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United India Insurance Company Limited And Another v. Dandugula Bheem Bai Bheemakka And Others

Andhra Pradesh High Court
Apr 15, 2004
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Factual and Procedural Background

This appeal arises from O.P. No. 255 of 1995 before the Motor Accidents Claims Tribunal-cum-Additional District Judge, Adilabad. Respondents 1 to 8 (claimants) filed the petition seeking Rs. 3,00,000/- as compensation for the death of Nagappa (husband of 1st respondent), allegedly caused by rash and negligent driving of the 9th respondent. The lorry involved bore registration No. AHH-2201; the appellants in this appeal are the driver, insurer and owner of that lorry.

At the Tribunal: the claimants examined two witnesses (P.W.1 — the 1st respondent — and P.W.2). Exhibits A-1 to A-7 were marked. The 9th respondent and the 2nd appellant remained ex parte before the Tribunal. The 1st appellant filed a counter but did not adduce evidence. The Tribunal found the 9th respondent guilty of rash and negligent driving and awarded Rs. 1,90,000/- as compensation to respondents 1 to 8. The insurer and owner (appellants) appealed the award; respondents 1 to 5 filed cross-objections against the appellants' challenge to the compensation.

Procedural note: The appeal against the 9th respondent was dismissed for default on 28-8-2002 for non-payment of process. The present opinion records the hearing of counsel for the appellants and counsel for respondents 1 to 8.

Legal Issues Presented

  1. Whether the accident occurred due to the rash and negligent driving of the 9th respondent?
  2. What compensation are respondents 1 to 8 entitled to?

Arguments of the Parties

Appellants' Arguments (insurer and owner)

  • The Tribunal erred in awarding Rs. 17,000/- towards loss of supervision charges, especially without properly considering that pecuniary damages already include loss of supervisory charges.
  • Implicitly challenging the quantification of income and other heads of compensation fixed by the Tribunal (as seen from the appeal against the award).

Respondents' Arguments (claimants — respondents 1 to 8)

  • Contended that the Tribunal was wrong in treating the deceased as a non-earning member. They argued ample evidence showed the deceased undertook contract works apart from agriculture.
  • Asserted that a coolie earned more than Rs. 50/- per day and therefore the Tribunal's fixation of income at Rs. 10,000/- per annum (i.e., low figure) was erroneous; they contended the deceased earned Rs. 5,000/- per month and were thus entitled to the full claimed compensation of Rs. 3,00,000/-.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bhagavan Das v. Mohad Arif (1987 ACJ 1052) Guidance on selecting a multiplier (the citation indicates a multiplier around 12.5 for a person aged about 42). The court observed the multiplier indicated by this precedent (around 12.5) but adapted the Tribunal's multiplier of 15 (noting the deceased was not an employee subject to retirement), and used multiplier 15 in the pecuniary damages calculation.
A.P.S.R.T.C v. Gali Aruna (1994 3 ALT 58 D.B.) Held that in a petition filed under Section 166 of the Motor Vehicles Act, claimants are not entitled to funeral expenses. The court relied on this holding to deny funeral expenses to respondents 1 to 8, observing that Schedule II (which provides for funeral expenses) applies to Section 163-A petitions, not to Section 166 petitions.
General Manager, K.S.R.T.C. Trivendram v. Mts. Susamma Thomas (1994 1 ALT 1 SC) Recognition of an amount (Rs. 15,000/-) as appropriate for loss of consortium to the 1st respondent. The court held that 1st respondent is entitled to Rs. 15,000/- towards loss of consortium and adopted that figure in its award, noting it exceeds the Schedule II figure.
Y. Varalakshmi & Others v. M. Nageswara Rao & Others Held that in every fatal accident case, a minimum compensation of Rs. 15,000/- should be awarded for non-pecuniary damages (loss of estate, amenities of life, etc.). The court referred to this precedent and, considering the age of the deceased and that the accident occurred in 1995, fixed non-pecuniary damages at Rs. 25,000/- (above the minimum indicated by the precedent).

Court's Reasoning and Analysis

The court's analysis proceeds in two parts corresponding to the two points framed.

