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Erukulapati Lakshmisaraswathi and ors. Vs. State Bank of India and ors. - Court Judgment

LegalCrystal Citation
SubjectInsurance;Motor Vehicles
CourtAndhra Pradesh High Court
Decided On
Judge
Reported in1(1985)ACC99
AppellantErukulapati Lakshmisaraswathi and ors.
RespondentState Bank of India and ors.
Excerpt:
- - to follow the above procedure so that the persistent criticism against the courts would be effectively silenced......law to direct the parties concerned to open an account in a nationalised bank or the nearest post office convenient to them and to furnish the number of the account to the tribunal or court and the court or the tribunal to deposit their respective claim amounts to the said account. accordingly we hold that this salutary rule or procedure shall be followed by all the tribunals concerned. in the view we direct that tribunal shall direct the first and fifth appellants to open savings bank account either joint account or individual accounts as per their convenience in the nearest nationalised bank or post office and on furnishing the account number the compensation payable to the first and 5th appellant shall be credited to that account. the share of the minors shall be deposited in a.....
Judgment:

K. Ramaswamy, J.

1. This appeal relates to the compensation payable on the death of a vegetable vendor and farmer who is aged about 35 years. He was involved in an accident on the high-way of Tenali-Nandivelugu. The accident occurred on February 9, 1963, between 9.30 and 10 a.m. The deceased was riding a cycle and was hit from behind and three days later he died.

2. His father, wife and three minor children claimed Rs. 34,900/-towards compensation. The Tribunal awarded Rs. 9,400/-. Hence the appeal by the claimants.

3. It is seen that deceased was owning land and from out of the vegetables grown in his land, he was vending them and making his livelihood. He was only 35 years old and his yearly income was determined as Rs. 3,000/-. From the above facts it is seen that from any stand point of view, awarding of compensation of Rs. 9,400/- cannot be justified.

4. Following the principles laid down in the decisions reported in Polavarapu Somarajyam v. A.P.S.R.T. Corporation 1984 A.C.J. 18 (A.P.), loss of consortium would be Rs. 4,000/- and the balance of the amount even on the basis of the income of the deceased which was Rs. 3,000/- as accepted by the lower Tribunal and applying the multiplier and guiding principles in the above decision, they will be entitled for more than the amount that is claimed. Therefore, we have no hesitation to hold that the Tribunal ought to have granted Rs. 34,900/- as claimed by the claimants. The appeal is restricted only to Rs. 22,500/-. Therefore, we have no hesitation to hold that the appellants are entitled to Rs. 22,500/- with interest from the date of appeal i.e., 4-5-1976.

5. Against the State Bank of India, Tenali, who is a financier, the claim was dismissed. We confirm the same though the Bank is again made a respondent in this appeal.

6. This Court has been voicing its agony and concern on the persistent rumours about the malpractices percolating in the adjudicatory process by the Tribunals constituted to determine compensation to the victims of motor accidents or other claims under Land Acquisition Act, etc., and its adverse affect on the efficacy of adjudicatory process and of the confidence by the litigant public in the courts and the rule of law as a whole. As a solution, this Court in Polavarapu Somarajyam's case (supra) and Srisailam Devastanam v. Bhavani Pramilamma 1983 A.C.J. 580 (A.P.) has envisaged the procedure, directing the claimants to open an account in either a nationalised bank or the nearest post office and to furnish the number of the account to the Tribunal. The Tribunals were directed to credit the amount to their credit, except the costs so that the fruits of the result of the adjudication would be reaped by the claimants and thereby the effect on vital veins of the adjudicatory efficacy would be remedied. We are informed that the directions have their salutary effect and the Tribunals are adhering to the same as a rule. Therefore, it has become incumbent on all the Tribunals concerning determinations of the compensation, be they Motor Accidents Claims Tribunals or Civil Courts, dealing under the acquisition or requisition Act, etc. to follow the above procedure so that the persistent criticism against the courts would be effectively silenced. Under these circumstances, it must be held that the procedure indicated by this Court had transformed into a rule or practice to be followed by all the Tribunals as a matter of law to direct the parties concerned to open an account in a nationalised bank or the nearest post office convenient to them and to furnish the number of the account to the Tribunal or court and the court or the Tribunal to deposit their respective claim amounts to the said account. Accordingly we hold that this salutary rule or procedure shall be followed by all the Tribunals concerned. In the view we direct that Tribunal shall direct the first and fifth appellants to open savings bank account either joint account or individual accounts as per their convenience in the nearest nationalised bank or post office and on furnishing the account number the compensation payable to the first and 5th appellant shall be credited to that account. The share of the minors shall be deposited in a fixed deposit in a nationalised bank and the interest accrued thereunder shall be paid every half yearly or yearly, to the first appellant, till they attain majority and on their attaining majority they shall be permitted to open accounts in their names and the amounts shall be credited to those accounts.

7. The appeal is accordingly allowed as indicated above. No costs.


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