The Andhra Pradesh High Court, in a recent judgment, enhanced the compensation awarded to the family of Jagabathuni Kota Venkata Sivudu, a steel plant employee who tragically lost his life in a road accident involving a bus operated by the Andhra Pradesh State Road Transport Corporation (APSRTC). The court increased the compensation from ₹59.62 lakhs to ₹77.63 lakhs, ruling that “just and fair compensation” must be provided to the victim’s dependents.
Background of the Case
The incident occurred on April 24, 2011, when Jagabathuni Kota Venkata Sivudu was on his way to work on his motorcycle. An APSRTC bus, driven in a rash and negligent manner, collided with his motorcycle, dragging him for over 20 feet. The accident resulted in severe injuries that led to his death. He was employed as a foreman in the Gas Safety Department at Visakhapatnam Steel Plant, earning ₹37,854.90 per month, and was 46 years old at the time of the accident.
The victim’s widow, Jagabathuni Sree Vani, along with their two daughters and father, filed a compensation claim under Section 166 of the Motor Vehicles Act, seeking ₹1 crore. The Motor Accidents Claims Tribunal (MACT) at Gajuwaka, in its decision on August 28, 2015, held APSRTC liable and awarded ₹59.62 lakhs to the family.
Legal Issues and Contentions
APSRTC challenged the tribunal’s decision before the High Court, arguing that the awarded compensation was excessive. Represented by advocate Sri Vinod Kumar, APSRTC contended that the tribunal had erroneously awarded amounts under various conventional heads, including ₹1 lakh towards loss of consortium for the widow and ₹25,000 for each family member for loss of love and affection. APSRTC also contested the award of ₹5,000 towards transportation charges, terming it excessive.
On behalf of the respondents, advocate Sri K. Yaswanth argued that the deductions for personal expenses were incorrectly calculated, and the interest rate awarded by the tribunal was on the lower side. The counsel further contended that the tribunal did not adhere to settled legal principles in determining compensation for loss of love and affection and future prospects.
The Court’s Observations and Decision
The High Court, comprising Justice Ravi Nath Tilhari and Justice Nyapathy Vijay, upheld the tribunal’s finding that the accident was caused by the rash and negligent driving of the APSRTC bus. The court, referring to the Supreme Court’s rulings in cases like Sarla Verma vs Delhi Transport Corporation and National Insurance Co. Ltd. vs Pranay Sethi, adjusted the calculations on deductions and conventional heads.
The court observed, “Just and fair compensation must be awarded to the dependents of the deceased,” and revised the compensation accordingly. The court increased the amounts under the conventional heads, including loss of estate, loss of consortium, and funeral expenses. It awarded ₹48,400 per claimant for loss of consortium, following the 10% enhancement guideline for every three years set by the Supreme Court in Rojalini Nayak vs Ajit Sahoo.
Furthermore, the court increased the interest rate from 6% to 9% per annum, citing the Supreme Court’s decisions in Kumari Kiran vs Sajjan Singh and Rahul Sharma vs National Insurance Company Limited where higher interest rates were awarded to provide fair compensation.
Final Compensation Award
The High Court recalculated the total compensation based on the deceased’s monthly income of ₹49,211, applying a multiplier of 13, and taking into account future prospects. The total compensation was increased to ₹77,63,293, payable by APSRTC with an interest rate of 9% per annum from the date of the original claim petition until the amount is deposited or realized. The court dismissed the appeal filed by APSRTC, instructing the corporation to deposit the enhanced compensation within four weeks.
