Karnataka High Court
The Reliance General Insurance Company ... vs Sridevi M J on 4 July, 2024
Author: K.Somashekar
Bench: K.Somashekar
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NC: 2024:KHC:25515-DB
MFA No. 402 of 2019
C/W MFA No. 120 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF JULY, 2024
PRESENT
THE HON'BLE MR JUSTICE K.SOMASHEKAR
AND
THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA
MISCELLANEOUS FIRST APPEAL NO.402 OF 2019 (MV-I)
C/W
MISCELLANEOUS FIRST APPEAL NO. 120 OF 2021 (MV-I)
IN MISCELLANEOUS FIRST APPEAL NO. 402 OF 2019:
BETWEEN:
THE RELIANCE GENERAL
INSURANCE COMPANY LTD.,
EAST WING, 5TH FLOOR,
NO.28, CENTENARY BUILDING
M. G. ROAD, BENGALURU-560 001.
NOW REPRESENTED BY
MANAGER LEGAL.
...APPELLANT
(BY SRI. ASHOK N. PATIL, ADVOCATE)
Digitally signed by
AASEEFA PARVEEN AND:
Location: HIGH
COURT OF 1. SRIDEVI M. J.
KARNATAKA
W/O. R. C. NANDA KISHORE,
AGED 41 YEARS, OCC:TEACHER
AND BEAUTICIAN, R/O NO.4
SAPTHAGIRI, 8TH CROSS
17TH WARD, POORNAPURA,
NEAR SHANIMAHATMA TEMPLE,
SUNDAR NAGAR, GOKUL, MSIRT,
BENGALURU-54.
NOW PRESENTLY R/O. C/O. 1471,
"KANASU" 'A' BLOCK,
J. H. PATIL LAYOUT,
NAGANURU ROAD,
DAVANAGERE-04.
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MFA No. 402 of 2019
C/W MFA No. 120 of 2021
2. SHANKARAYYA I. MATHAPATI
S/O IRAYYA,
AGED ABOUT 60 YEARS,
R/O KULAHALLI VILALGE AND POST
JAMAKHANDI TALUK,
BAGALKOT DISTRICT.
3. M/S SEABIRD HOLIDAY MAKERS,
NO.24, HARAPANAHALLY
JIGANI VILLAGE, JIGANI CIRCLE,
ANKEKAL TALUK,
BENGALURU RURAL DISTRICT-562 106
...RESPONDENTS
(BY SRI. R. SHASHIDHARA, ADVOCATE FOR R1;
R2 AND R3 - NOTICE DISPENSED WITH
V/O. DATED 31.10.2019)
THIS MISCELLANEOUS FIRST APPEAL FILED U/S 173(1) OF MV
ACT AGAINST THE JUDGMENT AND AWARD DATED 02.11.2018,
PASSED IN MVC NO.530/2017, ON THE FILE OF THE PRINCIPAL
SENIOR CIVIL JUDGE & MEMBER, MACT-IV, DAVANAGERE,
AWARDING COMPENSATION OF RS.17,92,400/- WITH INTEREST @
8% P.A., FROM THE DATE OF PETITION TILL ITS REALIZATION.
IN MISCELLANEOUS FIRST APPEAL NO. 120 OF 2021:
BETWEEN:
SRIDEVI M. J.
W/O. R. C. NANDA KISHORE,
AGED 43 YEARS,
TEACHER AND BEAUTICIAN
R/O NO.4, SAPTHAGIRI 8TH CROSS,
17TH WARD, POORNAPURA,
NEAR SHANIMANTAPA TEMPLE,
SUNDAR NAGAR, GOKUL, MSIRT,
BANGALORE-54.
NOW PRESENTLY
R/O CARE OF 1471, KANASU A BLOCK
J. H. PATEL LAYOUT, NAGANUR ROAD,
DAVANAGERE-577 004.
