Karnataka High Court
New India Assurance Co Ltd vs Peermal Logistics Pvt Ltd on 3 November, 2017
Author: B.Sreenivase Gowda
Bench: B. Sreenivase Gowda
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 3RD DAY OF NOVEMBER, 2017
BEFORE
THE HON'BLE MR. JUSTICE B. SREENIVASE GOWDA
M.F.A. NO.2322/2013 (MVC)
C/W
M.F.A.CROB NO.16/2016,
A/W
M.F.A. 2321/2013 (MVC)
C/W
M.F.A. CROB NO.15/2016
IN MFA NO.2322/2013
BETWEEN;
NEW INDIA ASSURANCE CO. LTD.,
REPRESENTED BY IT'S MANAGER,
MAHALAKSHMI CHAMBERS,
M G ROAD, BANGALORE-560 001.
... APPELLANT
(By SRI. R. JAI PRAKASH, ADV.)
AND:
1. PEERMAL LOGISTICS PVT. LTD.,
NO.6, KUSUMCHAND PARK
ONGC CHAR RASTA
ICHAHAPUR, SURAT DISTRICT,
GUJARAT-395 001.
2. SRI. P. SHAMSHER KHAN
S/O DASTAGIR SAHEB
AGED ABOUT 56 YEARS
2
3. SMT. AJINABI
W/O. P SHAMSHER KHAR
AGED ABOUT 51 YEARS
BOTH ARE R/AT NO.606,
3RD STAGE, 12TH MAIN,
PILLANNA GARDEN, SHIVAJINAGAR,
BANGALORE-560 045.
NATIVE ADDRESS:NO.11/P/258,
PALMNER, CHITTOOR DISTRICT,
ANDHRA PRADESH.
... RESPONDENTS
(By SRI. A. SREENIVASAIAH, ADV. FOR R.2 AND R.3,
V/O. DATED 03.07.17 NOTICE TO R.1 IS D/W)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST
THE JUDGMENT AND AWARD DATED 22.10.2012 PASSED
IN MVC NO.1592/2012 ON THE FILE OF THE 22ND
ADDITIONAL SMALL CAUSES JUDGE, MEMBER, MACT,
BANGALORE, AWARDING A COMPENSATION OF
RS.6,11,600/-WITH INTEREST @ 6% P.A FROM THE DATE
OF PETITION TILL THE DATE OF DEPOSIT.
IN MFA CROB NO.16/2016
BETWEEN:
1. P. SHAMSHEERKHAN
S/O. P. DHASTHAGIRISAB
AGE ABOUT 59 YEARS
2. P. AJIMABI
W/O. P. SHAMSHEERKHAN
AGED ABOUT 54 YEARS.
1ST AND 2ND CROSS OBJECTORS ARE
RESIDING AT NO.606,
3RD STAGE 12TH MAIN,
PILLANNA GARDEN,
3
SHIVAJINAGAR,
BANGALORE - 560 001.
... CROSS OBJECTORS
(By Sri. A. SREENIVASAIAH, ADV.)
AND:
1. M/S. PIRAMAL LOGISTIC PVT. LTD.,
NO.6, KUSUMCHAND PARK
ONGC CHAR RASTA,
ICHHAPORE SURAT DISTRICT,
GUJARAT - 395 001.
2. THE MANAGER,
M/S. NEW INDIA ASSURANCE CO. LTD.,
D. O. NO.3, NO.9/2,
MAHALAKSHMI CHAMBERS,
2ND FLOOR, M G ROAD,
BANGALORE - 560 025.
... RESPONDENTS
(By Sri. R. JAI PRAKASH, ADV. FOR R.2,
NOTICE TO R.1 IS D/W)
THIS MFA CROB IN MFA NO.2322/2013 FILED U/O
41 RULE 22 OF CPC, AGAINST THE JUDGMENT AND
AWARD DATED:22.10.2012 PASSED ON MVC
NO.1592/2012 ON THE FILE OF THE ADDITIONAL SMALL
CAUSES JUDGE, COURT OF SMALL CAUSES AND
MEMBER, MACT, BENGALURU, PARTLY ALLOWING THE
CLAIM PETITION FOR COMPENSATION AND SEEKING
ENHANCEMENT OF COMPENSATION.
