New India Assurance Co Ltd vs Smt.Mahadevi @ Madevi W/O
2022 Latest Caselaw 2728 Kant

           IN THE HIGH COURT OF KARNATAKA
                   DHARWAD BENCH

     DATED THIS THE 18TH DAY OF FEBRUARY, 2022

                          BEFORE

     THE HON'BLE MR.JUSTICE S.VISHWAJITH SHETTY

       MISCELLANEOUS FIRST APPEAL No.101162/2019(MV)

BETWEEN:

NEW INDIA ASSURANCE CO LTD.,
BY ITS DIVISIONAL MANAGER,
SOMESHWAR HEIGHTS, OPP. OLD DY.S.P.
OFFICE, P.B.ROAD, DHARWAD - 580008.
BY ITS AUTHORISED SIGNATORY.
                                              ...APPELLANT
(BY SRI. R. R. MANE, ADVOCATE)

AND:

1.     SMT.MAHADEVI @ MADEVI W/O
       SHIVAPUTRAPPA ROTTI
       AGE:56 YEARS, OCC:HOUSEWIFE
       R/O NAYAKANAHULIKATTI,
       POST:KANAVIHONNAPUR,
       DIST:DHARWAD.

2.     KALLAPPA S/O SHIVAPUTRAPPA ROTTI
       AGE: 35 YEARS, OCC:COOLIE,
       R/O NAYAKANAHULIKATTI,
       POST:KANAVIHONNAPUR,
       TQ:DIST:DHARWAD.

3.     RAMESH S/O SHIVAPUTRAPPA ROTTI
       AGE: 33 YEARS, OCC:COOLIE
       R/O NAYAKANAHULIKATTI,
       POST:KANAVIHONNAPUR,
       TQ:DIST:DHARWAD

4.     SMT. SUJATA W/O MANJUNATH MANAGULLI
       AGE:29 YEARS, OCC:HOUSEWIFE
                                            MFA NO.101162/2019
                              2



     R/O NAYAKANAHULIKATTI,
     POST:KANAVIHONNAPUR,
     TQ:DIST:DHARWAD

5.   SRI. SENTHILKUMAR @ SHEETALKUMAR
     MUNI SWAMY,AGE:41 YEARS, OCC:BUSINESS,
     R/O:FLAT NO.206, BALAJI VIHAR,
     BALAJI TOWNSHIP, AMIL SILVASSA D.N.H.SILVASSA,
     UT DADRA AND NAGAR HAVELI 396230

     (OWNER OF THE TATA MOTOR/INDICA VISTA
     ADUA QUARDAJET-B5IV BEARING NO.DN-09/H-2638)
                                            ...RESPONDENTS

(BY SRI. M H PATIL AND SRI. H. M. PATIL, ADVOCATES FOR R1 TO
R4; NOTICE TO R5 - DISPENSED WITH)
                              ---

     THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, AGAINST THE JUDGMENT AND AWARD DATED 07.12.2018
PASSED IN MVC NO.58/2017 ON THE FILE OF THE II ADDITIONAL
SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS
TRIBUNAL, DHARWAD, AWARDING COMPENSATION OF `18,64,682/-
WITH INTEREST AT 8% P.A. FROM THE DATE OF PETITION TILL ITS
DEPOSIT.

     THIS APPEAL COMING ON FOR ADMISSION THIS DAY, THE
COURT DELIVERED THE FOLLOWING:


                        JUDGMENT

The Insurer of the offending car bearing

registration No.DN-09/H-2638 has preferred this

appeal challenging the judgment and award dated

07.12.2018, passed by the ADDL. MACT, Dharwad

(hereinafter referred to as 'the Tribunal', for brevity), MFA NO.101162/2019

in MVC No.58/2017, being aggrieved by the quantum

of compensation awarded.

2. The undisputed facts of this case are;

The deceased Shivaputrappa Rotti was

proceeding in the motorcycle bearing registration

number KA-25/B-7710 on 16/05/2016 and when he

reached near Ittigatti cross of P.B. Road, the

offending car bearing registration No.DN-09/H-2638,

which was driven in a rash and negligent manner by

its driver, dashed against the motorcycle of the

deceased and caused the accident. In the said

accident, Shivaputrappa had sustained grievous

injuries and died on the spot.

