Partly allowed

The National Insurance Company Limited v. Gorla Mysaiah , Mysulu and 4 Others

Telangana HC23 Feb 2023MACMA/3169/2007

Case brief

AI extract

What is this about?

The High Court allowed the claimant's appeal for enhancement of compensation from Rs.1,42,000 to Rs.6,72,000 in a motor accident death case, while dismissing the insurance company's appeal regarding liability despite policy conditions.

What did the court decide?

Compensation enhanced to Rs.6,72,000 with interest at 7.5% p.a.; insurance company to deposit amount within 8 weeks.

The National Insurance Company Limited Vs Gorla… — Motor Accident Claims | Telangana HC (2023)

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[³²³⁰ ]

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

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THURSDAY,^{THE TWENTYTHIRDDAYOF FEBRUARY} TWO^{THOUSAND AND TWENTY THREE}

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PRESENT

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THE HON'BLE^{SMT. JUSTICELALITHA KANNEGANTI}

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M.A.C. M.A.^{Nos.3169 of 2007and 3667 of008}

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Appeals Under section^{173 of Motor VehiclesAct againstthe order and} decree in O.p.No.903 of^{2005 dated16.10.2006on the file of the Courtof the} Chairman, Motor Accident^{Claims Tribunal -cum- ll Additional DistrictJudge,} Karimnagar.

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M.A.C.M.A.No.3169 of 2007 Between:

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The National lnsurance^{CompanyLimited, Represented} by its Branch Manaoer. Beoum Bazat^{Branch,5-5-6771678101,Sana Plaza,} 1st Floor, Near Foticdiires'^{-cotha M"nal' Hvderabad-12}

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...APPELLANT/RESPONDENT No.3

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AND

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1 . Gorla Mysaiah @ Mysulu,^{S/o..Muthyalu, aged60.y.ears,Occ:Nil, Rl/o.} Korapat6i of Jailmi(unta^{Mandal,Karimnagar district'}

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Giraveni Rajaiah, S/o.^{Mallaiah, aged35} .years, -Occ:^{Driver of Auto No.AP} 15-W-773O,'F/o. Korapalli^{Village,JammikuntaMandal,KarimnagarDistrict.}

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Arelli Shvam. S/o. Raiamallu,^{Occ:Business (Owner of Auto No. AP 15-W-} 7730) R/tr. Kbrapalli^{Village,Jammikunta Mandal, Karimnagar District.}

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Gorala Srinivas, S/o.^Mysaiah @^Mysulu, 9q9d .30^{years,Occ: Agriculture,} nyo. xorapitti village,^{J-ammikuntaMandal, Karimnagar District'}

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Gorla Muthala, S/o.^Mysaiah @-Mysu1u,-aged^{24 years, Occ: Agriculture R/o.} Korapalli Village, Jammikunta^{Mandal, Karimnagar District:}

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...RESPONDENTS/RESPONDENTS No.1,2, 4 & 5

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, I

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M. A.C .fvl.4. No.3 667 of2008

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Between:

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8,:l'f, ",ry,:fi^{li,g,n#,,jil,,;oil"ry,y,Ty;1,."n"062 years, Occ:} Nil

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AND

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... PETITIONER.APPELLANT

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1. Gorla Srinivas, S/o.Mysaiah @ IVlysulu, aged 32 years, Occ: Agriculture 5. Gorla Muthala, S/o.Mysaiah @ Mysulu, aged 26 i"rr., O"., Agriculture 8i.tl,L a & R_5 are R/o.Korapalti Vi,age of Jammikunra Mandat, Karimnagar

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...RESPONDENTS-RESPONDENTS

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:,Te"".',Hili,1?I?',ffi l"qA:tri,T8;ll88il,tipBhanuprakash

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ililr'lxamachandarRaovemusanti

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Appeared

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The court derivered the foflowing: coMMoN ,roora"r*one

