HON'BLE SRI JUSTICE M.GANGA RAO

AND

HON'BLE SRI JUSTICE V.SRINIVAS

M.A.C.M.A.Nos.3451 and 3294 of 2009

M.A.C.M.A.No.3451 of 2009

Between:

United India Insurance Company Limited,

Rep.by its Divisional Manager,

Arundelpet, Guntur. ... Appellant

AND

1.Ravipati Jaya Lakshmi, W/o.Venkateswarlu,

Aged 44 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District.

2.Ravipati Venkateswarlu, S/o.Venkatrayudu,

Aged 52 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District.

3.Ravipati Venugopala Rao, S/o.Venkateswarlu,

Aged 24 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District

4.B.K.Balakrishna Rao, S/o.B.M.Kandoji Rao,

Mahadeva Motor Service, D.No.55,

6

th

cross Devaraju Urs layout, A Block,

Opp.Old Bus Stand, Davanagare-577002,

Karnataka State.

5.Sambasiva Rao, R/o.298-A, Mess Road,

Mutyalanagar, II Main Road, Bangalore,

Karnataka State.

6.The New India Assurance Company Limited,

Rep.by its Divisional Manager, 4

th

Lane,

Arundelpeta, Guntur. .. Respondents

M.A.C.M.A.No.3294 of 2009

Between:

1.Ravipati Jaya Lakshmi, W/o.Venkateswarlu,

Aged 44 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District.

2

2.Ravipati Venkateswarlu, S/o.Venkatrayudu,

Aged 52 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District.

3.Ravipati Venugopala Rao, S/o.Venkateswarlu,

Aged 24 years, Resident of D.No.7-158/39,

Kakatiyanagar, Narasaraopet, Guntur District.

... Appellants

AND

1.B.K.Balakrishna Rao, Business, Mahadeva

Motor Service, Opp.Old Bus Stand,

Davanagare-577002, Karnataka State.

2.United India Insurance Company Limited,

Rep.by its Divisional Manager, Arundelpet,

Guntur District.

3.Sambasiva Rao, R/o.298-A, Mess Road,

Mutyalanagar, II Main Road, Bangalore,

Karnataka State.

4.The New India Assurance Company Limited,

Rep.by its Divisional Manager, 4

th

Lane,

Arundelpeta, Guntur. .. Respondents

DATE OF ORDER PRONOUNCED: 08.12.2022

HON’BLE SRI JUSTICE M.GANGA RAO

AND

HON'BLE SRI JUSTICE V.SRINIVAS

1. Whether Reporters of Local newspapers Yes/No

may be allowed to see the Judgments?

2. Whether the copies of judgment may be Yes/No

Marked to Law Reporters/Journals.

3. Whether Their ladyship/Lordship wishes Yes/No

to see the fair copy of the Judgment?

________________

M.GANGA RAO, J

____________

V.SRINIVAS, J

3

* HON'BLE SRI JUSTICE M.GANGA RAO

&

HON’BLE SRI JUSTICE V.SRINIVAS

+ M.A.C.M.A.No.3451 of 2009

% 08.12.2022

#United India Insurance Company Limited .. Appellant

Vs.

$ Ravipati Jaya Lakshmi

and five others. .. Respondents

+ M.A.C.M.A.No.3294 of 2009

# Ravipati Jaya Lakshmi

and two others. .. Appellants

Vs.

$ B.K.Balakrishna Rao and three others .. Respondents

! Counsel for the Appellant/insurer: Sri Srinivasa Rao

Vutla

Counsel for Appellants/claimants: Sri B.Parameswara Rao

Counsel for the insured of the Bus: Sri Siva Prasad Reddy

Venati,

<Gist :

>Head Note:

? Cases referred:

1. 2011 ACJ 1441 (SC)

2. 2009 ACJ 1298

3. 2017 (6) ALT 60 (SC)

4. 2017 (3) SCC 315

5. (2003) 2 SCC 274

This Court made the following:

4

THE HON’BLE SRI JUSTICE M.GANGA RAO

AND

THE HON’BLE SRI JUSTICE V.SRINIVAS

M.A.C.M.A.Nos.3451 and 3294 of 2009

COMMON JUDGMENT: (per Hon’ble Sri Justice V.Srinivas)

These appeals are directed against the order of the

Chairman, Motor Vehicle Accident Claims Tribunal-cum-District

Judge, Guntur (hereinafter called as ‘the Tribunal’) in

M.V.O.P.No.426 of 2007 dated 30.03.2009.