...APPELLANT
(BY SRI. R. SHASHIDHARA, ADVOCATE)
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NC: 2024:KHC:25515-DB
MFA No. 402 of 2019
C/W MFA No. 120 of 2021
AND:
1. SHANKARAYYA I MATHAPATHI
S/O IRAYYA, AGED ABOUT 62 YEARS,
R/O KULAHALLI VILLAGE AND POST
JAMKHANDI TALUK-587301
BAGALKOT DISTRICT,
DRIVER OF SEABIRD
BUS BEARING NO.KA-51/B-1461.
2. M/S SEABIRD HOLIDAY MAKERS,
NO.24, HARAPANAHALLY JIGANI VILLAGE,
JIGANI CIRCLE, ANEKAL TALUK,
BANGALORE RURAL-562 106,
OWNER OF BUS BEARING NO.LA-51/B-1461.
3. THE DIVISIONAL MANAGER,
RELIANCE GENERAL INSURANCE CO., LTD.,
RGIC, 28, EAST WING, 5 TH FLOOR
CENTENARY BUILDING, M. G. ROAD,
BANGALORE-560 001.
...RESPONDENTS
(BY SRI. ASHOK N. PATIL,ADVOCATE FOR R2;
R1 AND R2 - NOTICE DISPENSED
WITH V/O. DATED 31.10.2023)
THIS MISCELLANEOUS FIRST APPEAL FILED U/S 173(1) OF MV
ACT AGAINST THE JUDGMENT AND AWARD DATED 02.11.2018
PASSED IN MVC NO.530/2017 ON THE FILE OF THE PRL. SENIOR
CIVIL JUDGE AND MEMBER, MACT-IV, DAVANAGERE, PARTLY
ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING
ENHANCEMENT OF COMPENSATION.
THESE APPEALS ARE COMING ON FOR DICTATION,
THIS DAY, DR. CHILLAKUR SUMALATHA, J., DELIVERED THE
FOLLOWING:
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NC: 2024:KHC:25515-DB
MFA No. 402 of 2019
C/W MFA No. 120 of 2021
JUDGMENT
Heard Sri.Ashok N. Patil, learned counsel for the Insurance Company as well Sri.Shashidhara R. learned counsel who is representing the claimant.
While MFA No.402/2019 is filed by the Insurance Company, MFA No.120/2021 is filed by the claimant.
With a contention that the medical expenses granted is excessive and the interest awarded is also excessive and thereby seeking for reduction in awarded amount, the Insurance Company preferred the appeal vide MFA No.402/2019.
On the other hand, on the ground that the amount awarded as compensation is low and that the same needs enhancement, the claimant preferred the appeal vide MFA No.120/2021.
2. Challenge in both the appeals is the order that is rendered by the Motor Accident Claims Tribunal-IV, Davanagere, in MVC No.530/2017 dated 02.11.2018.
3. The crux of the case as could be perceived through the material available on record is that on 03.04.2017 at about -5- NC: 2024:KHC:25515-DB MFA No. 402 of 2019 C/W MFA No. 120 of 2021 3.00 p.m. while the claimant was coming from Hubli to Bangalore in a Tourists Bus bearing Registration No.KA.51/B.1461, the driver of the said bus drove the bus in a rash and negligent manner and dashed against a Crane, due to which the claimant sustained injuries.
4. The undisputed facts in the case are that the claimant took extensive treatment for the injuries sustained. That she sustained fracture of 7th and 8th ribs anteriorly, fracture of L1 vertebra, fracture transverse process of L2, left subtrochanteric femur fracture and crush injury to left leg. Also it is not in dispute that during the course of treatment her left leg below knew was amputed.
5. Learned counsel for the Insurance Company Sri.Ashok N.Patil submits that without sufficient proof the Tribunal through the impugned order awarded compensation. The tribunal as per the material available on record has awarded a sum of Rs.17,92,400/- under the following heads:
Sl. Description Amount
No Rs.
