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Smart Summary

Factual and Procedural Background

The claimant (husband) sued Andhra Pradesh State Road Transport Corporation under S. 110-A of the Motor Vehicles Act, 1964 for Rs. 1,00,000/- in respect of the death of his 21‑year‑old wife, who died in an accident caused by the Corporation on 15-1-1972 on the outskirts of Hyderabad. The Motor Accident Claims Tribunal (learned Addl. Chief Judge, City Civil Court, Secunderabad) awarded Rs. 10,000/- to the claimant. The claimant appealed, contending that the Tribunal's award was inadequate.

Separately, the Corporation had earlier filed C.M.A. No. 31/75 in this Court, which was dismissed by Mr. Justice Madhusudan Rao on 27-2-1976. That decision recorded two findings: (1) the accident was caused by the negligence of the Corporation's bus driver (vehicle APZ 4955), and (2) the Tribunal's award of Rs. 10,000/- was not excessive. Those findings were treated as binding on the Court in the present appeal.

Legal Issues Presented

  1. Whether the Tribunal's award of Rs. 10,000/- was inadequate and should be enhanced.
  2. Whether the claimant's petition complied with the requirements as to proper claimants under S. 1‑A of the Fatal Accidents Act (i.e., whether the two minor children should also have been made claimants).
  3. Whether the Tribunal applied proper principles and gave reasons for computation of compensation under S. 110‑A of the Motor Vehicles Act.
  4. If enhancement is warranted, what heads of damage and what method (including multiplier/years' purchase) should be applied to compute a fair compensation figure.

Arguments of the Parties

Claimant's Arguments

  • The claimant contended that the Tribunal awarded much less compensation than justified by the facts and circumstances of the case (i.e., the Rs. 10,000/- award was inadequate).
  • In a statement before the Court, the claimant (through his counsel Mr. R. Sriramulu) advanced an evidential claim valuing the deceased's domestic services at Rs. 3/- per day.

Respondent (Andhra Pradesh State Road Transport Corporation) Arguments

  • In its earlier appeal (C.M.A. No. 31/75) the Corporation contended that the Tribunal's compensation of Rs. 10,000/- was more than it should have been. That contention was rejected in the earlier dismissal by Mr. Justice Madhusudan Rao.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hirji Virji Transport v. Basiranbibi (1971-12 Guj LR 783) Principles for computing compensation in claims under the Motor Vehicles Act: the appropriate method and factors (including multiplier/years' purchase) to be applied when awarding lump‑sum compensation. The Court referred to these principles as having been laid down after exhaustive consideration and held that Motor Accident Claims Tribunals should apply them where applicable. The Court used the approach endorsed in that decision when selecting a multiplier and in assessing heads of loss.
K. Narayana Reddiar v. P. Venugopala Reddiar (Bench decision of this Court) Considered how compensation under the Motor Vehicles Act should be computed, and provided an example (including a figure previously fixed for loss of consortium). The Court drew attention to that Bench decision, noted that in that case Rs. 4,000/- was fixed for loss of consortium (for a 50‑year‑old deceased), and used it as a comparative touchstone in assessing an appropriate consolidated award for pain, funeral expenses, loss of consortium and loss of love and affection in the present case.

Court's Reasoning and Analysis

The Court proceeded through a step‑by‑step analysis grounded in the pleadings, evidence (or lack thereof), statutory provision and precedents:

  1. Omissions and procedural requirements: The Court noted three conspicuous omissions in the claimant's petition and evidence:
    • The claim was filed only by the husband; the deceased left two minor children (aged about 3 years and 20 months) who, under S. 1‑A of the Fatal Accidents Act, 1855, should also have been included as beneficiaries in a claim arising from death. The Court emphasized that claims under S. 110‑A MVA must be filed bearing in mind the Fatal Accidents Act provision identifying proper beneficiaries.
    • The petition contained a bald claim for Rs. 1,00,000/- without specifying distinct heads of damage or explaining how the figure was computed; the Court stressed the necessity of setting out particulars and basis of claimed sums.
    • At the Tribunal hearing the claimant's evidence did not break down the Rs. 1,00,000/- claim into heads or provide supporting computation; the only specific evidence was engagement of an Ayah at Rs. 50/- per month. Because of this lack of evidence, the Court limited itself to assessing only indisputable heads of loss.
  2. Criticism of the Tribunal's judgment: The Court found the Tribunal's judgment unsatisfactory for failing to state the basis on which the figure of Rs. 10,000/- was fixed (described as applying a "rule of thumb") and for not showing application of accepted principles for computing compensation. The Court held that an arbitrary award without rational principled justification cannot ordinarily be upheld.
  3. Reliance on authoritative principles: The Court referred to the Gujarat High Court decision in Hirji Virji Transport v. Basiranbibi and to a Bench decision in K. Narayana Reddiar to indicate the proper approach and the factors (including the use of a multiplier / years' purchase) that Tribunals should apply when fixing lump‑sum compensation.
  4. Computation of indisputable heads:
    • Loss of domestic services: As the deceased (21 years) had not been earning money but rendered household services, the Court evaluated those services taking the husband's income into account. Evidence showed the husband earned Rs. 400/- per month (as a Technician in Hindustan Aeronautics Ltd.). The Court held that the value of the deceased's household services could not exceed Rs. 150/- per month.
    • Adjustment for savings and replacement costs: Normally a saving of Rs. 100/- per month (reduced expenditure) would be deducted from that Rs. 150/-, but since the claimant had engaged an Ayah at Rs. 50/- per month (plus food and clothing, which the Court ignored in computation), the net saving was reduced by Rs. 50/-. Thus the Court fixed the net value of loss of services at Rs. 100/- per month (i.e., Rs. 1,200/- per year).
    • Choice of multiplier/years' purchase: The Court adopted a 15‑years' purchase multiplier for this young deceased to convert annual loss (Rs. 1,200/-) into a lump sum. This produced Rs. 18,000/- for loss of domestic services.
    • Other heads (pain and suffering, funeral, loss of consortium and loss of love and affection): The Court noted that pain and funeral expenses are normally met by Rs. 3,000/-, but having regard to the deceased's youth and the husband's income and by analogy to K. Narayana Reddiar (where Rs. 4,000/- was awarded for loss of consortium of a 50‑year‑old), the Court determined a consolidated sum of Rs. 6,000/- under these heads.
    • Total computation: Rs. 18,000/- (loss of services on 15 years' purchase) + Rs. 6,000/- (consolidated head) = Rs. 24,000/- total compensation.
  5. Practical validation: The Court cross‑checked the reasonableness of Rs. 18,000/- corpus by assuming a 9% annual return (yielding Rs. 1,620/- per year, or Rs. 135/- per month). Comparing this to the monthly recurring shortfall (the Court calculated total loss at Rs. 200/- per month: Rs. 100/- value of lost services + Rs. 100/- justified cost of Ayah and associated items), the invested corpus would yield most but not all of the monthly need, leaving a Rs. 65/- monthly deficit. At that deficit rate, the corpus would be exhausted in about 23 years. The Court found that this was reasonable because a 21‑year‑old deceased would be expected to have at least that remaining lifespan, and thus the lump sum awarded would be commensurate with the recurring loss.
  6. Protective measure for minors and interest: The Court directed that the Rs. 24,000/- be paid "not only for [the claimant's] own benefit but also for the benefit of the two minor children" and ordered that the Tribunal take appropriate steps to safeguard the minors' interests before payment. The Court also ordered interest and costs as part of its disposition.

Holding and Implications

Holding: The appeal is allowed. The Tribunal's award is modified and the Andhra Pradesh State Road Transport Corporation is ordered to pay the claimant Rs. 24,000/- by way of compensation for the accidental death of his wife (in place of the earlier award of Rs. 10,000/-).

Additional directives and consequential orders:

  • The additional amount shall bear interest at the rate of 6% per annum from the date of this award until payment.
  • The costs of the appeal shall be paid by the respondent‑Corporation to the appellant, and the advocate's fee shall be computed on the decree amount awarded.
  • The amount awarded is to be paid for the benefit of the claimant and also for the benefit of the two minor children; the Tribunal is to take appropriate steps to safeguard the minors' interests before payment is made to the claimant.