2. These appeals arising out of same accident and raising

common questions of law have been heard together and are being

decided by this common judgment.

3. The facts concerned to these cases remain in short compass.

4. In M.A.C.M.A.No.3451 of 2009 the insurer of the Bus bearing

No.KA 17B 7374, belonging to the 3

rd

respondent herein, is the

appellant. The respondent Nos.1 and 2 are parents and respondent

No.3 is younger brother of Ramesh Babu (hereinafter called as ‘the

deceased’). Respondent No.4 and 5 herein are the insured and

insurer of Tayota Quallis Vehicle bearing No.KA 04 AA 5400.

5. In M.A.C.M.A.No.3294 of 2009 the claimants are the

appellants for enhancement of compensation.

5

6. According to the claimants, in the petition before the

Tribunal, on 20.10.2006 at about 06.30 A.M., when the deceased

and some others were proceeding in the Tayota Quallis Vehicle

bearing No.KA 04 AA 5400 from Bangalore to Goa, on the way, near

Davangare, the bus bearing No.KA 17B 7374, being driven by its

driver at high speed and in a rash and negligent manner, came in

opposite direction towards wrong side and hit the said Tayota

Quallis Vehicle. As a result, the deceased and three others died on

the spot. By the time of accident the deceased was aged about 24

years and earning Rs.4,92,000/- per annum by working as Software

Engineer in Onmobile Asia Pacific Private Limited, Bagalore. Being

dependents, the claimants filed petition under M.V. Act claiming

compensation of Rs.50,00,000/- against insurer and insured of both

the vehicles.

7. Written statement was filed by the owner of the bus,

denying all the material allegations, stating that the bus was

validly insured; and that the accident occurred due to rash and

negligent driving of the Quallis vehicle and hence, he is not liable

to pay compensation.

8. Written statement was filed by the insurer of the bus,

denying all the material allegations, stating that the accident

occurred due to rash and negligent driving of the Quallis vehicle;

6

and that the claimants have to prove that the owner of the bus has

not violated the terms of the policy.

9. Written Statement was filed by the owner of the Tayota

Quallis vehicle, denying the material allegations, stating that the

accident occurred due to rash and negligent driving of the bus by

violating the traffic rules towards wrong side and hit the Quallis

vehicle and hence, he is not liable to pay compensation.

10. Written statement was filed by the insurer of the Qualliz

vehicle, denying all the material allegations, stating that the

accident occurred due to rash and negligent driving of the bus; and

that police registered crime against the driver of the bus and filed

charge sheet.

11. The Tribunal settled the following issues for enquiry basing

on the material:

1.Whether the deceased died in the accident caused due to rash

and negligent driving of the Bus bearing No.KA 17B 7374 and

Qualis No.KA 04 AA 5400 by their drivers ?

2.Whether the petitioners are entitled for compensation? If so,

what would be the just amount of compensation that the

petitioners would be entitled to and against whom?

3.To what relief?

12. In the course of enquiry, on behalf of the claimants, PWs.1

to 3 were examined and Exs.A.1 to A.8 and X.1 to X.3 were

marked. On behalf of the insurer of the bus, R.W.1 was examined,

7

Exs.B.1 to B.5 were marked. One J.Rahamtulla, R.T.A. official was

examined as R.W.2. On behalf of the insurer of the Quallis vehicle,

R.W.3 was examined, Ex.B.6 was marked.