Point (i): Causation and Negligence

  • The court found P.W.1's evidence irrelevant to the question of how the accident occurred because she admitted she was not a witness to the accident.
  • P.W.2, who purported to be a witness to the accident, was found unreliable: he admitted police did not examine him in connection with the accident; respondents 1 to 8 could not explain how they came to call him as a witness; P.W.2 did not explain how claimants identified him as a witness; and no witness list was filed. Consequently the court declined to accept P.W.2's evidence that the lorry dashed against the deceased while he waited at a bus stand because that account conflicted with the F.I.R. (Ex. A-1) and panchanama of inquest (Ex. A-2).
  • Exs. A-1 and A-2 (F.I.R. and panchanama) indicated that the deceased fell while trying to board the lorry and was run over by its rear wheels. The court also relied on the police charge sheet (Ex. A-6), which stated that the 9th respondent started the lorry without observing that the deceased was boarding it, causing the death.
  • Reasoning from the documentary record: since the 9th respondent permitted the deceased to board, the deceased must have tried to board from the rear; the 9th respondent moved the vehicle while the deceased was boarding and thus caused his fall and being run over.
  • The 9th respondent and his employer chose to remain ex parte despite the rash and negligent driving allegation. Considering the documentary evidence and the absence of effective rebuttal, the court held that the accident occurred due to the negligence of the 9th respondent.

Point (ii): Quantum of Compensation

  • The court noted that the Tribunal had applied Schedule II of the Motor Vehicles Act (Second Schedule) and fixed multiplier and earnings on that basis. However, the court observed Schedule II applies to claims under Section 163-A; this claim is under Section 166, and Schedule II is not applicable in that manner for Section 166 petitions.
  • On the claim regarding the deceased's income and occupational status, the court examined documentary evidence: Ex. A-3 (a patta) was found to be in the name of the 2nd respondent, not the deceased. There was no documentary proof (such as sales tax registration, licences or account books) to support the claim that the deceased engaged in business, contract works, or held agricultural land.
  • Given the lack of documentary or independent evidence of business or land-holding, the court rejected the claim that the deceased was undertaking contracts or business. Consequently, the court held the Tribunal erred in awarding loss of supervision charges since the land in Ex. A-3 was not assigned to the deceased.
  • The court estimated the deceased’s income by reference to local wage levels: since the deceased was a village resident and the accident occurred in March 1995 when the average coolie wage at villages was about Rs. 40/day (about Rs. 1,200/month), the court took the deceased's earnings as Rs. 1,200 per month (approx. Rs. 10,000 per annum) and contribution to respondents 1 to 8 as Rs. 10,000 p.a.
  • On multiplier: although Bhagavan Das suggested a multiplier around 12.5 for the deceased's age (post mortem showed age about 42–45), the court noted that because the deceased was not an employee subject to retirement it could adapt the Tribunal's multiplier of 15. Using Rs. 10,000 p.a. × multiplier 15, pecuniary damages were fixed at Rs. 1,50,000/-.
  • Heads of non-pecuniary damages: the court rejected funeral expenses (relying on A.P.S.R.T.C v. Gali Aruna that Section 166 claims do not entitle claimants to funeral expenses). For loss of consortium, the court applied the Susamma Thomas principle awarding Rs. 15,000/- to the 1st respondent. Relying on Y. Varalakshmi precedent, which set a minimum non-pecuniary award of Rs. 15,000/-, and considering age and timing (1995), the court fixed non-pecuniary damages (loss of estate, amenities) at Rs. 25,000/-.
  • Summation: Pecuniary damages Rs. 1,50,000 + Loss of consortium Rs. 15,000 + Non-pecuniary damages Rs. 25,000 = Rs. 1,90,000 total compensation.

Holding and Implications

Core Ruling: An award of Rs. 1,90,000/- is passed in favour of respondents 1 to 8 against the 9th respondent and the appellants, with interest at 9% per annum from the date of petition until deposit into Court and with proportionate costs before the Tribunal. The remainder of respondents' claims (those not specifically allowed) are dismissed without costs.

Distribution of the award as ordered by the court:

  • 1st respondent: Rs. 40,000/- (plus interest and costs).
  • Respondents 2 to 6: each Rs. 25,000/- (plus interest).
  • 7th respondent: Rs. 10,000/- (plus interest).
  • 8th respondent: Rs. 15,000/- (plus interest).

The appeal and cross-objections were disposed of accordingly; parties were directed to bear their own costs in the Court.

Broader implications: The opinion emphasizes that Schedule II of the Motor Vehicles Act (applicable to Section 163-A claims) is not to be mechanically applied to Section 166 petitions. The court applied existing precedents for multiplier selection, loss of consortium, and minimum non-pecuniary awards, and declined to award funeral expenses or loss of supervision in the absence of supporting evidence. The opinion does not set out any novel legal principle beyond the application of cited authorities to the facts of this case.

Show all summary ...

