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  • vehicles act, 1939 (for short 'the act')
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  • vehicles act, 1939 (for short 'the act')
Smart Summary

Court Opinion Summary

Factual and Procedural Background

This appeal arises from an award made by the Motor Accidents Claims Tribunal - cum - District Judge, Khammam in O.P. No. 160 of 1989 dated 19-3-1990. The claim petition was filed under section 110-A of the Motor Vehicles Act, 1939 by the claimants (described in the opinion as the wife and the father of the children of the deceased, Venkateswar Rao, an advocate practising at Sathupalli) seeking Rs. 4,00,000/- in respect of the death of the deceased in a motor vehicle accident on 14-1-1989, alleged to be caused by the rash and negligent driving of bus No. AEZ 2956 by respondent no. 1 (the driver). Among the respondents, respondent no. 1 was the driver, respondent no. 2 the depot manager and respondent no. 3 the owner of the vehicle.

The tribunal found negligence on the part of respondent no. 1, fixed the age of the deceased at 32 years, assessed the deceased's monthly income at Rs.1,750/-, adopted a multiplier of 17 and calculated loss of dependency at Rs.1,92,000/-. The tribunal added Rs.10,000/- for loss of consortium and Rs.10,000/- for loss of expectation of life, arriving at a total award of Rs.2,22,000/-. The respondents (who appealed) challenged the award as excessive; the claimants filed cross-objections contending the award was inadequate. The appeal and cross-objections were heard together.

Legal Issues Presented

  1. Whether the tribunal's finding of negligence against respondent no. 1 should be interfered with on appeal.
  2. Whether the tribunal correctly assessed the quantum of compensation — specifically, whether the tribunal erred in determining the deceased's income (multiplicand), the appropriate deduction for personal expenses, and the proper multiplier to be applied.
  3. Whether the tribunal's award of Rs.2,22,000/- was excessive (as contended by the respondents) or inadequate (as contended by the claimants), and if modification is required, what the appropriate total compensation should be.

Arguments of the Parties

Respondents' (Appellants') Arguments

  • Challenged the tribunal's findings of negligence and the amount of compensation as open to attack because of alleged clear evidence leading to wrong inferences and wrong findings.
  • Contended that the tribunal wrongly adopted the multiplier of 17 and miscalculated the loss of dependency.
  • Argued that the tribunal should have accepted the lower award (or otherwise reduced the compensation) on the basis of proper evaluation of income and other factors.

Claimants' (Cross-Objectors') Arguments

  • Contended the tribunal erred in scaling down the deceased's income from Rs.2,500/- (as per evidence) to Rs.1,750/-, thereby reducing the multiplicand and resulting in inadequate compensation.
  • Pointed out that the claimants had set out a quantum of Rs.10,00,000/- originally but restricted the claim to Rs.4,00,000/-, and even then the tribunal scaled it down to Rs.2,22,000/-, which they contended was unjust having regard to section 110-B of the Act.
  • Argued that the testimony of PW1 (the father of the deceased) as to income (Rs.2,500/-) should not have been doubted without reasons and that the deceased's income was not correctly assessed by the tribunal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Subramanya Iyer's case (1970 ACJ 110 (SC)) Principle that findings of a trial court or tribunal should not be lightly interfered with on appeal where adequate reasons are provided in the judgment/award. The court relied on this authority to justify not disturbing the tribunal's finding of negligence against respondent no. 1, observing that the tribunal had given sufficient and cogent reasons for that finding.
Susamma Thomas & others v. General Manager, Kerala State Road Transport Corporation, Trivandrum (1994 (2) SCC 173) Endorsement of the multiplier method as the accepted scientific approach for assessing compensation; guidelines regarding deduction for personal expenses (not to exceed one third) and other aspects of assessing dependency and multipliers for age groups. The court applied the guidance in Susamma's case when reassessing income/deductions and the multiplier. It specifically relied on the case for the permissible deduction principle and for the proper range of multipliers (noting that for age 32 the multiplier cannot exceed 14).
U.P.S.R.T.C. v. Trilokchandra (1996 (4) Supreme Today 479) Support for adopting the multiplier method and for guidelines concerning conventional additions (e.g., loss of expectation of life and loss of consortium) and deposit procedures. The court referenced Trilokchandra alongside Susamma's case to determine the proper addition of conventional sums (Rs.15,000/- each for loss of expectation of life and for loss of consortium) and to require compliance with deposit guidelines issued by the Supreme Court in these cases.
A.P.S.R.T.C. v. B. Krishnaji Rao and another (AIR 1995 AP 65) Illustration at the state High Court level that the multiplier method is an accepted approach. The court cited this decision as an example of this court's (state High Court's) prior acceptance of the multiplier method when assessing compensation in fatal accident cases.

