Karnataka High Court
Mamatha vs Sri R Ranganath on 11 September, 2013
Bench: Mohan.M.Shantanagoudar, B.Sreenivase Gowda
1
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 11TH DAY OF SEPTEMBER, 2013
PRESENT
THE HON'BLE MR. JUSTICE MOHAN .M. SHANTANAGOUDAR
AND
THE HON'BLE MR. JUSTICE B.SREENIVASE GOWDA
Miscellaneous First Appeal No. 2236 of 2010 (MV)
BETWEEN:
1. SMT. MAMATHA
W/O. LATE GIRISH YADAV
AGED ABOUT 27 YEARS,
2. MASTER SHREYASH
AGED ABOUT 6 YEARS,
S/O. LATE GIRISH YADAV
SINCE MINOR REPRESENTED BY
HIS NATURAL GUARDIAN MAMATHA
3. LOKA RAMADU
AGED ABOUT 67 YEARS,
S/O. MUNISWAMY,
ALL ARE RESIDING AT NO.224, 5TH MAIN,
2ND BLOCK, H.R.B.R LAYOUT,
KALYAN NAGAR,
BANGALORE - 560 060.
... APPELLANTS
(By Sri. S. P. SHANKAR, SR. COUNSEL FOR
SRI. B. V. KRISHNA, ADV.)
AND
1. SRI. R. RANGANATH
2
S/O. RATHNAJI, MAJOR,
DOOR NO 9, LOWER HUTTA,
D.H. ROAD, BHADRAVATHI,
SHIMOGA DISTRICT - 577 301.
2. B. MALIKARJUNA
S/O. BASAPPA,
AGED ABOUT 39 YEARS,
R/O. PAPER TOWN,
UJJAINI PURA,
BHADRAVATHI - 577 301.
3. NEW INDIA ASSURANCE CO. LTD.,
PREMA COMPLEX,
B. H. ROAD,
BHADRAVATHI - 577 301.
... RESPONDENTS
(By Sri. N. P. KALLESH GOWDA, ADV. FOR R.1, R.2,
SRI. R. B. DESHPANDE, ADV. FOR R.3)
*****
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 19.01.2010 PASSED IN MVC
NO.7720/08 ON THE FILE OF THE XXIST ACMM AND
ADDITIONAL SMALL CAUSE JUDGE, COURT OF SMALL
CAUSES, MACT, BANGALORE(ACMM-21), PARTLY ALLOWING
THE CLAIM PETITION FOR COMPENSATION AND SEEKING
ENHANCEMENT OF COMPENSATION.
This appeal coming on for Hearing, this day,
Mohan M. Shantanagoudar J., delivered the following:
JUDGMENT
Girish Yadav, aged about 30 years, working as System Analyst in AXA Group Solution Pvt. Ltd. (a software developing company), Bangalore died in the 3 accident that occurred on 08-08-2008. He has left behind, his wife aged about 25 years, son aged about 4 years and father aged about 65 years. The Tribunal after quantifying the compensation under the head of `loss of income' at Rs.40,48,882/-, deducted Rs.25,00,000/- to be paid by AXA Group Solutions on the death of the employee and awarded compensation of Rs.15,48,882/- under the head 'loss of dependency'. In addition thereto, the Tribunal has awarded certain sums of compensation under different conventional heads. In all it has awarded compensation of Rs.18,63,882/- under various heads. This appeal is filed praying for enhancement of compensation.
