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Karnataka High Court

Sri Hanumanthappa S/O Nagappa Magod vs Muttimani R B S/O Bharamappa on 7 August, 2024

Author: Krishna S.Dixit

Bench: Krishna S.Dixit

                                                -1-
                                                       NC: 2024:KHC-D:11233-DB
                                                      MFA No. 101817 of 2017
                                                  C/W MFA No. 101700 of 2017
                                                      MFA No. 101701 of 2017
                                                      MFA No. 101816 of 2017


                                IN THE HIGH COURT OF KARNATAKA,
                                        DHARWAD BENCH

                            DATED THIS THE 7TH DAY OF AUGUST, 2024

                                             PRESENT
                            THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT
                                               AND
                          THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL

                   MISCELLANEOUS FIRST APPEAL NO. 101817 OF 2017 (MV-D)
                                          C/W
                   MISCELLANEOUS FIRST APPEAL NO. 101700 OF 2017(MV-D)
                   MISCELLANEOUS FIRST APPEAL NO. 101701 OF 2017 (MV-D)
                   MISCELLANEOUS FIRST APPEAL NO. 101816 OF 2017 (MV-D)
                   IN MFA NO. 101817 OF 2017

                   BETWEEN:

                   1.   SRI. GADIGEPPA S/O. MAHADEVAPPA ORAGONDADA,
                        AGE 52 YEARS, OCC: AGRICULTURE, (NOW NIL).
                   2.   SMT.SIDDALINGAMMA @ SIDDALINGAVVA,
                        W/O. GADIGEPPA ORAGONDADA,
                        AGE 42 YEARS, OCC: AGRICULTURE, (NOW NIL),
                        BOTH ARE R/O. ALADAKATTI,
Digitally signed        TQ: RANEBENNUR, DIST: HAVERI-581110.
by JAGADISH T R
                                                                     ...APPELLANTS
Location: High
Court of           (BY SRI. G. S. HULMANI, ADVOCATE)
Karnataka
Dharwad Bench
                   AND:

                   1.   MUTTIMANI R. B. S/O. BHARAMAPPA,
                        AGE MAJOR, OCC: BUSINESS,
                        R/O. NIDENEGILU VILLAGE, PO: GUNDAGATTI,
                        TQ: HIREKERUR, DIST: HAVERI-581111.
                   2.   THE DIVISIONAL MANAGER,
                        NATIONAL INSURANCE CO. LTD, REGIONAL OFFICE,
                        2ND FLOOR, ARIHANT PLAZA, KUSUGAL ROAD,
                        HUBBALLI-580020.
                                                                ...RESPONDENTS
                   (BY SRI. RAJASHEKHAR S. ARANI, ADV. FOR R2;
                        NOTICE TO R1 DISPENSED WITH)
                             -2-
                                   NC: 2024:KHC-D:11233-DB
                                  MFA No. 101817 of 2017
                              C/W MFA No. 101700 of 2017
                                  MFA No. 101701 of 2017
                                  MFA No. 101816 of 2017



      THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, PRAYING TO CALL FOR RECORDS FROM THE ADDL. SENIOR
CIVIL JUDGE AND AMACT, RANEBENNUR AND MODIFY THE
JUDGMENT AND AWARD PASSED BY LEARNED JUDGE IN M.V.C
NO.1938/2015 DATED 01ST MARCH 2017 AND ENHANCE THE
COMPENSATION AS PRAYED FOR AND ETC

IN MFA NO. 101700 OF 2017

BETWEEN:

THE DIVISIONAL MANAGER,
THE NATIONAL INSURANCE CO. LTD,
REGIONAL OFFICE, 2ND FLOOR,
ARIHANT PLAZA, KUSUGAL ROAD, HUBBALLI.
                                                ...APPELLANT
(BY SRI. RAJASHEKHAR S. ARANI, ADVOCATE)

AND:

1.   SRI. HANUMANTAPPA S/O. NAGAPPA MAGOD,
     AGE 48 YEARS, OCC: AUTO DRIVER,
     R/O. HALE BATI GUDDADA CAMP IN DAVANAGERE TQ,
     NOW @ VAGEESH NAGAR, RANEBENNUR.

