✦ High Court of India · 18 Sep 2025

Supreme Court in National Insurance Cofi' ,any Ltd. vs Pranay Sethi and othersl ald sought for ,, rhancemcnt ol

Case Details High Court of India · 18 Sep 2025
Court
High Court of India
Decided
18 Sep 2025
Length
1,989 words

Counsel for the Appellants: SRI LOKIREV PREETHAM REDDY Counsel for the Respondent No.1 :-- Counsel for the Respondent No.2: SRI I.MAMMU VANI The Court made the following: JUDGMENT THE HON'BLE SRI JUSTICE SUDDALA CHAII PATHI RAO M.A.C.M.A.No.364 of 2o22 JUDGMENT Heard, Sri [.. Preetham Reddy, Iearned (, )unsel for the Appellants/ Petitioners and Smt. I Maamu Vani, r arned Counsel for the respondet'rr No.2-lnsurance company.

2. The prescnt appeal has been prefc red bi, thc appellants/ claiman ts against the Order and Decree dated

27.O9.2021 passecl in M.V.O.P.No.48 of 2Ol7 I y. thc learned Chairman, Motor Vehicle Accidents Clarms Trilr _rnal cum VIII Additional Distrir;t Judge at Miryalaguda (-, r short ,the Tribunal'). seeking enhancement of compensation.

3. 'F or the sake r;I convenience, hereinafter, tht parties ,,vili be referred to as per their array before the learned 'l'r i runal.

4. Brief facts of the case are that: Petitioners iiled a claim petition under Ser: ion 166 of the Motor Vehicle Act before the learned Tribrr ral, claiming compensation of Rs.76,68,OOO/- for the death o1- :1e Mr. Bogala Nagi Reddy (hereinafter referred to as 'the decease:'), who died in a Motor vehicle acr:ident that occurred on 16.09.2( 16. Petitioner No.1 & 2 are the daughters and petitioner No.3 is the wife and petitioner Nos.4 & 5 are the parents of the deceased.

5. According to petitioners, on 16.O9.20 16 at about 08:30AM while the de ceased r','as proceeding from his house tou'ards his workplace on his motorcycle bearing no.TS-OS-EJ 1497 (hereinafter referred to as crime vehicle) and w'hen he reached near his rvorkplace, suddenly the driver of the 1orry bearing no.AP- l6-TV-2477 drove the said vehicle in rash and negligent manner and dashed to his motorcvcle, as a result, he fell down and the said vehicle then ran over him causing his instantaneous death. As per the report given by petitioner no.3, the Police, Kushaiguda P.S., registered a case in Crime No.593 of 2016 for the offences under Section 3O4-A of the Indian Penal Cod'e, against the driver of the crime vehicle.

6. Considering the claim of the petitioners and contentions of the respondent-Insurance company and upon due enquiry, the learned Tribunal partiy allowed the claim by awarding compensation of Rs.33,66,5OO/- (Rupees Thirty Three Lakhs Sixty Six Thousand Five Hundred Only) to Petitioners/Appellants along w"ith proportionate costs and interest @ 6oh p.a. from the date of hling of the petition till the date of realization. 1' 7 . The appellants/ claimants dissatisfiecl u i the au,arded amount have filed the present appeal contending hat granting of interest (.Lr 6tl,t p.a. on the au'arded arnount is t r roneous and it should be taken 'zl 12"1' p.a. from the date r the accident Further contended, the Tribunal has not awar( ( d the just and reasonable compensation as per the judgmenr of the Flon'ble Supreme Court in National Insurance Cofi' ,any Ltd. vs Pranay Sethi and othersl ald sought for ,, rhancemcnt ol compensallon alnount.

8. The learned counsel for the respondent corr ented that the salary ol Rs.20,500/- per month, taken by thr Tribunzrl was solely based on the certificate issued by the c,r npany and no appointment letter, attendance register or books r f account were produced by the petitioners. Therefore, under ,. roneous views and facts the Tribunal has granted more comperL ation than the appellants / claimalts are entitled for.

