Partly allowed

The United India Insurance Co. Ltd. v. a.Parndama Chetty

Telangana HC28 Mar 2014MACMA/3607/2005

Case brief

AI extract

What is this about?

The Insurance Company appealed against compensation awarded by the Motor Accidents Claims Tribunal for a fatal traffic accident. The Single Judge upheld the Tribunal's finding on negligence but accepted the appellant's prayer to deduct earlier no-fault liability payments and reduce interest rates, allowing the appeal in part.

What did the court decide?

Appeal allowed in part; compensation reduced to Rs. 2,00,000 with interest at 7.5% per annum.

The United India Insurance Co. Ltd. Vs a.Parndama… — Motor Accident Claims | Telangana HC (2014)

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THE HON’BLE SRI JUSTICE B.CHANDRA KUMAR

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M.A.C.M.A.No.3607 of 2005

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JUDGMENT:-

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Challenging the order dated 18.08.2005 passed in O.P.No.342 of 2000 by the Chairman, Motor Vehicle Accidents Claims Tribunal – cum – VIII Additional District Judge, (Fast Track Court), Chittoor, the Insurance Company filed this appeal seeking to set aside the same.

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The appellant herein is the second respondent and the respondents herein are petitioners 1 and 2 and the first respondent before the Tribunal and for the sake of convenience, the parties will be hereinafter referred to as per their array before the Tribunal.

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The accident on 15.02.2000 at 11:00 a.m., while the deceased was travelling in an auto bearing registration No.AP-03-U-2290 to go to IIT, Chittoor. It is alleged that the driver of the auto drove the same in rash and negligent manner and at high speed due to which, the deceased had fallen down from the auto and sustained head injury and died on the spot.

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The first respondent is the owner of the auto and the second respondent is the Insurance Company with which the said auto was insured.

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The finding of the Tribunal on the issue of negligence is not in dispute in this appeal. According to

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the claimants, the deceased was undergoing Fitter training in IIT, Chittoor and during leisure time, he used to work in Thavanampalle and earn Rs.100/- per day.

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Sri A.V.S.Prasad, learned counsel for the appellant submitted that the Tribunal ought not have taken the income of the deceased at Rs.3,000/- per month since he was only 20 years old and the Tribunal ought to have deducted half of the amount towards the personal expenses of the deceased. It is also submitted that the claimants were already paid Rs.50,000/- towards no fault liability in I.A.No.32 of 2001 dated 23.03.2001 and the said amount is to deducted out of the awarded amount of Rs.2,50,000/- and the rate of interest also should not exceed 7.5% per annum.

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I have gone through the entire record. Ex.A.7 is the SSC marks list of the deceased. Ex.A.8 is the study certificate of the deceased. Ex.A.9 is the identity card of the deceased. These documents reveal that the deceased was pursuing IIT as on the date of his death. The Tribunal had taken the income of the deceased at Rs.3,000/by rightly taking into consideration consideration the qualifications of the deceased and his future prospects of securing a permanent job and regular income.

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In the circumstances, I do not see any reason to interfere with the well reasoned finding of the Tribunal. Though it is contended that as far as the bachelors are

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concerned half of the amount should be deducted towards personal expenditure of the deceased, but as per the guidelines in the latest decisions of the Apex Court, only 1/3^rd should be deducted towards personal expenditure of the deceased. In view of the same, I do not intend to interfere with the findings of the Tribunal.

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However, it appears that the claimants have received Rs.50,000/- towards no fault liability as per the order dated 23.03.2001 passed in I.A.No.32 of 2001 and the same has to be deducted from the total compensation of Rs.2,50,000/- awarded by the Tribunal. The rate of interest is also to be reduced from 9% to 7.5% per annum.

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Accordingly, this appeal is allowed in part reducing the amount to be paid by the Insurance Company to the claimants to Rs.2,00,000/- (Rupees two lakhs only) together with interest at the rate of 7.5% per annum from the date of petition till realisation. There shall be no order as to costs.

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Miscellaneous petitions, if any, pending in this appeal shall stand closed.

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_________________________ Justice B.Chandra Kumar 28^th March, 2014 Bvv

The United India Insurance Co. Ltd. v. a.Parndama Chetty

Case brief

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The United India Insurance Co. Ltd. v. a.Parndama Chetty

Case brief

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