Karnataka High Court
New India Assurance Co. Ltd vs J.B.Muttamma W/O. Bharmappa on 22 November, 2023
Author: Hanchate Sanjeevkumar
Bench: Hanchate Sanjeevkumar
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NC: 2023:KHC-D:13714
MFA No. 24118 of 2013
C/W MFA.CROB No. 100132 of 2014
IN THE HIGH COURT OF KARNATAKA,
DHARWAD BENCH
DATED THIS THE 22ND DAY OF NOVEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR
MISCELLANEOUS FIRST APPEAL NO.24118/2013 C/W
MFA CROSS OBJ NO.100132/2014 (MV-D)
IN MFA.NO.24118/2013:
BETWEEN:
NEW INDIA ASSURANCE CO., LTD.,
BY ITS BRANCH MANAGER,(NEAREST BRANCH),
STATION ROAD, HOSPET,
HEREIN REPRESENTED BY
NEW INDIA ASSURANCE CO., LTD.,
REGIONAL OFFICE,
MOTOR THIRD PARTY HUB OFFICE,
SRINATH COMPLEX, 2ND FLOOR,
NEW COTTON, MARKET, HUBBALLI,
R/BY ITS AUTHORISED SIGNATORY.
...APPELLANT
(BY SRI R. R. MANE, ADVOCATE)
Digitally
signed by AND:
SUJATA
SUBHASH
PAMMAR 1. SMT. J.B.MUTTAMMA
W/O. BHARMAPPA,
AGE: 44 YEARS,
OCC: SINECURE.
2. J. BHARMAPPA
S/O. LATE JAMBANNA,
AGE ABOUT 57 YEARS.
BOTH R/O: NEAR GURU BHAVAN,
OPP. ITI COLLEGE, HOSPET,
TQ: HOSPET,
DIST: BALLARI.
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MFA No. 24118 of 2013
C/W MFA.CROB No. 100132 of 2014
3. RAGHU RAM REDDY S/O. G. NAGA REDDY,
AGE: 27 YEARS,
RIDER/OWNER OF HERO
HONDA BEARING NO.KA 34/W-143,
R/O: SIDDAMANAHALLI VILLAGE,
TQ AND DIST: BALLARI.
4. HANUMANTHAPPA @ HANUMAPPA
S/O. BHEEMAPPA,
AGE: 41 YEARS,
DRIVER/OWNER OF LORRY BEARING
NO. KA 28/A-61,
R/O: GINIGERI VILLGE,
TQ AND DIST: KOPPAL.
5. THE GENERAL MANAGER,
RELIANCE GENERAL INSURANCE CO., LTD.,
OPP: OLD KSRTC BUS STAND,
BALLARI.
...RESPONDENTS
(BY SRI HANUMANTHAREDDY SAHUKAR,
ADVOCATE FOR R1 AND R2;
SRI GODE NAGARAJ, ADVOCATE FOR R3;
SRI Y. LAXMIKANTH REDDY, ADVOCATE FOR R4;
SRI NAGARAJ S. KOLLOORI, ADVOCATE FOR R5)
THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR
VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND
AWARD DATED 21.02.2013 PASSED BY THE COURT OF THE
PRINCIPAL SENIOR CIVIL JUDGE AND J.M.F.C., HOSPET, IN MVC
NO.1474/2011 AND ETC.,
IN MFA.CROB.NO.100132/2014
BETWEEN:
1. SMT. J.B.MUTTAMMA
W/O. BHAMAPPA,
AGE: 44 YEARS,
OCC: SENECURE.
2. SRI J. BHAMAPPA
S/O. LATE JAMBANNA,
AGE: 57 YEARS, OCC: NIL.
BOTH R/O: NEAR GURU BHAVAN,
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MFA No. 24118 of 2013
C/W MFA.CROB No. 100132 of 2014
OPP. ITI COLLEGE, HOSPET,
TQ: HOSPET, DIST: BALLARI.
...CROSS OBJECTORS
(BY SRI HANUMANTHREDDY SAHUKAR, ADVOCATE)
AND:
1. SRI RAGHU RAM REDDY
S/O. G. NAGA REDDY,
AGE: 27 YEARS,
RIDER/OWNER OF HERO
HONDA BEARING NO.KA - 34/W-143,
R/O: SIDDAMANAHALLI VILLAGE,
TQ AND DIST: BALLARI.