2. Undisputedly the deceased was working as System Analyst in AXA Group Solution Pvt. Ltd. It is a software developing company at Bangalore. Ex.P.16 dated 25th April, 2008 issued by the employer to the deceased reveals that the total annual remuneration payable to the 4 deceased stands at Rs.6,27,300/-. The said document also reveals that the deceased was provided 25% increment with effect from 1st January, 2008 from the then existing salary. Ex.P.17 is the salary certificate disclosing the breakup of the salary under various heads. The total fixed pay of the deceased as is clear from Ex.P.17 is Rs.5,44,392/-. Apart from the same, the claimant was entitled to conveyance allowance and gratuity. Thus, the total annual remuneration of the deceased was Rs.6,27,300/- per year of which the taxable salary income was at Rs.5,44,392/- and on the said amount, the claimant was paying Rs.48,665/- towards tax as is clear from Ex. P.34. The deceased was an income tax assessee and the income tax return for the financial years 2007-08 is found at Ex. P.34. Based on the aforementioned facts, Tribunal has assessed the total income of the deceased at Rs.3,57,250/- per annum after compulsory deductions. 5
3. Based on the assessment of total income at Rs.3,57,250/- per annum, the Tribunal after deducting 1/3rd of the amount towards personal expenses of the deceased and by applying the appropriate multiplier of '17' (having regard to the age of the deceased at 30 years ), quantified the loss of income to the family at Rs.40,48,882/-. However, from the said sum the Tribunal chose to deduct Rs.25,00,000/- on the ground that such amount would be paid by AXA Group Solutions (employer of the deceased) in case of his accidental death. The Tribunal bases its reasoning on note `6' found at Ex.P.17 which reads thus:
"6. Staff will also be covered against personal accident for a principal amount limited to five times the TFP."
Such deduction in our considered opinion is impermissible.
6
Note 6 as found in Ex.P.17 makes it clear that there will be coverage against the personal accident of the employee for a principal amount limited to 5 times of total fixed pay. In the matter on hand, the total fixed pay per Annum is Rs.5,44,392/-. Five times of the total fixed pay amounts to Rs.27,21,950/-. On the said basis Tribunal has deducted Rs.25,00,000/- out of the quantified amount of Rs.40,48,882/- towards loss of dependency. Such deduction is not permissible in view of the judgment of the Apex Court in the case of Mrs. Helen C. Rebello and others v. Maharashtra State Road Transport Corporation and another reported in AIR 1998 SC 3191. The Apex Court in the said judgment has observed that, "the life insurance policy is received either by the insured or the heirs of the insured on account of the contract with the insurer, for which insured contributes in the form of premium. It is receivable even by the insured, if he lives till maturity after paying all the premiums, in the case of death insurer indemnifies to pay the sum to 7 the heirs, again in terms of the contracts for the premium paid. This amount is receivable by the claimant not on account of any accidental death but otherwise on insured's death. Death is only a step or contingency in terms of the contract, to receive the amount. Similarly any cash, bank balance, shares, fixed deposits, etc. though are all a pecuniary advantage receivable by the heirs on account of one's death but all these have no correlation with the amount receivable under a statute occasioned only on account of accidental death. How could such an amount come within the periphery of the Motor Vehicles Act to be termed as `pecuniary advantage' liable for deduction."
4. In view of the aforesaid observations of the Apex Court, even if the deceased was covered against the personal accident for a principal amount limited to five times of total fixed pay, the said amount should not have been deducted by the Tribunal while computing 8 compensation under the head `loss of dependency'. Thus, in our considered opinion the claimants would be entitled to Rs.40,48,882/- under the head `loss of dependency'.
5. However, we find that the compensation awarded by the Tribunal under the heads `loss of life' and `loss of dependency' should not have been awarded. As such, the same stands disallowed. However the claimants are entitled to compensation awarded under the head `loss of consortium', `loss of love and affection' and `transportation and funeral expenses' by the Tribunal at Rs.1,00,000/-, Rs.50,000/- and Rs.15,000/- respectively.
6. Thus, in all the claimants are entitled to Rs.42,13,882/-, rounded of to Rs.42,14,000/-.
Accordingly, the following order is made :
The compensation is enhanced to Rs.42,14,000/-
from Rs.18,63,882/-.9
The rate of interest and deposit in nationalized Bank shall remain the same as directed by the Tribunal below.
The amount in deposit, if any, shall be transmitted to the Tribunal below.
Accordingly, the appeal is allowed in part.
Sd/-
JUDGE Sd/-
JUDGE mgn/-
CT: bs*