Andhra Pradesh High Court
MACMA/991/2013 of M/S. NEW INDIA ASSURANCE COM. LTD., SRIKAKULAM DIST Vs GORIVILLI KANAKA MAHALAKSHMI, SRIKAKULAM DIST AND 2 OTHRS on 31 December 2019
MS JUSTICE J.UMA DEVI M.A.C.M.A No.991 of 2013 JUDGMENT: Assailing the award passed in MVOP.No.585 of 2010, dated 05.02.2013, on the file of Motor Accidents Claims Tribunal-cum-Family Court- cum-Additional District Court, Srikakulam (for short “ the Tribunal”), the present appeal
THE HON'BLE MS JUSTICE J.UMA DEVI M.A.C.M.A No.991 of 2013
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JUDGMENT:
Assailing the award passed in MVOP.No.585 of 2010, dated 05.02.2013, on the file of Motor Accidents Claims Tribunal-cum-Family Court-cum-Additional District Court, Srikakulam (for short “the Tribunal”), the present appeal is filed by M/s.New India Assurance Company Limited, against whom conjoint liability is fixed for payment of compensation of Rs.5,00,000/- to the claimants therein together with interest @9% p.a. from the date of filing of the petition till realization and the proportionate costs etc.
The grounds urged by the appellant-insurance company to assail the award impugned are precisely stated as under:
The first and foremost contention of the appellant-insurance company is that the award passed by the court below is against the evidence and the probabilities of the case and on account of passing of such award appellant is penalized for no fault of it. The appellant-insurance company contends that the reasons assigned by the learned trial Judge to award compensation of Rs.5,00,000/- to the claimants are not in consonance with the evidence on record. It’s further contention is that the Tribunal has grossly erred in awarding interest @9% p.a.
From the aforementioned contentions it is manifestly clear that the insurance company does not have any grievance in so far as quantification of compensation. Its grievance is as regards to the rate of interest awarded by the court below on the compensation amount and as per its contention, the interest is to be scaled down.
I have gone through the award impugned and also evidence on record. The claimants in the aforementioned MVOP are the parents of the deceased. They have laid the claim as against the appellant-insurance company and the owner of the Lorry bearing No.AHJ-9529 for compensation of Rs.5,00,000/-. The deceased was about to complete graduation course in science. He applied for I-CET examination to study MBA. The court below placing reliance on the evidence of PW 2, who was the eyewitness to the accident and Exs.A1 to A5 wherefrom it was manifestly clear that the accident in which the deceased died occurred due to negligent driving of the lorry bearing No.AHJ-9529 by its driver held the owner of the said lorry and also the appellant-insurance company with whom the lorry was insured liable to pay compensation to the claimants.
The Tribunal assessed the loss of income roughly at Rs.6,000/- per month as the deceased was about to get a degree in science and was aspirant of MBA. On duly deducting 50% of such income towards his personal expenditure as he was a bachelor took the rest into consideration and assessed the annual loss of income at Rs.36,000/- (Rs.3,000/- x 12). The Tribunal applied the multiplier ‘14’ as the mother’s age of the deceased was 45 years as on the date of the accident and worked out the compensation under the head of “loss of dependency” at Rs.5,04,000/- (Rs.36,000/- x 14), but awarded compensation of Rs.5,00,000/- to the claimants as they claimed such amount as compensation.
Though this court finds no justifiable grounds to differ from the view taken by the lower court to grant compensation of Rs.5,00,000/- to the claimant, finds reasonable force in the contention raised by the appellant-insurance company as regards to the rate of interest awarded on the compensation amount. Having noticed that the rate of interest @9% p.a. awarded by the court below is on higher side, the same is reduced to 7.5% p.a.
In view of the above, the appeal filed by the appellant/insurance company deserves to be allowed partly directing it to pay compensation of Rs.5,00,000/- to the claimants together with interest @7.5% p.a. instead of 9% p.a.
The appeal is allowed partly to the extent as indicated above. But in the circumstances of the case, there is no order as to costs.
Pending miscellaneous applications, if any, shall stand closed in consequence. No costs.
Date: 31.12.2019 Dsr
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J.UMA DEVI,J