13. On the material, the Tribunal, having come to the

conclusion that the accident occurred due to the rash and

negligent driving of the bus by its driver, held that parents of the

deceased are entitled for the compensation of Rs.38,80,000/-,

with interest at 7% per annum from the date of petition till the

date of realization, for the death of the deceased in the accident

and the 3

rd

claimant, who is brother of the deceased is not entitled

for any share in the compensation as he is not his dependent and

the insured and insurer of the crime bus shall deposit the

compensation within 2 months from the date of order and that the

appellant/insurer is entitled to recover the compensation, in case

of payment if any, from the owner of the bus/insured, by filing

Execution Petition against him and that the petition against

insured and insurer of the Tayota Quallis vehicle is dismissed.

14. It is against the said order, these appeals are preferred by

the claimants and insurer of the Bus bearing No.KA 17B 7374.

15. Heard Sri Srinivasa Rao Vutla, learned counsel for the

appellant/insurer of the Bus, Sri Siva Prasad Reddy, Venati,

8

learned counsel for the insured of the Bus, Sri B.Parameswara Rao,

learned counsel for the appellants/claimants.

16. Now, the following points arise for determination:

1. Whether there is any contributory negligent on the part

of the driver of the Tayota Quallis Vehicle?

2. Whether the compensation awarded to the claimants is

just compensation? and

3. To what relief ?

17. POINT No.1:

The documents placed on record goes to show that the

accident occurred due to rash and negligent driving of the driver

of the bus alone as per Ex.A.2 Charge Sheet. There is no dispute

that the accident, in question, occurred on 20.10.2006 at about

06.30 A.M., Near Davangare on N.H.4. At the time of accident, the

deceased and some other Engineers were proceedings in the

Quallis Vehicle from Bangalore to Goa in a four lane road i.e.,

N.H.4. The driver of the bus came in wrong lane in opposite

direction and hit the Quallis vehicle, which was proceeding in right

direction.

18. As per the evidence placed on record show that inspite of

number of opportunities given, the insured and insurer of the bus

did not choose to examine the driver of the bus, to come to the

9

conclusion that there is head-on collision or there is any

contributory negligence on the part of the driver of the Quallis

Vehicle, who died in the accident. Admittedly, the driver of the

crime bus ought not to have come in a wrong lane. Both lanes of

the road at the scene of accident same direction lanes. As per

record there is no evidence to show that the driver of the bus need

to come in the lane where the Quallis vehicle was proceeding. The

appellant/insurer and insured of the bus ought to have examined

the driver of the bus, who is best witness to depose about the

negligence on the part of the driver of Quallis Vehicle. On the

other hand, the insured suppressed the material before the

Tribunal by not examining the driver of the bus as a witness. More

so, there is no evidence placed on record to say that having seen

the bus in the opposite direction, the driver of the Quallis vehicle

did not stop his vehicle and failed to avoid the accident. The very

fact found from the record that the driver of the Quallis vehicle

died on the spot would go to show that the bus came in opposite

direction at high speed and hit the Quallis vehicle. It is a proved

fact, because the bus came in wrong lane, the accident occurred.

If at all there is fault on both the drivers of the vehicle, the

appellant/insurer and insured of the bus might have examined the

driver of the bus, who is best witness to speak what was really

10

happened and on whose fault the accident was occurred, but the

appellants did not do so. Moreover, the evidence placed by the

claimants i.e., P.W.2, who is said to be eye witness to the

incident, categorically shows that the accident occurred was due

to negligence on the part of the driver of the bus alone. Thus, this

point is answered against the appellant/insurer of the bus.

19. POINT NO.2:

The Tribunal accepted the evidence of P.W.3, who is

uninterested and competent person to speak about the income of

the deceased and the Tribunal has opined that there is no need to

P.W.4 being Head of Administration in Onmobile Asia Pacific

Private Limited, to give false evidence and to issue document like

Ex.A.7 Salary Certificate. Based on which, the Tribunal rightly

came to the conclusion that the deceased was earning

Rs.4,92,000/- per annum by the date of his death working as

Software Engineer in Honeywell Technology, Bangalore.

