
...APPELLANTS/PETITIONERS
AND
.'
[^li!fr1
tg?l 3';*'f F%lfil#il?fhTi
y#b,I/,h',11"+i"1
tTts,,,J,R
121001.
2. National lnsurance company Ltd, Regional office, T.p. Legal Hub, Jubli Building,
Nampally Station Road, HyA'eraOiO R?p. Oy its Minager.
(Policy No. 361 102t31 11916300006003 varid from 1 1 -1 -2014 to 1 0-01-201 5)
...RESPONDENTS/RESPONDENTS
Counset forthe Appellants : SRt. ANNAPURNA SREERAM
Counsel forthe Respondent No.i : M.
yAKESHWAR
RAO
Counsel for the Respondent No.2 : V. SAMBASIVARAO
The Court made the following: JUDGMENT
TITE HON'BLE SRI JI,STICE NARSING RAO NANDIKOIIDA
JUDGMENT:
The appellants/claimants filed the present appear against the
Award and decree passed by the chairman, Motor Accident craims
Tribunal-cum-Principal
District Judge, Nalgonda (hereinafter referred to
'learned Tribunau in M . v. o.
p.
No .422 of 20 L4 , dated t2 .og .2o LT
,
wherein claimants/petitioners
had filed the claim petition under Section
L66 of M.V. Act, 19gg seeking compensation of Rs. r3,oo,ooo/- on
account of death of lst petitioner husband, namery sri N. Goverdhan
Reddy, (hereinafter referred to as 'the d.eceased') who died in acciclent
occurred on 04.06 .2OL4.
2' The brief facts of the case are that appellants/claimants who are
the wife, and children of the deceased fired M.v.o.p. No.42T of 2or4
under section 166 of the M.v. Act, 19gg seeking compensation for the
death of the deceased, who died in the accident alleged to have caused
due to rash and negligent driving of resporrdent No. 1. It is contended
that on 04.06-2014, the deceased and his rerative MaIIa Reddy, have
purchased the cotton seeds at Nalgonda and were returning to their
2
rt,R'J
M'A'C.' ti'A'No'' ? 89 of 20 7 8
village choudampally on motor cycle bearing No.AP-24 lAKl6558
and
Malla Reddy was driving the motor cycle and the deceased was
travelling on the said bike as a pillion rid.er. when they reached APSP
Battalion located in the outskirts of Anneparthy of Addanki-Narketpally
High way, the driver of the lorry (Truck) bearing No.HR-38-Q-85O2 came
in a rash and negligent manner at high speed and dashed the motor
cycle, due to which, the deceased and. the driver Malla Reddy sustained
grievous injuries and both died on the spot. The Police, Nalgonda
registered. a case in Crime No.151 of 2014 und'er Section 3C4 of IPC
agaiirst the driver cf the lorry, i-e., respond,ent No.1. On account of the
death of the deceased., the claimants filed claim petition seeking
compensation of Rs.13,OO,0OO/- under various heads'
3. The contention of the clairnants was that as on the date of
accident, the deceased 'as aged about 44 years and was earning
Rs.15,000/- per month being agriculturist. Due to the said accident' the
claimants lost their dependency. As such, filed claim petition seeking
compensation.
4. Before the learned Tribunal, respond.ent No.l remained ex parte'
Respondent No.2 filecl coUnter-affrdavit, denying all the averments made
-
,/'
,/
3
na.c.n-e.No.nagoffi4zog
in the claim petition, including the manner in which the accident took
place, age, avocation and income of the deceased and contended that
the rider was not holding vatid driving licence at the time of accident
and as such, the compensation cla.imed is excessive and prayed to
dismiss the claim petition.
