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Thulluri Ruthamma And Ors. v. S. Bala Kotaiah And Ors.
Concise Analytical Summary of the Opinion
Factual and Procedural Background
The claimants are the wife and children of one Obulaiah, who was involved in a motor vehicle accident on 8-9-1985 and later died of injuries on 19-3-1986. The accident was found to have been caused by rash and negligent driving of a lorry belonging to the 1st respondent, insured with the 3rd respondent.
The claimants filed OP No. 40/87 before the Motor Accident Claims Tribunal, Ongole, seeking Rs. 82,000 as compensation. The Tribunal, after enquiry, held that the vehicle’s driver was rash and negligent and awarded a total of Rs. 25,000 by way of compensation, holding respondents 1 and 3 jointly and severally liable. The claimants appealed that award.
The deceased's age at the time of the accident was found to be 30 years. The Tribunal did not accept the claimed income of Rs. 1,000 per month as established fact.
Legal Issues Presented
- Whether the compensation awarded by the Tribunal (Rs. 25,000) was inadequate and required enhancement on appeal.
- What is the appropriate assessment of loss of dependency in the case (i.e., appropriate multiplicand and multiplier to be applied) given the evidentiary record?
- Whether a Tribunal (or appellate court) may award compensation in excess of the amount claimed in the petition and, if so, what procedural safeguards are required before doing so (including any requirement for notice or written application to the opposite party).
- What interest, costs and conditions (including deposits or set-offs) should attach to any enhanced award?
Arguments of the Parties
Appellants' Arguments (Claimants)
- Counsel for the appellants contended that, irrespective of precise acceptance of income evidence, the minimum monthly contribution by the deceased to the family could not be less than Rs. 1,000 and that appropriate application of the multiplier method would produce a substantially larger award (counsel initially suggested an aggregate figure around Rs. 1,57,000).
- Counsel advanced a detailed alternative assessment: using a multiplicand of Rs. 12,000 p.a. (based on Rs. 1,000 per month) and a multiplier of about 14, plus conventional sums for loss of expectation of life, loss of consortium, pain and suffering, and medical/funeral expenses.
- Counsel also invoked the decision in Venkateswara Rao v. G. Gouramma to argue that a Tribunal may award compensation in excess of that claimed where just, and therefore sought enhancement beyond the original claim if justified.
Respondents' Arguments
There was no representation for the respondents and no respondent arguments are detailed in the opinion.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| General Manager, Kerala State Road Transport Corporation (1) (1994) 2 SCC 176 | Adoption of the multiplier method in assessing compensation in fatal accident cases (settled law). | The court followed this precedent (and the next) in adopting the multiplier method for calculation of dependency compensation. |
| UPSRTC v. Trilok Chandra (2) 1996 (4) Supreme 479 | Reinforcement of the multiplier approach for fatal accident compensation assessment. | Used together with (1) as authority for applying the multiplier method and for guidance on deposit/guidelines referenced in the final award. |
| Venkateswara Rao v. G. Gouramma (3) 1995 (3) ALT 43 | Discussed scope of Section 110-A of the Motor Vehicles Act and the proposition that a Tribunal can award just compensation even if it exceeds the amount claimed. | The appellants relied on this case to seek compensation in excess of the claim. The court observed that Venkateswara Rao did not address procedural questions about awarding in excess (such as notice, amendment), and therefore regarded that decision as not resolving those procedural issues. |
| Municipal Corporation of Greater Bombay v. Kisan Gangaram (4) 1987 ACJ 311 | Held that Tribunals are not fettered from awarding compensation in excess of the claim but laid down procedural safeguards (notice/intimation, written application or recorded reasons, opportunity to contest). | The court relied on this precedent as providing the detailed procedure that should be followed before awarding compensation beyond the amount claimed and concluded that those safeguards were not satisfied in the present case. |
| Kumar Mohammad Rafique v. Municipal Corporation of Greater Bombay (5) 1986 ACJ 55 | Earlier authority relied upon in Municipal Corporation to support no fetters on the power to award in excess of the claim. | Referenced as one of the authorities on which Municipal Corporation relied; used indirectly to support the procedural framework adopted by Municipal Corporation. |
| Sharifunnisa v. Basappa Ramachandra (6) 1986 ACJ 792 | Authority relied upon in Municipal Corporation process; supports the view on awarding in excess. | Relied upon by Municipal Corporation and therefore cited in this opinion in connection with the procedural guidance for awarding excess compensation. |
| Kela Devi v. Ramchand (7) 1986 ACJ 818 | Delhi High Court decision relied upon in Municipal Corporation on the power to award in excess of claimed compensation. | Referenced as precedent relied on by Municipal Corporation; used to justify the procedural safeguards the court required be followed. |
| Jai Singh v. N.A Subramanyam (8) 1983 ACJ 1 (Full Bench) | Full Bench decision of Punjab & Haryana High Court cited in Municipal Corporation for the proposition that Tribunals may award compensation in excess of the claim. | Referenced as part of the body of authority that Municipal Corporation surveyed in prescribing procedural safeguards; relied upon to justify that power but with safeguards. |
Court's Reasoning and Analysis
The court proceeded in a stepwise manner applying only the materials and reasoning contained in the opinion:
- Methodology: The court confirmed that in fatal-accident cases the multiplier method (as declared by the Supreme Court in the cited authorities) must be adopted for assessing dependency.