Implications: The decision directly increases the claimant's compensation from Rs. 10,000/- to Rs. 24,000/- and prescribes interest, costs, and protective measures for the minor children. The opinion emphasizes the necessity for Tribunals to apply established principles (as in the cited precedents) and to give reasoned, principled computations; it does not purport to lay down a new legal precedent beyond applying and endorsing existing authorities cited in the opinion.

    G. Venkatesham v. The General Manager, Andhra Pradesh State Road Transport Corporation, Musheerabad, Hyderabad .

    1. This appeal has been filed against an award made by the learned Addl. Chief judge, City Civil Court, Secunderabad acting as the Motor Accident Claims Tribunal. By his award, the Tribunal has granted to the claimant compensation of Rs. 10,000/-

    2. The facts of the case, briefly stated, are as under. The claimant's wife who was 21 years old died in an accident which was caused by the Andhra Pradesh State Road Transport Corporation on 15-1-1972 in the outskirts of the City of Hyderabad. The claimant-the husband of the deceased made a claim for Rs. 1,00,000/- under S. 110-A of the Motor Vehicles Act. 1964 against the Corporation. The Tribunal awarded him a sum of Rs. 10,000/- Having been aggrieved by that award, the claimant has filed this appeal.

    3. By the impugned award the Corporation was also aggrieved. Therefore, the Corporation filed in this Court C. M. A. No. 31/75. It was dismissed by Mr. Justice Madhusudan Rao on 27-2-1976. It has been held in that decision that the accident was caused by the negligence of the Driver of the Corporation bus APZ 4955. He also held that the compensation of Rs. 10,000 which the Tribunal awarded to the claimant was not more. He recorded that finding because the Corporation contended that the compensation of Rs. 10,000/- awarded to the claimant by the Tribunal was more than it should have been awarded. The two findings recorded by the learned judge are binding on this Court. It is therefore not open to the Corporation in this Appeal to contend that the accident was not caused by the negligence of the Driver of the Corporation nor is it open to the Corporation to contend that the compensation awarded is more than it should have been awarded.

    4. The claimant in this appeal contends that the Tribunal has awarded much less compensation than could be justified by the facts and circumstances of the case. Before we consider on merits this contention raised on behalf of the claimant, it is necessary to note certain conspicuous omissions in his petition. The deceased left behind her surviving, her husband, the claimant, and two children ---- (1) One 3 years old and (2) another 20 months old. The claim ought to have been made not only on behalf of the husband but on behalf of the two minor children also. The claim petition was filed only by the husband. Before a claim is made under S. 110-A of the Motor Vehicles Act, it is always necessary to bear in mind the provision of S. 1-A of the Fatal Accidents Act, 19\855. It specified the claimants who can make a claim arising out of the death of a person caused by a fatal accident. Section 1-A inter alia provides that every action or suit for a wrongful act shall be fore the benefit of the wife, husband, parents and child, if any, of the person whose death has been caused and shall be brought by and in the name of the executor, administrator or representative of the person deceased. It is clear therefore that where a woman is killed in a fatal accident, the claim can be made by her husband, children and parents. This is the special provision which has been made under the Fatal Accidents Act 1855 and it is necessary to bear in mind this provision while filing a claim petition under S. 110-A of the Motor Vehicles Act. In the instant case it is on record that the deceased left, amongst others, two children surviving her. It was necessary, therefore, for the claimant not only to make the claim on his own behalf but also on behalf of the two minor children whom the deceased has left surviving her.

    5. The second characteristic omission which we find in this petition is that the claimant has made a bald claim of Rs. 1,00,000/- without stating in the petition or in an annexure to the petition how he has arrived at the figure of Rs. 1,00,000/-. It is always necessary to specify different heads under which damages or compensation is claimed A bald claim of a lakh of rupees or more or less does not help the claimant is establishing his claim satisfactorily. The claim petition must contain all necessary details showing how the claim has been arrived at and on what basis.

    6. The third characteristic omission with which we have come across in this case is that when the claimant deposed before the Tribunal that he claimed a sum of one lakh of rupees, for compensation, he did not state under what heads and on what basis he was making the claim of Rs. 1,00,000/-. All that he stated in that behalf was that consequent upon the death of his wife he had engaged an Ayah to whom he was paying a sun of Rs. 50/- per month in addition to making provision for her food and clothing. This is not a satisfactory way of providing the claim which a claimant makes. He must show in his evidence what loss he has suffered on account of the accidental death of the deceased and how he arrives at the figure of compensation which he claims from the wrong doer. In the absence of any evidence, all that we can do in the instant case is to take into account only the indisputable heads for computing compensation payable to the claimant.