5. Basing on the pleadings and averments made by both the
counsels, the learned Tribunal framed the following issues which reads
as under:
i) whether th.e deceased Nandyala Gouerd.han Reddy and. his relatiue
Basireddg Malta Reddg died in tlrc motor uehicle aciid.ent due to rash
and negligent driuing of the drtuer of one container Lorry ffruck) bearing
I{o.HR-38-Q-85O2?
ii) whether the petitioners are entitled to claim compensation? If so, fo
what amount and from wlam?
iii)To whnt relieft
6. The claimants got examined pws
1 and 2 and, got marked Exs.Al
to 46. No witnesses were examined on behalf of the respondents, but
got marked Ex.B1-policy copy.
7 - Having heard both the counsel and after perusing the oral and
documentary evidences placed by both the parties, the learned Tribunal
came to the conclusion that the said accident occurred due to the rash
1-
4
.il.rR-,
fr.A.C.,I-A.No. I 7 89 of 20 1 A
and negligent driving of the driver of the said lorry and made the
respondents responsible for the accident and partly allowed the claim
petition, awarding an amount of Rs.7,49,0OO/- in favour of the
claimants and against respondent Nos.l and 2, with interest @
7o/o pet
annum from the date of f,rling of petition till the date of award and also
subsequent interest @ 60/0 from the date of award till the date of
realization.
8. Being unsatisfied and aggrieved by the compensation amount
awarded by the learned Tribunal, the present appeal has been preferred
on the ground that the learned Tribunal did not consider the age of the
deceased and took ,/rong multiplier as 13 in place of L4 and that the
learned Tribunal has taken the monthly income of the deceased at
Rs.6,000/-, though the deceased was earning Rs.15,O0O/- per month at
the time of the accident. Further, even though the petitioners are
entitled for 5Oo/o increment towards future prospects, the 'learned
Tribunal did not consider the same and the interest ought to have been
awarded @
g% per annum and love and affection also ought to have
been granted
-z
5
rv,vR.J
fi .A-c. tlt.A. No. t 7 E9 of 20 7 t
g. Heard Sri Annapurna Sreeram, learned counsel for the
appellants/claimants and Sri V. Sambasiva Rao, learned counsel for
respondent No.2-lnsurance Company. None appeared for respondent
No.1.
10. The point which arose for consideration before this Court in the
present appeal is that:
i) Whether the appellants are entitled for enhnnced
compensation as praged for? IJ so, to what ertent?
11. Learned counsel for the appellants/claimants submits that even
though the claimants got marked Ex.A6 which shows that the deceased
was doing agriculture on Ac.4.27 gts., and earning Rs.15,000/-, the
learned Tribunal failed to consider the monthly income of the deceased
at Rs.15,O00/- white awarding the compensation. Learned counsel
further relied upon the judgrnent of the Hon'ble Supreme Court in the
case of Shailaja & Ors., v. Pavan B. Udupudi & Anotherr and the
relevant paragraph No.5 is reproduced hereinudner:
"5. Having considered the submissions made by the learned
counsel for the parties and by taking into consideration the date
of accident was on 11 .O5.20L2, the ceiling limit of the income
tax at the relevant point of time was Rs.1,80,OOO/- the income
of the deceased from profession is accordingly taken or in other
L
2025 Law Suit (SC) 860
6
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|r.
^.C,
il, A, No. I 789 of 20 I I
wgrds we accept the income of the deceased from profession to
said extent as he was an advocate with 17 years of standing.
Absence of income proof cannot be a grou.rd to deny just an?
reasonable compensation, particularty when there is no dispute
that deceased was having a standin g-of LT years at the Bar. The
Courts below concurrentll, 1-r"" accepted that deceased owned
around 3 acres of agricultural land as evident from Ex.p.w-13
and 14 and yet was not persuaded to construe the income
generated from the agricultural operations, for reasons best
known. To maintain the said agricultural land and carry on the
operations, the claimants have to necessarily explnd an
amount and Rs.3,ooo /- per acre and same would be required to
be spent for carrying on the agricultural operations or in other
words at least a sum of Rs.1o,0oo/- per month will have to be
paid towards supervision charges for maintaining 3 acres of
agricultural land, nccessarily thls arnount has to be construed
as the loss of income to the dependents of the deceased. The
supervision cha-rges which claimants will have to speird would
be Rs.10,000/- per month (Rs. r,2o,ooo/- per year). Hence total
earning of the deceased comes to Rs.3,OO,bOOi_ per year. If we
add 1096 towar'is futur.e prospects, the annuai income comes to
Rs.3,3o,0oo
/ -- Taking note of the number of dependents, if we
deduct L/4th, the amount wouid be Rs.2,4Z,iOO1_ per year.
