Karnataka High Court
The Regional Manager vs Sri. Shivakumar on 13 June, 2018
Author: S Sunil Dutt Yadav
Bench: S. Sunil Dutt Yadav
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF JUNE 2018
BEFORE
THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV
M.F.A.No.5413/2017 a/w
M.F.A.No.5411/2017 a/w
M.F.A. No.5412/2017 (MV)
IN MFA No.5413/2017:
Between:
The Regional Manager,
Regional Office,
National Insurance Co. Ltd.,
No.144, 2nd Floor,
Subharam Complex,
M.G. Road,
Bengaluru - 560 001. ...Appellant
(By Sri. A.N. Krishna Swamy, Advocate)
And:
1. Sri. Shivakumar
S/o Gangasiddaiah,
Aged about 39 years.
2. Kum. Varsha A.S.,
D/o Shivakumar,
Aged about 8 years,
Since R-2 is Minor
Represented by R-1,
2
Both are R/at No.56,
Araledibba Village,
Nelamangala Tq.,
Bengaluru Rural District - 562 123.
3. Sri. Saravanan. G
No.1/137, Kuppur,
Dharmapuri,
Dharmapuri District,
Tamil Nadu - 636 701. ... Respondents
(By Sri. N. Gopalkrishna, Advocate for R-1 & R-2;
R-3 is served and unrepresented)
This MFA is filed under Section 173(1) of MV ACT
against the judgment and award dated 23.03.2017
passed in MVC No.5077/2016 on the file of the Member
Principal MACT at Bengaluru (SCCH-1), awarding
compensation of Rs.22,00,000/- with interest at the rate
of 9% P.A. from the date of petition till realization.
IN MFA No.5411/2017:
Between:
The Regional Manager,
Regional Office,
National Insurance Co. Ltd.,
No.144, 2nd Floor,
Subharam Complex,
M.G. Road,
Bengaluru - 560 001. ... Appellant
(By Sri. A.N. Krishna Swamy, Advocate)
3
And:
1. Sri. Srinivasamurthy
S/o Doddayya,
Aged about 55 years,
R/o Chikkabelavangala,
Doddabelavangala Hobli,
Dodda Ballapura Taluk,
Bengaluru Rural District - 561 204.
2. Sri. Saravanan. G
No.1/137, Kuppur,
Dharmapuri,
Dharmapuri District,
Tamil Nadu - 636 701. ... Respondents
(By Sri. N. Gopalkrishna, Advocate for R-1;
R-2 is served and unrepresented)
This MFA is filed under Section 173(1) of MV ACT
against the judgment and award dated 23.03.2017
passed in MVC No.5075/2016 on the file of the Member
Principal Motor Accident Claims Tribunal, Bengaluru
(SCCH-1), awarding compensation of Rs.7,69,800/- with
interest at the rate of 9% P.A. from the date of petition till
realization.
MFA No.5412/2017:
Between:
The Regional Manager,
Regional Office,
National Insurance Co. Ltd.,
No.144, 2nd Floor,
Subharam Complex,
4
M.G. Road,
Bengaluru - 560 001. ... Appellant
(By Sri. A.N. Krishna Swamy, Advocate)
And:
1. Sri. Srinivasamurthy
S/o Doddayya,
Aged about 55 years,
R/o Chikkabelavangala,
Doddabelavangala Hobli,
Dodda Ballapura Taluk,
Bengaluru Rural District - 561 204.
2. Sri. Saravanan. G
No.1/137, Kuppur,
Dharmapuri,
Dharmapuri District,
Tamil Nadu - 636 701. ... Respondents
(By Sri. N. Gopalkrishna, Advocate for R-1;
R-2 is served and unrepresented)
This MFA is filed under Section 173(1) of MV ACT
against the judgment and award dated 23.03.2017
passed in MVC No.5076/2016 on the file of the Member
Principal MACT at Bengaluru (SCCH-1), awarding
compensation of Rs.17,30,000/- with interest at the rate
of 9% P.A. from the date of petition till realization.
