M NARASAVVA Vs. V R SHANGDE

JUDGEMENT

(1.) This is yet another unfortunate motor accident resulting in the instantaneous death of Nimmala Linga Reddy (hereinalter referred to as 'the deceased') a Supervisor in P.W.D. (I & B) Sultanabad. The accident had taken place when the lorry bearitig No. APA 3373 driven by K-1 dashed against the scooter bearing No. ATY 8822 at 2-30 p.m. on 15-8-1980 on which the deceased was going with another as pillion rider, from Karimnagar to Bejjanki. His mother, widow and four minor children filed 0. P. 110/80 on the file of the Motor Accidents Tribunal, Karimnagar under Section 110-A of the Motor Vehicles Act (hereinafter referred to as 'the Act') claiming an amount of Rs. 3,74,700/- as compensation. The said claim was resisted by R-1 the driver, R-2 the owner of the lorry, and R-3 the Insurance Company. The lower tribunal held that the accident had taken place due to rash and negligent driving of the lorry by R-1. An amount of Rs. 20,000/- was awarded as compensation with interest at 6% per annum from the date of application. In view of the material on record, the learned District Judge, Karimnagar rightly held that the accident was due to rash and negligent driving of the lorry by R-1. The said finding was not seriously challenged. So, the only other point for consideration in this appeal is in regard to the adequacy of the amount awarded as compensation.

(2.) The amount of compensation which appears to the tribunal to bejust has to be awarded under Sec. 110 of the Act. When there was a spate of rail accidents, in England, Fatal Accident Act, 1846 popularly known as Lord Campbell's Act was brought into existence. As per the provisions of the said Act, such damages may be awarded as are proportionate to the injury resulting from such death to the dependants respectively. When road accidents were on the increase in England. Law Reform (Miscellaneous Provisions) Act, 1934 was brought into live statute book. While referring to the various decisions of the courts in England, it was observed in Mc Gregor On Damages in para 1551 that the dependant is entitled by clear principle of law to full compensation for the loss of pecuniary benefit due to the death of the deceased in motor accident. The various provinces in Canada adopted Lord Campbell's Act. The courts in Canada followed the compensatory principle in awarding damages to dependants in Fatal Accidents cases. What is recoverable by the dependants as per courts in Canada must be calculated on the basis of restitution integrum ; the goal is to restore the dependant to the financial position he or she would have occupied but for the death.

(3.) In earlier years the courts in India assessed the compensationpayable under Section 110 of the Act, by following interest method. As per the said method the annual loss of dependency as on the date of the death was first ascertained, then a sum was determined the interest on which is equivalent to the annual loss of dependency. Such sum was granted as compensation towards future loss of dependency. When such a sum is awarded, the dependent enjoys the periodical interest which is equivalent to the loss of dependency. But the lumpsum amount which was paid did not extinguish. So it is a case of over compensation. Thus it was rejected by various courts in India. Even this court has not chosen to follow the interest method in United India F. &.G.I. Company vs. Pallamparthi Indira mmal.