2. THE BRANCH MANAGER,
THE NEW INDIA ASSURANCE CO., LTD.,
STATION ROAD, HOPSET,
DIST: BALLARI.
3. SRI HANUMANTHAPPA @ HANUMANTHAPPA
S/O. BHEEMAPPA, AGE: 41 YEARS,
DRIVER/OWNER OF LORRY BEARING REGN.
NO.KA 28/A-61, R/O: GINIGERI VILLGE,
TQ AND DIST: KOPPAL.
4. THE GENERAL MANAGER,
RELIANCE GENERAL INSURANCE CO., LTD.,
OPP: OLD KSRTC BUS STAND,
BALLARI.
...RESPONDENTS
(BY R.R.MANE, ADVOCATE FOR R2;
SRI NAGARAJ C. KOLLORI, ADVOCATE FOR R4;
NOTICE TO R1 AND R3 ARE DISPENSED WITH)
THIS CROSS OBJECTION IN MFA NO.24118/2013 IS FILED
UNDER ORDER 41 RULE 22 OF C.P.CODE, 1908, AGAINST THE
JUDGMENT AND AWARD DATED 21.02.2013, PASSED IN MVC
NO.1474/2011 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE AND
JMFC., HOSPET, PARTLY ALLOWING THE CLAIM PETITION FOR
COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.
THESE CROSS OBJECTION AND APPEAL, COMING ON FOR
ADMISSION, THIS DAY, THE COURT DELIVERED THE FOLLOWING:
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MFA No. 24118 of 2013
C/W MFA.CROB No. 100132 of 2014
JUDGMENT
MFA.No.24118/2013 is filed by the Insurance
Company challenging the judgment and award dated
21.02.2013 passed in MVC.No.1474/2011 by the Prl.
Senior Civil Judge & JMFC-cum-Member, MACT-IV, Hospet,
for awarding compensation on the ground that the
compensation granted in lieu of availment of loan ought
not to have been granted and therefore, prays to reduce
the quantum of compensation.
MFA.Crob.100132/2014 is filed by the claimants
challenging the aforesaid judgment and award for seeking
enhancement of compensation.
2. The factum of accident, death of the deceased
and coverage of insurance of lorry bearing Reg.No.KA-
28/A-61 and motor cycle bearing No.KA-34/W-143 are not
disputed.
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C/W MFA.CROB No. 100132 of 2014
3. Heard the arguments from both sides and
perused the records.
4. It is the brief case of the claimants that on
21.07.2021 at about 9.45 pm when the deceased was
proceeding as a pillion rider in motor cycle bearing
reg.No.KA-35-L-4327 and one Masthan was riding the said
motor cycle and the said motor cycle was hit by another
Hero Honda Karizma bike bearing No.KA-34/W-143, due to
which, deceased fell on the road and at that spur of
moment, lorry bearing Reg.No.KA-28/A-61 came with high
speed and ran over the deceased. As a result, deceased
died on the spot. Therefore, the claimants have filed the
claim petition and the Tribunal has awarded compensation
holding that the owner and insurer of lorry bearing
Reg.No.KA-28/A-61 and owner and insurer of Hero Honda
Karizma bike bearing No.KA-34/W-143 are jointly and
severally shall satisfy the award amount equally (50/50)
to the claimants. The Tribunal has also awarded
compensation of Rs.4,00,000/- on the reason that just
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C/W MFA.CROB No. 100132 of 2014
before three months from the date of accident, the
deceased had availed loan of Rs.4,00,000/- from the Bank.
Therefore, for reimbursement of the said loan,
compensation is awarded.
5. The Tribunal has determined the compensation
of Rs.4,32,000/- under the head loss of dependency as
well as on other heads and also awarded compensation of
Rs.4,00,000/- as the deceased had availed loan of
Rs.4,00,000/- from the State Bank of India for establishing
mobile shop and service center and therefore, within three
months from availment of loan, the deceased died. Hence,
compensation of Rs.4,00,000/- is awarded on account of
availment of loan.
6. The learned counsel for the appellant-Insurance
Company submitted that the claimants are entitled for
compensation under the head loss of dependency and
other conventional heads only, but the appellant-
Insurance Company is not entitled to satisfy towards
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C/W MFA.CROB No. 100132 of 2014
repayment of loan of Rs.4,00,000/- and this is
impermissible.