1. This appeal is preferred by 2nd and 3rd respondents in O.P No. 255 of 1995 on the file of the Motor Accidents Claims Tribunal-cum-Additional District Judge, Adilabad, filed by respondents 1 to 8 seeking the compensation of Rs. 3,00,000/- from the 9th respondent and appellants who are the driver, insurer and owner respectively of the lorry bearing No. AHH-2201 which caused an accident resulting in the death of Nagappa, husband of 1st respondent and father of respondents 2 to 6 and son of respondents 7 and 8 allegedly due to the rash and negligent driving of the 9th respondent. The claimants examined two witnesses on their behalf as P.Ws 1 and 2, including the 1st respondent as P.W 1 and marked Exs. A-1 to A-7 9th respondent and 2nd appellant chose to remain ex parte before the Tribunal. First appellant who filed a counter putting respondents 1 to 8 to proof of the allegations in the petition did not adduce evidence either oral or documentary. The Tribunal having held that the accident occurred due to the rash and negligent driving of the 9th respondent, awarded Rs. 1,90,000/- as compensation to respondents 1 to 8. Aggrieved by the compensation awarded against them, the insurer and owner of the lorry involved in the accident have preferred this appeal and dissatisfied with the compensation awarded to them the claimants i.e respondents 1 to 5 preferred cross-objections.

2. Appeal against 9th respondent was dismissed for default on 28-8-2002 for non-payment of process. Heard the learned counsel for the appellants and the learned counsel for the respondents 1 to 8.

3. The points that arise for consideration in the appeal are:

(i) Whether the accident occurred due to the rash and negligent driving of the 9th respondent?

(ii) To what compensation respondents 1 to 8 are entitled?

4. Point (i):— The evidence of P.W 1 is not relevant for this point, because she, admittedly, was not a witness to the accident. P.W 2 who is examined as a witness to the accident admitted during cross-examination, that police did not examine him in connection with the accident. Respondents 1 to 8 failed to explain as to how they came to know that P.W 2 was a witness to the accident and called him as a witness on their behalf. Even, P.W 2 did not state as to how respondents 1 to 8 came to know that he was a witness to the accident involving the deceased. Respondents 1 to 8 did not even file a list of witnesses. So it is difficult to believe the evidence of P.W 2 that he was a witness to the accident. That apart the evidence of P.W 2 that the lorry dashed against the deceased when he was waiting at the bus stand for a bus is diametrically opposite to the allegations in the F.I.R (Ex. A-1) and the panchanama of inquest (Ex. A-2) which show that the deceased while trying to board the lorry AHH 2201 had fallen down and was run-over by the rear wheels of the lorry. So I do not wish to take the evidence of P.W 2 into consideration for deciding this point.

5. It is no doubt true that nobody connected with Exs. A-1 and A-2 are examinedly the respondents 1 to 8, but the allegations therein show that the deceased while trying to board the lorry had fallen down. In Ex. A-6, charge sheet filed by the police against the 9th respondent in connection with the accident involving the deceased, it is stated that the 9th respondent, without observing that the deceased was boarding the lorry started the lorry and caused the death of the deceased. Since 9th respondent must have permitted the deceased to board the lorry, the deceased must have tried to board the lorry from the rear side of the lorry. When the 9th respondent permitted the deceased to get into the lorry, he ought to have started the lorry only after the deceased boarded the lorry, but 9th respondent seems to have moved the lorry even before the deceased boarded it i.e while the deceased was boarding it and so he had fallen down and was run over by the rear wheels of the lorry. He and his employer chose to remain ex parte though an allegation of rash and negligent driving is made against him. Therefore, I hold that the accident, resulting in the death of the deceased, occurred due to the negligence of the 9th respondent. The point is answered accordingly.

6. Point (ii):— The contention of the learned counsel for the appellants is that the Tribunal was in error in awarding Rs. 17,000/- towards loss of supervision charges without keeping in view the fact that pecuniary damages include loss of supervisory charges also. The contention of the learned counsel for respondents 1 to 8 is that the Tribunal was in error in holding that the deceased was a non-earning member as it did not take into consideration the ample evidence on record to show that the deceased was undertaking contract works apart from agriculture. It is his contention that since even a coolie was earning more than Rs. 50/- per day, the Tribunal fixing the income of the deceased at Rs. 10,000/- per annum is erroneous and in the facts and circumstances of the case and since the deceased was earning Rs. 5,000/- p.m respondents 1 to 8 are entitled to the entire compensation of Rs. 3,00,000/- claimed by them.

7. Since the accident occurred after the coming into force of Act 54 of 1994 i.e after 14-11-1994 the Tribunal took the Second Schedule of Motor Vehicles Act, 1988 (the Act) into consideration and fixed the multiplier and earnings of the deceased on that basis, without keeping in view the fact that Schedule-II of the Act applies to a petition under Section 163-A of the Act and that this is not a petition under Sec. 163-A, but is a petition under Section 166 of the Act.

