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THE APSRTC, REP. BY ITS GENERAL MANAGER AND ANR. versus M. RAMADEVI AND ORS.

Citation: [2008] 2 S.C.R. 22 · Decided: 25-01-2008 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Case Partly allowed

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Judgment (excerpt)

[2008] 2 S.C.R. 22 
- -{ 
A 
B 
THE APSRTC,. REP. BY ITS Gl!NERAL MANAGER 
AND ANR. 
v. 
M. RAMADEVI AND ORS. 
(Civil Appeal No. 682 of 2008) 
JANUARY 25, 2008 
[DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.] 
Motor Vehicles Act, 1988 -
s. 166: 
C 
Motor accident -
Causing death of employee of 
appellant-Corporation - MACT awarded compensation -
Appeal by Corporation before High Court - Claimants did not 
prefer any appeal - High Court, holding that the award passed 
by MACT was inadequate, enhanced compensation -
-i.. 
o Contention of Appellant-corporation that in absence of any 
appeal by the claimants, High Court ought not to have 
enhanced the compensation amount - Held: Under the Act, 
there is no restriction that the MACT!Court cannot award· -,.. 
compensation amount exceeding the claimed amount -
E Function of the MACT!Court is to award 'Just" compensation 
based on the evidence on record. 
Motor accident - Causing death of 40 year old employee 
of appellant-Corporation - Computation of compensation -
Multiplier - Held: Compensation to be awarded by adopting 
F multiplier of 10 and not 12 as adopted by both MACT and 
High Court. 
~ 
Respondents filed claim petition under s.166 of the 
Motor Vehicles Act, 1988 seeking compensation for death 
of an employee of appellant-Corporation in a motor 
G accident. The Claims Tribunal awarded compensation by 
taking the age of deceased as 40 years and his salary as 
-.../. 
Rs.2,367/- per month and thereafter applying the multiplier 
of 12. The Tribunal further awarded an amount of 
Rs.20,000/- for non-pecuniary damages and consortium. 
H 
22 
, 
_,,,_ . 
THE APSRTC, REP. BY ITS GENERAL MANAGER 
23 
): 
~ND ANR. v. M. RAMADEVI AND ORS. 
The total compensation amount was directed to be paid A 
with interest @ 12% p.a. Appellant-Corporation filed 
appeal before High Court, but the claimants-Respondents 
did not prefer any appeal. The High Court held that the 
award passed by the Tribunal was inadequate and 
enhanced the compensation amount by taking the B 
monthly pay of deceased as Rs.3,536/- and thereafter 
'"' 
adopting the multiplier of 12. The Court affirmed the 
•, 
additional award of Rs.20,000/- by Tribunal for non-
pecuniary damages and consortium but reduced the 
interest payable on the total compensation amount from c 
12% p.a. to 9% p.a. 
The contention of Appellant-corporation is that in 
absence of any appeal by the claimants-Respondents, the 
High Court ought not to have enhanced the compensation 
amount and that the High Court erred in adopting a higher D 
___. 
multiplier. 
~ 
..., 
Party allowing the appeal, the Court 
HELD: 1. Under the Motor Vehicles Act, 1988 there is 
-4 
no restriction that the Tribunal/Court cannot award E 
compensation amount exceeding the claimed amount. 
The function of the Tribunal/Court is to award "just" 
compensation which is reasonable on the basis of 
evidence produced on record. As provided under sub-
,. 
section (4) to Section 166 of the Act, even the report F 
I 
submitted to the Claims Tribunal under sub-section (6) of 
-i 
Section 158 can be treated as an application for 
-< 
compensation under the said Act. [Para 9] [26-C-E] 
Nagappa v. Gurdial Singh and Ors. (2003) 2 SCC 27 4 -
~ 
relied on. 
·G 
r 
~ 
2.1. Considering the figure in Ex.A/7, the monthly 
income is taken at Rs.3,000/- and after deducting 1/3rd 
therefrom the annual contribution is fixed at Rs.24,000/-. 
.. 
[Para 11] [26-G] 
H 
-f 
24 
SUPREME COURT REPORTS 
[2008] 2 S.C.R. 
* 
A 
2.2. Adopting the multiplier of 10, the amount payable 
to the claimants comes to Rs.2,40,000/- to that shall be 
added the amount of Rs.20,000/- fixed by the Tribunal for 
non-pecuniary damages and consortium as there was no 
challenge by the Corporation to the award of such 
8 amounts. Therefore, the entitlement of the claimant comes 
to Rs.2,60,000/-. The interest rate of 9% fixed by the High 
Court does not warrant any interference. [Para 12] [26-H; 
'1 
27-A-B] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 682 
c of 2008. 
From the final Judgment and Order dated 27.11.2003 of 
the High Court of Judicature of Andhra Pradesh at Hyderabad 
in Civil Misc. Appeal· No. 784 of 2002. 
D 
Ms. K. Radha Rani, P. Vijay Kumar and D. Mahesh Babu 
for the Appellants. 
... 
G.V.R. Choudary and K. Shivraj Chaudhuri for the 
Respondents. 
,.. 
r-
E 
The Judgment of the Court was delivered by 
Dr. ARIJIT PASAYAT, J. 1. Leave granted. 
.....
2. Challenge in this appeal is to the judgment of t

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