Saturday, 12 March 2016

M.A.C.M.A.NO.1742 OF 2007

HONOURABLE Dr. JUSTICE B. SIVA SANKARA RAO
M.A.C.M.A.NO.1742 OF 2007
JUDGMENT:
          The claimants, who are parents of the deceased girl baby Naviya aged about 3 years at the time of accident i.e. on 03.08.2002, filed this appeal, having been aggrieved by the Order/Award of the learned Chairman of the Motor Accidents Claims Tribunal–cum–II Additional District Judge, Khammam(for short,‘Tribunal’) in O.P.No.1001 of 2002 dated 21.03.2005 for the compensation awarded of Rs. 65,000/- against the claim of Rs.1,00,000/-(Rupees one lakh only), against respondent Nos.1 and 2 viz., the owner and insurer of the crime vehicle (lorry)for enhancement of compensation as prayed for in the claim petition under Section 166 of the Motor Vehicle Act,1988 (for short, ‘the Act’).
2. Heard Smt. Bobba Vijayalakshmi, the learned counsel for the appellant and Sri T.Ramulu, the learned standing counsel the 2nd  respondent-New India Assurance Company Limited and the 1st respondent-owner of the vehicle who contested before the tribunal did not choose to put forth appearance herein, thus taken as heard the 1st respondent for the absence to decide on merits and perused the record. The parties hereinafter are referred to as arrayed before the Tribunal for the sake of convenience in the appeal.
  3. The contentions in the grounds of appeal as well as during course of arguments in nutshell are that the award of the Tribunal is contrary to law, weight of evidence and probabilities of the case, that the Tribunal should have considered that the claimants lost the love and affection for ever as they lost their daughter and also mental agony they undergone and awarded of compensation as prayed. Hence to allow the appeal by granting the claim as prayed for before the tribunal.
4.  Counsel for the 2nd respondent-Insurer contended that for this Court while sitting in appeal for this Court, there is nothing to interfere with the finding of the tribunal in awarding compensation which is just. Hence, to dismiss the appeal.
          5).Now the points that arise for consideration in the appeal are:
1.    Whether the compensation awarded by the Tribunal is not just and utterly low and requires interference by this Court while sitting in appeal against the award and if so with what enhancement to arrive a just compensation and with what rate of interest?

2.    To what result?
POINT-1:
6. The facts of the case are that on 03.08.2002 the deceased girl by name Korati Naviya was proceeding from her house in order to go to Venkata Ramana Cloth Stores situated near their house in which shop the father of the girl-1st claimant is working as a clerk, the crime lorry bearing No. MH-13-G-6899 belongs to the 1st respondent insured with the 2nd respondent covered by Ex.B.1 policy, being driven by its driver at high speed in rash and negligent manner, dashed to the deceased girl, due to which the girl received bleeding injuries and died on the spot, which occurrence is covered by Ex.A.1 First Information Report and Ex.A.2 chargesheet. The Tribunal basing on the oral and documentary evidence on record, awarded in all compensation of Rs.65,000/- with interest at 9%p.a. against both the respondents(owner of crime vehicle  and Insurer).  
          7. Before coming to decide, what is just compensation in the factual matrix of the case, It is apt to state that perfect compensation is hardly possible and money cannot renew a physique or frame that has been battered and shattered, nor relieve from a pain suffered as stated by Lord Morris. In Ward v. James[1], it was observed by Lord Denning that award of damages in personal injury cases is basically a conventional figure derived from experience and from awards in comparable cases. Thus, in a case involving loss of limb or its permanent inability or impairment, it is difficult to say with precise certainty as to what composition would be adequate to sufferer. The reason is that the loss of a human limb or its permanent impairment cannot be measured or converted in terms of money.  The object is to mitigate hardship that has been caused to the victim or his or her legal representatives due to sudden demise. Compensation awarded should not be inadequate and neither be unreasonable, excessive nor deficient. There can be no exact uniform rule in measuring the value of human life or limb or sufferance and the measure of damage cannot be arrived at, by precise mathematical calculation, but amount recoverable depends on facts and circumstances of each case. Upjohn LJ in Charle red House Credit v. Tolly[2] remarked that the assessment of damages has never been an exact science and it is essentially practical. Lord Morris in Parry v. Cleaver[3] observed that to compensate in money for pain and for physical consequences is invariably difficult without some guess work but no other process can be devised than that of making a monitory assessment  though it is impossible to equate the money with the human sufferings or personal deprivations.  The Apex Court in R.D.Hattangadi v. Pest Control (India) Private Limited[4] at paragraph No.12 held that in its very nature whatever a Tribunal or a Court is to fix the amount of compensation in cases of accident, it involves some guess work, some hypothetical consideration, some amount of sympathy linked with the nature of the disability caused.  But all the aforesaid elements have to be viewed with objective standard. Thus, in most of the cases involving Motor Accidents, by looking at the totality of the circumstances, an inference may have to be drawn and a guess work has to be made even regarding compensation in case of death, for loss of dependent and estate to all claimants; care, guidance, love and affection especially of the minor children, consortium to the spouse, expenditure incurred in transport and funerals etc., and in case of injured from the nature of injuries, pain and sufferance, loss of earnings particularly for any disability and also probable expenditure that has to be incurred from nature of injuries sustained and nature of treatment required. The appeal claim herein is thus confined to the quantum from the contention of not correctly taken the multiplicand and multiplier with future prospects in earnings and on the quantum of consortium and funeral expenses etc., in arriving a sum for awarding just compensation.
8. The fact that the accident was the result of the driving of the driver of the crime lorry belongs to the 1st respondent-insured with the 2nd respondent under Ex.B.1 policy marked by consent not in dispute for the purpose of the appeal but for the quantum.
9. From the above legal principles and in the factual matrix of case, Coming to the quantum even the schedule II of Section 163-A of the amended MV Act speaks that the compensation to be awarded shall not be less than Rs.50,000/-.  Even if that is taken, a child in womb is also entitled to that amount.  For the child herein three years aged and nothing to show they got other issues who lost their prospective earnings  besides love and affection even for the three years, the proportionate increase RS.20,000/-p.a., it will be more than Rs.1,00,000/- which is the claim of claimant for compensation. Hence, Rs.1,00,000/- as claimed by the claimed is awarded from enhancing from Rs.65,000/-.
10.Coming to the rate of interest awarded by the tribunal at 9% per annum is excessive, from the settled proposition of law in TN Transport Corporation v. Raja Priya[5] and Sarla Verma’s case (cited supra) and from the latest expression of the Apex Court in Rajesh’s case (cited supra), interest is awarded at 7½% per annum. Hence the interest is modified and reduced from 9% p.a. to 7½% p.a.  Accordingly, Point-1 is answered.
POINT -2:
11. The appeal is allowed, as prayed for before the Tribunal, awarding compensation of Rs.1,00,000/-with interest at 7.5%p.a.from date of the claim petition till realization/deposit with notice. Both the respondents jointly and severally liable to pay the compensation, are directed to deposit within one month said amount with interest from the date of petition, failing which the claimants can execute and recover.  On such deposit or execution and recovery, the claimants are permitted to withdraw the same. There is no order as to costs in the appeal.

          ________________________
Dr. B.SIVA SANKARA RĀO, J
Date: 18-02-2014
VVR
Note: L.R. copy to be marked.  Yes/No
                                          



[1] 1965(1) A11. E.R-563
[2] 1963(2) All.E.R-432
[3] 1969(1)A11.E.R –555
[4] 1995 ACJ 366(SC)
[5] (2005) 6 SCC 236