It is under these circumstances the claimants

being the wife and children of the deceased

Shivaputrappa had filed a claim petition under

Section 166 of the Motor Vehicles Act, 1988. The

said claim petition was partly allowed and a

compensation of `18,64,682/- with interest at 8% per

annum from the date of petition till realization was MFA NO.101162/2019

awarded. Being aggrieved by the quantum of

compensation and the rate of interest awarded by the

Tribunal, the Insurer of the offending car bearing

registration No.DN-09/H-2638 is before this Court.

3. Learned counsel for the Insurer has

submitted that the deceased was a workman in a

canteen and drawing a monthly salary of `21,000/-

and he was aged about 58 years as on the date of

death and therefore, having regard to the fact that

he had only two years of service left, the Tribunal

ought to have made applicable the split multiplier

while considering the loss of dependency. He also

submits that the rate of interest awarded by the

Tribunal at 8% per annum is on the higher side.

4. Per contra, learned counsel appearing for

the claimants submits that the contention urged by

the Insurer that the Tribunal ought to have made

applicable the split multiplier does not merit

consideration, having regard to the judgment of the

Hon'ble Supreme Court in the case of R. Valli & Ors.

MFA NO.101162/2019

Vs. Tamil Nadu State Transport Corporation, in Civil

Appeal No.1269 of 2012, disposed of on 10.02.2022.

He submits that the rate of interest awarded is not

on the higher side and accordingly prays to dismiss

the appeal.

5. I have carefully appreciated the arguments

addressed on both sides and perused the material on

record.

6. The contention urged by the learned

counsel for the Insurer that the Tribunal ought to

have made applicable the split multiplier does not

merit consideration as rightly contended by the

learned counsel for the claimants, having regard to

the judgment of the Hon'ble Apex Court in the case

of R. Valli & Ors. Vs. Tamil Nadu State Transport

Corporation, in Civil Appeal No.1269 of 2012,

disposed of on 10.02.2022, wherein it is held that

the method of determination of compensation

applying two multipliers is clearly erroneous and run

counter to the judgment of this Court in Pranay MFA NO.101162/2019

Sethi, wherein the judgment in Sarla Verma, was

affirmed. Under the circumstances, the said

contention urged by the learned counsel for the

Insurer is liable to be rejected.

7. In so far as the quantum of compensation

awarded by the Tribunal is concerned, the income of

the deceased has been taken into consideration

based on the salary certificate and 15% of his income

is taken into consideration towards his loss of future

prospects and thereafterwards, after deducting 1/3 r d

of the total income towards the personal expenses of

the deceased and applying the proper multiplier of 9,

a compensation of `16,94,682/- is awarded towards

loss of dependency. I do not find any irregularity or

illegality in the grant of this compensation to the

claimants towards loss of dependency. Even the

compensation awarded under the conventional heads

is just and proper and I find no good ground to

interfere even as against the compensation awarded

to the claimants under the conventional heads.

MFA NO.101162/2019

8. However, as rightly contended by the

learned counsel for the Insurer, the Tribunal has

erred in awarding interest at 8% per annum on the

compensation amount from the date of petition till

realization. In my considered view, the Tribunal

ought to have awarded interest at 6% per annum

which is the rate of interest consistently awarded by

this Court on the compensation awarded in motor

vehicle accident claim cases and accordingly the

judgment and award is modified only to the extent of

rate of interest awarded on the compensation amount

and it is held the claimants are entitled for interest

at the rate of 6% per annum on the compensation

amount awarded to them. Accordingly the following

order:

ORDER

. Miscellaneous First Appeal is partly allowed.

The compensation amount of `18,64,682/- awarded

to the claimants remains unaltered. However, it is

held that the claimants are entitled for interest on MFA NO.101162/2019

the said compensation amount at 6% per annum from

the date of petition till realization.

The amount in deposit in this appeal shall stand

transferred to the tribunal for the purpose of

disbursement.

Sd/-

JUDGE

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