2.   SMT. MAHADEVAMMA @ MAHADEVAKKA,
     W/O. HANUMANTAPPA MAGOD, AGE 42 YEARS,
     OCC: HOUSEHOLD WORK, R/O. -DO -.

3.   KUM AMBRUTH H. S/O. HANUMANTAPPA MAGOD,
     AGE 20 YEARS, OCC: STUDENT, R/O. -DO-.

4.   KUM ADRUSHTA S/O. HANUMANTAPPA MAGOD
     AGE 20 YEARS, OCC: STUDENT, R/O. -DO-.

5.   SRI. MUTTIMANI R. B,
     S/O. BHARAMAPPA, AGE MAJOR, OCC: BUSINESS,
     R/O. NIDINEGILU VILLAGE, PO. GUNDAGATTI,
     TQ: HIREKERUR, DIST: HAVERI.
                                               ...RESPONDENTS
(BY SRI. G. S. HULMANI, ADV. FOR R1 TO R4
    SRI. PRITHVIRAJ P. HITTALAMANI, ADV. FOR R5)
                              -3-
                                    NC: 2024:KHC-D:11233-DB
                                   MFA No. 101817 of 2017
                               C/W MFA No. 101700 of 2017
                                   MFA No. 101701 of 2017
                                   MFA No. 101816 of 2017


      THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, PRAYING TO ALLOW THE APPEAL AS PRAYED FOR BY SETTING
ASIDE IMPUGNED JUDGMENT & AWARD DATED 01.03.2017 PASSED
BY ADDL. SENIOR CIVIL JUDGE & AMACT RANEBENNUR IN M.V.C
NO.1937/2015 WITH COST IN THE INTEREST OF JUSTICE & EQUITY.

IN MFA NO. 101701 OF 2017

BETWEEN:

THE DIVISIONAL MANAGER,
THE NATIONAL INSURANCE CO. LTD,
REGIONAL OFFICE, 2ND FLOOR, ARIHANT PLAZA,
KUSUGAL ROAD, HUBBALLI, BY ADMINISTRATIVE OFFICER.
                                               ...APPELLANT
(BY SRI. RAJASHEKHAR S. ARANI, ADVOCATE)

AND:

1.   SRI. GADIGEPPA S/O. MAHADEVAPPA ORAGONDADA,
     AGE: 52 YEARS, OCC: AGRICULTURE WORK,
     R/O. ALADAKATTI, TQ: RANEBENNUR, DIST: HAVERI.

2.   SMT. SIDDLINGAMMA @ SIDDLINGAVVA,
     W/O. GADIGEPPA ORAGONDADA,
     AGE 42 YEARS, OCC: AGRICULTURE WORK,
     R/O. ALADAKATTI, TQ: RANEBENNUR, DIST: HAVERI.
3.   SRI. MUTTIMANI R. B. S/O. BHARAMAPPA
     AGE: MAJOR, OCC: BUSINESS,
     R/O. NIDINEGLU VILLAGE, PO. GUNDAGATTI,
     TQ: HIREKERUR, DIST: HAVERI.
                                                ...RESPONDENTS
(BY SRI. G. S. HULMANI, ADV. FOR R1 & R2; R3-SERVED)

      THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, PRAYING TO ALLOW THE APPEAL AS PRAYED FOR BY SETTING
ASIDE IMPUGNED JUDGMENT & AWARD DATED 01.03.2017 PASSED
BY ADDL. SENIOR CIVIL JUDGE & AMACT RANEBENNUR IN M.V.C
NO.1938/2015 WITH COST IN THE INTEREST OF JUSTICE & EQUITY.

IN MFA NO. 101816 OF 2017

BETWEEN:

1.   SRI. HANUMANTHAPPA S/O. NAGAPPA MAGOD,
                              -4-
                                    NC: 2024:KHC-D:11233-DB
                                    MFA No. 101817 of 2017
                                C/W MFA No. 101700 of 2017
                                    MFA No. 101701 of 2017
                                    MFA No. 101816 of 2017


     AGE: 48 YEARS, OCC: DRIVER, NOW NIL.