c-orresponding to the age of the deceased (51 years), murtiplier
ol
11
would be appricable. Thus, the amount oicompensation to
which claimants would be entitled towa.rds loss of income would
be Rs.27,22,500/- (2,4Z,SOO X 11). if we further add
Rs.2,40,000/- towards loss of love and a-ffection and filiat
compensation and Rs.75,ooo/- under the head of
transportation of dead body and funeral expenses, total amount
of compensation to which claimants would be entitled to would
be Rs. 30,37,500/-. After deducting the amount of
compensation awarded by the High court i.e., Rs.15,76,g00/-
the enhanced compensation payable would be Rs. 14,60,T00/-".
12' Learned counsel for respondent No.2 has vehemently contended
that after considering the entire evidence available on record, the
learned Tribunal has rightly taken the income of the deceased as
7
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U.A.c.uA. No. t 7a9 of 20 I a
Rs.6,000 /- td award.ed compensation, which needs no interference'
Learned counsel for respondent No.2 has further relied upon the
judgment of the Honble Supreme Court in the case of New India
Assurance Co. Ltd. v. Yogesh Devi and othersz and the relevant
paragraph Nos.10 and 11 are reproduced hereunder:
"10. In Ja.sbir Kaur's case (supra), the claim was based on an
assertion that tLrc d.eceased" wg;s an agria,tlturist earning an
amount o/Rs. 1O,0OO/- per month by anltiuating his land. Dealing
with the question, this Court held:
"8. xxxxxxxxx. The land. possessed by the deceased still
remains with the claimants as his legal heirs. Tlrcre is howeuer a
possibility that ttrc claimants may be reEtired to engage persons
'to
look i7., agriculture. Therefore, the normal rule about the
depriuation of in"o^" is not strictlg applicable to cases uthere
agricultural iicome is the source. Attendant cirqtmstances haue to
be considered."
11. Coming to the case on ?wnd, the claim is based on the
assertion that the deceased" owned agricultural land apart from
the abouementioned three mini-buses. Ttrc High Court reiected the
claim insofar as if is based on tLrc income from the land, on the
ground tnat tne income would. still continue to accrue to the benefit
"oY
tn" family. Unfortunately, the High Court fgiteg
to see thnt the
icz*" logic- *ouid" Ue appticable euen to the iname from
the
abouemintioned. three buies. The asset (three mini-buses) would
still continue with the famtlg and fetch income. Tlrc only
difference, perhaps, would. be that during his lW time the
d.eceased wrs *anaging the buses, but now, the claimnnts may
Itnue to engage soffLe competent person to manage tlte asset,
which iru fitrn, would" require some pagment to be made to such a
mano.ger. To the exteit of such pagment,
lhere
would be a
depleiion in the net income aeruing to the claimants out of the
asset. Tlerefore, the amount reEtired for engaging the beruic.e of a
manager oia tfo salary payable to a driuer - as it is assefted that
the deceased. himset| isZa to drtu" one of the three buses - would
z
zot2 (4) ALD 101 (sc)
8
JV,VR.J
,LA.C. M.A.No. I 789 of 20 18
be the loss fo the ctaimants. In the norrnal course the claimants
are expected to addue euidence as to wlmt would. be the
quantum of depletion in the income from the abouementionei
asset on account of the abouementionecr
factors. unfortunatery, no
sucheuidence utas led. bg the claimants".