9. Heard both the sides and perused the record

10. In the vieu, of Ex. A6 salary certificate, this Sourt is of the considered vieu, that the income of the deceased rf Rs.20,5OO/- per month taken by' the Tribunal is valid. As srr'h, the annual income would be Rs.2,a6,OOO/- (Rs.2,46,000 x 1.1 . As the age of r(20 t7) I6 S(xl (,lJO the deceased is 29 years, the future prospects in the view of National Insrrrance Company Ltd. ws. Pranay Sethi and others (supraf should be taken @,40% i.e.,98,400 l-. Thus the total of annual income comes to Rs.3,44,4OO/ . As the deceased had five dependents, after deducting 1/4th towards personal expenses of Rs.B6,10O/-, the alnual loss of income of the deceased comes to Rs.2 ,58,3O0 / -. In pursuance of the decision of the Honble Apex Court in Sarla Verma and others vs. Delhi Transport Corporation and anothet2, the Tribunal has rightly applied the multiplier of '17'. Thus, total loss of earning comes to Rs.43,91,i00/-(2,58,3OO x 17). 1 1 . Further, under the conventional heads namely loss of consortium, funeral expenses and loss of estate, though the Tribunai held claimants are entitled Rs.40,00O f - each towards consortium; Rs.15,000/- under each head of funeral expenses and loss of estate however, did not consider for enhancement of the aforesaid ainounts @) lOo/o in every three years as held in the judgment of Pranay Sethi (supra). Thus, each petitioner 1S entitled for consortium amount of Rs.48,4O0/- (First three years Rs.40,0OO + lOok : 44,OOO I -; Second three years Rs.44,OOO + lOo/o 48,4OO /-). Similarly, for loss of estate ald funeral expenses the petitioners are entitled for Rs. 18, 150/- under each '1:oo9;s sr:c trL head (First three years Rs. 15,O00 + lOo/o: I6,5()L ,; Second three years Rs.16,500 + 10% : 18,150).

12. In the vielv of the above, the compensat on amount is recalculated under various heads Sl.No. Head Compensation i warded 1 2 4 5 6 7 8 9 lncome Future prospects Total income Rs.2,46,OOO/- per i nnllm Rs.2O,500/- pm) Rs.98,4OO/- l4O'l' tf income) Rs.3,44,4OOl- (Rs.2,46,OOO / - + F :.98,4OO1 - Deductior-r towards personal expenses Net Income per annum Multiplier Loss of dependency (SI.No.1 to 6) Consortium (Rs.48,400/ - x 5) Funeral expenses i0 I-oss of est.ate Total compensation to d ) Rs.86,1OO/- (one i Lrrth of the incorr' i.,'., Rs.3,44,4OO/-xll, Rs.2,5a,3OO/- Rs.3,44,400/ - t7 Il .86,100/ (i.., Rs.43,91,1OO/- Rs.2,58,300/- x 11l Rs.2,42,OOOl - (i.., Rs. 18,150/- Rs. 18,150/- Rs.46,69,4OO/-

13. The rate of interest (@ 6% p.a. awarded t v the Tribunal appears to be less and this court finds it just arr I reasonable to modify the same by enhancing it to 7.5% p.a 14 . Accordingll,, the appeal 1S partly allc , .ed, and the compensation au,arded by the tribunal is etr ranced to the \ arnount of Rs.46,69,400/- with interest @, 7.5o/" p.a. from the date of the claim petition till the date of realization

15. Respondent No.2 insurance company is directed to pay the said compensation amount within a period of two months from the date of receipt of the copv of this order and on such deposit the appellants/claimalts are entitled to withdraw the same as per the apportionment granted by the Tribunal

16. There shall be no order as to riosts. Miscellar-reous applications, if arly sha11 stand closed SD/. T.SRINIVAS REDDY ASSISTANT REGISTRAR //TRUE COPY// ECTION OFFICER To,