    7. The judgement written by the Tribunal is also not at all satisfactory. The Tribunal appeal to have applied the rule of thumb and fix compensation at Rs. 10,000/- in full satisfaction of the claim which the claimant made. How and on what basis the compensation of Rs. 10,000/- has been computed has not been stated by the Tribunal in its judgement. It is always necessary for a Motor Accident Claims Tribunal to follow certain principles and to compute the compensation on the basis of those principles. Unless the compensation which a Tribunal awards, can be justified in the light of some rational principles it becomes an arbitrary award which cannot be ordinarily upheld. We may state in this behalf that the principles on the basis of which the compensation can be computed in a claim petition filed under Motor Vehicles Act have been laid down by the Gujarat High Court in Hirji Virji Transport v. Basiranbibi (1971-12 Guj LR 783). It was necessary for the learned advocates who appeared for the claimant and the Corporation to being to the notice of the Tribunal the principles laid down by the Gujarat High Court in the aforesaid decision. It was also necessary for the Tribunal to notice them. Wherever these principles are applicable and wherever they can be suitably applied, they in our opinion, should be applied, because they have been laid down after an exhaustive consideration of several decisions, English and Indian, on the point. The Motor Accidents Claims Tribunals in this State would do better if they apply their mind to the principles laid down in that decision and invoked which determining the compensation payable to a claimant.

    8. We may also draw the attention of the Tribunals to the Bench decision of this Court in K. Narayana Reddiar v. P. Venugopala Reddiar . In that decision this Court has considered how the compensation payable to a claimant in a petition under the Motor Vehicles Act should be computed.

    9. So far as the instant case is concerned, in the absence of any evidence to show under what heads the compensation should be award to the claimant, we can take only such heads as are indisputable. The evidence shows that the deceased had not been earning anything. She had been running the house-hold and looking after her children. Therefore we have to evaluate her services rendered to her family and to her house-hold. The first head under which compensation should be awarded to the claimant is loss of domestic services which the deceased used to render. This would include the service which she rendered by cooking the food for the family, by maintaining the house-hold and by bringing up the children. Though there is nothing in the evidence Mr. R. Sriramulu the learned counsel appearing for the claimant has made a claim under this head, in a statement filed before us, at the rate of Rs. 3/- per day. While evaluating the services in monetary terms which the deceased used to render, we must bear in mind the income of the claimant-the deceased's husband. The evidence shows that he has been working as a Technician in Hindustan Aeronautics Ltd., drawing salary of Rs. 400/- per month. If the claimant has been earning Rs. 400/- per month, the value of the services rendered by the deceased to the household cannot be valued at more than Rs. 150/- per month. Out of this amount we have to deduct what the claimant used to spend on the deceased and what he has been saving now on account of her death. Generally speaking what the claimant would be saving in his expenditure on account of the loss of his wife would be Rs. 100/- per month. We determine this figure after taking into account the size of his family consisting of the claimant, his deceased wife and his two minor children and his monthly income. However, out of Rupees 150/- at which we have evaluated the services of the deceased under the aforesaid head, we cannot deduct Rs. 100/- as the saving by the claimant on account of the loss of his wife because the evidence shows that he has engaged on Ayah to look after his two infant children. The evidence also shows that he has been spending Rs. 50/- per month on the Ayah besides providing her food and clothing. Therefore the sum of Rs. 100/- per month which the claimant has been saving on account of the loss of his wife must bee reduced by Rs. 50/- which he has been spending on Ayah. We are ignoring the expenditure on food and clothing of the Ayah. Therefore the saving which the claimant makes on account of the death of his wife is to be reduced by what he is now required to spend on the Ayah viz., Rs. 50/- per month. The figures of Rs. 150/- at which we have evaluated the services of the deceased would have therefore to be reduced by this amount of Rs.50/-. The net result therefore is that the loss of services rendered by the deceased must bee valued at Rs. 100/- per month. It would mean that there is loss of Rs. 1,200/- per year.