13' Learned counsel for respondent No.2 further argued that it is only
a single crop land and the question of supervisory charges which the
appellants are claiming cannot be awarded, but considering the
judgment relied upon by the learned counsel for the appellants, there is
no dispute and denial in respect of the deceased being in possession of
the land to an extent of Ac.4.27 gts., which is agricultural land as held
by the Hon'ble supreme court in the case of State of Haryana and
Another v. Jasbir Kaur and others3, wherein, relevant paragraph No.g
is reproduced herein under:
"8. It is clear on d bare read.ing of the Tribunal,s d.ecdsron as
affr.naed. bg tlrc High cour.t.thnt no rnaterial uas placed. beftrethe
former to proue as to ,tlnt was the income. As rightlg coitended.
bg learned counset for the appellants, *rcre was not euen qna
materiat ad.duced to shout tgpe of tand which the d.eceased.
possessed. The matter can be approached
from a dtfferent angle.
TIE land possessed by the diceased, itrt remains with the
claimants as his legal h.eirs. There i.s houteuer a possibilitg that
th.e claimant2-mag be reEtired to engage persons to rook after
agriailhtre. Therefore, th.e normal rutb auiut the depriuation of
incom.e rs n?t strictty applicable to cases where
-agricultural
iname is the source. Attend.ant circum.stances haue to be
3
1zoos1 z scc 484
9
IYIIf,.J
U.A.C,X.A. No. tzag of 20, a
consid.ered. F rthermore, there u)as no material before the
Tribunal to arriue at the
-figure
of Rs.4500 per montlu No reason
hns been indicated to arriue at this figare. In tlrc l@ht of wlwt hns
been discassed aboue about 'iust compensation" the income
cannot be estimated without any material to iustify
the estimation'
In the normql course, we utould hnue remitted the matter back to
the Tribunal for fresh consideration. But considering tlrc fact that
one aoung
person losf his life, and the matter was pending before
the
-Tribiiat
and fue High Court for some Aears, we feel it
appropriate to take all releuant factors irfio cottsideration, and
decid.e the matter. Gauzing *Le releuant aspects, noted aboue, tlrc
montltly income is fixed at Rs.3OOO/ - per month and after
d.eductl,ng Rs.l,ooo/ -
1or
personal expenses, financial contribution
so far oi *o claimants are concerned is fixed at Rs.2,o0o/ - per
minth. Worked. out on tle basfs of multiplier of 78, the
compensation is fixed at Rs.4,32,OOO/ -. T?e amount of Rs.2,OOO/ -
awirded bg the Tribunal for funeral
expenses is not interfered
with and thus the total compensation comes to Rs.4,34,O0O/ -. The
rate of interest i.e. 9% per annum as fix"d by the Tlibunal and
affirmed" by the High court is appropriate, and does not need any
a[teration.-After ad"justing the sum which was deposited pursuant
to the. ord.ei of this Court d.ated 14.12.2007, the balance amount
along with interest shalt be deposited within three montls from
todiy before t?rc Trtbunal. On the deposit being made along with
the amount alread.y d.eposited", a sum of Rs.3 lakhs shall be kept
in the _fixed deposit in the name of the claimants and a sum of
Rs.SO,bOOt- siatt be kept tn frxed deposit in the name of Smt.
Bald.eu Kaur, mother of the d.eceased. Theg slnll be entitled to
d.raut interest on the deposit, which shnll be re-deposited for
furtlrcr
terrns of fiue Aears. In case of urgent need, it slwll be open
-to
th.e claimants to moue Tribunal for release of ang part of the
amount in d.eposit. Tle Tribunal shall @nsider the reEtest for
utithdrawat aid. shall direct withdrawal in case of an urgent need
and not otheruise of suchsum as would meet the need. It shall be
specifically indicatia to the Bank wlrcre the deposits are to be
mad.e tlnt no aduance or withd.rawal of ang kind stto;ll be
permitted without the ord"er of the Tibunal. It stwll be open to the
-claimants
to approach ttrc Tribunal for uariance of the ord9l
relating to aepisit in ftxed. deposit, if any other sch.eme would
fetch better returns and. also would prouide rewlar and
permanent income".
