1. Being not satisfied with the quantum of compensation awarded in the judgment and decree, dated 19.07.2016 passed by the Chairman, Motor Vehicles Accidents Claims Tribunal-cum-II Additional District Judge, Warangal (hereinafter referred to as “the Tribunal”) in M.V.O.P.No.540 of 2008, the present appeal has been filed by the appellants/claimants seeking enhancement.

2. The brief facts of the case are that, on 15.04.2007 at about 06:30 P.M., the deceased Sheeramshetti Srikanth was proceeding on foot on the extreme left side of the road near Laxmi Venkateshwara Lorry Transport office, Pothana Bypass Road, Warangal. When he was proceeding towards Pothana Water Tank, one Bajaj Discover Motorcycle bearing No.AP-36-Q-4409, driven by its rider in a rash and negligent manner, came to the wrong side of the road and dashed against the deceased. As a result thereof, the deceased sustained severe head injury and other multiple injuries. He was immediately shifted to MGM Hospital, Warangal, and thereafter referred to higher centers for better treatment and was admitted in Osmania General Hospital, Hyderabad, where he succumbed to the injuries on 16.04.2007 at 03:45 A.M. while undergoing treatment. The appellants, being the parents, brother, and sister of the deceased, filed the aforesaid claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs.4,50,000/-. The Tribunal, upon considering the oral and documentary evidence available on record, awarded compensation of Rs.3,51,000/- with interest at 6% per annum. The appellants, being aggrieved by the quantum of compensation awarded by the Tribunal, preferred the present appeal seeking enhancement.

3. Heard the learned counsel for the appellants/claimants and perused the record. There is no representation for the respondents.

4. There is no dispute with regard to the occurrence of the accident and the death of the deceased as a result of the injuries sustained in the said accident. The finding recorded by the Tribunal with regard to the accident has not been challenged in the present appeal and, therefore, the same has attained finality.

5. With regard to the quantum of compensation, the Tribunal, on the basis of the documentary evidence on record, particularly Ex.A.5- inquest report, Ex.A.7-post-mortem examination report, and other documents, found the age of the deceased as 19 years. The Tribunal took the monthly income of the deceased at Rs.3,000/- per month. The Tribunal, thereafter, deducted 50% of the income towards the personal and living expenses of the deceased, as he was a bachelor, and arrived at an annual contribution of Rs.18,000/- to the family. Applying the multiplier of ‘18’, having regard to the age of the deceased at 19 years, the Tribunal awarded Rs.3,24,000/- towards loss of dependency and, in addition thereto, awarded Rs.10,000/- towards funeral expenses, Rs.2,000/- towards transportation charges, Rs.5,000/- towards medical and incidental expenses, and Rs.10,000/- towards loss of love and affection, thereby awarding a total compensation of Rs.3,51,000/-.

6. The learned counsel for the appellants contended that the Tribunal committed an error in taking the monthly income of the deceased at only Rs.3,000/- per month and in not granting any amount towards future prospects of the deceased. The said contention deserves consideration. The Hon’ble Supreme Court in National Insurance Co. Ltd. vs. Pranay Sethi ((2017) 16 SCC 680) held that, in the case of a self-employed or fixed-wage earner below the age of 40 years, an addition of 40% of the established income is to be made towards future prospects. Further, as per the law laid down by the Hon’ble Supreme Court in the said judgment, the appellants/claimants are entitled to conventional heads.

7. In the present case, taking into consideration the age and avocation of the deceased, this Court deems it appropriate to fix the monthly income of the deceased at Rs.4,000/- per month. As the deceased was aged 19 years at the time of the accident, the appellants are entitled to an addition of 40% towards future prospects in terms of Pranay Sethi's case (supra). Accordingly, the monthly income of the deceased comes to Rs.5,600/- (Rs.4,000/- + 40% of Rs.4,000/-). Thus, the annual income of the deceased comes to Rs.67,200/- (Rs.5,600/- × 12). Since the deceased was unmarried, 50% is to be deducted towards his personal and living expenses. Thus, the annual contribution of the deceased to the family comes to Rs.33,600/- (Rs.67,200/- − Rs.33,600/-). Applying the appropriate multiplier of ‘18’ for the age group of 19 years as per the judgment of Hon’ble Supreme Court in the case of Smt.Sarla Verma v Delhi Transport Corporation (2009(6) SCC 121), the total loss of dependency comes to Rs.6,04,800/- (Rs.33,600/- × 18). In addition thereto, the appellants/claimants are entitled to an amount of Rs.91,000/- towards conventional heads as per the law laid down by the Hon’ble Supreme Court in Pranay Sethi’s case (supra). Further, an amount of Rs.5,000/- is awarded towards transportation charges. Accordingly, the enhanced compensation payable to the appellants/claimants under various heads is Rs.7,00,800/- (Rs.6,04,800/- + 91,000/- + Rs.5,000/-).

8. At this stage, it is necessary to clarify that as per the decision of the Hon’ble Supreme Court in Nagappa vs. Gurdayal Singh and others ((2003) 2 SCC 274), under the Motor Vehicles Act, there is no restriction that the Tribunal/Court cannot award compensation exceeding the amount so claimed. The Tribunal/Court can award ‘just’ compensation which is reasonable in the facts relying upon the evidence produced on record.

9. Coming to the rate of interest awarded by the Tribunal, as the Hon’ble Supreme Court in the case of National Insurance Company Ltd. vs. Mannat Johal and others (AIR 2019 SC 2079) and in several subsequent decisions held that the reasonable rate of interest to be awarded in motor accident claim cases shall be 7.5% per annum, this Court is of the opinion that the rate of interest awarded by the Tribunal at 6% per annum in the instant case is on the lower side and the same requires modification to 7.5% per annum.

10. In the result, this appeal is allowed and the compensation awarded by the Tribunal is enhanced from Rs.3,51,000/- to  Rs.7,00,800/-. The enhanced compensation amount shall carry interest at 7.5% per annum from the date of petition till the date of realization. The appellants/claimants are directed to pay the Deficit Court Fee on the enhanced amount. The remaining terms and conditions of the award passed by the Tribunal shall stand unaltered. There shall be no order as to costs.

As a sequel, miscellaneous petitions, if any, pending in this appeal shall stand closed.