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THE HONOURABLE SMT. JUSTICE LALITHA KANNEGANTI

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M.A.C.M.A.NoS.3L69 of 2OO7 and.3667 of 2OO8

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COMMON JTIDGMENT:

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Aggneved by the award dated 16. 10.2006 in O.P.No.9O3 of 2005 passed by the Chairman, Motor Vehicle Accident Claims Tribunal-cum-lll Addl. District Judge at Karimnagar, the insurance company has filed MACMA No.3169 of 2OO7 questioning the liabiliry and the claimant has filed MACMA No.3667 of 2O08 for enhancement of the compensation.

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Having heard Mr. P. Bhanu^prakash, learned counsel for the insurance company and Mr. Ram Chandar Rao Vemuganti, learned counsel for the claimant and perused the entire material on record.

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The claim petition is f-rled seeking compensation of Rs.2,OO,OOO/- and the court below has awarded an amount of Rs.1,42,OOO/-. The deceased was wife of the claimant who was aged 50 years as on the date of accident.

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It is the case of the claimant that the deceased was earning 'an amount of Rs.3,OOO/- per month as agricultural labourer and also having agricultural land cultivating the same apart from attending household work. The court below has considered the income of the deceased at Rs.2,0OO/- per month.

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Learned counsel for the claimant has relied on the judgement of the Hon'ble Apex Court in Laxrnidhsr Nagak and others as.

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LK, J MACMA_3169_2007 and 3667 2004

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Jugal Kishore^{Behera and otherst,} "vherein^{the I lon'llleApex Courl} has hxed^{the incomeof a deceased woman at Rs 4,500/-per month} taking^{income from the agricullural labour workat Rs 3,00O/- per} month^{and Rs.1,500/- per monthfor the householdwork'Learned} counsel^{for the claimant submits that in the said case' the date of} accident^{is 29.O9.1991,whereas, in thiscase,the accidenthastaken} place on^{10.02.2005. He subnrits that in the light ol the law laid} down^{by the Hon'bleApex Courtin LaxmidharNogak'scase (stated} supra),^{the incomeof the deceaseclmay be consideredat Rs 4'5OO/-} per month.

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6 Learned counsel^{for the claimant submrtsthat underthe} conventiona-l^{heads, the amountsthat were granted arevery meager}

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lrarned counsel^{appcaringfor the insurancecompzrny} submitsthatthecourtbelowhasmadetheinsurancecompanyliable to pay the^{compensation by applyingthe principle of pay and recover'} He submits^{that when there is violationof conditionsof the policy'} the insurance^{company is not hable to pay the compensation'}

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The said issue^{raised by the insurance companyls no more} res integra^{and in catenaof cases, the Hon'ble Apex Court has held} that even^{thoughthere is violationof conditions of policy,the} insurance company^{is liable to pay the amount and the same canbe}

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I (2018) 1 Supremc Court Cases 746

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LK, J MACMA_3169_2007 and 3667 2008

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recovered from the owner. Hence, this court finds no reasons to interfere with the liability of insurance compzrny as held by the court below and accordingly the appeal filed by the insurance company fails and liable to the dismissed.

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Coming to the case of the claimalt seeking enhancement of the compensation, in the said accident, the wife of the claimant died who was working as labourer and also doing agriculture apart from taking care of household work.

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lO. In the light of the law laid down by the Honble Apex Court in Laxmidhar Nagak's case (statecl supra), this court is inclined to take the income of the deceased at Rs.4,S0O/- per month.