10
IVIvIlJ
M.A.C.,,,A.No.l7a9 of 20 I A
14' In view of the above, this Court is of the opinion that though the
appellants have succeed.ed to the land to an extent of Ac.4.27 gts., there
would not be loss of income of the petitioners, as rightly held by the
Honble supreme court and the petitioners for the purpose of doing
agriculture, they may incur some amount for the purpose of engaging
supervisor for cultivation of the land or they may involve in the said
cultivation. In such case, obviously, they have to incur certain amount.
15' Taking into consideration of the judgment of the Honble Supreme
court cited in Shailaja case (supraf, this court is arso of the opinion
that an amount of Rs.2, ooo /- per acre can be taken as a basis for
assessing the notional income of the deceased. The actual income would
be Rs'2,OOO
/ - and when multiplied with the extent of lancl ownect by the
deceased, it would come to Rs.gr54C t- (Rs.2OOO /_X Ac.4.2T gts.,).
16. As per the decision of Honble Supreme court in Nationo,r
rnsttrance compang Ltmited. vs. pranag sethi and. othersq and
considering the age of the deceased as 45 years as on the date of
accident which is not disputed by the learned counsel for the appellants,
additional 25o/" of the income has to be added towards future prospects
42017 ACJ2700
11
to the monthly income of the d.eceased. Therefore, the monthly income of
the d,eceased would come to Rs. tO,675l- (Rs.8,540/- + Rs'2,135/-)' The
annual income of the d.eceased would come to Rs.1,28,LOOl-
(Rs.10,67 5l- X 12) and, out of which, 1/3 has to be deducted towards
the personal expenses of the deceased as the dependants are three in
number. Then the actual annual income would come to Rs'85,40O1-
(Rs.1 ,28,LOO /-
(-) Rs.a2,7OO l-l'
17. As per the column No.4 of schedule fixed in the judgment of the
Apex Court in Sarlcr Verma a. Delhi Transpott CorporatTons
'
anld
considering the age of the d.eceased as 45 years, the appropriate
multiplier applicable for the deceased age is '14'' Thus, the total loss of
dependency would come to Rs.11,95,600/- (Rs.85,4OO/- x 14).
18. The appellants/claimants are further entitted to Rs'18,LsO1-
(Rs.15,000/- + lOo/o + 1O%) towards loss of estate and Rs'18,150/-
(Rs. 15,00 O l-
+ looh + 1o%) towards funeral expenses, as per Pranag
Setlri's Judgrnent (cited suPra).
s
2oo9 ACI 1298 (sc)
I{ilRJ
LA.C.fi .A. tto. t 7a!, of 20' I
a
L2
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tt.,t cu.t. No. t 789 oiidl8
19. Further, considering that appelrant No.1 being the wife of
deceased, she is entitred to a sum of Rs.4g, 4ool-under the head of
,ross
of consortium' as per pranag
sethi's Judgment (cited supra).
