IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY FOURTH DAY OF JUNE TWO THOUSAND AND TEN PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH
C.M.A.No.2322 of 2002
Between:
M/s.National Insurance Co.Ltd., Rep.by its Branch Manager, Secunderabad . APPELLANT AND Smt.Shantamma and 9 others . RESPONDENTS The Court made the following:
THE HON'BLE MR JUSTICE V.ESWARAIAH
C.M.A.No.2322 of 2002
JUDGMENT:
Appellant is the Insurance Company. Respondent No.10 is the owner of the Maruthi car bearing No.AP9J-6428 insured with the appellant. Respondents Nos.1 to 9 filed the O.P.No.1510/1995 on the file of the III Additional Chief Judge, City Civil Court, Hydrabad seeking compensation of Rs.2 lakhs and the Tribunal below granted compensation of Rs.1,18,000/- in favour of claimants.
The appellant filed this appeal questioning the award of compensation of Rs.1,18,000/- along with interest at 12% p.a. from the date of petition till the date of deposit in favour of claimants/respondents 1 to 9 herein. Respondents Nos.1 to 9 filed the said OP claiming compensation of Rs.2 lakh for the death of the deceased P.Baburao, husband of the 1st claimant, father of claimants 2 to 9. It is stated that the deceased is a cobbler and used to earn Rs.3,500/- at the time of accident which was occurred on 25.08.1995. It is stated that while the deceased was doing work on footpath near Somajiguda, Hyderabad, the said Maruthi car, insured with the appellant ran over the deceased by driving the vehicle by its driver in rash and negligent manner, as a result the deceased died on the spot.
Having considered the oral and documentary evidence, the Tribunal below held that the accident was occurred due to rash and negligent driving of the driver of the said vehicle and the said finding has become final as no appeal is filed.
In so far as the quantum of compensation also, on the evidence adduced on behalf of the claimants absolutely no rebuttal evidence is adduced and none were examined on behalf of appellant except filing the certified copy of the insurance policy. The Tribunal below taken into account the monthly income of the deceased as Rs.1,500/- alone as against the contention of Rs.3,500/- and as the deceased was aged about 60 years, the multiplier was rightly taken as 8, and after deducting 1/3rd contribution to the family, the earnings of the deceased was taken into account as Rs.1,000/- per month. Therefore, I am unable to interfere with the quantum of compensation of Rs.1,18,000/- in all counts. But in so far as the rate of interest is concerned, I do not see any justification in awarding interest at the rate of 12% p.a. which is excessive and exorbitant and not applicable as by that time no nationalized banks are allowing such huge rate of interest. Therefore, I am inclined to reduce the interest as awarded by the Tribunal below from 12% to 8% p.a. on the awarded compensation from the date of petition till the date of realization.
Accordingly, the CMA is allowed in part, to the extent as indicated above. No order as to costs.
V.ESWARAIAH,J Dated: 24.06.2010 Dsr