Court's Reasoning and Analysis

The court undertook a complete re-assessment of the evidence on record and proceeded in two principal stages: (1) review of the negligence finding and (2) reassessment of quantum of compensation.

On negligence: The tribunal had found that the bus dashed the scooter from behind and rejected the bus driver's explanation that the collision occurred while avoiding buffaloes. The driver had not filed an FIR nor reported the incident to his superiors. The tribunal provided reasons for finding respondent no. 1 negligent. Applying the principle from Subramanya Iyer's case that appellate courts should not lightly disturb findings of fact where adequate reasons are given, this court found no basis to interfere with the tribunal's finding of negligence.

On quantum: The tribunal had used the multiplier method (a method acknowledged by higher authorities and this court). The evidence included testimony (PW1, father of the deceased) that the deceased's income was Rs.2,500/- per month; the tribunal discounted this to Rs.1,750/- and deducted Rs.750/- for personal expenses, arriving at a contribution figure that, with a multiplier of 17 and multiplicand of Rs.12,000/-, produced a loss of dependency figure of Rs.1,92,000/-.

The court examined the circumstances: the deceased was a young advocate practising with his father and others and had about five years' practice. The court accepted that the tribunal could discount uncorroborated parental testimony about income but concluded that a reduction to Rs.1,750/- was excessive. Applying judicial experience and permissible conjecture, and guided by the authorities on permissible deductions, the court fixed the deceased's monthly income from practice at Rs.2,000/-. It held that the deduction for personal expenses in the present circumstances should not exceed one fourth of income (rather than one third), yielding a net contribution of Rs.1,500/- per month or Rs.18,000/- per annum (the multiplicand).

For age 32, relying on Susamma's case, the court held the multiplier could not exceed 14. Applying multiplicand Rs.18,000/- with multiplier 14 gave a loss of dependency of Rs.2,52,000/-. The court then added conventional sums of Rs.15,000/- for loss of expectation of life and Rs.15,000/- for loss of consortium (as per the guidance of Susamma and Trilokchandra), and Rs.3,000/- for incidental/funeral expenses, totalling Rs.2,85,000/-.

The court concluded that the respondents' contention that Rs.2,22,000/- was excessive lacked merit, and that the claimants' cross-objections that the award was inadequate were justified to the extent of modifying the award to Rs.2,85,000/-. The court directed payment with simple interest at 12% per annum from the date of petition until payment, subject to deposit rules indicated in Susamma's and Trilokchandra's cases. The tribunal's factual findings on negligence were left undisturbed.

Holding and Implications

Final Disposition: The appeal is dismissed; the cross-objections filed by the claimants are allowed. The tribunal's award is modified so that the claimants are entitled to recover Rs.2,85,000/- by way of compensation.

The modified award includes: the principal sum of Rs.2,85,000/-, with simple interest at the rate of 12% per annum from the date of petition until payment. The payment is to be subject to depositing the amounts in accordance with the guidelines issued by the Supreme Court in Susamma's case and Trilokchandra's case. The court observed that, in view of the peculiar circumstances, there shall be no order as to costs in this appeal (the award as modified is described as being with "costs of the proceedings" together with interest, but the court explicitly directed "no order as to costs in this appeal").

Implications: The direct effect is a modification upward of the tribunal's compensation award from Rs.2,22,000/- to Rs.2,85,000/-, and the preservation of the tribunal's finding of negligence against respondent no. 1. The opinion applies established precedents on the multiplier method and the standard for appellate interference with tribunal findings; it does not purport to lay down a new legal principle beyond the application of those authorities to the facts of this case.

This summary is confined to the content and citations explicitly contained in the provided opinion and does not add or infer information beyond the text.

    The Depot Manager, Apsrtc And Anr. v. Alvala Krishna Mrunalini And Ors.