20' Appellant Nos.2 and 3 being the children of the deceased, they are
entitled for compensation to a sum of Rs.96,goo/- (Rs.4g,40o x 2l
under the head of 'ross of parental consortium, as per Magma General
Insurance campany Limited. o. Nanu R,,m aris chuhnt R..rn
21' In sarla vermq.'s ccse (cited. aboae), t,.e Hon,ble Apex court,
rvhile elaborating the concept of ijust compensation, observed as under:
"Past compensatioT is ad.equate compensation which is fair and
equitable on the facts and. .irc,mstances of the case, to make
good fhe /oss suffered as a result.of the- *ing,-L" p, as moneA
can do so, hy applging, the well settled pincioles relatirry to
attard of c.ompensation. It is not intend.ea ,o'i" o bonanza,
22.considering the above assessment made by this court, appeilants
wor;ld be entitled to as follows:
ual Income (of the deceased)
8,540/- X 12 Rs.1,02,4gol_
ii)Total Annual Income = AnnualIncome + Future
Prospects (Annual Income X2Syo1 =
1,O2,48O/- + Rs.25,62O/- :
Rs.1,2g, LOOI_
Rs
I
i) , Annttal Dependency =\61Annual Income - l/3
13
ItittRJ
&A.C.X.A. Itu. t 7Ag of 20 t t
deduction towards personal expenses of the deceased
Rs. 1,28, 1OO/- (-) Rs.a7,7OOl- Rs.85,4OO/-
v)Claimants' entitlementtowards conventional heads :
Loss of Estate + fneralExpenses + loss of sPousal
consortium + loss of Parental Consortium:
Rs.18,150/-
+ Rs.18,150/- + Rs'48,400 + Rs'96'8O0 =
Total
Rs.13,77,10o.1'
23. Thus, the appellants/claimants are entitled to the enhanced
compensation of Rs. Lg,77r1OO/- as against the awarded amount of
Rs.7,49,0 OO I - by the learned Tribunal'
24. considering the circumstances of the case, the learned Tribunal
has rightly awarded the rate of interest @
7
oh
per annum and the same
need.s no interference by this Court. Hence, this Court is of the opinion
that the petitioners/claimants are entitled for the interest @
7o/o on t}lre
enhanced arnount.
1
) 25. This point is answered accordingly in favour of the appellants and \
against the respondents. The claimants are entitled' for an enhanced
compensation of Rs. t3r77 r1OO/-'
I
Rs.11 ,95,6001-
Total Dependency = Annual Dependency x
Multiplier = Rs.85,4OO l
- x 14
Applied
iv)
Rs.1,81 ,500/-
/
,/
I
t4
a-a.c-ilt.r*-.tztg o#fa
26' Accordingly, the M.A.c.M.A is ailowed, enhancing the
compensation from Rs.7,49,0o0/- to Rs. LgrTzrroot- with interest at
the rate
@ 7o/o p'a' on the enhanced amount from the date of petition till
the date of tealization. The respondents directed to deposit the said
amount together with costs and interest after giving due credit to the
amount already deposited, if any, within a period of two months from
the receipt of a copy of this judgment. The respond.ents are directed to
deposit the said amount together with costs and interest after giving due
ci.edit Lo the amount already deposited, if any, within a period of two
months from the date of receipt of a cop5z of this judgment. The
compensation amount shall be apportioned among the claimants in the
same manner and ratio as ordere<I by the learned Tribunal. on such
deposit, the claimants are permitted to withdraw the same without
furnishing any surety. There sha, be no order as to costs.
27 Miscellaneous petitions,
1{
any are pending, sha[ stand closed.
SD/ - T.SRINIVASA REDDY
ASSISTANT REGISTRAR
//TRUE COPYII
SECTION OFFICER
/
I
To,
1.
2.
3.
4.
5.
GE
The Chairman, Motor Accident Claims Tribunal-cum-Principal District Judge,
Nalgonda.