- Evidence on Income: The court reviewed the evidence on the deceased’s income. Claimant No. 1 stated a monthly income of Rs. 1,000 from poultry farming, but there was no corroborating material for that figure or for income from the deceased’s profession as a piper. A solitary passbook entry of Rs. 5,000 (Feb '85) and some small interest entries were not treated as proof of regular income.
- Determination of Multiplicand: Although conscious that the claimant’s testimony might be exaggerated, the court nonetheless reasoned from the family’s composition that average per-head sustenance (excluding Rs. 100 for deceased’s personal expenses) would be about Rs. 100 per head, and concluded that a safe and just monthly contribution figure to adopt for the family was Rs. 500 per month (Rs. 6,000 per annum) as the multiplicand.
- Application of Multiplier: The court applied a multiplier of 14 (appropriate to the deceased’s age of 30) to the multiplicand of Rs. 6,000 p.a., yielding Rs. 84,000 as loss of contribution.
- Conventional Additions: The court added conventional sums expressly itemized in the opinion: Rs. 7,500 for loss of expectation/future life, Rs. 10,000 for loss of consortium to the wife (claimant No. 1), Rs. 10,000 for pain and suffering (the deceased died about six months after the accident), and Rs. 2,000 for medical and incidental expenses. These additions produced an aggregate computed by the court of Rs. 1,13,500.
- Limitation by Claim and Procedural Considerations: The court addressed the appellants’ reliance on Venkateswara Rao to support an award in excess of the claim. It observed that Venkateswara Rao did not answer several procedural questions (such as whether Section 110-A and rules permit awarding in excess suo motu, whether amendment or notice is required, and whether it can be done at any stage). The court therefore treated Venkateswara Rao as not resolving those procedural issues conclusively.
- Adoption of Procedural Safeguards: The court relied on Municipal Corporation of Greater Bombay v. Kisan Gangaram for a procedural template: before awarding in excess the Tribunal should obtain a written application for additional amount or at least record reasons, serve a copy on the opposite party, and give an opportunity to contest. These safeguards were intended to prevent abuse of the power to award in excess of the claim.
- Conclusion Drawn from Procedure: Because the procedural safeguards prescribed by Municipal Corporation were not followed in this case, the court concluded it could not grant compensation beyond the amount claimed before the Tribunal. Thus, although the court computed a higher figure (Rs. 1,13,500) on the evidence, it limited its decretal relief to the claimable amount consistent with procedural constraints.
- Final Calculus: The court increased the award from Rs. 25,000 to Rs. 82,400 (a sum slightly above the stated claim of Rs. 82,000), ordered it recoverable jointly and severally from respondents 1 and 3, with costs and simple interest at 12% p.a. from the date of the petition until realization. Any amount already paid or deposited was to be deducted. The award was made subject to deposit of amounts as per the guidelines issued in the Supreme Court decisions referred to earlier (the two authorities listed as 1 and 2).
Holding and Implications
Holding: The appeal is allowed. The Tribunal's award of Rs. 25,000 is set aside and substituted with an award that the claimant is entitled to recover Rs. 82,400 by way of compensation from respondents 1 and 3, who are held jointly and severally liable. The substituted award carries costs and simple interest at 12% per annum from the date of the petition until realization. Any amounts already paid or deposited are to be deducted. The award is subject to deposit of amounts as per the guidelines in the two Supreme Court decisions cited earlier.