1 Pain and suffering
50,000.00
2 Food and nourishment, 30,000.00
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MFA No. 402 of 2019
C/W MFA No. 120 of 2021
conveyance and attendant
charge
3 Loss of income during laid
up period 54.000.00
4 Medical expenses
7,98,400.00
5 Loss of earning due to
disability 8,10,000.00
6 Future medical expenses
40,000.00
7 Loss of amenities and
10,000.00
unhappiness
Total Compensation 17,92,400.00
6. Arguing in respect of merits of the matter learned counsel Sri.Ashok N.Patil who is representing the Insurance Company submits that without any basis the Tribunal awarded a sum of Rs.7,98,400/- towards medical expenses. Learned counsel states that the said amount has to be reduced. Learned counsel also contends that the Tribunal has awarded interest at the rate of 8% per annum and indeed it has to be reduced to 6%. Learned counsel thereby seeks to reduce the amount that is awarded as compensation.
7. Contradicting the submission thus made, Sri.R.Shashidhara, learned counsel who is representing the claimant contends that the Tribunal erred in assessing the -7- NC: 2024:KHC:25515-DB MFA No. 402 of 2019 C/W MFA No. 120 of 2021 disability as 50%. Learned counsel states that the disability as spoken by the doctor is 70%. However, a perusal of record goes to show that the doctor who gave evidence did not state that the disability of 70% is in respect of the whole body. The Tribunal having discussed the facts of the case at length came to a conclusion that the disability is to be taken as 50% in respect of the whole body. This Court is not inclined to disturbed the said finding as the said finding appears reasonable.
8. Learned counsel Sri.Shashidhara R. also argued that the Tribunal erred in not adding future prospects. Learned counsel states that the Tribunal ought to have added future prospects. In this regard learned counsel relies upon the decision of the Hon'ble Apex Court in the case of Mohd.Sabeer @ Shabir Hussain Vs. Regional Manager U.P. State Road Transport Corporation in Civil Appeal Nos.9070-9071 of 2022. In the said decision the Hon'ble Apex Court at paragraph No.18 of the judgment held as follows:
"18. It is a well settled position of law that in cases of permanent disablement caused by a motor accident, the claimant is entitled to not -8- NC: 2024:KHC:25515-DB MFA No. 402 of 2019 C/W MFA No. 120 of 2021 just future loss of income, but also future prospects. It has been reiterated by this Court in multiple instances that "just compensation" must be interpreted in such a manner as to place the claimant in the same position as he was before the accident took place."
9. In the light of the aforementioned discussion this Court is of the view that the contention of the learned counsel for the claimant that the Tribunal erred in not adding future prospects is justifiable.
10. It is not in dispute that the claimant was aged about 40 years by the date of accident. The relevant medical record reveals the said fact. Therefore, taking into consideration her age, as per the decision of the Hon'ble Apex Court, 40% of the actual earnings are required to be added as future prospects.
11. Coming to the income of the claimant by the date of accident, her version is that she was working as teacher. She also contended that she was earning Rs.30,000/- per month as a teacher and as beautician. However, no substantive proof is produced with regard to occupation or earning of the claimant by the date of accident. However, taking into consideration the -9- NC: 2024:KHC:25515-DB MFA No. 402 of 2019 C/W MFA No. 120 of 2021 fact that the Karnataka State Legal Services Authority is taking notional income as Rs.11,000/- per month in respect of the accidents that occurred in the year 2017 and as the accident in this case occurred in the year 2017, this Court considers desirable to take the income as Rs.11,000/- per month.
12. Having taken notional income as Rs.11,000/- per month, adding 40% towards future prospects and applying multiplier '15' as per the decision of the Hon'ble Apex Court in the case of Smt.Sarla Verma and others Vs. Delhi Transport Corporation and Another reported in AIR 2009 SC 3104, the loss of earnings due to permanent disability if calculated would be as under:
Description Amount
Rs.