20. As can be seen from the evidence on record, the deceased

was a qualified Software Engineer and he was working in a reputed

Software Company. With experience, he would have got better

opportunities and earn more salary. He would have spent more

towards maintenance of his parents with passage of time. As per

11

the evidence of P.W.3, the deceased earning Rs.4,92,000/- per

annum at the time of his death.

21. While deciding the income of the deceased, it is keep in

mind, as per the ratio laid down in APEX Court judgment in

between Sunil Sarma and others vs. Bachitar Singh and others

1

,

wherein it was held that:

“They are of the view that deductions made by the

Tribunal on account of HRA and CCA and Medical allowance

are done on incorrect basis and should have been taken

into consideration in calculation of the income of the

deceased. Further, deductions toward EPF, GIS should also

not have been made in calculating the income of the

deceased”.

22. As per the Sarla Verma and Ors. v. Delhi Transport

Corporation and Anr

2

, decision where the annual income is in

taxable range, the income tax payable by the deceased should be

deducted from the gross income of the deceased for determining

actual income of the deceased. On perusal of Ex.A.7 Salary

certificate, the gross salary of the deceased is Rs.4,92,000/- per

annum. After deducting permissible deductions under Income Tax

Act i.e., Professional Tax Rs.200/- per month (Rs.200 X 12 =

2,400/- per annum) and Rs.1,711/- per month(Rs.1,711 X 12 =

1

2011 ACJ 1441 (SC)

2

2009 ACJ 1298

12

20,532/- per annum) towards PF, making total of all the

deductions, it comes to Rs.22,932/-. Thus, the net salary is

Rs.4,69,068/- per annum (Rs.4,92,068 – Rs.22,932).

23. The following tax rates are applicable as per the Income Tax

Act during the relevant period i.e., 2006:

Income Tax Rate

Upto 100,000 Nil

100,000 to 1,50,000 10% of the amount exceeding 100,000

150,000 to 250,000

Rs.5,000 + 20% of the amount exceeding

150,000

250,000 & above Rs.25,000 + 30% of the amount exceeding

250,000

Accordingly, the income tax of the deceased would be

calculated as follows:

After deduction of Rs.1,00,000/- from the total income of

the deceased i.e. Rs.4,69,068/-, the taxable income would be

Rs.3,69,068/-. For the next Rs.50,000/-, the tax would be

Rs.5,000/-. On the remaining balance amount of Rs.3,19,068/-

(Rs.4,69,068/- (-) 1,00,000/- (-) 50,000/-), if the tax at 20% is

calculated, it would come to Rs.20,000/-. On the remaining

balance amount of Rs.2,19,068/- (Rs.4,69,068/- (-) 1,00,000/- - (-)

50,000/- (-) 1,00,000), if the tax at 30% is calculated, it would

13

come to Rs.65,720/-. Thus, the total income tax would come at

Rs.90,720/-(Rs.5,000/-+ Rs.20,000/- + Rs.65,720/-). Thus after

deducting the said amount of tax payable during the relevant year,

the actual income is determined at Rs.3,78,348/-(Rs.4,69,068/- -

90,720/-).

24. As per the decision of the constitution bench of the Apex

Court judgment reported in National Insurance Company Limited

Vs.Pranay Sethi and others

3

, the deductions towards personal

and living expenses of the deceased, held at Paragraph No.39 as

follows:

39. Before we proceed to analyse the principle for addition

of future prospects, we think it seemly to clear the maze

which is vividly reflectible from Sarla Verma, Reshma

Kumari, Rajesh and Munna Lal Jain. Three aspects need to

be clarified. The first one pertains to deduction towards

personal and living expenses. In paragraphs 30, 31 and 32,

Sarla Verma lays down:-

“30. Though in some cases the deduction to be made

towards personal and living expenses is calculated on

the basis of units indicated in Trilok Chandra4, the

general practice is to apply standardised deductions.