    (1) This is the respondents' appeal as against the award of the motor accidents claims tribunal - cum - district judge, khammam in o. P. No. 160 of 1989 dated 19 - 3 - 1990 questioning the alleged excessive amount of compensation awarded by the motor accidents claims tribunal, khammam. The claimants have filed the cross - objections, inter alia, contending that the amount of compensation so awarded is inadequate. The two aspects involving the common questions have been considered together for the purpose of convenience.

    (2) A claim petition under section 110 - a of the motor vehicles act, 1939 (for short 'the act') was laid by the claimants who are the wife, the father of the children of the deceased venkateswar rao, an advocate practising at sathupalli to recover rs. 4,00,000/ - due to the death in the motor vehicle accident on 14 - 1 - 1989 said to be due to the rash and negligent driving of the bus no. Aez 2956 by the driver, respondent no. 1. Among the respondents, respondent no. 1 is the driver, respondent no. 2 is the depot manager and respondent no. 3 is the owner of the vehicle. The respondents/ appellants resisted the claim by denying the plea of negligence inasmuch as the other material particulars including the income of the deceased and the loss of dependency etc. , etc. After an enquiry into the controversies, the tribunal found that the accident was due to the rash and negligent driving of the bus of respondent no. 1, the age of the deceased was 32 years at the relevant time, he was an advocate practising at sathupalli in khammam district earning rs. 1750/ - per mensem and adopted the multiplier of 17 and with the multiplicand based on such amount fixed the loss of dependency at rs. 1,92,000/ - and added rs. 10,000/ - towards loss of consortium to claimant no. 1 and rs. 10,000/ - towards loss of expectation of life, totalling to rs. 2,22,000/ -. Aggrieved by such findings in regard to negligence and the compensation, the respondents have come up with this appeal.

    (3) In the cross - objections, it is contended that the tribunal committed a serious error in scaling down the income of the deceased from rs. 2,500/ - as against the evidence to rs. 1,750/ - , there by reducing the multiplicand and thus resulting in inadequacy of the compensation. In addition to this, sri e. S. Ramachandra murthy, learned advocate for the claimants, has contended that strictly speaking the claimants had set up the quantum of compensation at rs. 10,00,000/ - and restricted the same to rs. 4,00,000/ - and even then, that is scaled down to rs. 2,22,000/ - , thereby making it unjust compensation as against section 110 - b of the act. Mr. Krishna, learned advocate for the respondents, who argued the matter along with smt. Vyjayqnthi, has contended that such findings of the tribunal are open for assailment in view of the clear evidence in the case leading to wrong inferences and the wrong findings.

    (4) This court with all anxiety has reassessed the whole materials on record and has found that there is no reason to interfere with the finding of negligence recorded by the tribunal as against the 1st respondent in causing the accident. The tribunal has given adequate and convincing reasons in support of such a finding. From the evidence, it is revealed that the bus dashed the scooter from behind and the explanation that while in the process of avoiding buffaloes the driver of the bus could not avoid the accident did not find favour with the tribunal. The conduct of the respondent no. 1 in not filing f. I. R. With the police and not coming up with the explanation by means of a report to his official superiors was an added factor to suffer the finding of negligence against the 1st respondent. Subramanya iyer's case (1) 1970 acj 110 (sc) has declared that the finding of the trial court or the tribunal cannot be lightly interfered with in the appeal when adequate reasons are provided in the judgment and the award. This is one of such cases wherein the tribunal has given sufficient and cogent reasons in support of the finding which this court finds no reason to interfere. The efforts of mr. Krishna, learned advocate for the respondents, to persuade this court to take any other view by this court have become unsuccessful.