7. The Tribunal has awarded compensation of
Rs.4,00,000/- to the claimants, on the reason that the
deceased had availed loan of Rs.4,00,000/- for
establishing mobile shop and service center before his
death, for which, he is not permissible. He might have
availed loan, but whether the said loan is still lying in the
account of deceased or whether the mobile shop and
service center is established and how many quantities of
mobiles are in the shop, there is no evidence. Even if the
mobile shop is established, the material objects of the
shop are still with the claimants. Therefore, the Insurance
Company cannot be burdened with repayment of loan on
the reason that the deceased had availed loan before his
death. But, the Tribunal without any cogent reason has
awarded compensation of Rs.4,00,000/-, which is not
correct as it is not permissible. But the claimants are
entitled for compensation under the heads loss of
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C/W MFA.CROB No. 100132 of 2014
dependency, loss of consortium including loss of love and
affection and other conventional heads.
8. The Tribunal has considered the income of the
deceased at Rs.4,000/- p.m., notionally and has not added
loss of future prospects in life. Therefore, the
compensation amount is to be re-determined. The
accident is of the year 2011. Therefore, notional income of
Rs.6,000/- p.m., is to be considered. In view of the
decision of the Hon'ble Apex Court in case of National
Insurance Company Limited vs. Pranay Sethi and
others, reported in (2017) 16 Supreme Court Cases
680, 40% of the income is to be added towards loss of
future prospects in life. As the deceased is a bachelor,
50% of income is to be deducted towards personal and
living expenses. The deceased was aged 22 years as on
the date of the accident, hence, the appropriate multiplier
applicable is 18. Therefore, compensation under the head
loss of dependency is re-assessed and quantified as
follows:
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C/W MFA.CROB No. 100132 of 2014
Rs.6,000 + Rs.2,400/- x 50% x 18 x 12= Rs.9,07,200/-
Accordingly, compensation of Rs.9,07,200/- is
awarded under the head loss of dependency.
9. In view of the decision of the Hon'ble Supreme
Court in the case of Magma General Insurance Co.,
Limited Vs. Nanu Ram & Others, reported in 2018 ACJ
2782 and in the case of Pranay Sethi (stated supra),
the claimants are entitled to Rs.40,000/- each under the
head 'loss of consortium', along with 10% escalation.
Accordingly, Rs.88,000/- (Rs.40,000 x 2 + 10%) is
awarded under the head 'loss of consortium including loss
of love and affection'.
10. Further compensation of Rs.16,500/-
(Rs.15,000/- x 10%) is awarded with 10% escalation
under the head 'loss of estate'.
11. Further compensation of Rs.16,500/-
(Rs.15,000/- x 10%) is awarded with 10% escalation
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C/W MFA.CROB No. 100132 of 2014
under the head 'transportation of dead body and funeral
expenses'.
12. Thus, the appellants/claimants are entitled for
total compensation under various heads as under:
Sl. Heads. Amount in
No. (Rs.)
1. Loss of dependency
9,07,200/-
2. Loss of consortium including loss
88,000/-
of love and affection
3. Loss of estate 16,500/-
4. Transportation of dead body and
16,500/-
funeral expenses
Total: 10,28,200/-
13. Therefore, the appellants/claimants are entitled
for total compensation of Rs.10,28,200/- as against the
compensation amount awarded by the Tribunal along with
interest at the rate of 6% p.a., from the date of filing of
the petition till realization.
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C/W MFA.CROB No. 100132 of 2014
14. Accordingly, I proceed to pass the following:
ORDER
i. MFA.No.24118/2013 filed by the Insurance
Company is allowed-in-part.
MFA.No.100132/2014 filed by the
claimants is allowed-in-part.
ii. The impugned judgment and award dated
21.02.2013 passed in MVC.No.1474/2011
by the Prl. Senior Civil Judge & JMFC-cum-
Member, MACT-IV, Hospet, is hereby
modified.
iii. The appellants/claimants are entitled for
total compensation of Rs.10,28,200/- as
against the compensation amount
awarded by the Tribunal along with
interest at the rate of 6% p.a., from the
date of filing of the petition till realization.
iv. No order as to costs.
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C/W MFA.CROB No. 100132 of 2014
v. Excess amount, if any, deposited by the
Insurance Company shall be refunded to
the Insurance Company.
vi. The other findings and observations of the
Tribunal are kept open.
vii. Draw award accordingly.
SD/-
JUDGE
PB
CT-ASC