IN MFA 2321/2013
BETWEEN
NEW INDIA ASSURANCE CO. LTD.,
REPRESENTED BY ITS MANAGER,
MAHALAKSHMI CHAMBERS,
4
M.G.ROAD, BANGALORE-560 001.
... APPELLANT
(By Sri. R. JAI PRAKASH, ADV.)
AND:
1. PEERMAL LOGISTICS PVT. LTD.,
NO.6, KUSUMCHAND PARK,
ONGC CHAR RASTA,
ICHAHAPUR, SURAT DISTRICT,
GUJARAT-395 001.
2. SRI.MAHABOOB SAHEB,
S/O. AMIR AMJAD SAHEB
AGED ABOUT 56 YEARS,
3. SMT. S. LATIFABI @ LATIFA,
W/O. MAHABOOB SAHEB
AGED ABOUT 52 YEARS,
BOTH ARE R/AT NO.606,
3RD STAGE, 12TH MAIN,
PILLANNA GARDEN,
SHIVAJINAGAR,
BANGALORE-560 045.
NATIVE ADDRESS: NO.25/P/246,
PALMNER, CHITTOOR DISTRICT,
ANDHRA PRADESH.
... RESPONDENTS
(By Sri. A. SREENIVASAIAH, ADV. FOR C/R2 & 3,
V/O. DATED 03.06.2015 NOTICE TO R.1 IS D/W)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST
THE JUDGMENT AND AWARD DATED:22.10.2012 PASSED
IN MVC NO.1591/2012 ON THE FILE OF THE XXII ADDL.
SMALL CAUSES JUDGE & MEMBER, MACT, BANGALORE,
AWARDING COMPENSATION OF RS.7.13,000/- WITH
5
INTEREST AT 6% P.A. FROM THE DATE OF PETITION TILL
THE DATE OF DEPOSIT.
IN MFA CROB 15/2016
BETWEEN:
1. S. MAHABOOB SAHEB,
S/O. S. AMEER HAMJA SAHEB,
AGE ABOUT 59 YEARS
2. S. LATIFABI @ LATIFA,
W/O. S. MAHABOOB SAHEB,
AGED ABOUT 54 YEARS
BOTH ARE RESIDING AT
NO. 606, 3RD STAGE,
12TH MAIN, PILLANNA GARDEN,
SHIVAJINAGAR,
BANGALORE -560 001. ... CROSS OBJECTORS
(By Sri. A. SREENIVASAIAH, ADV.)
AND:
1. M/S. PIRAMAL LOGISTIC PVT. LTD.,
NO. 6, KUSUMCHAND PARK ,
ONGC CHAR RASTA,
ICHHAPORE SURAT DISTRICT,
GUJARAT - 395 001.
2. THE MANAGER
M/S. NEW INDIA ASSURANCE CO. LTD.,
D O NO.3, NO.9/2,
MAHALAKSHMI CHAMBERS,
2ND FLOOR, M G ROAD,
BANGALORE - 560 025. ... RESPONDENTS
(By Sri. R. JAI PRAKASH, ADV. FOR R.2,
NOTICE TO R.1 IS DISPENSED WITH)
6
THIS MFA CROB IN MFA NO.2321/2013 FILED U/O
41 RULE 22 OF CPC, AGAINST THE JUDGMENT AND
AWARD DATED:22.10.2012 PASSED ON MVC
NO.1591/2012 ON THE FILE OF THE ADDITIONAL SMALL
CAUSES JUDGE, COURT OF SMALL CAUSES AND
MEMBER, MACT, BENGALURU, PARTLY ALLOWING THE
CLAIM PETITION FOR COMPENSATION AND SEEKING
ENHANCEMENT OF COMPENSATION.
THESE APPEALS & CROSS OBJECTIONS ARE
COMING ON FOR ADMISSION THIS DAY, THE COURT
DELIVERED THE FOLLOWING:-
JUDGMENT
Appellants - insurer of the offending vehicle have filed these appeals challenging the judgment and awards passed by the Tribunal on quantum and seeking reduction of the compensation awarded by the Tribunal.