    10. The deceased was an young lady of 21 years supposed to live for a pretty long time. She unfortunately met with the accidental death in the prime of her youth. The claimant has made a claim on the basis that she would have lived for 39 years more. There is no rational basis for his assumption. All that we can do is to take into account an appropriate multiplier or a years' purchase factor and multiply it by the amount of annual compensation which we have computed. This principle has been very well explained by the High Court of Gujarat in the decision to which we have referred. What would have been the normal expectation of life for the deceased cannot be taken into account because if the deceased would have lived, say, for 40 years, the claimant would have enjoyed her services from month to month or year to year while we would be granting him compensation in a lump sum which, when invested, would bear interest or produce return. Therefore when the Court grants compensation in a lump sum at a time, the court has got to fix an appropriate multiplier or a years' purchase factor in order to see that the claimant ultimately gets a just amount for the loss of the services of the deceased. In case of a young woman such as the deceased, we think that compensation under this head should be granted to the claimant on the basis of 15 years' purchase factor. The annual figure works out at Rs. 18,000/-.

    11. The next head under which compensation can be granted in a lump sum to the claimant is pain and suffering, funeral expenses, loss of love and affection to the children and loss of love and consortium to the husband. Normally for pain and suffering and funeral expenses, the Court grants a sum of Rs, 3,000/-. In the instant case there are two more additional factors viz., loss of consortium to the claimant-husband and loss of love and affection to the two young children who during their infancy have been deprived of the motherly affection. These factors have also got to be evaluated in the context of the status which the claimant enjoys in society and in the context of the income which he has been earning. In the case of K. Narayana Reddiar v. P. Venygopala Reddiar (supra), a Bench of this Court fixed a sum of Rs. 4,000/- for loss of consortium. The woman who was killed by accident in that case was a 50 years old woman. In the instant case the deceased was a 21 years old young woman. We cannot raise the figure by arithmetical progression. But we think that taking into account the age of the deceased and the income of her husband, under this consolidated head, we should award to the claimant a sum of Rupees 6,000/-. Therefore, the total figure which works out is Rs. 24,000/- to which the claimant will be entitled.

    12. Testing this figure from another angle we find that if the claimant invests this sum of Rs. 18,000/- which we have awarded to him on the 15 years' purchase factor the return which he would get per year at the rate of 9% per annum would be Rs. 1,620/-. It would work out at Rs. 135/- per month. Now the evidence shows that the claimant has been spending Rs. 50/- per month on the Ayah besides providing her food and clothing. The total cost on the Ayah can therefore be justified determined at Rs. 100/- per month. So far as the loss of services of the deceased to the claimant and to the household is concerned we have computed it at Rs. 100/- per month. As against the total loss of Rs. 200/- a month he would be getting a sum of Rs. 135/- per month. Therefore, he would be spending Rs. 65/- per month more than the return he earns on the sun of Rs. 18,000/-. Therefore, the corpus of Rs. 18,000/- would be exhausted at the end of 23 years. The deceased, a young woman of 21 years of age, would have certainly lived at least for 23 years more. Therefore, the amount awarded by us to the claimant is firstly commensurate with the recurring loss which he has been suffering on account of the premature death of his young wife and secondly it is such as would be exhausted before the normal span of the life of the deceased would have come to an end. Therefore, the sum of Rs. 24,000/- which we have awarded to the claimant is fair and just.

    13. In the result we allow the appeal, modify the award made by the Tribunal and order Andhra Pradesh State Road Transport Corporation to pay to the claimant a sum of Rs. 24,000/- by way of compensation for the accidental death of his wife. The amount shall be paid to the claimant not only for his own benefit but also for the benefit of the two minor children of the deceased. The additional amount which we have awarded shall bear interest at the rate of 6% per annum from the date of this award until payment. The costs of this appeal shall be paid by the respondent-Corporation to the appellant. Advocate's fee shall be computed on the claim which we have decreed. The Tribunal shall take appropriate steps to safeguard the interests of the to minor children before paying the amount to the claimant.

    14. Appeal allowed.

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    Comments

    G. Venkatesham v. The General Manager,...
    (Jun 16, 1977)