Implications: The direct practical consequence is enhancement of the claimants' recovery from Rs. 25,000 to Rs. 82,400 with interest and costs against respondents 1 and 3. On the broader legal point, the court held that a Tribunal is not precluded from awarding compensation in excess of the amount claimed, but emphasised that certain procedural safeguards (as outlined in Municipal Corporation of Greater Bombay v. Kisan Gangaram) must be observed before awarding an amount beyond the claim to avoid abuse. The opinion expressly refrains from laying down a final position on all procedural aspects raised by Venkateswara Rao, noting that those questions were not fully argued or decided in that earlier case. The court did not purport to establish a new, comprehensive precedent beyond enforcing the procedural requirements it described.
Additional Notes from the Opinion
- The court accepted that the multiplicand and multiplier method was the correct approach, but selected a conservative multiplicand (Rs. 500/month) on the available evidence rather than the Rs. 1,000/month claimed without corroboration.
- There was no representation for the respondents at the hearing, and the court noted this fact in the record.
- The award contains an explicit direction to deduct any sums already paid or deposited and to require deposits as per the guidelines in the Supreme Court decisions cited as (1) and (2).
1. The claimants are the wife and children of one Obulaiah who died in a motor vehicle accident dated 8-9-1985 due to the rash and negligent driving of the lorry, belonging to the 1st respondent and insured with 3rd respondent. The claimants filed OP. No. 40/87 on the file of the Motor Accident Claims Tribunal, Ongole claiming a compensation of Rs. 82,000/-. After an enquiry, the Tribunal found that the accident was a result of rash and negligent driving of the vehicle by its driver and awarded a total compensation of Rs. 25,000/- with joint and several liability on respondents 1 and 3.
2. The deceased having suffered the injuries succumbed to them on 19-3-1986. His age at the time of the accident is found to be 30 years and the income which was said to be Rs. 1000/- per month both from the profession of piper and poultry farming, was not accepted, but as a whole Rs. 25,000/- was awarded as compensation to the claimants.
3. Aggrieved by the award, this appeal is filed.
4. Mr. Krishnamurthy, learned counsel for the appellants/claimants has contended that in any manner the income of the deceased is assessed, the loss of contribution to the claimants by the deceased could not be less than Rs. 1000/- per month providing the multiplicand at Rs. 12,000/- p.a and with the multiplier of about 14 for the age of the deceased and with the conventional sum of Rs. 7,500/- to Rs. 10,000/- towards loss of expectation of life, Rs. 7,500/- to Rs. 10,000/- towards loss of consortium to claimant No. 1, the wife of the deceased, and some reasonable sum towards pain and suffering of the deceased as he died on 19-3-1986 and some amount to wards medical and other expenses like funeral, transportation etc., the amount of compensation ought to be far in excess of what is claimed and according to him it will be about Rs. 1,57,000/-.
5. There is no representation for the respondents.
6. The case being one of fatal accidents, as per settled law, we have to adopt the multiplier method declared as law by the Supreme Court in General Manager, Kerala State Road Transport Corporation (1) (1994) 2 SCC 176 and UPSRTC v. Trilok Chandra (2) 1996 (4) Supreme 479. Except the testimony of claimant No. 1 that the income of her husband was Rs. 1,000/- per month from poultry farming, there is no supporting material. What was his income from the profession of piper is not brought out. There was a solitary entry in the pass book for February ′85 for Rs. 5000/- in addition to some small entries towards accrual of interest. Such a deposit, by itself, cannot support the income either per month or per annum. If at all, that can be some deposit or savings or may be even deposited out of the amounts borrowed by the deceased as it generally happens. However, in view of the interested testimony of claimant No. 1, even presuming that the income was exaggerated or made without sufficient basis, having due regard to the number of members in the family including the deceased, the survival of them could not have been possible unless they get Rs. 100/- per head on an average and excluding Rs. 100/- towards the personal expenses of the deceased, the contribution to the family could be safely taken as Rs. 500/- per month or Rs. 6000/- per annum representing the multiplicand. With this multiplicand and the multiplier of 14 the loss of contribution to the family would be Rs. 84,000/-. Adding a conventional sum of Rs. 7,500/- towards loss of expectation of life and future happy life and Rs. 10,000/- towards loss of consortium to claimant No. 1, being the young wife of the deceased and Rs. 10,000/- towards pain and suffering of the deceased as he died almost 6 months after the accident and Rs. 2000/- towards medical and incidental expenses, the total compensation in this case ought to have been Rs. 1,13,500/-. As against this the Tribunal very arbitrarily fixed most inadequate compensation of Rs. 25,000/- without even applying the known method of assessment of compensation in a case of death. Barring displeasure of this Court in this regard, there would be no need to say anything more in this case. In other words, the amount awarded by the Tribunal, being inadequate, requires to be enhanced in the light of the findings of the Tribunal as above.