2. Cross objectors - claimants have filed MFA CROBs. seeking enhancement of the compensation awarded by the Tribunal.
3. As appeals and cross objections have arisen out of a common road traffic accident and common judgment of the Tribunal, with the consent of learned 7 Counsel appearing for the parties, they are heard together and disposed of by this common judgment.
4. For the sake of convenience parties are referred to as they are referred to in the claim petition before the Tribunal.
5. As there is no dispute regarding death of two persons namely, S.Sadiq and P.Murad in a road traffic accident occurred on 12-02-2012 due to rash and negligent driving of a lorry bearing registration No. GJ-5-AT-364 by its driver and liability of the insurer of the said lorry, the only point that remains for my consideration in the appeals and cross objections is:
"Whether quantum of compensation awarded by the Tribunal is just and proper or does it call for enhancement or reduction?"
6. Sri. Muniraju appearing for Sri. R. Jai Prakash, learned Counsel appearing for the insurer of the offending lorry submits, the Tribunal has committed 8 an error in applying the multiplier applicable to the age group of the deceased instead of applying the multiplier applicable to the younger age of the parents while determining the compensation under the head of loss of dependency. Sri. Muniraju, learned Counsel appearing for the insurer submits, though claimants have not adduced evidence regarding avocation of the deceased, the Tribunal has committed an error in adding 30% of his alleged earnings to the notional income of the deceased towards future prospects while determining loss of dependency. Consequently, the compensation awarded by the Tribunal is on the higher side. Therefore, he prays for allowing the appeals preferred by the insurer and dismissing the cross objections preferred by the claimants.
7. Whereas, Sri. Jagadish appearing for Sri. Sreenivasaiah, learned Counsel appearing for the claimants, submits, as per the latest judgment of the 9 Supreme Court in the case of Munna Lal Jain and another vs. Vipin Kumar Sharma and others reported in 2015 ACJ 1985, multiplier has to be applied based on the age of the deceased and not on the basis of younger age of the parents.
MFA 2321/2013 c.w. MFA CROB 15/2016 (arising out of MVC No.1591/2012) :
8. It is a case of death of one S. Sadiq, unmarried person, aged about 27 years. The claim petition is filed by his parents. Claimants, in support of their contention that their deceased son by working as driver was earning Rs.12,000/- per month, except examining claimant No.2 (mother of the deceased) as PW.1, have not adduced any evidence regarding avocation and income of the deceased. In the absence of proof of income, considering the age of the deceased as 27 years, year of accident as 2012, his income is assessed at Rs.8,000/- per month as against Rs.6,500/- per month assessed by the Tribunal. As he died as 10 bachelor, 50% of his income has to be deducted towards personal expenses and remaining 50% has to be taken towards his contribution to the family. Multiplier '17' applied by the Tribunal as per the latest judgment of the Supreme Court in the case of Munna Lal Jain and another vs. Vipin Kumar Sharma and others reported in 2015 ACJ 1985 is sound and proper. As avocation and income of deceased were not established by adducing cogent evidence, no portion of his earning could be added to his income towards future prospects. So loss of dependency would work out to Rs.8,16,000/- (8,000/- x 12 x 17 x 1/2) and it is awarded as against Rs.6,63,000/- awarded by the Tribunal.
9. A sum of Rs.30,000/- awarded by the Tribunal towards loss of love and affection is not permissible as per the latest judgment of the Supreme Court in the case of National Insurance Co. Ltd., vs. Pranay Sethi and others. Therefore it is dissolved. 11
10. A sum of Rs.15,000/- is awarded towards loss of estate as per the aforesaid judgment of the Supreme Court. Rs.15,000/- is awarded towards transportation of dead body and funeral expenses.
11. Thus, compensation awarded by the Tribunal is reassessed as under:-
HEADS AMOUNT
1 Loss of dependency 8,16,000
2 Conventional Head 30,000
TOTAL 8,46,000
LESS: Compensation awarded 7,13,000
by the Tribunal
BALANCE 1,33,000
12. Claimants are entitled for a total
compensation of Rs.8,46,000/- as against
Rs.7,13,000/- awarded by the Tribunal with interest at the rate of 6% per annum from the date of petition till realisation and they are entitled for additional compensation of Rs.1,33,000/- with interest at the rate 12 of 6% per annum from the date of petition till realisation.
