Karnataka High Court
Rangaiah vs Srinivasa Murthy on 30 July, 2024
Author: H.T. Narendra Prasad
Bench: H.T. Narendra Prasad
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NC: 2024:KHC:29991
MFA No. 6785 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 30TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD
MISCELLANEOUS FIRST APPEAL NO. 6785 OF 2019 (MV)
BETWEEN:
1. RANGAIAH
S/O RAMADAS
AGE 44 YEARS, COOLIE WORK.
2. LAKSHMIDEVI M
W/O RANGAIAH
AGE 36 YEARS
HOUSE WIFE.
BOTH ARE R/O NO.60/5
DEVARAJ SOCIETY ROAD
NEAR GANESHA TEMPLE
LENIN EXTENSION, NITUVALLI
DAVANAGERE 577001 ...APPELLANTS
(BY SRI. R SHASHIDHARA .,ADVOCATE)
Digitally signed by
HEMALATHA A
Location: HIGH AND:
COURT OF
KARNATAKA
1. SRINIVASA MURTHY
S/O GOPALA KRISHNA SETTY
SRINIVASA AGENCY
CHITRADURGA TOWN 577 501.
2. HUSAIN SAB BABULAL
S/O MADAN SAB, MAJOR
R/O DOOR NO.843/3
RENUKA BADAVANE
BEHIND FISH MARKET
DAVANAGERE CITY 577001.
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NC: 2024:KHC:29991
MFA No. 6785 of 2019
3. THE BRANCH MANAGER
UNITED INDIA INSURANCE CO LTD.
BRANCH OFFICE, PB NO.75
DHUMMI COMPLEX, LAXMI BAZAR
CHITRADURGA 577 501. ...RESPONDENTS
(BY SRI.C SHANKAR REDDY., ADVOCATE FOR R3:
NOTICE TO R1 & R2 IS DISPENSED WITHV/O DATED:
31.10.2022)
THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT
AGAINST THE JUDGMENT AND AWARD DATED: 11/07/2018,
PASSED IN MVC NO.258/2018, ON THE FILE OF THE II
ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL MACT-V,
CHITRADURGA, PARTLY ALLOWING THE CLAIM PETITION FOR
COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION.
THIS APPEAL, COMING ON FOR HEARING, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE H.T. NARENDRA PRASAD
ORAL JUDGMENT
1. This appeal under Section 173(1) of Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act') has been filed by the claimants being aggrieved by the judgment dated 11.07.2018 passed by the II Additional Senior Civil Judge and Additional MACT-V, Chitradurga (hereinafter referred to as 'the Tribunal') in MVC No.258/2018. -3-
NC: 2024:KHC:29991 MFA No. 6785 of 2019
2. Facts giving rise to the filing of the appeal briefly stated are that on 27.12.2017 at about 1.30 p.m., when the deceased Arun Kumar was proceeding on motorcycle bearing registration No.KA-17/EX-5302 from Davanagere, near Dhyamanna Kere road, Kodi Hosur Village, Bhadravathi Taluk, at that time, Tata Ace bearing registration No.KA-17/C-5749 being driven by its driver at a high speed and in a rash and negligent manner, dashed to the vehicle of the deceased. As a result of the aforesaid accident, the deceased sustained grievous injuries and succumbed to the injuries.
3. The claimants filed a petition under Section 166 of the Act seeking compensation for the death of the deceased along with interest.
4. Upon service of notice, the respondent Nos. 1 to 3 have appeared through counsel and filed written statements denying the averments made in the claim petition.
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NC: 2024:KHC:29991 MFA No. 6785 of 2019
5. On the basis of the pleadings of the parties, the Claims Tribunal framed the issues and thereafter, recorded the evidence. The claimants, in order to prove the case, examined claimant No.1 as PW-1, and got exhibited documents namely Ex.P1 to Ex.P.19. On behalf of respondents, no witnesses were examined but got exhibited documents namely Ex.R1 to Ex.R4. The Claims Tribunal, by the impugned judgment, inter alia, held that the accident took place on account of rash and negligent driving of the offending vehicle by its driver, as a result of which, the deceased sustained injuries and succumbed to the injuries. The Tribunal further held that the claimants are entitled to a compensation of Rs.7,08,000/- along with interest at the rate of 9% p.a. and directed the Insurance Company to deposit the compensation amount along with interest. Being aggrieved, this appeal has been filed.
6. The learned counsel for the claimants submits as follows:
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NC: 2024:KHC:29991 MFA No. 6785 of 2019
a) Firstly, the claimants assert that the deceased was approximately aged about 20 years at the time of the accident and he was a student studying Diploma in BIET College and he had a very good academic records and he had very good future after completion of his course. The Tribunal assessed the monthly income as Rs.6,000/-, which is on the lower side.
b) Secondly, as per the law laid down by the Hon'ble Supreme Court in the case of NATIONAL INSURANCE CO. LTD. -v- PRANAY SETHI AND OTHERS [AIR 2017 SC 5157], in case the deceased was self-employed or received a fixed salary, an addition of 40% of the established income towards 'future prospects' is warranted when the deceased was below the age of 40 years. This principle shall be considered in the present case.
c) Thirdly, as per the judgment of the Hon'ble Supreme Court in the case of MAGMA GENERAL INSURANCE CO.
