Partly allowed

Hdfc Ergo General Insurance Co. Ltd. v. Mohammad Masood

Telangana HC18 Dec 2023MACMA/1075/2023

Case brief

AI extract

What is this about?

The High Court partially allowed an appeal by an insurance company against a Motor Accident Claims Tribunal award. The Court affirmed the insurer's liability to pay first and recover later, despite the driver lacking a license. It modified the compensation amount by adjusting death income and increasing deductions for personal expenses to 50%, adding specific damages for parental consortium and lo

What did the court decide?

Compensation modified to Rs. 5,04,000/- including specific damages; insurer directed to deposit amount within six weeks with 7.5% interest.

Hdfc Ergo General Insurance Co. Ltd. Vs Mohammad… — Motor Accident Claims | Telangana HC (2023)

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IN THE HIGH COURT FOR THE STATE^{OF TELANGANA} AT HYDERABAD

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MONDAY, THE EIGHTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE

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PRESENT

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THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY

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MOTOR ACCIDENT CIVIL MI SCELLANEOUS APPEAL NO: 1075 OF 2023

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Appeal Under Section 173 of Motor Vehicles Act against the order and decree in M.V.O P.No.172 ol 2018 dated 17-03-2023 on the file of the Court of the chairman Motor Accident claims Tribunal -cum- | ArJditional District & sessions Judge, Adilabad.

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Between:

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HDFC ERGO General lnsurance Co. Ltd, Repres.:nted by its Manager, policy issuing Office, 2nd Floor, SCO.No.237, Sector-.|2, Karnal', Haryanal iZ OOI'

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...AppellanURespondent No.3

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AND

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'l Mohammad Masood, Sio. MD. yakub, Age_ 48 years, Occ_ Labour (ureo as per Kespondent Nos.2 to 4 His Legal Representatives)

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Thaherunnisa, Wo Mohammad Masood, Age- 43 years, Occ_ Housewife

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Farin, D/o Mohammad Masood, Age_ 21years, Occ_ Nil

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Samrin, D/o Mohanrmad Masood, Age_ 1g years, Ccc_ Student All are R/o H.No.4-8-221, xursneeo "Nagai, AJiriUij, Aditabad District

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...Respondent Nos.1 to 4/petitioners

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Counsel for the Appellant: Sri. A. RAMAKRISHNA REDDy, Advocate counsel for the Respondents: sri. SAURABH AGARWAL, Advocate The Court delivered the following: JUDGMENT

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l 'l

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I I i I I I

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HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY

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M.A.C.M.A.NO.lO7 5 0F 2023

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JUDGMENT

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Heard learned standing counsel^{Sri A.RamakrishnaReddy} for the appellalt-insurance^{company and Sri. SourabhAgarwal,} learned counsel lor respondents-claimants.

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The present appeal^{has been hled by the appellant/} insurance company^{challenging theaward passed Lry the} Chairman, Additional^{Motor Accident Claims Tribunal-cum I Addl'} DistrictandSessionsJudge,Adilabad(forshort'Tribunal')in M.V.O.P.No.^{172 of 2018,dated 17 03'2o23, therebyseekingto set-} aside the award^{againstthe insurance company'}

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The brief factual^{matrixof the present appealis as under'}

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The deceased^{i'e., MohammadYusufwas workingas Ginning} Operator^{in Vishwataje Cotton Mill at Allirajpet and as usual' on} O4.O5.2O17^{aftercompletionof his duty'he slept on cement floor} co-workers^aldon in the said^{Cotton Mill a-long with his} of the^{lorrY bearing} 05.05.2017 at about^{7.00 a.m., the driver} \ No.HR-56-B-31OO^{driven the} lorry in rash^and registration manner^{with high speed and rrithoutobservingthe} negligent

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LN4l MACMA No.10/5 oJ 2023

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deceased, who slept on cement floor along with others, dashed to his head, due to which, he sustained head injury and his brain came out from head arld died on the spot. Later, the dead body of the deceased was shifted to Government Hospital, Gajwel for autopsy. The Police, Jagadelpur p.S., registered a case in crime No'42 /2077 under section 3o4-A ipc against the driver of the offending vehicle and filed charge sheet.

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5- The claimants, i.e., respondent Nos. 1 to 4 herein , who are father, mother ald unmarried sisters of the deceased, have hled claim petition against owner, driver of the vehicle and insurance company under section 166 (1,)(c) of Motor Vehicles Act before the MACT claiming compensation of Rs.25,O0,O0O/_ along with interest from the date of the petition tiil the date of deposit.

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The deceased was aged abouL 2T years and unmarried as on the date of accident, ha.le and healthy ard was working as Ginning Operator in Vishwateaja Cotton Mill, Allirajpet of Siddipet district and was getting arr income of Rs. 15,O0O / _ per month and claimants lost the support of the deceased.

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LNA,] MACMA No 1075 oJ 2023

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The respondent Nos.S & 6 herein, who are the driver and owner of the offending vehicle, remained ex_parte.