MFA 2322/2013 c.w. MFA CROB 16/2016 (arising out of MVC No.1592/2012) :
13. It is a case of death of one Murad Ali, a bachelor, aged about 33 years. The claim petition is filed by his parents. Claimants in support of their contention that their deceased son by working as a carpenter was earning Rs.10,000/- per month, except examining claimant No.1 (father of the deceased) as PW.2 have not adduced any other evidence regarding avocation and income of the deceased. In the absence of proof of income, considering the age of the deceased as 33 years, year of accident as 2012, his income is assessed at Rs.8,000/- per month as against Rs.4,500/-
per month assessed by the Tribunal. As he died as bachelor, 50% of his income has to be deducted towards personal expenses and remaining 50% has to be taken towards his contribution to the family. '16' multiplier 13 applied by the Tribunal based on the age of deceased is as per the judgment of the Supreme Court in the case of Munna Lal Jain and another vs. Vipin Kumar Sharma and others reported in 2015 ACJ 1985. As avocation and income of the deceased were not established by adducing cogent evidence, no portion of his earning could be added to his notional income towards future prospects. So loss of dependency would work out to Rs.7,68,000/- (8,000/- x 12 x 18 x 1/2) and it is awarded as against Rs.5,61,000/- awarded by the Tribunal.
14. A sum of Rs.30,000/- awarded by the Tribunal towards loss of love and affection is not permissible as per the latest judgment of the Supreme Court in the case of National Insurance Co. Ltd., vs. Pranay Sethi and others. Therefore, it is dissolved.
15. A sum of Rs.15,000/- is awarded towards loss of estate as per the aforesaid judgment of the 14 Supreme Court. Rs.15,000/- is awarded towards transportation of dead body and funeral expenses.
16. Thus, compensation awarded by the Tribunal is reassessed as under:-
HEADS AMOUNT
1 Loss of dependency 7,68,000
2 Conventional Head 30,000
TOTAL 7,98,000
LESS: Compensation awarded 6,11,600
by the Tribunal
BALANCE 1,86,400
17. Claimants are entitled for a total
compensation of Rs.7,98,000/- as against
Rs.6,11,600/- awarded by the Tribunal with interest at the rate of 6% per annum from the date of petition till realisation and they are entitled for additional compensation of Rs.1,86,400/- with interest at the rate of 6% per annum from the date of petition till realisation.
15
18. Accordingly, I pass the following ORDER M.F.A.Nos.2321/2013 and 2322/2013 filed by the insurance company stand dismissed.
M.F.A. Crob.15/2016 and M.F.A. Crob.16/2016 filed by the claimants stand allowed in part.
The judgment and award dated 22.10.2012 in MVC Nos.1591/2012 and 1592/2012 passed by the Additional Small Causes Judge, Court of Small Causes and Member, MACT, Bengaluru, stands modified to the extent stated herein above.
Claimants in MVC No.1591/2012 (Cross-objectors in MFA Crob.15/2016) are entitled for additional compensation of Rs.1,33,000/- with interest at the rate of 6% per annum from the date of petition till realisation.
16
Claimants in MVC No.1592/2012 (Cross-objectors in MFA Crob.16/2016) are entitled for additional compensation of Rs.1,86,400/- with interest at the rate of 6% per annum from the date of petition till realisation.
The Insurance Co. is directed to deposit the additional compensation amount, after deducting the amount if any already deposited, with interest within two months from the date of receipt of a copy of this judgment.
Apportionment, deposit and release of the additional compensation awarded among the claimants will be in the ratio of the award of the Tribunal.
The Tribunal while releasing the compensation amount is also directed to issue the fixed deposit slips, so as to enable the claimants to withdraw the deposit amount on its maturity without approaching the 17 Tribunal once again and the Bank is directed to release the fixed deposit amount without insisting for any further order from the Tribunal. Release and issuance of fixed deposit slip shall be done on the same day so as to avoid inconvenience to the claimants.
The amount in deposit in M.F.A.Nos.2321/2013 and 2322/2013 is ordered to be transmitted to the Tribunal.
No order as to costs.
SD/-
JUDGE MGN/PMR