These MFAs coming on for orders, this day, the
Court delivered the following:
5
JUDGMENT
As the appeals in M.F.A.Nos.5413, 5411 and 5412 of 2017 have been filed by the insurer challenging the common order passed in MVC.Nos.5075/16, 5076/16 and 5077/16, contending that the compensation awarded is on a higher side and as the appeals arise out of a common judgment passed in the above mentioned cases, the appeals, are disposed of together.
2. The parties are referred to as per their ranks before the Tribunal, for the purpose of convenience.
3. The petitioners had filed the claim petitions under Section 166 of the Motor Vehicles Act, 1988 seeking compensation for the death of Shanthamma (MVC.No.5075/16), Supritha (MVC.No.5076/16), Kavitha (MVC.No.5077/16) who had died in a road traffic accident. It was averred by the petitioners that on 25.5.2016 at about 8.30 p.m., when the aforementioned persons who were returning home after attending their 6 relative's marriage reception, while they were walking on the foot path on Doddaballpura - Dabaspete Road, a lorry bearing Registration No.TN-29-AF-0531 being driven in a rash and negligent manner, dashed against the said persons, who succumbed to injuries thereafter.
4. The claim petitions being preferred before the Tribunal, the Tribunal after considering the oral testimony of PW.1-Srinivasamurthy and PW.2- Shivakumar, while taking note of the documents marked as Exs.P.1 to P.27, recording a finding as regards negligent driving of lorry bearing Registration No.TN-29- AF-0531 by its driver, awarded the compensation as follows:
In M.F.A.NO.5413/2017 (MVC.No.5077/2016) Sl.No. Head of Compensation Amount/Rs.
1. Loss of dependency 20,40,000-00
2. Compensation to the family 1,00,000-00 members (children and family members other than wife) for 7 loss of love and affection, deprivation of protection, social security etc.
3. Compensation to the widow of 50,000-00 the deceased for loss of love and affection, pains and sufferings, loss of consortium, deprivation of protection, social security etc.
4. Cost incurred on account of 10,000-00 funeral and ritual expenses Total 22,00,000-00 IN M.F.A.NO.5411/2017 (MVC.No.5075/2016):
Sl.No. Head of Compensation Amount/Rs.
1. Loss of dependency 7,09,800-00
2. Compensation to the widow of 50,000-00 the deceased for loss of love and affection, pains and sufferings, loss of consortium, deprivation of protection, social security etc.
3. Cost incurred on account of 10,000-00 funeral and ritual expenses Total 7,69,800-00 8 IN M.F.A.NO.5412/2017 MVC.No.5076/2016:
Sl.No. Head of Compensation Amount/Rs.
1. Loss of dependency 16,20,000-00
2. Compensation to the family 1,00,000-00 members (children and family members other than wife) for loss of love and affection, deprivation of protection, social security etc.
3. Cost incurred on account of 10,000-00 funeral and ritual expenses Total 17,30,000-00
5. The insurer has come up in appeals contending that the rate of interest awarded at 9% p.a. was excessive, that future prospects awarded was contrary to the legal entitlements in the light of the law laid down by the Apex Court and amongst other contentions, the above appeals are disposed of as follows.
6. In M.F.A.No.5411/17 as regards the claim made in MVC.No.5075/16, the deceased was aged 49 years as on the date of the accident and it was contended that the 9 deceased was an agriculturist and was also earning by vending milk. The compensation was awarded by the Tribunal by adopting a notional income of Rs.7,000/- per month and awarded additional compensation on future prospects at 30% and hence taking the income per month at Rs.9,100/- and providing for 50% deduction, arrived at the figure of Rs.7,09,800/- by adopting the multiplier of '13'. The only substantial contention made by the insurer was as regards the rate of interest. The Tribunal had awarded interest at 9% p.a. while the insurer has contended that taking judicial note of the Bank rate of interest which is approximately 6% p.a., the rate of interest to be altered to 6% p.a. instead of 9% p.a. The said submission is not seriously disputed by the respondent. The insurer in this appeal does not seek to press all the other grounds urged and hence the order of the Tribunal is modified only as regards the rate of interest awarded and the rate of interest is to be scaled 10 down from 9% p.a. to 6% p.a. The other stipulations in the award remain undisturbed.