2.   SMT. MAHADEVAMMA @ MAHADEVAKKA,
     W/O. HANUMANTHAPPA MAGOD,
     AGE: 42 YEARS, OCC: KHOUSEHOLD WORK.

3.   KUM. AMBRUTH H. S/O. HANUMANTHAPPA MAGOD,
     AGE: 20 YEARS, OCC: STUDENT.

4.   KUM. ADRUSHTA S/O. HANUMANTHAPPA MAGOD,
     AGE: 20 YEARS, OCC: STUDENT,
     ALL ARE R/O. HALE BATTI GUDDADA CAMP,
     TQ: DAVANAGERE, NOW AT VAGEESH NAGAR,
     RANEBENNUR, DIST: HAVERI-581115.
                                                ...APPELLANTS
(BY SRI. G. S. HULMANI, ADVOCATE)

AND:

1.   MUTTIMANI R. B. S/O. BHARAMAPPA,
     AGE: MAJOR, OCC: BUSINESS,
     R/O. NIDENEGILU VILLAGE, PO. GUNDAGATTI,
     TQ: HIREKERUR, DIST: HAVERI-581111.

2.   THE DIVISIONAL MANAGER,
     NATIONAL INSURANCE CO. LTD.,
     REGIONAL OFFICE, 2ND FLOOR,
     ARIHANT PLAZA, KUSUGAL ROAD,
     HUBBALLI-580020.
                                              ......RESPONDENTS
(BY SRI. RAJASHEKHAR S. ARANI, ADV. FOR R2;
     NOTICE TO R1 DISPENSED WITH)

      THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, PRAYING TO MODIFY THE JUDGMENT AND AWARD PASSED BY
ADDL. SENIOR CIVIL JUDGE AND AMACT, RANEBENNUR AND
LEARNED JUDGE IN M.V.C NO.1937/2015 DATED 01ST MARCH 2017
AND ENHANCE THE COMPENSATION AS PRAYED FOR.

     THESE APPEALS, COMING ON FOR ORDERS, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:


CORAM:    THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT
           AND
           THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL
                                          -5-
                                                  NC: 2024:KHC-D:11233-DB
                                                MFA No. 101817 of 2017
                                            C/W MFA No. 101700 of 2017
                                                MFA No. 101701 of 2017
                                                MFA No. 101816 of 2017


                              ORAL JUDGMENT

(PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) Though these appeals are listed for orders, with the consent of learned counsel for the parties, they are taken up for final disposal.

2. These appeals are filed by the claimants as well as Insurance Company challenging the quantum of compensation awarded under judgment and award dated 1.3.2017 passed in MVC Nos. 1937 and 1938 of 2015 on the file of learned Addl. Senior Civil Judge and Addl. MACT, Ranebennur1.

3. Brief facts leading to filing of these appeals are that, on 23.08.2015, deceased Abhishek (MVC No.1937/2015) was proceeding on a motorcycle bearing registration No.KA- 27/U-2415 along with a pillion rider-Devendrappa (MVC No.1938/2015) from Rattihalli towards Halageri. When they came near Dindadahalli village on Halageri-Rattihalli road, at that time, another motorcycle bearing registration No.KA- 27/ED-2260 came in a rash and negligent manner and dashed to the motorcycle, on which both the deceased were 1 'Tribunal', for short -6- NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 proceeding. Due to the impact, both deceased rider and pillion rider fell down and sustained grievous injuries to all over body and succumbed to the same, while taking treatment at hospital. Both deceased were aged about 22 years and were doing private work, earning Rs.18,000/- per month and Rs.20,000/- per month respectively. Hence, legal heirs of both the deceased filed claim petitions before the Tribunal seeking compensation for the accidental death of their sons.

4. On appearance, the respondents filed their receptive statement of objections denying the entire claim petition averments. Respondent No.2/Insurer contended that the rider of the motorcycle was not holding a valid and effective driving license as on the date of the accident. It was further contended that the accident occurred due to the fault of the deceased rider of the motorcycle. The compensation claimed by the claimants is excessive and exorbitant. Thus, sought dismissal of the claim petitions.

