The Andhra Pradesh High Court enhanced the accident compensation awarded over the death of a 23-year-old Chartered Accountancy student to Rs. 25.38 lakh, holding that the Motor Accident Tribunal failed to adequately consider his educational qualifications and “bright future” while assessing his earning potential.

Dismissing an appeal filed by the Andhra Pradesh State Road Transport Corporation (APSRTC), a Single Judge Bench of Justice Tuhin Kumar Gedela held that the Tribunal had not given due weight to the evidence regarding the deceased's education and career prospects while determining his income.

The Court observed:

“Here, this Court finds that the decision and conclusion arrived at by the Tribunal in considering the income of the deceased at Rs.8,000/- per month, despite the fact that he was qualified the Common Proficiency Test (CPT) and was preparing for the next stage of Chartered Accountancy, namely the Integrated Professional Competence Course (IPCC), at Central Academy Institute, Vijayawada, are not justified. This Court would construe that the deceased was pursuing his Chartered Accountancy course at Central Academy Institute, Vijayawada, which substantiates that the deceased is having a bright future.

In view of the same, this Court is inclined to fix the notional income of the deceased, who was pursuing Chartered Accountancy at the Central Academy Institute, Vijayawada, at Rs.15,000/- per month.”

The deceased was travelling on a motorcycle from Vijayawada to Hyderabad when an APSRTC bus allegedly hit the motorcycle from behind. He fell from the motorcycle and the bus ran over his waist and thighs. He was taken to a hospital but succumbed to his injuries.

His parents and four brothers filed the compensation claim. The family stated that the deceased had completed his Common Proficiency Test (CPT), Intermediate in Commerce and a vocational course in Accounting and Taxation, and was pursuing Chartered Accountancy with the aim of becoming a CA.

They described him as an intelligent and ambitious student with plans for higher studies in the USA. His parents contended that he had a bright future, would have completed Chartered Accountancy and earned around Rs. 10 lakh per month, besides supporting the family. They also claimed loss of his love, affection, companionship and income.

The claimants contended that APSRTC, being the owner of the offending bus, and its driver were jointly and severally liable for the compensation. They claimed special damages of Rs. 65,000 and general damages of Rs. 18 lakh, totalling Rs. 18.65 lakh, but restricted their claim to Rs. 12 lakh.

The APSRTC and the driver denied negligence and contended that the deceased had been driving at high speed and lost control of the motorcycle.

The Tribunal noted that the driver had sought plea bargaining and admitted to driving rashly and negligently and hitting the deceased's motorcycle. It accordingly found negligence in favour of the claimants.

For compensation, the Tribunal assessed the deceased's age at 23 years and, considering his CPT qualification and vocational course, fixed his monthly income at Rs. 8,000. After deducting 50% towards personal expenses, it assessed his annual contribution to the family at Rs. 48,000.

Applying a multiplier of 18, the Tribunal calculated the loss of dependency at Rs. 8.64 lakh. It further awarded Rs. 10,000 towards loss of estate and Rs. 5,000 towards funeral expenses, taking the total compensation to Rs. 8.79 lakh, rounded off to Rs. 8.80 lakh.

APSRTC then appealed against the Tribunal's judgment and decree, seeking to set aside the award and stay its execution.

The High Court found this income assessment by the Tribunal inadequate. It noted that the deceased was pursuing a professional course in Chartered Accountancy and that the respondents had failed to elicit any material in cross-examination to rebut his educational qualifications or future prospects.

The Court accordingly fixed his notional monthly income at Rs. 15,000. After adding 40% towards future prospects and deducting 50% towards personal expenses, it calculated the loss of dependency at Rs. 22.68 lakh.

It further awarded Rs. 2.40 lakh towards consortium for the six claimants, Rs. 15,000 towards loss of estate and Rs. 15,000 towards funeral expenses, taking the total compensation to Rs. 25.38 lakh (almost triple).

The Court retained the Tribunal's 7.5% interest rate, clarifying that no separate interest would accrue on the enhanced portion.

As the award exceeded the restricted claim of Rs. 12 lakh, the claimants were directed to pay the deficit court fee on the excess amount. APSRTC was directed to deposit the enhanced compensation within eight weeks, after adjusting the amount already deposited.

The appeal was accordingly dismissed and the Tribunal's award was modified to Rs. 25.38 lakh.

Counsel for Appellant: Ms. Meghana for Mr. Aravala Rama Rao

Counsel for Respondents: Mr. Nikhilesh T. for Mr. Varun Byreddy