    (5) The tribunal has rightly adopted the multiplier method which is accepted to be most scientific method both by the supreme court in susamma thomas and others v. General manager, kerala state road transport corporation, trivandrum (2) 1994 (2) scc 173, u. P. S. R. T. C. V. Trilokchandra (3) 1996 (4) supreme today 479 and this court in a. P. S. R. T. C. V. B. Krishnaji rao and another (4) air 1995 ap 65. The grievance of mr. Krishna, learned advocate for the respondents, is that the tribunal has not only wrongly adopted the multiplier of 17 as against the settled law but also wrongly calculated the loss of dependency. Since the matter is going to be independently examined and decided, such mistakes can be really rectified, if be so. The income of the deceased as per the evidence as an advocate is said to be rs. 2,500/ - per mensem. The deceased is none other than the son of a senior advocate, who is practising in khammam. P. W. 1, father of the deceased, testified the income of the deceased in the witness box as rs. 2,500/ -. The tribunal felt that such exaggerations in the income should not be taken into consideration and thereby reduced itto rs. 1,750/ - , deducted rs. 750/ - towards the personal expenses of the deceased and thus fixed the contribution of the deceased to the family at rs. 1,000/ - per mensem and with the multiplicand of rs. 12,000/ - and multiplier of 17 fixed the loss of dependency of the deceased. The learned advocate for the claimants with equal effort and vehimence contended that in the first place and testimony of p. W. 1, who is the father of the deceased, could not have been doubted in regard to the income without any reasons. Secondly, according to him, the deceased was not such a junior advocate so as to think that his income was less than rs. 2,500/ -. Butthe circumstances show from the evidence that the deceased was not independently practising and he was one of the members of the profession in the office of his father along with other two or three junior advocates. Therefore, the income ofthe deceased at rs. 2,500/ - as testified by p. W. 1, which was not supported by any documentary evidence was rightly scaled down by the tribunal. But the question whether such a scaling down would have been more than one fourth. Giving a margin for such exaggerations, anxieties and momentary explanations by persons like p. W. I in the status of a senior advocate, who is none other than the father of the deceased, this court after anxious consideration of the matter prefers to take rs. 2,000/ - as the income of the deceased out of his profession. Presuming that the deceased entered the profession at the age of about 25, his practice as, on the date of the accident was five years. If an advocate cannot get rs. 2,500/ - per mensem even after five years practice, it is not worth continuing in the profession and better to seek the profession elsewhere. But that will be a question of fact to be decided in each case. However, as has been settled, when the materials fail to come before the court or the tribunal, it should use its legal wisdom and the life's experience which is called as intellectual surmises or permissible conjectures which can be brought within the terminology of judicial notice. Therefore, rs. 2,000/ - as income of the deceased per mensem cannot be neither exaggerated nor excessive. Susamma 's case (2 supra) taking into consideration so many aspects has left a guideline in regard to the deduction of personal expenses which should not exceed one third of the income. Here is an individual, who is an young advocate, having to come up in the profession either with his father, who is a senior advocate, or by himself in future would have done well in the profession and his income could not be constant either at rs. 2,000/ - or rs. 2,500/ - per mensem. It may not be unjust or unfair to say that his opportunities were very wide and sky height. Apart from this, the opportunities of the deceased becoming a judicial officer or any other legal post as legal profession in the bar the main source of the bench from top to bottom cannot be ignored. Taking that into consideration, the deduction in this case cannot be more than one fourth of the income and thus, his contribution to the family can be conveniently taken at rs. 1,500/ - per mensem or rs. 18,000/ - per annum. That should represent the multiplic and for the purpose of assessing the compensation. For his age of 32, as laid down in susamma's case (2 supra) which governs the same, the multiplier cannot exceed 14. With the multiplicand of rs. 18,000/ - and the multiplier of 14, the loss of dependency could be rs. 2,52,000/ -. To this amount, a conventional sum of rs. 15,000/ - towards loss of expectation of life and rs. 15,000/ - towards the loss of consortium to claimant no. 1 should be added as per the guideline both in susamma's case (2 supra) and trilokchandra's case (3 supra). Added to this, rs. 3,000/ - towards incidental expenses including funeral expenses would be reasonable. Thus, the total compensation in this case ought to be rs. 2,85,000/ -.

    (6) Thus the contention of the respondents that the amount of rs. 2,22,000/ - is excessive has no merit and the cross - objections of the claimants that the compensation is inadequate is justified. In that sense of the matter, the award of the tribunal although cannot be termed as unjustified requires to be modified.

    (7) The appeal is dismissed and the cross - objections filed by the claimants are allowed. The award of the tribunal is modified to the effect that the claimants in this case shall be entitled to recover rs. 2,85,000/ - by way of compensation with costs of the proceedings together with simple interest at the rate of 12 per cent per annum from the date of petition till the date of payment. This shall be subject to depositing the amounts in accordance with the guidelines issued by the supreme court in susamma 's case (2 supra) and trilokchandra's case (3 supra). In view of the peculiar circumstances of the case, there shall be no order as to costs in this appeal.

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    The Depot Manager, Apsrtc And Anr. v. Alvala Krishna Mrunalini And Ors.
    (Oct 13, 1996)