5. Before the Tribunal, the claimants examined two witnesses as PW1 & PW2 and got marked 24 documents as Ex.P1 to P24. Respondent No.2/Insurer examined its Administrative Officer as RW1 and got marked Insurance Policy -7- NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 as Ex.R1. The Tribunal based on the material evidence on record, allowed the claim petitions in part and awarded total compensation of Rs.12,54,000/- in MVC No.1937/2015 and Rs.5,28,325/- in MVC No.1938/2015 with interest at the rate of 7.5% per annum from the date of petitions till realization. Aggrieved by the same, the claimants as well as Insurer are in appeal.

6. Sri. Rajashekhar S Arani, learned counsel for the appellant/Insurance Company in support of his appeals would contend that in MVC No.1937/2015, the Tribunal erred in awarding excess compensation under each heads, which requires to be reduced appropriately. He further submits that while awarding compensation under the head of loss of dependency, the Tribunal without properly interpreting the decision of the Hon'ble Apex Court in the case of Sarla Verma & Others Vs. Delhi Transport Corporation & Another2, has wrongly erred in adding 50% of the assessed income towards loss of future prospects and awarded higher compensation. He further submits that the Tribunal also committed an error in 2 2009 ACJ 1298 -8- NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 awarding interest at the rate of 7.5% per annum, which is on the higher side and requires to be reduced to 6% per annum.

7. Sri. Rajashekhar S Arani, learned counsel submits that in MVC No.1938/2015, the Tribunal has rightly awarded just and reasonable compensation under each heads, which requires no interference at the hands of this Court. He further submits that the Tribunal committed an error in granting higher rate of interest on the compensation amount, which requires to be reduced to 6% per annum. Thus, he prays for allowing both the appeals filed by the insurer.

8. Sri.Girish S Hulmani, learned counsel for the appellants/claimants in support of his appeals would vehemently contend that the quantum of compensation awarded by the Tribunal in both MVCs is on the lower side and requires to be enhanced appropriately. He further submits that in MVC No.1938/2015, the Tribunal having lost sight of the fact that the father of the deceased is not a dependent of the deceased, has erroneously come to a conclusion that the claimants are not entitled to compensation under the head of loss of dependency. It is further submitted that the notional income of the deceased assessed by the Tribunal at Rs.7,000/- -9-

NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 per month is on the lower side and it ought to have been assessed on the higher side. Learned counsel fairly submits that in terms of decision of Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi & Others3, the claimants would be entitled to an addition of 40% of the assessed income, since both the deceased were aged below 40 years. He further submits that in terms of Magma General Insurance Company Limited Vs. Nanu Ram & Others4, each of the claimants would be entitled to a sum of Rs.40,000/- towards loss of consortium. Thus, he prays for allowing the appeals filed by the claimants by dismissing the appeals of the insurer.

9. Having heard the learned counsel for the parties and on perusal of the appeal papers, the point that arises for consideration in these appeals is as to, whether impugned judgments and awards of the Tribunal call for interference at the hands of this Court.

10. The parties to the proceedings do not dispute the occurrence of the accident on 23.08.2015 resulting in the death of deceased Abhishek and Devendrappa. The claimants as well 3 2017(16) SCC 680 4 2018 ACJ 2782

- 10 -

NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 as insurer are in appeals challenging the quantum of compensation awarded by the Tribunal. It is the contention of the claimants in both the cases that the notional income of the deceased assessed by the Tribunal at Rs.7,000/- per month is on the lower side, inasmuch as both deceased were doing private work and earning Rs.20,000/- per month. No cogent and acceptable evidence is placed on record to substantiate the avocation and earnings of the deceased. In the absence of cogent and acceptable document, this Court would assess the notional income of both the deceased at Rs.8,000/- per month, taking note of the notional income chart prepared by the KSLSA for the accident of the year 2015.

