Karnataka High Court
Saritha Bhagel W/O Late Lokesh Bhagel vs Srinivasulu Reddy S/O Masthan Reddy on 14 December, 2023
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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NC: 2023:KHC-D:14702-DB
MFA No. 103239 of 2014
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 14TH DAY OF DECEMBER, 2023
PRESENT
THE HON'BLE MR JUSTICE S.SUNIL DUTT YADAV
AND
THE HON'BLE MR JUSTICE VIJAYKUMAR A.PATIL
MISCELLANEOUS FIRST APPEAL NO. 103239 OF 2014 (MV-D)
BETWEEN:
1. SARITHA BHAGEL W/O. LATE LOKESH BHAGEL,
AGED ABOUT: 23 YEARS, OCC: HOUSEWIFE.
2. UMEND SINGH S/O. CHHORKA @ CHHORKA RAM
AGED ABOUT 54 YEARS, OCC: EMPLOYEE.
3. SMT. KEWRABAI W/O. UMEND SINGH
AGED ABOUT: 51 YEARS,
ALL R/O: NO.18/12, BANBARAD VILLAGE IN DHAMDHA
TAHASIL, DURG DISTRICT, CHATTISGAD STATE.
NOW R/O V.V. NAGAR, THORANAGALLU IN SANDUR
TALUK OF BELLARY DISTRICT.
- APPELLANTS
(BY SRI. Y. LAKSHMIKANT REDDY, ADVOCATE)
AND:
Digitally
signed by
JAGADISH T R 1. SRINIVASULU REDDY S/O. MASTHAN REDDY,
Date:
2023.12.19 DRIVER OF THE LORRY BEARING
11:39:13
+0530 REG. NO.AP-26/TA-9898, R/O. NO.PATNA VEEDHI,
OPP: SRIRAMA TEMPLE, ATMAKUR TOWN AND MANDAL,
NELLUR DISTRICT AP.
2. SMT. KAMAKSHI KONDURU W/O. RAJESEKHAR REDDY,
OWNER OF THE LORRY BEARING REG. NO. AP/TA-9898,
R/O. NO. 9-34, TURUPA VEEDHI ATMAKUR TOWN AND
MANDAL IN NELLUR DISTRICT A.P.
3. M/SUNITED INDIA INSURANCE COMPANY LTD.,
BY ITS DIVISIONAL MANAGER, BELLARY.
- RESPONDENTS
(BY SMT. ARUNA R.DESHPANDE, ADVOCATE FOR R3;
NOTICE TO R1 AND R2 ARE SERVED)
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NC: 2023:KHC-D:14702-DB
MFA No. 103239 of 2014
THIS MFA IS FILED U/S 173(1) OF MV ACT 1988, AGAINST
THE JUDGMENT AND AWARD DATED 23.07.2014 PASSED IN MVC
NO.420/2013 ON THE FILE OF THE MEMBER MOTOR ACCIDENT
CLAIMS TRIBUNAL-XII, AT BERLLARY, PARTLY ALLOWING THE CLAIM
PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION & ETC.
THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR
ADMISSION, THIS DAY, VIJAYKUMAR A. PATIL J., DELIVERED THE
FOLLOWING:
JUDGMENT
This appeal is filed by the claimants against the judgment
and award dated 23.07.2014 passed by the MACT-XII, Ballari
(hereinafter referred to as 'the Tribunal') in MVC No.420/2013
seeking for enhancement of compensation awarded by the
Tribunal.
2. Brief facts giving rise to filing of this appeal are that
one Lokesh was proceeding on motorcycle bearing No.KA-
35/R/7902 on 09.03.2013. At that time, a lorry bearing No.AP-
26/TA-9898 came from hind side driven by its driver in a rash
and negligent manner dashed to the motorcycle. Resultantly,
the said Lokesh sustained grievous injuries and later
succumbed to the said injuries. The claimants filed a claim
petition seeking compensation.
3. The respondents opposed the claim petition by filing
objections denying their liability to pay the compensation.
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4. The Tribunal framed the issues and recorded the
evidence of the parties. The claimant No.2 examined himself as
PW-1, claimant No.1 examined herself as PW-2 and examined
another witness as PW-3 and got marked Exs.P-1 to P-31. The
respondents have not adduced any evidence. The Tribunal on
appreciation of the material evidence on record, awarded total
compensation of Rs.85,78,036/-along with 7% p.a. interest.
Being aggrieved by the same, the claimants are in appeal.
5. Learned counsel Smt. Soubhagya appearing for Sri
Y. Lakshmikant Reddy, learned counsel for the appellants
submits that the Tribunal has committed an error in assessing
the income of the deceased at Rs.41,559/- and deduction of
income tax at 30% is contrary to the evidence available on
record. She further submits that the tribunal has committed an
error in awarding meagre compensation under the head of loss
of consortium contrary to the law laid down by the Hon'ble
Surpeme Court in the case of Magma General Insurance
Company Limited Vs Nanu Ram1 and seeks for enhancement
of compensation.
(2018) SCC 130
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6. Per contra, learned counsel Smt. Aruna Deshpande
supports the impugned judgment and award of the tribunal and
submits that the tribunal considering the evidence on record
has assessed the income of the deceased and applied proper
multiplier and added 50% to the assessed income. It is
submitted that the salary slip at Ex.P.19 indicates that salary
arrears, other incentives are added to the total salary, hence
Ex.P.19 cannot be relied. She seeks for dismissal of the
appeal.