7. As regards M.F.A.No.5412/17, the claim arose due to the death of Supritha who was unmarried as on the date of the accident. She died in a common accident in which the other claimants Shanthamma and Kavitha also died. The Tribunal noticing the age of the deceased as 20 years and as she was working as an Operator in a private establishment, had taken the income at Rs.10,000/- per month, added under the head of future prospect 50% of income and adopted multiplier of '18' and after taking 50% deduction towards personal expenses as she was a spinster, arrived at a figure of Rs.16,20,000/- towards loss of dependency and awarded Rs.1,00,000/- under the head of loss of love and affection and Rs,10,000/- was awarded towards funeral and obituary expenses. It is contended that the calculation of future prospects which are taken at 50% ought to be 11 scaled down to 40% as the deceased was getting a fixed salary and in the light of the law laid down in the case of National Insurance Company Limited v. Pranay Sethi and others reported in (2017) 16 SCC 680, future prospects has to be calculated by adopting 40% on the income that was accepted. The said contention not being disputed and being in accordance with the law laid down, future prospects would be calculated at the rate of 40% instead of 50% on the income. The loss of dependency, if then calculated, comes to Rs.15,12,000/- (7000x12x18) instead of Rs.16,20,000/-. As regards the compensation of Rs.1,10,000/- that was granted under the conventional heads, the same is to be restricted to Rs.30,000/- as the deceased was a spinster. Accordingly, the judgment and award of the Tribunal is modified to the extent that the loss of dependency would be Rs.15,12,000/- and compensation of Rs.16,20,000/-convention heads would be scaled down to Rs.30,000/-. The rate of interest is also 12 scaled down to 6% p.a. from 9% p.a. as had been granted by the Tribunal.
8. As regards M.F.A.No.5413/17, the petitioners claim compensation as a result of death of Kavitha. The Tribunal, after considering the relevant materials, had taken the income of the deceased at Rs.10,000/- per month though the claim was made at Rs.14,000/- per month. It was stated that the deceased was working as an Accountant in Sri Krishna Power controls. The Tribunal, had calculated the future prospects at 50% of the income and allowed for a deduction of 1/3rd of towards personal expenses and calculated loss of dependency by adopting the multiplier of '17' and the compensation would amount to Rs.20,00,000/-. It is contended that future prospects ought to have been calculated by taking an increment of 40% on income considering the nature of work and income. In the light the law laid down by the Apex Court, the said contention 13 that an increment of 40% needs to be taken, has not been disputed by the respondent, hence future prospects at 40% on the accepted income. Consequently, loss of dependency would come to Rs.19,04,000/- while the compensation that was granted by the Tribunal under the conventional heads was Rs.1,60,000/-, as the maximum compensation under such heads that could be granted in the light of the law laid down by the Apex Court in the case of Pranay Sethi (supra) being Rs.70,000/-, the award of compensation under conventional head is restricted to Rs.70,000/-. As regards the rate of interest, the same is scaled down to 6% p.a. instead of 9% p.a. awarded by the Tribunal, taking judicial note of the Bank rate of interest.
9. Hence, this appeal is partly allowed by taking loss of dependency as Rs.19,04,000/- by calculating the additional loss towards future prospects at 40% on the accepted income, while the compensation under the 14 conventional heads is to be taken at Rs.70,000/- instead of Rs.1,60,000/- that was awarded. The interest has to be scaled down to 6% p.a. on the above compensation from the date of filing of the petition till the date of realization. The total compensation so taken would amount to Rs.19,74,000/-.
10. Except for the alterations made, the remaining stipulations in the judgment and award in the all the three appeals remains undisturbed.
11. Accordingly, all the three appeals are partly allowed in terms of the above. The amount in deposit before this Court including the statutory deposit, to be transferred to the Tribunal for the purpose of disbursal in terms of the judgment of the Tribunal.
Sd/-
JUDGE RS/* ct:am