Having considered several subsequent decisions of this

(2003) 3 SLR (R) 601 Court, we are of the view that

where the deceased was married, the deduction

towards personal and living expenses of the deceased,

should be one-third (1/3rd) where the number of

dependent family members is 2 to 3, one -fourth

(1/4th) where the number of dependent family

3

2017 (6) ALT 60 (SC)

14

members is 4 to 6, and one-fifth (1/5th) where the

number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the

claimants are the parents, the deduction follows a

different principle. In regard to bachelors, normally,

50% is deducted as personal and living expenses,

because it is assumed that a bachelor would tend to

spend more on himself. Even otherwise, there is also

the possibility of his getting married in a short time, in

which event the contribution to the parent(s) and

siblings is likely to be cut drastically. Further, subject

to evidence to the contrary, the father is likely to have

his own income and will not be considered as a

dependant and the mother alone will be considered as

a dependant. In the absence of evidence to the

contrary, brothers and sisters will not be considered as

dependants, because they will either be independent

and earning, or married, or be dependent on the

father.

32. Thus even if the deceased is survived by parents

and siblings, only the mother would be considered to

be a dependant, and 50% would be treated as the

personal and living expenses of the bachelor and 50% as

the contribution to the family. However, where the

family of the bachelor is large and dependent on the

income of the deceased, as in a case where he has a

widowed mother and large number of younger non -

earning sisters or brothers, his personal and living

expenses may be restricted to one-third and

contribution to the family will be taken as two-third.”

25. As per the Pranay Sethi case(referred supra), by fortifying

Sarla Verma case (referred supra), while determining the income,

an addition of 50% of actual salary to the income of the deceased

towards future prospects, where the deceased had a permanent

job and was below the age of 40 years, should be made. The

addition should be 30%, if the age of the deceased was between 40

15

to 50 years. In case the deceased was between the age of 50 to 60

years, the addition should be 15%. Actual salary should be read as

actual salary less tax.

26. In the present case as per the above said decision 50% of

actual salary shall have to be added to the income of the deceased

towards future prospects as the victim is in the age group below

the age of 40 years. After adding 50% to the income of the

deceased towards future prospects his income is determined at

Rs.5,67,522/-(Rs.3,78,348/- + Rs.1,89,174/-).

27. In the case on hand, since the deceased is bachelor as per

the ratio laid in the above said APEX Court Judgment 50% is to be

deducted from the income of the deceased towards personal and

living expenses. Then the quantum is determined as Rs.2,83,761/-.

28. Regarding just compensation, in a decision of Hon’ble

Supreme Court between Sandeep Khanuja vs Atul Dande & Anr

4

,

at Paragraph Nos.11 and 12 held as follows :

11………it is now a settled principle, repeatedly stated

and restated time and again by this Court, that in

awarding compensation the multiplier meth od is

logically sound and legally well established. This

method, known as 'principle of multiplier', has been

evolved to quantify the loss of income as a result of

4

2017 (3) SCC 315

16

death or permanent disability suffered in an

accident……...

12……… While applying the multiplier method, future

prospects on advancement in life and career are taken

into consideration. In a proceeding under Section 166 of

the Act relating to death of the victim, multiplier

method is applied after taking into consideration the

loss of income to the family of the deceased that

resulted due to the said demise. Thus, the multiplier

method involves the ascertainment of the loss of

dependency or the multiplicand having regard to the

circumstances of the case and capitalising the

multiplicand by an appropriate multiplier. The choice of

the multiplier is determined by the age of the deceased

or that of the claimant, as the case may be…….

……. there should be no departure from the multiplier

method on the ground that Section 110-B, Motor

Vehicles Act, 1939 (corresponding to the present

provision of Section 168, Motor Vehicles Act, 1988)

envisaged payment of ‘just’ compensation since the

multiplier method is the accepted method for

determining and ensuring payment of just compensation

and is expected to bring uniformity and certainty of the

awards made all over the country.”…….

29. The appropriate multiplier applicable to the age of the

deceased i.e., 24 years is 18. The total loss of dependency is

determined at Rs.51,07,698/- (Rs.2,83,761/- x 18). Apart from

that as per the decision of the constitution bench of the Apex

17

Court judgment reported in National Insurance Company Limited

Vs.Pranay Sethi and others 2017 (6) ALT 60 (SC) an amount

Rs.15,000/- towards funeral expenses and Rs.15,000/- towards

love and affection are awarded. In-total the claim petitioner are

entitled compensation of Rs.51,37,698/-.