one cc to sRt- ANNAPURNA SREERAM Advocate topucl
one cc to sRt. M. YAKESHWAR RAO Aavo&GloFlct
-'
One CC to SRt. V. SAMBASIVARAO, ndvocate iOeuCl
Two CD Copies
tW
HIGH COURT
DATED:04l0TIZO}S
JUDGMENT
MACMA.No.1789 of 2O1B
ALLOWTNG THE MACMA WITHOUT COSTS
a
? o3 Jl,rl
*
EHsT
t
2r?6
$./
[ 34431
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
FRIDAY,THE FOURTH DAY OF JULY
TWO THOUSAND AND TWENTY FIVE
PRESENT
THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA
MO CCIDENT CIVIL M
Betvveen:
1. Nandyala lndiramma, Wo. Late Goverdhan Reddy, Age' 43 yearc, Occ' House
hold,
2. Nandyala Radhika, D/o. Late Goverdhan Reddy, Age. 24 years, Occ student
3.NandyalaRamReddy,S/o.LateGoverdhanReddy,Age'23years,Occ'student
R/o. Choudampally Village, Narketpally Mandal, Nalgonda District'
...APPELLANTSTPETITIONERS
AND
1. Krishna Kumar, S/o. Sh. Uday Ram' Age- Majorr Rl/o' H'No' 63, Spctor-2-]p'
"
iil;ilg iioiio cotoni, Farid'abad taniit and District, Haryana State, Pin-
121001.
2. National lnsurance company Ltd, Regional office, T.P. Legal Hub, Jubli Building,
Nampally Station Road, Hyderabad Rep. by its Manager.
(Policy No. 361 1 O2tg1 I 1
g
16300006003 valid from 1 1 -1 -20 1 4 to 1 0-01 -20 1 5)
...RESPONDENTS'RESPONDENTS
AppealfiledunderSectionlT3ofM.V.Act,againstOrderandDecree
dated 12.09.2017 passed in o.P.No.427 ot 2014 on the file of the court of the
Chairman, Motoi Accident Claims Tribunal (Prl. District Judge), Nalgonda'
This appeal coming on for hearing and upon perusing the grounds of
appeal, the judgment and Decree of the Lower court and the material papers in
the case and upon hearing the argument of SRI ANNAPURNASREERAM,
Advocate for the Appellants and sRl M. YAKESHWAR RAO, Advocate appeared for
Respondent No.1 and
Respondent No. 2.
ELLAN APPL NO: oF 20
SRI V. SAMBA SIVA RAO, Advocate appeared for
This Court doth Order and Decrce as follows:
'l. That the Motor Accident civir Misceilaneous Appear be and is hereby
allowed.
2. That the compensation be and is hereby enhanced from Rs.7,49,000/_ to
Rs.13,77,100/- with interest at the rate
@
7o/o p.a. on the enhanced amount
from the date of petition till the date of realization.
3. That the respondents be and is hereby directed to deposit the said amount
together with costs and interest after giving due credit to the amount arready
deposited, if any, within a period of two months from the receipt of a copy of
this judgment.
4. That the compensation amount shail be apportioned among the craimants in
the same manner and ratio as ordered by the learned Tribunal.
5. That on such deposit by the respondents, the craimants are hereby permitted
to withdraw the same without furnishing any surety.
6. That there shall be no order as to costs in this appeal.
SD'- MOHD.ISMAIL
DEPUTY REGISTRAR
llTrue Copyll
CTION OFFICER
To
1. The Chairman, Motor Accident Claims Trib
Judge, Nalgonda.
2. Two CD Copies.
GE/PSL
m-Principal District
W
HIGH COURT
DATED:04/0712025
DECREE
MACMA.No.1789 of 2018
ALLOWNG THE MACMAWTHOUT COSTS
1
6
\1/
In a significant ruling that underscores the principles of 'just compensation' under the Motor Vehicles Act, the High Court for the State of Telangana at Hyderabad recently delivered its judgment in the case of Nandyala Indiramma & Ors. v. Krishna Kumar & Anr., dated July 4, 2025. This decision, a pivotal addition to Motor Accident Claim Compensation cases, further clarifies the assessment of income for agriculturists and the application of multipliers in accidental death claims. The detailed order, along with other crucial Telangana High Court Judgments, is now available on CaseOn, offering invaluable insights for legal practitioners.