Annual income (11,000x12)
1,32,000.00
Add 40% of towards future
prospects(1,32,000+40%) 1,84,800.00
Applying the relevant
multiplier 27,72,000.00
'15'(1,84,800x15)
Disability being 50% 13,86,000.00
(27,72,000 x 50%)
Loss of earnings due to
13,86,000.00
disability
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MFA No. 402 of 2019
C/W MFA No. 120 of 2021
13. Coming to other considerations, having regard to the fact that the appellant sustained grievous injuries due to the accident, lost one of her limbs and took extensive treatment, this Court considers desirable to award a sum of Rs.1,00,000/- under the head pain and sufferings. Likewise, this Court considers desirable to award a sum of Rs.50,000/- under the head food and nourishment, conveyance and attendant charges. The appellant would have taken bed rest at- least for a period of six months. Thus, loss of income during laid up period comes to Rs.66,000/- (Rs.11,000/- x 6). Having considered the documentary evidence produced i.e. the medical bills, this Court is of the view that the amount awarded under the head medical expenses i.e. Rs.7,98,400/- should remain undisturbed.
14. Though learned counsel for the claimant stated that the appellant is required to have artificial limb and should have replacement, the cost of the artificial limb and the necessity for replacement periodically is not produced through any cogent evidence. However, pursuing the fact that the artificial limb purchased cannot be used life long, this Court considers desirable to award a sum of Rs.1,00,000/- under the head
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NC: 2024:KHC:25515-DB MFA No. 402 of 2019 C/W MFA No. 120 of 2021 future medical expenses as well as purchase of artificial limb. The Tribunal has awarded a sum of Rs.10,000/- towards loss of amenities and unhappiness, this Court considers desirable to award a sum of Rs.1,00,000/- under the said head. Relying upon the decision that is referred supra i.e. Mohd. Sabeer's case, learned counsel seeks to award certain amount under the head disfigurement. Admittedly, the appellant has lost one of her limb, certainly there would be disfigurement. Therefore, this Court considers desirable to award a sum of Rs.50,000/- under the head disfigurement. Thus, the total amount which the appellant is entitled to would be as under:
Sl. Description Amount
No Rs.
1 Pain and suffering
1,00,000.00
2 Food and nourishment,
conveyance and attendant 50,000.00
charge
3 Loss of income during laid
up period 66,000.00
4 Medical expenses
7,98,400.00
5 Loss of future earnings due
to disability 13,86,000.00
6 Future medical expenses
and for purchase of
1,00,000.00
artificial limb
7 Loss of amenities and 1,00,000.00
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MFA No. 402 of 2019
C/W MFA No. 120 of 2021
unhappiness
8 For disfigurement 50,000.00
Total Compensation 26,50,400.00
15. This Court considers that there is force in the submission that is made by learned counsel for the Insurance Company Sri.Ashok N.Patil so far as award of interest is concerned. Therefore, as prayed for, the interest is required to be reduced from 8% to 6% per anum. Thus, the following ORDER
(i) Both the appeals are allowed in part.
(ii) The amount awarded as compensation by the Motor Accidents Claims Tribunal-IV, Davanagere through orders in MVC No.530/2017 dated 02.11.2018 is enhanced from Rs.17,92,400/- to Rs.26,50,400/-.
(iii) The awarded sum as well as the enhanced sum shall carry interest at the rate of 6% per annum from the date of petition till the date of deposit.
(iv) The insurance company shall deposit the entire sum within a period of 8 weeks from the date of receipt of copy of this order.
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(v) On such deposit, the appellant is permitted to withdraw 50% of the total sum and the remaining 50% shall be kept in fixed deposit in her name in any nationalized bank for a period of five years.
(vi) On completion of the said period, the claimant is permitted to withdraw the same along with accrued interest.
(vii) The amount, if any, in deposit be transmitted along with records to the concerned Tribunal forthwith.
Sd/-
JUDGE Sd/-
JUDGE AP CT:TSM List No.: 1 Sl No.: 32