THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY MACMA NO.563 OF 2007 Dated 22nd February, 2010 Between: National Insurance Company Limited …Appellant And Kotla Rameswaramma and another …Respondents Counsel for the appellant: Sri L.Shantanam for Smt W.V.S.Rajeswari Counsel for the respondents: None appeared The Court made the following JUDGMENT: This Motor Accidents Civil Miscellaneous Appeal arises out of award dated 15th September,2005 in O.P.No.1222 of 2002 on the file of the Chairman, Motor Accidents Claims Tribunal-cum-I- Additional District Judge, Nalgonda (for short “the Tribunal”). National Insurance Company Limited, which is respondent No.2 in the O.P is the appellant. Respondent No.1 in this appeal filed the above mentioned O.P for recovery of compensation for the death of her son by name Arun Kumar Reddy, aged 17 years, in an accident involving the jeep of respondent No.2, insured with the appellant. Since the learned counsel for the appellant has not disputed the finding on the cause of accident, it is not necessary to narrate in detail, the manner in which the accident has occurred. The learned counsel has questioned the quantum of compensation mainly on the ground that while arriving at the notional income of the deceased, who was minor and was not employed at the time of the accident, the Tribunal has committed an error in not deducting amount towards his personal expenditure. In Sarala Verma v. Delhi Transport Corporation[1], the Supreme Court held that in the case of unmarried persons, it is reasonable to deduct 50% of the income towards their personal expenditure. A perusal of the award shows that the Tribunal has not deducted any amount towards the personal expenses of the deceased. Therefore, the Tribunal committed an error in this regard. Out of the sum of Rs.2,25,000/- assessed as compensation, 50% of the amount towards the personal expenses of the deceased was liable to be deducted. Accordingly, the compensation payable to respondent No.1 comes to Rs.1,12,500/- (Rupees one lakh twelve thousand and five hundred only). The award of the Tribunal is modified by declaring that respondent No.1 is entitled to receive only a sum of Rs.1,12,500/- along with interest @7.5% per annum thereon. For the above mentioned reasons, the Motor Accidents Civil Miscellaneous Appeal is allowed in part to the extent indicated above. C.V.NAGARJUNA REDDY, J Dated 22nd February, 2010 vrn [1] (2009) 6 Supreme Court Cases 121