The core issue before the Telangana High Court was whether the appellants, who are the wife and children of the deceased, were entitled to an enhanced compensation beyond the Rs.7,49,000/- awarded by the Motor Accident Claims Tribunal (MACT). The appellants argued that the Tribunal had incorrectly assessed the deceased's monthly income, applied the wrong multiplier, and failed to consider future prospects and other conventional heads of compensation.
The High Court relied on Section 166 of the Motor Vehicles Act, 1988, which governs the filing of claim petitions for compensation, and Section 173 for appeals. Crucially, the Court drew upon several landmark judgments from the Hon'ble Supreme Court to guide its assessment:
The deceased, Sri N. Goverdhan Reddy, aged 45 years at the time of the accident on June 4, 2014, was an agriculturist. His dependents included his wife (43), daughter (24), and son (23). The Tribunal had initially assessed his monthly income at Rs.6,000/- and applied a multiplier of 13. The High Court meticulously re-evaluated the compensation based on the established legal principles:
The Court noted that the deceased owned 4.27 gts of agricultural land. Applying the principles from the Shailaja case, the High Court determined a notional income of Rs.2,000/- per acre per month. Thus, the monthly income from agriculture was calculated as Rs.2,000/- x 4.27 gts. = Rs.8,540/-.
Further, in accordance with Pranay Sethi's Judgment, and considering the deceased's age of 45 years, an addition of 25% was made towards future prospects. This increased the monthly income to Rs.8,540/- + Rs.2,135/- (25% of Rs.8,540/-) = Rs.10,675/-. The annual income, therefore, came to Rs.10,675/- x 12 = Rs.1,28,100/-.
Given that there were three dependents (wife and two children), the Court applied a deduction of one-third (1/3) towards the personal expenses of the deceased, as per Sarla Verma's case. This resulted in an actual annual income for dependency of Rs.1,28,100/- (-) Rs.42,700/- = Rs.85,400/-.
For the deceased's age of 45 years, the appropriate multiplier, as per the schedule in Sarla Verma v. Delhi Transport Corporation, was determined to be 14. This differed from the Tribunal's multiplier of 13.
For legal professionals seeking swift comprehension of such detailed rulings, CaseOn.in provides 2-minute audio briefs that efficiently summarize complex judgments, aiding in quick analysis and application of specific rulings like this one.
The total loss of dependency was calculated by multiplying the annual dependency income by the multiplier: Rs.85,400/- x 14 = Rs.11,95,600/-.
Additionally, the High Court awarded compensation under conventional heads as per Pranay Sethi's Judgment:
Combining the loss of dependency and conventional heads, the total enhanced compensation amounted to Rs.11,95,600/- + Rs.1,81,500/- = Rs.13,77,100/-. The Court upheld the 7% per annum interest rate on the enhanced amount from the date of the petition until realization.
The Telangana High Court allowed the Motor Accident Civil Miscellaneous Appeal, substantially enhancing the compensation from Rs.7,49,000/- to Rs.13,77,100/-. The respondents (driver and insurance company) were directed to deposit the enhanced amount, along with costs and interest at 7% p.a., within two months, giving due credit to any amount already deposited. The compensation will be apportioned among the claimants as per the Tribunal's original order, and they are permitted to withdraw the amount without furnishing any surety.
This High Court judgment revises a motor accident claim, finding the initial compensation awarded by the MACT to be inadequate. It meticulously re-calculates the compensation for the deceased agriculturist, Nandyala Goverdhan Reddy, by establishing a notional income per acre, adding future prospects, applying the correct multiplier based on age, and properly accounting for various conventional heads of compensation as per Supreme Court guidelines. The ruling results in a significant increase in the total compensation payable to the deceased's family, from Rs.7,49,000/- to Rs.13,77,100/-, with interest at 7% per annum.
This judgment serves as a vital reference for several reasons:
All information provided in this article is for informational and educational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers are advised to consult with a qualified legal professional for specific legal guidance pertaining to their individual circumstances. This content is not intended to create, and receipt of it does not constitute, an attorney-client relationship.
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