The Andhra Pradesh High Court granted liberty to the insurance company to object the income.
The bench noted that as the scope of the appeal is only vis-a-vis correctness of compensation, the evidence on record are the Income tax returns for the Financial Years 2004-05, 2005-06 and 2006-07.
The court stated that the Tribunal did not take into consideration the Income Tax returns for the financial year 2007-2008 as they were filed on 22.01.2008 i.e after the accident and was not supported by any books of account.
It was further noted that an examination of certified copy of the detailed Income Tax return for the Financial Year 2006-2007 would indicate that TDS collected from the deceased was Rs.2,81,992/-. This deduction of TDS is supported by statutory Form 16A and related documents issued in the name of the deceased were enclosed.
The court stated that reasoning of the Tribunal in ignoring exhibits merely because the Income Tax returns were filed and not supported by books of accounts cannot be sustained as the deceased did business and had earned income in that year as apparent from the TDS deducted.
“The Income tax return for Financial Year 2006-07 even though it was based on 7 estimated income, was supported by TDS amounts deducted and the Income Tax department had accepted the Income Tax return. Therefore, it would not be open to the Insurance company to object to the Income under Ex.A.15 from being taken into consideration”, the bench said.
The court held that the interest @ 9% awarded by the Tribunal is fair and is supported by the Judgments of Hon’ble Supreme Court in Rahul Sharma & Another v. National Insurance Company Limited and others and Kirthi and another v. Oriental Insurance Company Limited on this aspect.
Facts
The Appeal was filed under section 173 of the Motor Vehicles Act,1988 by the claimants seeking enhancement of the compensation awarded in the Order and Decree passed by the Principal, Motor Accident Claims Tribunal, Nellore.
The claimants are the wife and children of one Eerla Hari Babu. They had filed MVOP claiming compensation on account of the death of the deceased for a sum of Rs.1,00,00,000/-. It is their case that on 14.09.2007, while the deceased was proceeding in a car along with his friend V.V.Ravi Kumar from Cheemakurthi to Chennai.
When they reached near Swarna Toll Plaza near Sullurupet, the driver of the car in a rash and negligent manner dashed the toll way stop rod and dashed an ongoing lorry from its behind. As a result, the car turned turtle and both the deceased as well as his friend died on the spot. The dead bodies were shifted to Government Hospital, Sullurpet. A case was registered by the D.V.Satram Police Station. The deceased was aged 42 years at the time of accident and was earning Rs.86,000/- per month by transporting granite in his lorries.
After considering the oral and documentary evidence, the Tribunal had adopted a multiplier of 14 and assessed Rs.40,000/- as the income of the deceased and granted compensation of Rs.43,51,800/- with interest @ 9 % per annum.
Conclusion
The court partly allowed the appeal and directed the Insurance company to deposit the balance amount within a period of one month before the Tribunal and the claimants are entitled to withdraw the amounts in proportionate ratios.
Case Details
Case Name: Eerla Ramadevi, Prakasam Dist And Two Others and Others V/S V V Ravi Kumar Prakasam Dist Another and Others
Citation: MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEAL NO: 2121/2017
Court: Andhra Pradesh High Court
Judge: Justice Ravi Nath Tilhari And Justice Nyapathy Vijay
Decision Date: 09/08/2024
