Justice R. Kantha Rao allowed the appeal partly, enhancing compensation from Rs. 2,64,000 to Rs. 4,00,000 by recalculating loss of earnings based on higher income and adjusting interest from 9% to 7.5% per annum.
Enhancement of compensation by Rs. 1,36,000; interest reduced to 7.5% per annum.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 1407 OF 2004
DATED: 10.02.2012
Between:
Madan lal Sharma and another
.. Appellants
And
J.Ananda Rao and others
.. Respondents
THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 1407 OF 2004
JUDGMENT:
Heard Sri V.Ramachandra Rao, learned counsel appearing for the appellants and Sri R.Venkat Rao, learned counsel appearing for the respondent No.3/insurance company.
This appeal is filed against the order dated 30.12.2003 passed by the Motor Accidents Claims Tribunal cum III Additional District Judge at Karimnagar in M.V.O.P.No.278 of 2002 seeking enhancement of compensation.
Amit Kumar Sharma, the deceased was aged 22 years on the date of his death while he was going in a car bearing No. AP9U 6697 from Karimnagar to Hyderabad, a lorry bearing No. AP 13 T 333 came in a rash and negligent manner, dashed the car, due to which the deceased sustained severe head injury and some other injuries on the other parts of the body and died instantaneously.
The learned Tribunal recorded a finding that the accident occurred due to rash and negligent driving of the driver of the lorry
bearing No. AP 13 T 333 and that the second respondent owner and the third respondent/insurance company are jointly and severally liable to pay compensation of Rs.2,64,000/- to the claimants which finding became final.
Challenge to the award is on the ground that the compensation was grossly inadequate as it was not properly computed. The appellants/claimants are the parents of the deceased. The second appellant/Smt Geetha Sharma, mother of the deceased was aged 50 years on the date of accident. According to the claimants, the deceased was working as a Sales Manager in Gourav Auto Stores and Agro Stores, Rampur, Karimnagar and was getting salary of Rs.6,000/- per month. In proof of the income of the deceased, they filed Exs.A.8 and A.9income tax returns for the assessment years 2002-2003. The respondents did not adduce any evidence, though in the counter filed by the second respondent all the material facts asserted in the claim petition have been denied. The learned Tribunal took the income of the deceased for the purpose of computing compensation at Rs.3,000/- per month, though the income tax returns were subsequent to the period of accident and no person was examined to prove either Ex.A.5-salary certificate or the income tax returns, the income considered by the learned Tribunal for the purpose of computing the compensation in my view is erroneous. Since the salary certificate has not been substantiated by examining any witness working in the company where the
deceased was allegedly working, I am of the considered view that for the purpose of computing compensation the income of the deceased can be taken as Rs.5,000/- per month and the annual income comes to Rs.60,000/-. Since the deceased was unmarried, 50% of his income shall be deducted towards personal and living expenditure which comes to Rs.30,000/-. The multiplier relevant to the age of the mother of the deceased as per the judgment in SARALA VARMA AND OTHERS v DELHI TRANSPORT CORPORATION AND ANOTHER[1] has to be taken is ‘13’. To arrive at the loss of earnings, the amount has to be capitalized with ‘13’ i.e. Rs.30,000/- x 13 = Rs.3,90,000/-. This apart, the appellants are entitled for compensation of Rs.5,000/- towards loss of estate and further sum of Rs.5,000/- towards funeral expenses. The interest awarded by the learned Tribunal @ 9% per annum being on higher side is reduced to 7.5% per annum from the date of petition till the date of realization. Since the appellants, who are dependants on the deceased are his parents they will share the compensation amount equally. The enhancement in compensation, therefore, would be Rs.4,00,000/- minus Rs. 2,64,000/- = Rs.1,36,000/-.
With the above enhancement in the compensation and reduction in the rate of interest, the appeal filed by the claimants is partly allowed. There shall be no order as to costs.
Date: 10.02.2012 R. KANTHA RAO, J kvrm
THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 1407 OF 2004
DATED: 10.02.2012
[1] 2009 ACJ 1298
3 issues framed by the court
Whether the monthly income of the deceased for compensation calculation should be enhanced based on income tax returns.
Whether the interest rate awarded needs reduction.
Whether the compensation amount should be enhanced to reflect proper loss calculation.
Colour shows how this judgement treated each authority
SARALA VARMA AND OTHERS v DELHI TRANSPORT CORPORATION AND ANOTHERApplied¶19
SARALA VARMA AND OTHERS v DELHI TRANSPORT CORPORATION AND ANOTHER [1]
Madan lal Sharma
J.Ananda Rao
R. KANTHA RAO
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