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The Hon'ble Apex Court in National fnaurance Co. Ltd. Vs. Pranay Sethi2 held that while considering the compensation in cases of death, the future prospects of the self employed sha-ll also be considered. Having regard to the age alrd occupation of the deceased, 25 percent of the income has to be included as future prospects and it comes to Rs.5,625/- per month. Considering one dependant i.e. husband,- 1/3.d of the income shall be deducted towards personal and living expenditure, as per law laid down in Smt. Sarla Varma Vs, Delhi Traosport Corporations. Thus, the annual contribution of the

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'zzorz 1o;^rzo 1sc1 t 1zoos1 o s.c.c. 12l

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LK, J MACMA_3169_20O7 and 3667 200a

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deceased to the claimant rvould be of Rs.45,000/-. The age of tl.re deceased at the time of accidcnt was 50 years and as per Schedulc II of the Act, rI the said annual contribution arrived is multiplied with relevant multiplier to thc age of the deceased i.e.13, the total amount comes to Rs.5,85,000/-. The claimant is entitled for the said amount under the head of loss of dependency.

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As regards the consortium to be^paid to the husband^of the deceased rs concerned, hc is entitled to Rs.44,O00/^towards consortium as decided by the Honble Apex^court in^National I,nsurrlnce Compang Limited. Vs. Pronay Sethi and.^{others4. With} regard to the funeral expenses and^{loss of estate,the claimantis} entitted to Rs.33,O0O/-^(Rs. 16,5OO/-X2),^{whereas the court below has} granted meager amount.

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In the light of the above mentioned discussion, the claimant is entitled to tht following amounls:

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Head

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Compensatioa awarded

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(1) Loss of dependency

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Rs.5,85,000/(Rs.3,750X 12X I3)

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(2) Funeral expenses and Loss of Estate

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(3) Loss of spousal consortium

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Rs.33,OO0

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Rs.44,000

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a zott acr 2loo

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LK, J MACMA_3169_2007 and 3667 2004

I I I I

l4l^{Legalexpenses}

Rs.10,O0O/

Total compensation awarded

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Rs.6,72,OOOl-

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L4. In the result, the Motor Accident Miscellaneous Appeal of the insurance company fails and the same is dismissed. However, the Motor Accident Miscellaneous Appeal of the claimant is allowed enhancing the compensation amount awarded by the court below from Rs. 1,42,000/- to Rs.6,72,000/- as hereunder:

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(a) The enhanced amount shall carry interest at 7.5o/o p.a. from the date of petition till the date of realization.

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(b) The claimant shall pay the court fee on the enhanced amount of compensation.

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(c) The respondent/ insurance company shall deposit the amount within a period of (8) weeks from the date of receipt of copy of judgment. On such deposit, claimant is permitted to withdraw entire amount without furnishing the security.

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Pending miscellaneous petitions, if any, shall stand closed.

SD/.K.AMMAJI

ASSISTANT REGISTRAR

//TRUE COPY//

c<2---

SECTION OFFICER

To,

The Chairman, Motor Accident^{ClaimsTribunal} -cum-^{ll AdditionalDistrict} Judge, Karimnagar.^(with records)

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2 One CC to Sri P. Bhanu Prakash,^Advocate [OPUC]

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3 One CC to Sri Ramachandar^{Rao Vemuganti,Advocate} [OPUC] 4 Two CD Copies

s^br

HIGH COURT

DATED: 2310212023

'- -:---
I
0 6 Jlj}.l 2fl23
\t.:':

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COMMON JUDGMENT

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^{3667 of 2008}

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MACMA.Nos.3169 of^{2007 and}

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ALLOWING THE MACMA.No.3667 of^{2008 AND} DISMISSING THE MACMA.No.3169 ot 2007 WITHOUT COSTS

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*
/

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[³²³⁰ ]

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IN THE HIGH COURT FOR THE STATE OF TELANGANA . AT HYDERABAD

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THURSDAY, THE TWENTY THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY THREE

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PRESENT

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THE HON'BLE SMT. JUSTTCE LALITHA KANNEGANTI

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M.A.C.M.A.Nos.3169 of 2007 and 3667 of 2008

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M.A.C.M.A.No.31 69 of 2007 Between:

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The National lnsurance Company Limited, Represented by its Branch V".l'rSg.r,^{Beg^um.BazarBranch,5-5-67Z1678101,Sana plaza,1!t Floor, Near} Police Lines, Gosha Mahal, Hyderabad-12

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...APPELLANT/RESpONDENT No.3

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AND

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Gorla Mygalaf @ Mysutu, S/o. Muthyalu, aged 60 years, Occ: Nil, R/o. Korapathi of Jammikunta Mandal, Karimnagar district.