1. The Motor Accident Claims Tribunal-cum-Vlll Add tiona I District Judge, Miryalaguda.

2. On6 CC to SRI LOKIREV PREETHAM REDDY Advocate [OPUC] 3. One CC to SRI I.MAMMU VANI, Advocate [OPUC] 4. Two CD CoPies 4L AS,NVB t I I I I I I I I ! i I i ; i i HIGH COURT DATED:1810912025 JUDGMENT+DECREE MACMA.No.364 ot 2022 ;r1L $ic C,?' 1 -)' e tJ I rEB zffi * \{ l:pa.irt \.i' .3- PARTLY ALLOWING THE MACMA WITIIOUT COSTS iI I0 o()- [ 3485 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY,THE EIGHTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEAL NO: 364 OF 2022 Between: 1 . Bogala Mahitha, And 4 Others, D/o. Late Nagi Reddy, Aged about 10 years, Occ. Student,

2. Bogala Nehalatha, D/o. Late Nagi Reddy, Aged about 9 years, Occ. Student 3. Smt. Bogala Narmada, Wo. Late Nagi Reddy, Aged about 30 years, Occ Household, R/o. Door No. 2-134lA, Bothalapalem Village, Palakaveedu Mandal, Suryapet District. Petitioner Nos. 1 and 2 being minors, are represented by their mother natural guardian Smt. Bogala Narmada. the Petitioner No 3 herein.

4. Bogala Pedda Rami Reddy @ Rami Reddy, S/o Veera Reddy, Aged about 60 years, Occ. Agriculture, R/o. Door No. 2-'134lA, Bothalapalem Village, Palakaveedu Mandal, Suryapet District.

5. Smt. Bogala Saidamma, Wo. Pedda Rami Reddy, Aged about 55 years, Occ. Agriculture, R/o. Door No. 2-134lA, Bothalapalem Village, Palakaveedu Mandal, Suryapet Diskict. ...AppellanUAppellants AND

1. Atchutha Prakash, And Another, S/o. Sathyanarayana, Aged about 35 years, Occ. Owner-cum-Driver, R/o. H. No. 20-23, Bazarwari Street, Chinthalapudi, West Godavari Districl, Andhra Pradesh (Owner-cum-driver of Lorry bearing No. AP-16-TV-2477)

2. The New lndia Insurance Company Limited, Represented by its Branch Manager, Vijayawada, DO - ll, Andhra Pradesh ...Respondents/Respondents Appeal filed Under Section 173 of Motor Vehicles Act, agarnst the Order and decree in M.V.O.P.No.48 of 2017 dated 2710912021 on the file of the Court of the Motor Accident Claims Tribunal-cum-Vlll Additional District Judge, Miryalaguda. This appeals coming on for hearing and upon perusing the grounds of appeals the judgment and decree of the Lower Court and the material papers in the case and upon hearing the arguments of Sn L.Preetham Reddy, Adrr cate Appellant and Sri l.Mammu Vani, Advocate, for the Respondent No.2, and one appeared for the respondent No.1 . This Court doth Order and Decree as follows: 1 Thal the Motor Accident Civii Miscellaneous Ap I eal be and hereby is partly allowed. and the compensation awarded by I e tribunal is enhanced to the amount of Rs.46,69,400/- with interesl @ 7. ) /o p. a. from the date of the claim petition till the date of realization. 2 fhal the respondent No.2 insurance company is rj -ected to pay the sard compensation amount within a period of tvvo m ) rths from the date of receipt of the copy of this order and c r such deposit the appellants/claimants are entitled to withdraw tt ( same as per the apportionment granted by the Tribunal.

3. That save as aforesaid, the decree of the Lovr,r Court shall stands confirmed in all other respects: and 4 That there be no order as to costs in this appeal //TRUE COPY// SD/ T.SRINIVAS REDDY ASS STANT REGISTRAR SECTION OFFICER To, 1 . The Motor Accident Claims M irya laguda. 2 Two CD Copies 4il. AS,NVB Tribunal-cum-Vlll Add lonat District Judge, HIGH COURT DATED:1810912025 DECREE MACMA.No.364 ot 2022 PARTLY ALLOWING THE MACMA WI] HOUT COSTS q \ :il

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