Karnataka High Court
Shriram General Insurance Co.Ltd., vs Ningamma W/O Shivappa Kanakagiri & Ors on 28 June, 2018
Author: A.S. Bopanna
Bench: A.S. Bopanna
-1-
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
DATED THIS THE 28TH DAY OF JUNE, 2018
PRESENT
THE HON'BLE MR. JUSTICE A.S. BOPANNA
AND
THE HON'BLE MR. JUSTICE SREENIVAS HARISH KUMAR
M.F.A. No.201260/2015 (MV)
BETWEEN:
Shriram General Insurance Co. Ltd.,
Through its Manager
E-8, EPIP RIICO Industrial Area
Sitapur, Jaipur, Rajasthan (State)
... APPELLANT
(By Sri Subhash Mallapur, Adv.)
AND:
1. Ningamma W/o Shivappa
Kanakagiri, Age: 51 years
Occ: Household
2. Sangamesh S/o Shivappa
Kanakagiri, Age: 18 years
Occ: Student
Both R/o Hattigudoor,
Tq: Shahapur, Dist:Yadgiri-585202
3. Asgar Ali Gori S/o Raj Mohammad Gori
Age: 58 years, Occ: Driver & Business
R/o Zoop Galli (Balaji Mandir)
-2-
Humnabad, Dist: Bidar-585401
... RESPONDENTS
(By Sri Bheemaraya M.N., Advocate for R1;
R2 and R3 served)
This Miscellaneous First Appeal is filed under Section
173(1) of MV Act praying to allow the appeal and consequently
be pleased to set aside the judgment and award dated
22.08.2014 passed by the Senior Civil Judge & Addl. MACT,
Shahapur in MVC No.156/2012.
This appeal coming on for Final Hearing, this day
SREENIVAS HARISH KUMAR J., delivered the following:
JUDGMENT
This appeal is by the Insurance Company, respondent No.2 in MVC No.156/2012 on the file of Senior Civil Judge and Additional MACT, Shorapur sitting at Shahapur.
2. In connection with the death of one Shivappa Kanakagiri in a motor vehicle accident that took place on 28.04.2012, the Tribunal has awarded compensation of Rs.28,00,000/- with interest at the rate of 6% per annum. The deceased was a High School Headmaster. His age as on the date of the accident was 58 years and -3- his net salary was Rs.36,331/- per month. Deducting 1/3rd towards his personal expenses, the Tribunal considered an amount of Rs.2,90,648/- as his annual contribution to the family. Applying the multiplier '9', it has been held by the Tribunal that Rs.26,15,832/- can be awarded towards loss of dependency.
3. The learned counsel for the appellant - Insurance Company argues that the net yearly income of the deceased is not disputed, but the age of the deceased as on the date of the accident was 58 years and there remained only two years for the deceased to retire from service. The entire calculation should have been made by adopting split multiplier method as has been held by the Division Bench of this Court in the case of Union of India and Others vs. K.S.Lakshmi Kumar and others reported in ILR 2000 KAR 3809. Therefore, he argues that the compensation should be reduced. -4-
4. The learned counsel for the respondents/claimants argues for sustaining the award passed by the Tribunal.
5. There is no dispute with regard to the fact that the deceased was working as Headmaster of a High School and his net salary was Rs.36,331/- per month. Giving a deduction of 1/3rd of his income towards his personal expenses, the net yearly income of the deceased has rightly been held as Rs.2,90,648/-. The age of the deceased as on the date of the accident was 58 years. The Tribunal has relied upon Ex.P8, the driving licence of the deceased in proof of the age. Therefore, he would have retired two years after had he not been killed in the accident. For this reason, after retirement his monthly income would have reduced to 50%. The Division Bench of this Court in Lakshmi Kumar's case (supra) has clearly held that the split multiplier method should be adopted in case of employees who superannuate. Following this principle, the multiplier '9' as applicable to -5- the age of the deceased should be split into two parts, 2 for the remaining period of service and 7 after superannuation. Thus, calculated the loss of dependency works out to Rs.15,98,564/- [Rs.5,81,296/- for 2 years and Rs.10,17,268/- for remaining 7 years (50% of Rs.2,90,648x7)]. Therefore, we come to conclusion that the actual amount that can be awarded towards loss of dependency is Rs.15,98,564/-. The appellant has not disputed the compensation granted on other conventional heads which totally comes to Rs.1,85,000/- as awarded by the Tribunal. If this amount is added to Rs.15,98,564/-, the total compensation that could be awarded comes to Rs.17,83,564/-. Therefore, the following:
ORDER The appeal is allowed in part. The compensation awarded by the Tribunal is reduced to Rs.17,83,564/- from Rs.28,00,000/-. The -6- reduced amount shall carry interest at the rate of 6% per annum from the date of petition till its realization.
The amount deposited by the appellant - Insurance Company shall be transmitted to the Tribunal for disbursement.
I.A.1/2016 is dismissed as does not survive for consideration.
SD/-
JUDGE SD/-
JUDGE Srt