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The appellant-Insurance Company hled counter denying all the allegations made in the claim petition and contended that the driver of the offending vehicle was not having valid and effective driving license to drive the vehicle and he was not qualified from holding or obtaining such driving license and further has not satished the requirements of the Rule-3 of the Central Motor Vehicle Rules, 1989 and that the olfending vehicle was not Road worthy and was plying on the road by violating the M.V.Rules at the time of accident. As such, insurance company is not liable to pay any compensation. Thus, the conditions of the insurance policy were violated and finally, prayed for dismissal of the claim petition.

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On the basis of the above pleadings, the Tribunal framed the

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following issues:

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i) Whether the deceased Mohammad yousuf died in motor vehicle accident occurred on O5.O5.2O17 at 7.O0 a.m., in Vishwateja Cotton Mill, Allirajpet due to rash and negligent driving of lorry by its driver of the offending crime vehicle i.e., Lorry (bg.No.HR-56-B_ 3100)?

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LNA'] MACMA No-1075 of²⁰²³

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i0 Whether the petitioners are entitled for compensation? If so , to^what amount and from whom?

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iii) To what relieP

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In order to substantiate the case, on behalf of the claimants, mother of the deceased was examined as PW. 1 and also examined Sayed Kaleem, who is eye witness, as PW.2 and Exs.Al to A7 were marked. On behalf of the appellant-insurance company, RW.1 was examined and copy of insurance policy was marked as Ex.B1.

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The Tribunal, on due consideration of the evrdence and material piaced on record, came to conclusion that the accident took place due to rash and negligent driving of the lorry bearing registration No.HR-56-B-3100 and awarded compensation of Rs.19,48,932/- along with interest @ 7 .5% per annum from the date of petition till the date of deposit of amount. The driver and owner of the crime vehicle i.e., respondents 5 and 6 herein and appellant are liable to pay the same compensation arnount.

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During the course of hearing of the appeal, learned counsel for appellant-insurance company submitted that the Tribunal ought to have seen that there are clear violations as to the terms and c{nditions of the insuralce policy committed by the driver and I

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LNA,J MACMA No_1075 of 2023

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{rl

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owner of crime vehicle and as such, appellanL cannot be fastened with the liabiiity ald instead of dismissing O.p., against insurance company, it had directed the insurance company to pay compensation amount and later recover the same from the owner. The driver of the crime vehicle was not have driving license as on the date of accident and as such, the owner of the crime vehicie alone is liable to pay the compensation amount. He further submitted that the Tribunal erred in taking monthly income of the deceased at Rs. l0,0OO/- without any proof of his income. The Tribunal ought to have deducted 50% of the income of the deceased towards personal expenditure, however, the Tribunal erred in deducting I / 3'a of his income and frnally, prayed to set aside the award passed by the Tribunal.

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Consideration:

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The main contention raised by the appellant in the present appea.l is that the driver of the offending vehicle was not having driving license, the Tribunal held that admittedly, the driver of the vehicle was not having driving license and mere absence of driving license will not absolve the liability of insurance compaly and \ thus, (irected the insurance company to pay the compensation

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LNA,J MACMANo 1075 o12023

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amount and later, it can recover the compensation from the driver and owner of the crime vehicle by following the decision of Hon'ble Apex Court in Shamanna and another vs. Divisional Manager,

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Oriental Insurance Company Limited and othersl.

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In view of the above, this Court is of the considered view that the Tribunal had rightly directed the insurarce company to pay the compensation and later to recover the same from the driver ald owner of the crime vehicles i.e., respondents 5 and 6 herein.

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Insofar as the other contention of the Iearned counsel for appellant that Tribuna-l erred in taking the monthly income of the deceased at Rs. 10,000/-, the Tribunal on due consideration of the present case, period of accident, the inflation, devaluation of rupee, cost of living etc., had taken the notional income of the deceased at Rs.10,OOO/- per month since he is working as Ginning Operator.

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The other contention raised by the learned counsel for appellant with regard to living expenses of the deceased, the Hon'ble Apex Court in Sarla Verrna (Smt) and others Vs. Delhi Transport corporation and another2, the Hon'ble Apex Court at

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I lzort; I scc oso ' lzooey^{o scc tzr}

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LNA,J MACMA No-1075 of 2023

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paragraph-32 held that 'Thus even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 5070 would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the tamily'.

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In view of the above decision, 50% of the income of the deceased should be deducted towards his personal ald living expenses. Therefore, the Tribuna.l had erred in deducting 1/3.a instead of 50% of the income of the deceased towards his personal and living expenses and the same is liable to be modified.

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Further, claimants are also entitled to Rs. 1S,O00/_ towards loss of estate ald the mother of deceased is also entrtled to Rs.40,O00/- towards parenta.l consortium in view of the decision of the decision of the Hon'ble Apex Court in National Insurance Company Limited v. Pranay Sethi and others3.

