THE HON’BLE SRI JUSTICE N.V.RAMANA AND THE HON’BLE SRI JUSTICE P. DURGA PRASAD M.A.C.M.A.Nos.1956 of 2007 and 1021 of 2007 ORDER: (per the Hon’ble Sri Justice P.Durga Prasad) Both the appeals are directed against the award passed in O.P.No.1752 of 2004 by the Motor Accidents Claims Tribunal-cum - III Additional Chief Judge, City Civil Court, Hyderabad on 29.11.2006. The claimants, who are the mother and sister of the deceased Sri Reddy, originally filed an application for compensation of Rs.6,00,000/- and subsequently got amended to Rs.20,00,000/- for the death of the deceased in a motor vehicle accident. According to them on 23.05.2004 the deceased was travelling on the Bajaj Motor cycle as a pillion rider and when they reached near NFC gate, a lorry bearing No.AP 9X 0938 came in a rash and negligent manner driven by its driver and hit the motorcycle, on which the deceased was travelling, as a result of which the deceased fell down on the road and sustained multiple injuries and he succumbed to injuries on the way to hospital. The claimants are claiming compensation on the ground that the deceased aged 22 years on the date of his death and he is studying Engineering 3rd year in computer science branch at Vatsala Institute of Technology, Bhongir. The Insurance Company opposed the said claim by filing counter contending that the accident was not occurred due to the negligence on the part of the driver of the lorry and the compensation claimed by the petitioners is highly excessive and exorbitant. On the above pleadings, the Tribunal has framed the following issues: (1) Whether the deceased sustained injuries in the accident took place on 23.05.2004 due to the rash and negligent driving of the driver of the lorry Tipper bearing No. AP 9X 0938? (2) Whether the petitioners are entitled for compensation? If so, to what amount and from whom? (3) To what relief? On behalf of the petitioners, P.Ws.1 to 4 were examined and got marked Exs.A.1 to A.12. No oral evidence was adduced on behalf of the insurance company, but Ex.B.1 copy of the policy was marked. Taking into consideration of the said oral and documentary evidence, the Tribunal held the issue No.1 in favour of the petitioners holding that the accident was occurred due to rash and negligent driving of the driver of the lorry. With regard to issue No.2, the Tribunal awarded compensation of Rs.7,32,000/- with interest at 7.5% P.A. taking into consideration that the deceased is computer science student and having bright prospects and taken into consideration the monthly income at Rs.6,000/- and after deducting 1/3rd towards his personal expenses, arrived annual dependency at Rs.48,000/- and taken the age of the mother as ‘42’ years, applied multiplier ‘15’ and awarded compensation of Rs.7,20,000/-. The Tribunal further awarded Rs.10,000/- towards mental agony and Rs.2,000/- towards funeral expenses. Aggrieved by the same, claimants have filed the appeal for enhancement of compensation and the insurance company has filed the appeal questioning the awarding of the said compensation. The claimants’ counsel has pleaded that the deceased is 3rd year engineering student and he is having bright prospects in his life, as such his monthly income has to be taken as Rs.20,000/- in view of the decision rendered in “B.RAMULAMMA V. VENKATESH BUS UNION, LINGARAJAPURAM, BANGALORE AND ANOTHER (2009 (6) ALD 684 (DB))” and sought for awarding of compensation of Rs.20,00,000/-. On the other hand, the insurance company’s counsel has pleaded that since the deceased is only a student, the Tribunal ought to have taken him as non-earning member and his notional income ought to have been taken as Rs.15,000/- P.A. for the purpose of computation of compensation and the multiplier adopted by the Tribunal is on higher side and the compensation has to be reduced. Admittedly, the deceased is a 3rd year engineering student in computer science and information technology and he is aged about 22 years. As per the decision rendered in B.Ramulamma’s case (referred supra), the income of 4th year engineering student has to be taken at Rs.12,000/- per month and 10% deduction has to be made in respect of the students studying 3rd year or 2nd year engineering. In the present case, the deceased is a student of 3rd year and after deducting 10% as per the decision in B.Ramulamma (referred supra), the monthly income of the deceased has to be taken as Rs.10,800/-. Since the deceased is unmarried as on the date of his death, 50% has to be deducted towards his personal expenses as per the decision rendered in “Smt. Sarla Verma and others v. Delhi Transport Corporation and another (2009 AIR SCW 4992)”. Thus, the loss of dependency of the petitioners comes to (Rs.10,800/2=Rs.5,400) Rs.5,400/- per month and the annual loss of dependency comes to Rs.64,800/-. Since the age of the mother of the deceased is ‘42’ years as on the date of accident, the proper multiplier applicable for the said age group as per Smt.Sarla Verma’s case (referred supra) is ‘14’. Thus, the total loss of dependency comes to Rs.9,07,200/-. Apart from the said amount, the petitioners are also entitled for Rs.10,000/- towards mental agony and Rs.2,000/- towards funeral expenses. Thus, in all the petitioners are entitled for Rs.9,19,200/-. The Tribunal has awarded 7.5% interest on the compensation, but as per Smt.Sarla Verma’s case (referred supra), the interest to which the petitioners are entitled is only 6% on the total compensation amount. Hence, the claimants are entitled for compensation of Rs.9,19,200/- with interest at 6% P.A. from the date of filing of the petition till the date of realization. In the result, the M.A.C.M.A.No.1956 of 2007 is partly allowed and the compensation awarded by the Tribunal is enhanced to Rs.9,19,200/- from Rs.7,32,000/- with interest at 6% P.A. from the date of filing of the petition till the date of realization. The M.A.C.M.A.No.1021 of 2007 is partly allowed only to the extent of reducing the interest on the awarded amount from 7.5% to 6% P.A. _______________________ JUSTICE N.V.RAMANA. _____________________________ JUSTICE P. DURGA PRASAD Dated:19-09-2011 Ksp