11. In MVC No.1937/2015, the deceased Abhishek was aged about 22 years as on the date of accident and appropriate multiplier would be 18. The deceased was a bachelor, hence, 50% of the assessed income has to be deducted towards personal expenses of the deceased. The Tribunal by misinterpreting the decision of the Apex Court in Sarla Verma's case supra has wrongly added 50% of the assessed income towards future prospects. Therefore, taking note of principles laid down by the Hon'ble Apex Court in the case of

- 11 -

NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 Pranay Sethi supra, the claimants would be entitled to an addition of 40% of the assessed income towards future prospects. Thus, loss of dependency would be as under:

Rs.8,000 + 40/100 x 12 x 18 x 1/2 = Rs.12,09,600/-

12. Further, the claimants would be entitled to Rs.40,000/- each under the head of loss of consortium, besides Rs.18,000/- towards loss of estate and Rs.18,000/- towards transportation of dead body and funeral expenses including 10% escalation. Thus, the claimants would be entitled to modified compensation as under:

      Loss of dependency                             Rs.12,09,600/-
      Loss of consortium                             Rs. 1,60,000/-
      Loss of estate                                 Rs.    18,000/-
      Funeral expenses                               Rs.    18,000/-
                                                     ------------------
                   Total                             Rs.14,05,600/-
                                                     ------------------

Thus, the claimants in MVC No.1937/2015 would be entitled to total compensation of Rs.14,05,600/- as against Rs.12,54,000/- awarded by the Tribunal.

13. In MVC No.1938/2015, the Tribunal having lost sight of the fact that the father of deceased being not dependent, the claimants would not be entitled to compensation under the head of loss of dependency. It is well

- 12 -

NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017 settled law that the parents of the deceased either father or mother would always depend on the income of the son, more particularly on the elder son. Hence, the claimants being age old parents would be entitled to compensation on the head of loss of dependency, as the deceased was only son of the appellants/claimants. Thus, the loss of dependency is reckoned as under:

Rs.8,000 + 40/100 x 12 x 18 x 1/2 = Rs.12,09,600/-

14. Further, the claimants would be entitled to Rs.40,000/- each under the head of loss of consortium, besides Rs.18,000/- towards loss of estate and Rs.18,000/- towards transportation of dead body and funeral expenses including 10% escalation. Thus, the claimants would be entitled to modified compensation as under:

      Loss of dependency                        Rs.12,09,600/-
      Loss of consortium                        Rs.    80,000/-
      Loss of estate                            Rs.    18,000/-
      Funeral expenses                          Rs.    18,000/-
      Medical expenses                          Rs.    85,325/-
                                                ------------------
                 Total                          Rs.14,10,925/-
                                                ------------------
                                  - 13 -
                                            NC: 2024:KHC-D:11233-DB
                                          MFA No. 101817 of 2017
                                      C/W MFA No. 101700 of 2017
                                          MFA No. 101701 of 2017
                                          MFA No. 101816 of 2017


Thus, the claimants in MVC No.1938/2015 would be entitled to total compensation of Rs.14,10,925/- as against Rs.5,28,325/- awarded by the Tribunal.

15. The Tribunal has erred in awarding higher rate of interest on the compensation amount. Taking note of present day's bank rate of interest, we are inclined to reduce the rate of interest from 7.5% per annum to 6% per annum on the total compensation amount.

16. In the result, we proceed to pass the following:

ORDER
a) All the above appeals are partly allowed;
b) The impugned judgments and awards of the Tribunal are modified holding that the claimants in MVC No.1937/2015 would be entitled to total compensation of Rs.14,05,600/- as against Rs.12,54,000/- awarded by the Tribunal and the claimants in MVC No.1938/2015 would be entitled to total compensation of Rs.14,10,925/- as against Rs.5,28,325/- awarded by the Tribunal.
c) The entire compensation amount in both MVCs shall carry interest at the rate of 6% per annum from the date of claim petitions till realization.

- 14 -

NC: 2024:KHC-D:11233-DB MFA No. 101817 of 2017 C/W MFA No. 101700 of 2017 MFA No. 101701 of 2017 MFA No. 101816 of 2017

d) The appellant/insurer shall deposit the enhanced compensation amount with accrued interest before the Tribunal within six weeks from the date of receipt of certified copy of this judgment.

e) On such deposit, the apportionment, deposit and disbursement shall be made in terms of award of the Tribunal.

f) The amount in deposit, if any, be transmitted to the Tribunal forthwith.

g) Draw modified award accordingly.

h) There shall be no order as to costs.

Sd/-

(KRISHNA S.DIXIT) JUDGE Sd/-

(VIJAYKUMAR A.PATIL) JUDGE JTR/ct-an List No.: 2 Sl No.: 1