LTD. -V- NANU RAM [2018 ACJ 2782], each of the claimants are entitled to compensation of Rs.40,000/- -6-
NC: 2024:KHC:29991 MFA No. 6785 of 2019 under the head of 'loss of love and affection and consortium'.
d) Lastly, considering the age and avocation of the deceased, the overall compensation awarded by the Tribunal is inadequate and on the lower side.
With the above submissions, learned counsel for the appellant sought to allow the appeal.
7. On the other hand, the learned counsel for the Insurance Company submits as follows:
a) Firstly, although the claimants claim that the deceased was a student of Diploma, he had a bright future after completion of degree, he is a non-earning member and no document has been produced to show that the claimant was doing any work or he has any earning at the time of his death. Considering his age the Tribunal has rightly assessed the notional income as Rs.6,000/- per month.
b) Secondly, since the claimants have not established the income of the deceased, they are not entitled for compensation towards 'future prospects'. -7-
NC: 2024:KHC:29991 MFA No. 6785 of 2019
c) Thirdly, on appreciation of oral and documentary evidence and considering the age and avocation of the deceased, the overall compensation awarded by the Tribunal is just and reasonable.
e) Lastly, in the light of the Division Bench decision of this Court in the case of MS.JOYEETA BOSE AND OTHERS -V- VENKATESHAN.V AND OTHERS (MFA 5896/2018 AND CONNECTED MATTERS DISPOSED OF ON 24.8.2020), the rate of interest awarded by the Tribunal at 9% p.a. on the compensation amount is on the higher side.
With the above submissions, learned counsel for the Insurance Company sought to dismiss the appeal.
8. Heard the learned counsel for the parties and perused the judgment and award of the Tribunal and the original records.
9. It is not in dispute that Arun Kumar died in the road traffic accident occurred on 27.12.2017 due to rash and negligent driving of the offending vehicle by its driver. -8-
NC: 2024:KHC:29991 MFA No. 6785 of 2019
10. At the time of the accident the deceased was aged about 20 years, he was studying in Diploma. Considering his academic records and his age, I am of the opinion that the monthly income of the deceased can be assessed at Rs.12,500/-. To the aforesaid income, 40% has to be added on account of future prospects in view of the law laid down by the Constitution Bench of the Supreme Court in 'PRANAY SETHI' (supra). Thus, the monthly income comes to Rs.17,500/-. Since the deceased was a bachelor, it is appropriate to deduct 50% of the income of the deceased towards personal expenses and remaining amount i.e., Rs.8,750/- has to be taken as his contribution to the family,. The deceased was aged about 20 years at the time of the accident and multiplier applicable to his age group is '18'. Thus, the claimants are entitled to compensation of Rs.18,90,000/- (Rs.8,750*12*18) on account of 'loss of dependency'.
11. In addition, the claimants are entitled to compensation of Rs.15,000/- on account of 'loss of estate' and -9- NC: 2024:KHC:29991 MFA No. 6785 of 2019 compensation of Rs.15,000/- on account of 'funeral expenses'.
12. In view of the law laid down by the Supreme Court in the case of 'MAGMA GENERAL INSURANCE' (supra), claimants, parents of the deceased are entitled for compensation of Rs.40,000/- each under the head of 'loss of filial consortium'.
13. Thus, the claimants are entitled to the following compensation:
Compensation under Amount in
different Heads (Rs.)
Loss of dependency 18,90,000
Funeral expenses 15,000
Loss of estate 15,000
Loss of Filial consortium 80,000
Total 20,00,000
2. In the result, the following order is passed:
ORDER
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NC: 2024:KHC:29991 MFA No. 6785 of 2019
a) The appeal is allowed in part.
b) The judgment of the Claims Tribunal is modified.
c) The claimants are entitled to a total compensation of Rs.20,00,000/- as against Rs.7,08,000/- awarded by the Tribunal.
d) Following the judgment of the Division Bench of this Court in the case of 'MS.JOYEETA BOSE' (supra), the enhanced compensation shall carry interest at 6% per annum.
e) The Insurance Company is directed to deposit the compensation amount along with interest from the date of filing of the claim petition till the date of realization, within a period of six weeks from the date of receipt of a copy of this judgment.
f) The apportionment, deposit and release of amount shall be made in accordance with the terms of the award of the Tribunal.
g) In view of the order dated 31.10.2022 passed by this Court, the claimants are not entitled for interest on the
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NC: 2024:KHC:29991 MFA No. 6785 of 2019 enhanced compensation for the delayed period of 310 days in filing the appeal.
Sd/-
(H.T. NARENDRA PRASAD) JUDGE CM List No.: 1 Sl No.: 86