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Quantum Of Compensation To Be Awarded By Tribunal Can Go Beyond The Claim Of The Dependents: Telangana High Court

Jagriti Sanghi
1 May 2022 11:58 AM GMT
Quantum Of Compensation To Be Awarded By Tribunal Can Go Beyond The Claim Of The Dependents: Telangana High Court
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The Telangana High Court recently awarded an enhanced compensation amount beyond what was claimed by the dependents of the deceased who died in the motor vehicle accident. It relied on Laxman @ Laxman Mourya Vs. Divisional Manager, Oriental Insurance Company Limited (2011) which held that competent Court is entitled to award higher compensation to the victim of an accident. The...

The Telangana High Court recently awarded an enhanced compensation amount beyond what was claimed by the dependents of the deceased who died in the motor vehicle accident. It relied on Laxman @ Laxman Mourya Vs. Divisional Manager, Oriental Insurance Company Limited (2011) which held that competent Court is entitled to award higher compensation to the victim of an accident.

The claimants were the wife, children and mother of one deceased Shaik Anwar. They had filed a petition claiming compensation of Rs. 8,00,000/- for the death of the deceased in a motor vehicle accident. The driver of the auto drove in a rash and negligent manner and Shaik Anwar died on the spot. It was stated that prior to the accident, the deceased was hale and healthy and was doing agriculture and business in selling goats and earning Rs. 15,000/- a month.

The Tribunal held that the accident occurred due to rash and negligent driving of the driver of the Auto and accordingly awarded an amount of Rs. 8,40,000/- with interest at 7.5% per annum till date of realization.

The claimants preferred the appeal against the order by the Motor Accidents Claims Tribunal. The only contention raised by the claimants was that the claimants were also entitled to the future prospects and Rs. 77,000/- under conventional heads.

Justice G. Sri Devi observed that the Tribunal had rightly fixed the income of the deceased at Rs. 5,000/- per month. Apart from the same, the claimants were entitled to addition of 40% towards future prospects as per the principles laid down by the Apex Court in National Insurance Company Limited v. Pranay Sethi (2017). Therefore, monthly income of the deceased would come to Rs. 7,000/- (Rs. 5,000/- + Rs. 2,000/-). From this monthly income, 1/4th amount towards deceased's personal and living expenses would be deducted as per Sarla Verma v. Delhi Transport Corporation (2009). Thus, the contribution of the deceased to the family then would be Rs. 5,250/- per month. The deceased was aged about 28 years at the time of accident and the appropriate multiplier would be '17'. The total loss of dependency was Rs. 5,250x12x17 = Rs. 10,71,000/-. The claimants were also entitled to Rs. 77,000/- under conventional heads and hence, total amount claimants were entitled to was Rs. 11,48,000/-.

The Counsel for Insurance Company submitted that the claimant claimed only Rs. 8,00,000/- as compensation and the quantum of compensation which was now awarded would go beyond the claim made which was impermissible in law.

In Laxman Mourya (supra) it was held that in the absence of any bar in the Act, the Tribunal and for that reason any competent Court is entitled to award higher compensation to the victim of an accident.

In view of the same, the compensation amount awarded by the Tribunal was enhanced from Rs.8,40,000/- to Rs.11,48,000/-.

"Further, the Motor Vehicles Act being a beneficial piece of legislation, where the interest of the claimants was a paramount consideration the Courts should always endeavor to extend the benefit to the claimants to a just and reasonable extent."

The Motor Vehicle Appeal was allowed.

Case Title: SMT SULTANA BEGUM v. SRI AHMED HUSSAIN SHAIK

Citation: 2022 LiveLaw (Tel) 39

Click Here To Read/Download Judgment


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