7. The claimants having laid a claim for Rs. 82,000/- cannot think of anything more than that in the normal course. In fact, Mr. Krishnamurthy, learned Counsel for the appellants, never argued for granting anything more than that in the beginning. However, taking support from a latest pronouncement of this Court in Venkateswara Rao v. G. Gouramma (3) 1995 (3) ALT 43, pleaded for awarding compensation more than claimed if found to be just. It is true that the learned Advocate is supported by the pronouncement which had the occasion to deal with the scope of Section 110-A of the MV Act of 1939 to impress that the compensation to be awarded should be the just compensation and even if some amount is claimed in the petition, the Tribunal can award more amount if it is just compensation. In fact by setting aside the award of the Tribunal which had awarded Rs. 75,000/-, actually Rs. 1,11,600/- were awarded by allowing the appeal. This Court is persuaded by the rule laid down in the precedent. But there are many questions to be answered before implementing such a rule viz., whether Section 110-A of the MV Act and the rules framed thereunder permit the grant of compensation in excess of what is claimed, viz., whether the Tribunal can grant it suo motu, whether any amendment of the claim is necessary and whether it can be done at any stage including appeal, perhaps even at the stage of execution and whether any application is necessary for amendment and any oral application is necessary etc. No such questions have been either raised or answered by this Court in the case supra. Therefore, to that extent, the precedent has become per incuriam. The answer to such questions are to be found in Municipal Corporation of Greater Bombay v. Kisan Gangaram (4) 1987 ACJ 311 which while dealing without he question in a detailed manner and relying upon its own earlier rulings in Kumar Mohammad Rafique v. Municipal Corporation of Greater Bombay (5) 1986 ACJ 55, Sharifunnisa v. Basappa Ramachandra (6) 1986 ACJ 792 and of the Delhi High Court in Kela Devi v. Ramchand (7) 1986 ACJ 818 and also the Full Bench decision of the Punjab and Haryana High Court in Jai Singh v. N.A Subramanyam (8) 1983 ACJ 1, held that a survey of the authorities strengthens the proposition that there are no fetters on the powers of the Tribunal to award compensation in excess of that which is claimed in the application. But at the same time, laid down the following procedure:
“The only question that requires to be considered is of the procedure that should be followed by the Tribunal before awarding higher compensation. We are of the view that in all such cases a proper notice or intimation should be given to the opposite party so that the opposite party has an opportunity to contest the claim even by leading evidence, if necessary. Ordinarily, the Tribunal should take a written application from the claimant. This application need not necessarily be in the form of an amendment to the original application. Since as stated earlier the amount of compensation claimed or the specific heading under which it is claimed is no more than in the nature of the particulars of the claim, a variation in the same does not change the cause of action, which is the accident. It only furnishes additional material for assessing the claim. The additional claim should as far as possible be taken in writing which should also indicate the reasons why the additional claim is made. Where it is not possible to take the additional claim in writing, the reasons for the same should be recorded. A copy of such written application should be served on the opposite party to give it an adequate notice of the excess amount claimed and to contest it, if it so desires. Where the application is not taken in writing, the Tribunal should make a note of it in its diary and give notice of the claim similarly to the other side.
It may also happen in certain cases that on account of ignorance or otherwise, a party may not apply for higher compensation. If, however, the Tribunal feels at any stage that the party is entitled to higher compensation, the Tribunal should ask the claimant concerned to make an application for the same in writing and a copy of the application should be served on the opposite party to enable it to contest the claim for higher amount.
If these safeguards are followed, the powers conferred on the Tribunal for awarding compensation higher than that claimed in the original application would not be abused as is feared.”
8. Patently these safeguards were not presented before the Court or considered in Venkateswara Rao's case (3 supra). Since the appellants have not raised any such question to be considered in detail, this court does not express any final opinion in this regard except to say that the Tribunal is not debarred from granting more compensation than claimed, provided certain conditions are fulfilled not to abuse the process of law either by the parties or by the Court. Since nothing of that kind is done, this Court is not able to accept the contention of the learned Counsel for the appellants to grant any compensation than what is claimed before the Tribunal.
9. The appeal is allowed and the award of the Tribunal is set aside. It shall be substituted with the following award:— The claimant shall be entitled to recover a sum of Rs. 82,400/- by way of compensation from the respondents 1 and 3 with joint and several liability with costs throughout and simple interest at 12% p.a from the date of petition till date of realisation. If any amount is paid/deposited, that shall be deducted. However, this is subject to deposit of the amounts as per the guidelines issued by the Supreme Court in the decisions 1 and 2 supra.
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