8. The finding of the Tribunal that Ex. A-3 is a patta issued in favour of the deceased is not correct. Had the Tribunal perused Ex. A-3 it would not have failed to note that it was issued in the name of the 2nd respondent who is the 2nd petitioner in the claim petition. Except Ex. A-3, there is nothing on record to show that the deceased was possessed of any agricultural land or was doing business or contracts. Had the deceased been doing business or was undertaking contracts, there must be some documentary evidence to establish that fact. Since respondents 1 to 8 did not adduce any documentary evidence like registration under Andhra Pradesh General Sales Tax Act or any licence from any authority or any account books to show that the deceased was undertaking contract works or was carrying on business, the contention of respondents 1 to 8 that the deceased was undertaking contract works, and was doing business cannot be believed or accepted. As stated earlier there is no documentary or independent evidence on record to show that the deceased had lands of his own or took some lands of others on lease for purpose of agriculture. Since, the deceased was a resident of Rasulpalli village of Adilablad District and since the accident took place in March, 1995 when the average coolie, could have been about Rs. 40/- per day or Rs. 1,200/- per month at the villages, it can be taken that the deceased was earning about Rs. 1,200/- p.m and was contributing about Rs. 10,000/- p.a to respondents 1 to-8. Since the land under Ex. A-3 was assigned to 2nd respondent but not to the deceased, question of respondents 1 to 8 being awarded compensation towards loss of supervisory charges, as awarded by the Tribunal, does not arise.

9. Though there is no reliable evidence on record to show the age of the deceased, since the post mortem examination report of the deceased shows that he was aged about 42 to 45 years, it can be taken that the deceased was around 42 years of age by the date of death and so the multiplier as per Bhagavan Das v. Mohad. Arif . 1987 ACJ 1052. would be around ‘12.5’, but inasmuch as the deceased was not an employee, subject to retirement, multiplier ‘15’ fixed by the Tribunal can be adapted and so, the pecuniary damages payable to respondents 1 to 8 come to Rs. 10,000/- × 15 = Rs. 1,50,000/-.

10. The Tribunal awarded Rs. 20,000/- towards loss of consortium, loss of estate, Rs. 3,000/- towards funeral expenses and Rs. 17,000/- towards loss of supervision charges. As stated earlier, question of awarding loss of supervisory charges does not arise. Obviously, loss of consortium, funeral expenses etc., are awarded by the Tribunal, keeping in view of Schedule II of the Act. As stated earlier, Schedule II does not apply to claim filed under Section 166 of the Act. A Division Bench of this Court in A.P.S.R.T.C v. Gali Aruna . 1994 3 ALT 58 D.B. held that in a petition filed under Section 166, claimants are not entitled to funeral expenses. It is well known that compensation under Section 166 of the Act is awarded to compensate the loss due to untimely death of the victim. Funeral expenses have to be incurred irrespective of the fact whether the death is natural or accidental. So respondents 1 to 8 are not entitled to funeral expenses though, Schedule II of the Act provides for award of funeral expenses in a claim petition under Section 163-A of the Act.

11. As held in General Manager, K.S.R.T.C Trivendram v. Mts. Susamma Thomas . 1994 1 ALT 1 SC., 1st respondent is entitled to Rs. 15,000/- towards loss of consortium, which is much more than the loss of consortium fixed by Schedule II of the Act.

12. In Y. Varalakshmi & Others…. v. M. Nageswara Rao & Others…4, it is held that in every case of a fatal accident, a minimum compensation of Rs. 15,000/- should be awarded to the claimants towards non-pecuniary damages, such as loss of estate, loss of amenities in life etc. Keeping in view the age of the deceased and the fact that the accident occurred in 1995, the non-pecuniary damages can be fixed at Rs. 25,000/-.

13. Thus, respondents - 1 to 8 are entitled to Rs. 1,50,000/- + Rs. 15,000/- + Rs. 25,000/- = Rs. 1,90,000/- as compensation for the death of the deceased. The point is answered accordingly.

14. In the result, an Award is passed for Rs. 1,90,000/- in favour of the respondents - 1 to 8, against the 9th respondent and the appellants with interest at 9% per annum from the date of petition till the date of deposit into Court with proportionate costs before the Tribunal. Rest of the claim of respondents - 1 to 8 is dismissed without costs. From out of the said amount 1st respondent is entitled to Rs. 40,000/-, interest thereon and costs. Respondents - 2 to 6 are each entitled to Rs. 25,000/- and interest thereon 7th respondent is entitled to Rs. 10,000/- and interest thereon and 8th respondent is entitled to Rs. 15,000/- and interest thereon. The appeal and cross-objections are disposed of accordingly and parties are directed to bear their own costs in this Court.