United India Insurance Co.Ltd vs Madhuri W/O Bajirao Avaghade
2022 Latest Caselaw 415 Kant

           IN THE HIGH COURT OF KARNATAKA
                   DHARWAD BENCH

      DATED THIS THE 11 T H DAY OF JANUARY, 2022

                        BEFORE

     THE HON'BLE MR.JUSTICE S.VISHWAJITH SHETTY

             M.F.A. No.100608/2017 (MV)

BET WEEN

UNITED INDIA INS URANCE CO.LT D.,
R/B Y IT S DIVIS IONAL MANAGER,
DIV IS IONAL OFFICE, PB No.1568,
SITA SMRIT I, MARUTI GALL I,
BELAGAVI, REP RE SENTED T HROU GH
ITS DIV IS IONAL MANAGER.
                                          ...APPELLANT
(BY SRI NAGANGO UDA R.KU PPELU R, ADVOCATE)

AND

1.    SMT.MADHU RI,
      W/O B AJIRAO AVAGHADE,
      AGE: 31 YEARS,
      OCC: HOU SEHOLD WORK,
      R/O MUCHANDI T Q: BELAGAVI,
      DISTR ICT: BELAGAVI.

2.    SHRI ATMARAM,
      S/O GANAPAT I AVAGHADE,
      AGE: 62 YEARS, OCC: NIL,
      R/O MUCHANDI T Q: BELAGAVI,
      DISTR ICT: BELAGAVI.

3.    SMT.VIMAL W/O ATMARAM AVAGHADE,
      AGE: 57 YEARS, OCC: HOU SEHOLD WORK,
      R/O MUCHANDI T Q: BELAGAVI,
      DISTR ICT: BELAGAVI.

4.    SMT.LEELAVATHI N.,
      W/O NALLUSWAMY,
      AGE: 42 YEARS,
      OCC: TRANSPORT B USINESS,
                                    2




        R/O 5/92A KARIPA PPANUR,
        POST: P OTTANAM
        TQ. & DIST: NAMAKKAL.
                                       ...RESPONDENTS
(BY SRI UMESH C.AINAPUR, ADVOCAT E FOR R1 TO R3;
 NOTICE TO R4 SERVED)

      THIS MISCELLANEOUS FIRST APPEA L IS FILED UNDER
SECTION 173(1) OF MOTOR VEH ICLES ACT, 1988, AGAINST
THE J UDGMENT AND AWARD DATED 21.11.2 016 PASS ED IN
MVC No.1953/ 2015 ON T HE F ILE OF T HE X I ADDIT IONAL
DISTR ICT   AND     SESSIONS   J UDGE   AND   MEMB ER,
ADDIT IONAL    M OT OR  ACCIDENT    CLAIMS   TRIB U NAL,
BELAGAVI, AWAR DING COMPENSA TION OF ` 35,85,000/-
WITH INT EREST A T 9% P.A. FROM T HE DATE OF PET IT ION
TILL ITS REALIZ ATION.

     THIS APPEAL COM ING ON F OR F INAL HEAR IN G, THIS
DAY THE COU RT DELIVERED THE FOLLOW ING:

                                JUDGMENT

This app eal is filed by the insurer of the offending

truck b earing registration No.TN-28/Am-8619

challenging the judgment and award dated

21.11.2016 passed by the Court of XI Addl. District

and Sessions Judge and Member, Addl.M.A.C.T.,

Belagavi (hereinafter referred to as the 'Tribunal', for

brevity) in MVC No.1953/2015 only with regard to the

quantum of compensation.

2. The parties to this appeal are referred to by

their rankings before the Tribunal for the purpose of

convenience.

3. Brief facts of the case that would be

relevant for the purpose of disposal of this appeal

are:

The claimants are the wife and parents of the

deceased Bajirao Avaghade. On 15.06.2015 at about

5.00 p.m. when the deceased was proceeding in his

motorcycle bearing registration No.MH-09/BV-3878

on Pune-Bengaluru road NH-4, the offending truck

which was driven in a rash and negligent manner

dashed against the motorcycle and caused fatal

injuries to the deceased who succumbed to the same

in the spot. Claimants thereafterwards filed a claim

petition under Section 166 of the Motor Vehicles Act,

1988 (for short, the 'Act') claiming compensation of

`80,00,000/- with interest for the death of deceased

Bajirao in the road traffic accident. The Tribunal has

partly allowed the claim petition granting

compensation of `35,85,000/- with interest at 9%

p.a. from the date of petition till realization and

saddled the liability on the insurer of the offending

truck since the validity of insurance policy was not

disputed by the insurer. Being aggrieved by the

quantum of compensation awarded by the Tribunal,

the insurer is before this Court.

4. Learned counsel for the insurer submits

that the Tribunal has erred in taking the income of

the deceased at `17,500/- per month. He also

submits that the compensation awarded by the

Tribunal under the conventional heads is on the

higher side. He further submits that the rate of

interest awarded by the Tribunal at 9% requires to be

reduced to 6% per annum.

5. Per contra, learned counsel for the

claimants has argued in support of the impugned

judgment and award and submits that the

compensation amount awarded by the Tribunal is just

and proper and needs no interference by this Court

and accordingly, he prays to dismiss the appeal.

6. I have carefully appreciated the arguments

addressed on both sides and also perused the

material available on record.

7. The accident in question is not in dispute so

also the death of deceased Bajirao in the said

accident wherein the offending truck bearing

registration No.TN-28/AM-8619 was involved which

was duly insured by the insurer herein, which was

valid as on the date of accident. The deceased was

working as Senior Accountant in a private company.

In support of the proof of his income, the claimants

have produced Ex.P7-salary certificate and have also

examined PW2 on behalf of the employer of the

deceased. Having regard to the said material

evidence available on record, the Tribunal has taken

the income of the deceased at `17,500/- and in view

of the judgment of the Hon'ble Supreme Court in the

case of Sarla Varma and others V/s Delhi

Transport Corporation and another reported in

(2009) 6 SCC 121, 50% of his income is added

towards the loss of future prospects of deceased.

Therefore, I find no illegality or irregularity with

regard to the compensation awarded by the Tribunal

towards loss of dependency and loss of future

prospects. Under the conventional heads, in view of

the judgment of the Hon'ble Supreme Court in the

case of Magma General Insurance Company

Limited V/s Nanu Ram @ Chuhru Ram and others

reported in (2018) 18 SCC 130, the claimants are

together entitled for a sum of `1,50,000/- which

includes compensation towards funeral expenses.

8. As rightly contended by the learned counsel

for the appellant-insurer, the Tribunal has erred in

awarding interest at 9% per annum on the

compensation amount. This Court has been

consistently awarding interest at 6% per annum and

therefore the rate of interest is modified to 6% per

annum instead of 9%. On recalculation of the

compensation to be awarded to the claimants, the

claimants are entitled for a total compensation

amount of `35,10,000/- as against `35,85,000/-

awarded by the Tribunal and the said compensation

amount will carry interest at 6% per annum from the

date of petition till realization.

9. The Miscellaneous First Appeal filed by the

Insurer is accordingly partly allowed. The appellant-

insurer is directed to deposit the balance

compensation amount with interest before the

Tribunal within a period of six weeks from the date of

certified copy of this order.

10. The amount in deposit shall be transferred

to the Tribunal for the purpose of disbursement. The

order passed by the Tribunal with regard to the

disbursement and deposit etc., remains unaltered.

The registry is directed to forthwith return the

trial Court records to the Tribunal.

SD/-

JUDGE CLK