IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD PRESENT : : THE HON’BLE SRI JUSTICE N.V.RAMANA AND THE HON’BLE SRI JUSTICE P. DURGA PRASAD C.M.A.No.2587 of 2003 Dated:03-08-2011 Between: New India Assurance Company Limited, Basheerbagh, Hyderabad. ….Appellant. And K.Shoba and others. ….Respondents. The Court made the following: THE HON’BLE SRI JUSTICE N.V.RAMANA AND THE HON’BLE SRI JUSTICE P. DURGA PRASAD C.M.A. No.2587 of 2003 ORDER: (per the Hon’ble Sri Justice N.V.Ramana) This appeal is filed by the Insurance Company against the Orders in O.P.No.174 of 1999 passed by the Chairman, Motor Accidents Claims Tribunal – cum – Additional District Judge, Adilabad. The appeal is filed mainly on three grounds viz., (1) questioning the compensation granted by the Tribunal; (2) the liability of insurance company with reference to the policy as the policy does not cover the towing as the accident took place by towing, (3) as per the decision rendered in “Smt. Sarla Verma and others v. Delhi Transport Corporation and another” reported in 2009 AIR SCW 4992 the interest has to be granted at 6%, but the Tribunal has granted 9% interest on the amount awarded by it. After hearing both sides, so far as the second ground is concerned, we direct the insurance company has to first satisfy the decree and then it is entitled to recover the amount from 1st respondent. So far as the first ground is concerned, we have perused the award, it reveals that the deceased died at the age of 28 years and he was working in Singareni Collieries Company Limited and drawing monthly salary of Rs.7,962/- and after deductions, the net income of the deceased arrived at Rs.5,308/- per month and yearly income of the deceased would be Rs.63,696/-. Basing on the said calculations, the tribunal applied multiplier ‘18’ and granted compensation of Rs.11,91,528/- towards loss of earnings, Rs.10,000/- towards funeral expenses, Rs.15,000/- towards loss of estate and Rs.20,000/- towards loss of consortium to 1st petitioner, in total, the lower Tribunal awarded an amount of Rs.11,91,528/-. We find no reasons to interfere with the findings of the lower Tribunal. However, as per Sarla Verma’s case (referred supra), the interest has to be paid at 6% P.A. Accordingly, the appeal is allowed to the limited extent of reducing the interest to 6% P.A. from 9% P.A. on the compensation granted by the Tribunal. In all other aspects, the findings of the lower Court are hereby confirmed. _______________________ JUSTICE N.V.RAMANA. _____________________________ JUSTICE P. DURGA PRASAD Dated:03-08-2011 Ksp