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Giraveni Rajaiah, S/o. Mallaiah, aged 35 years, Occ: Driver of Auto No. Ap 15-W-7730, Fi./o. Korapalli Village, Jammikunta Mandal, Karimnagar District.

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tglli Slyam, S/o. Rajamallu, Occ: Business (Owner of Auto No. Ap 1S_W7730) R/o. Korapalli Village, Jammikunta Maridal, Karimnagar District.

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4 9goJ9 Srinivas,.S/o. Mysaiah @ Mysutu, aged 30 years, Occ: Agricutture, RIo. Korapalli Village, Jammikunta Mandal,karimn-agar District.^-

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Gorla Y.yl!.gtu, S/o. Mysaiah @ Mysulu, aged 24 years, Occ: Agriculture Fi/o Korapalli Village, Jammikunta Mandal, Karimnagdr Disirict.

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...RESPoNDENTS/RESPONoENTS No.1,2, 4 & 5

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M.A.C. M.A.No.3667 of 2008

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Between:

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Gorla Mysaiah @ Mysulu, S/o.Muthvalu. aoed 62 years, Occ: Nil Rl/o.Korapalli, Jammikunta Mandal, Karimangar.^-

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.,.PETITIONER.APPELLANT

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AND

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t.;Q!rgy91i!ajaiah, S/o.Mallaiah, aged 37 years, Occ: Driver of Auto No.Ap 15 W 7730 Rl/o.Korapalli Village, Jammikunfa Mandal, Karimnagar Districi.

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Arelli Shyam, S/o.Rajamallu, Occ Business / Owner of Auto No.AP 15 W 7730 Rl/o.Korapalli Village, Jammikunta ltrlandal, Karimnagar District.

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The National lnsurance Co. Ltd, rep by its Branch Manager, Begum Bazar Branch, 5-5-6771678101, Sana Plaza, lst Floor, Near Police Lines, Gosha Mahal, Hyderabad-12

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Gorla Srinivas, S/o.lVysaiah @ Mysulu, aged 32 years, Occ: Agriculture

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Gorla [\Iuthala, S/o.Mysaiah @ lt4ysulu, aged 26 years, Occ: Agriculture

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Both R-4 & R-5 are R/o.Korapalli Village of Jammikunta Mandal, Karimnagar District.

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...RESPONDENTS.RESPONDENTS

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Appeals Under Section 173 of Motor Vehicles Act against the order and decree in O.P.No.903 of 2005 dated 16.10.2006 on the file of the Court of the Chairman, Motor Accident Claims Tribunal -cum- ll Additional District Judge, Karimnagar.

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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 arguments of Sri P. Bhanu Prakash, Advocate for the Appellant in tVAClt,tA.No.3169 of 2007 and Respondent No.3 in MACMA.No.3667|2OOB and of Sri Ramachandar Rao Vemuganti, Advocate for the Respondent No.1 MACMA.No.316912007 and Appellant in MACMA.No.3667/2008 and for the Respondent Nos.2 to 5 in MACMA.No.316912007 and Respondent Nos.1 & 2 in MACMA.No.3667/2008 not appeared either in persons or by Advocates.

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This Court Doth Order and Decree as follows:

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1 . That the MACMA.No.3169 of 2OO7 filed by the lnsurance Company is dismissed and MACMA.No.3667 of 2008 filed by the claimant be and hereby is allowed enhancing the compensation amount awarded by the Tribunal form Rs. 1,42,0001 to Rs.6,72,000/-;

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