7. Having heard the learned counsel for the
appellants/ claimants, learned counsel for the respondent No.2,
perused the memorandum of appeal and Tribunal records. The
point that arises for consideration in these appeals is:
"Whether the appellants are entitled for the
higher compensation?"
8. The answer to the above point is in the affirmative
for the following reasons:
9. It is not in dispute that on 09.03.2013, one Sri
Lokesh met with an accident when he was proceeding on a
motorcycle bearing No.KA-35/R-7902 with the offending lorry
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bearing No.AP-26/TA-9898 came from hind side, sustained
grievous injuries and later succumbed to the said injuries. The
insurance company has not disputed the liability. The Tribunal
has assessed monthly income of the deceased at Rs.59,560/-
and proceeded to deduct 30% of the said amount towards
Income Tax and further deducted Rs.200/- towards Professional
Tax. The Tribunal has added 50% of the same towards future
prospects as per the law laid down by the Hon'ble Supreme
Court in National Insurance Company Limited Vs. Pranay
Sethi & Others2 and deducted 1/3rd of the same towards
personal and living expenses of the deceased.
10. Admittedly, the accident is of the year 2013.
Taking note of the Income Tax Returns placed on record as
Ex.P.20 and P.21 which indicates the salary earned by the
deceased. Taking note of the income tax returns on record this
Court proceeds to assess monthly income of the deceased at
Rs.59,560/-. Admittedly the income tax is required to be paid
and the financial year 2012-13. The taxable income on
Rs.7,15,800/- would be as under:
2017 (16) SCC 680
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Upto Rs. 2 lakhs No income tax
Above Rs. 2 lakhs and upto Rs.5 lakhs 10%
Above Rs. 5 lakhs and upto Rs.10 lakhs 20%
Taking note of the said percentage of income tax required
to be paid, this Court proceeded to calculate the income
tax payable on Rs.7,15,800/-. The tax component of the
assessed income would be Rs.3,222/- per month.
Assessed monthly income of the deceased is Rs.59,560/-
out of which if a sum of Rs.3,222/- and Rs.200/- is to is
deducted towards income tax and professional tax
respectively, the net monthly income would be
Rs.56,138/- for the purpose of assessing the
compensation.
11. Contention of the learned counsel for the
respondent-Insurance Company is that the document at
Ex.P.19 salary slip placed by the appellant indicates that
some of the components like salary arrears, variable
production incentives, fixed production incentives cannot
be taken into account while assessing income of the
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deceased as this Court has not fully placed its reliance on
Ex.P.19 alone. This Court has taken note of the net income
declared by the deceased as per Exs.P.20 and P.21 which
clearly indicates that the deceased was earning Rs.715,800/-
p.a. and after deduction of the applicable income tax and
professional income tax this Court assessed income of the
deceased at Rs.56,138/-. The Tribunal has rightly added 50%
of the assessed income under the head of loss of future
prospects and we affirm the same. Thus the claimants are
entitled for compensation of Rs.1,14,52,152/- [Rs.56,138/-
(monthly income) + 50% (future prospects) = Rs.84,207/-
(gross income) less Rs.28,069/- (1/3 towards personal
expenses) x 12 (months) x 17 (multiplier)] towards loss of
dependency.
12. The appellants are entitled to Rs.30,000/- towards
loss of estate and transportation of dead body and funeral
expenses. In addition, 20% escalation is to be made in view of
the law laid down by the Hon'ble Supreme Court in Pranay
Sethi. Hence, the appellants are entitled for a total sum of
Rs.36,000/- towards the aforesaid heads.
NC: 2023:KHC-D:14702-DB
13. The appellants being the wife and parents of the
deceased are entitled to loss of consortium at the rate of
Rs.40,000/- each and by applying 20% escalation, the net
amount would be Rs.1,20,000/- + 24,000/- = Rs.1,44,000/-
14. The appellants are entitled for the following
modified compensation with interest at the rate of 6%:
1 Loss of dependency 1,1452152.00
2 Loss of consortium (Rs.40,000/- each 1,44,000.00
to appellants No.1 to 3)
3 Transportation of dead body and 18,000.00
Funeral expenses
4 Loss of estate 18,000.00
Total 1,16,32,152.00
Compensation awarded by the tribunal 85,78,036.00
Enhanced compensation 30,54,116.00
15. Thus, the claimants would be entitled to total
compensation of Rs. 1,16,32,152/- as against
Rs.85,78,036/- awarded by the Tribunal.
16. Hence, we proceed to pass the following order:
ORDER
i. The appeal is allowed in part.
ii. The judgment and award dated 23.07.2014
passed in MVC No.420/2013 by the Tribunal, is
modified to an extent that the claimants would
be entitled to total compensation of
NC: 2023:KHC-D:14702-DB
Rs.1,16,32,152/- as against Rs.85,78,036/-
awarded by the Tribunal.
iii. The enhanced compensation amount of
Rs.30,54,116/- shall carry interest at the rate
of 6% per annum from the date of petition till
date of payment.
iv. Respondent/Insurance Company shall deposit
the enhanced compensation amount along with
accrued interest before the Tribunal within a
period of six weeks from the date of receipt of
certified copy of this judgment.
v. The apportionment & disbursement of enhanced
compensation shall be made in terms of the
award of the Tribunal.
vi. Registry to transmit the records to the Tribunal
forthwith.
vii. Draw modified award accordingly.
Sd/-
JUDGE
Sd/-
JUDGE
BVV