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Conclusion:

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In view of the above, the claimants are entitled for the following compensation:

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' (2017) 16 SCC 680

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t-+z!n--

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LNA,] MACMANo.1075 oJ 2D3

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Sl.I{o.	Head		Compensatioaaward	ed
I	Income	Rs (Rs-	. 1,2o,OOOl- per 10,000/-per month)	arlnum
2	Futureprospects	Rs.4 inco	8,OOO/- me) (i.e.,40%	ofthe
	Deductiontowardspersonal expenses	Rs. Rs.1	84,OOO/-(i.e., 5O ,20,000/⁺Rs.48,000/	o/. ) of
4	TotalIncome	Rs.8 Rs.4	4,OOO/-(i.e.,Rs-1,26 8,0Oo/ {)Rs.84,000/-	,000/-+
5	Multiplier	t7
6	Loss ofdependency	Rs.1 t7	4,28,OOO/-(i.e.,Rs-84	,0O0/- x

7	Transportationcharges	Rs.	1O,OOO/-
8	Parentalconsortium	Rs.	4O,OOO/-
9	Funeralexpenses	Rs.	l5,OOO/-
10	Loss ofestate	Rs.	r5,OOO/-
	Totalcompensationtobe paid:	Rs.r	5,Oa,OOO/-

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In the result, Appeal is partly allowed and the impugned award passed by the Tribunal insofar as compensation amount is concerned, is modified. Insofar as direction of the Tribunal directing the appellalt-insuralce company to first pay arrd later recover the compensation arnount from the driver and owner of the crime vehicle i.e., respondents 5 and 6 herein, is affirmed. The above compensation amount shall carry interest @;, 7 .5o/o per annum from the date of the claim petitions till the date of realization. The appellalt is directed to deposit the above compensation amount within a period of six weeks from the date of

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4.-,.

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LNA,] MACMA No_1075 ol2023

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f 7

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receipt of copy of this order, duly adjusting the amount already deposited by the appellant. The claimants are entitled to the apportionment of the amount as directed by the Tribunal. There shall be no order as to costs.

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Pending rniscellaneous applications if any shall stard closed.

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Sd/- V. HARI PRASAD ASSISTANT REGISTRAR

//TRUE COPYII

SECTION OFFICER

To,

The Charrman lvlotor Accident Claims Tribunal -cum- I Additional District & Sessions Judge, Adilabad (with records)

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One CC to Sri A RAIVIAKRISHNA REDDY, Advocate IOPUCI

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One CC to Sri. SAURABH AGARWAL, Advocate IOPUCI

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Two CD Copies

PSR

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HIGH COURT

DATED:1811212023

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JUDGMENT

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MACMA.N 0.1075 ot 2023

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PARTLY ALLOWING THE MACMA WITHOUT COSTS.

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AT HYDERABAD

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IVONDAY. THE EIGHTEENTH^{DAYOF DECEMBER} TWO THOUSAND AND^{TWENTY THREE}

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PRESENT

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THE HONOURABLE SRI JUSTICE^{LAXMINARAYANAALISHETTY}

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MOTOR ACCIDENT CIVIL MISC^{ELLANEOUS APPEA L NO:1075 0F 2023}

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Between:

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HDFCERGOGenerallnsuranceCo.Ltd,RepresentedbyrtsManager,Policy isiuingbffrce, 2nd Floor, SCO^{No.237, Sector-12, Karnal,Haryana- 132OO1}

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AppellanUResPondent^No.3

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AND

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Mohammad Masood, S/o. MD.^{Yakub,Age- 48 years, Occ- Labour} (Died as per Respondent Nos.2 to 4 His^{Legal Representatives)}

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Thaherunnisa, Wo Mohammad^{Masood' Age- 43 years, Occ- Housewife}

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Farin, D/o Mohammad Masood,^{Age-21 years, Occ- Nil}

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Samrin, D/o Mohammad Masood,^{Age-'18 years, Occ- Student} All are R/o H.No.4-8-221, Kursheed^{1{agar''Adilabad,Adilabad District}

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...Respondent Nos.1^{to 4/Petitioners}

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Appeal Under section 173 of Motor^{Vehicles Act against the order anddecree} in M'V.o,P'No '172 ol 2018 dated^{17 -03.2023on tlle file of the Court of the} Chairman Motor Accident^{Claims Tribunal} -cum-^{| AdditionalDiskict& Sessions} Judge, Adilabad.

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ORDER: The appeal coming^{on for hearing and upon perusing the} grounds of appeal, the Judgment and Decree^{of the Lowercourt and the material} papers in the case and upon hearing^{the argumentsof Sri A' RAMAKRISHNA} REDDY, Advocate for the^{Appellantandof sri. SAURABH AGARWAL, Advocate for} the Respondents.

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This Court doth Order and Decree as follows:

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.1 That the Motor Accident civir Misceraneous Appear be and hereby is par y allowed

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That the rmpugned award passed by the tribunar in so far as Compensation amount is concerned is modified.

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ln so far as directior

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compa ny to f rst pay ;i,::,'::;1, ff ::: J::.:::: fl:;li:ffi: drrven owner of the cflme vehtcle i.s. Respondents S and 6 herein, is

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affirmed.

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That the Compensation amount shall carry interest @ 7.S%per annum from the date of the claim petitions tilt the date of deposit.

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That the appellant be and hereby directed to deposit the above compensation amount within a period of six weeks from the date receipt of copy this Order, duly adjusting the amount already deposited by the appellant.

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