30. A brief exposition of the calculation made to arrive at the

compensation is set out infra:

S.No. Heads Calculation

1 The annual income of the

deceased after deduction

of Income Tax

Rs.3,78,348/ per annum

2 50% of above(1) to be

added as future prospects

(Rs.3,78,348/- + Rs.1,89,174/-)

Rs.5,67,522/-

3 50% to be deducted as

personal expenses of

deceased.

Rs.2,83,761/-.

4 Compensation arrived at

on application of

multiplier 18.

(Rs.2,83,761/- x 18)

Rs.51,07,698/-

5 Loss of estate Rs.15,000/-

6 Funeral expenses Rs.15,000/-

Total compensation

awarded(Rows 4+5+6)

Rs.51,37,698/-

18

31. Further it is settled law that under the provisions of the

Motor Vehicle Act, 1988, there is no restriction that compensation

could be awarded only up to the amount claimed by the claimant.

In an appropriate case where from the evidence brought on

record, if Tribunal consider that claimant is entitled to get more

compensation than claimed, the Tribunal may pass such award. In

an appropriate case where from the evidence brought on record if

Tribunal considers that claimant is entitled to get more

compensation than claimed, the Tribunal may pass such award.

There is no embargo to award compensation more than that

claimed by the claimant. Rather it is obligatory for the Tribunal

and Court to award “just Compensation”, even if it is in the excess

of the amount claimed. This settled position is followed from the

decision of the Supreme Court reported in Nagappa v. Gurudayal

Singh and others

5

.

32. Therefore, in view of the forgoing discussion, we are of the

opinion that the award passed by the Tribunal warrants

interference by enhancing the compensation from

Rs.38,80,000/- to Rs.51,37,698/-. Thus, this appoint is answered

in favour of appellants/claimants.

33. POINT No.3:

5

(2003) 2 SCC 274

19

In view of the findings on point Nos.1 and 2, the order passed

by the Tribunal warrants interference regarding quantum of

compensation only and with regard to the remaining aspects there

is no need to disturb the well articulated order passed by the

Tribunal. As such, the appeal filed by the insurer of the Bus is

liable to be dismissed and the appeal filed by the claimants is

liable to be allowed.

34. In the result, the M.A.C.M.A.No.3451 of 2009 is dismissed.

There shall be no order as to costs.

35. The M.A.C.M.A.No.3294 of 2009 is allowed enhancing the

compensation from Rs.38,80,000/- to Rs.51,37,698/- with interest

at 7% per annum, with proportionate costs from the date of

petition till the date of realization against respondent Nos.1 and

2(insured and insurer of the Crime Bus). The respondent No.2 shall

deposit the compensation amount within two months from the

date of this judgment and then the 2

nd

respondent is entitled to

recover the same from the 1

st

respondent by filing Execution

Petition against him. The appellants/claimants shall pay the

requisite Court-fee in respect of the enhanced amount awarded

over and above the compensation claimed. Rest of the directions

given by the Tribunal with regard to the apportionment of the

compensation between the claimant/parents, their entitlement in

20

withdrawing the amount, non-entitlement of the 3

rd

claimant i.e.,

younger brother of the deceased and dismissal of the petition

against other respondents i.e., owner and insured of the Quallis

vehicle, shall remain unaltered.

36. The impugned order of the Tribunal stands modified to the

aforesaid extent and in the terms and directions as above.

37. Interim orders granted earlier if any, stand vacated.

38. Miscellaneous petitions pending if any, stand closed.

________________

M.GANGA RAO, J

____________

V.SRINIVAS, J

Date:08.12.2022

Krs

L.R. copy to be marked

21

THE HON’BLE SRI JUSTICE M.GANGA RAO

AND

THE HON’BLE SRI JUSTICE V.SRINIVAS

M.A.C.M.A.Nos. 3451 and 3294 of 2009

DATE: 08.12.2022

krs