Karnataka High Court

The Branch Manager vs Smt. Gayathramma W/O Gopalappa on 28 November, 2023

Author: S.Sunil Dutt Yadav

Bench: S.Sunil Dutt Yadav

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                                                    NC: 2023:KHC-D:13909-DB
                                                          MFA No. 100115 of 2023




                           IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
                              DATED THIS THE 28TH DAY OF NOVEMBER, 2023
                                                PRESENT
                              THE HON'BLE MR JUSTICE S.SUNIL DUTT YADAV
                                                   AND
                              THE HON'BLE MR JUSTICE VIJAYKUMAR A.PATIL
                           MISCELLANEOUS FIRST APPEAL NO. 100115 OF 2023 (MV-D)
                      BETWEEN:
                      THE BRANCH MANAGER,
                      UNITED INDIA INSURANCE CO LTD.,
                      SUDAMBI CHALA, ASHOK CIRCLE,
                      RANEBENNUR, DIST HAVERI,
         Digitally
         signed by
                      NOW REPRESENTED BY ITS
         VINAYAKA
VINAYAKA B V
                      AUTHORISED SIGNATORY-581115.
BV       Date:
         2023.12.05                                                   ...APPELLANT
         10:50:00
         +0530        (BY SRI. RAJASHEKAR S. ARANI, ADVOCATE)

                      AND:
                      1.    SMT. GAYATHRAMMA W/O. GOPALAPPA,
                            AGE. 44 YEARS, OCC. NIL,

                      2.    KUM. SRINIVASA S/O. GOPALAPPA,
                            AGE. 24 YEARS, OCC. NIL,

                      3.    KUM. MARUTHI G S/O. GOPALAPPA,
                            AGE. 22 YEARS, OCC. NIL,
                            ALL ARE R/O. HARAGANAHALLI,
                            PO. HIREGONIGERE,
                            NOW AT KAMALANAGAR,
                            RANEBENNUR, DIST. HAVERI-581115.

                      4.  PRASHANTH C.B. S/O. BASAVANYAPPA C.H.
                          AGE. MAJOR, OCC. OWNER OF VEHICLE,
                          R/O. THALAWAR KERI, BILIMALLUR VILLAGE,
                          TQ. HONNALI, DIST. DAVANGERE-577219.
                                                                 ...RESPONDENTS
                      (BY SRI. CHANDRASHEKHAR M. HOSAMANI, ADV. FOR R1 TO R3,
                      NOTICE TO R4 IS SERVED)
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                                   NC: 2023:KHC-D:13909-DB
                                           MFA No. 100115 of 2023




     THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
AGAINST THE JUDGMENT AND AWARD DATED 29.08.2022
PASSED IN MVC NO.271/2021 ON THE FILE OF THE II
ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR
ACCIDENT CLAIMS TRIBUNAL, RANEBENNUR, AWARDING
COMPENSATION OF RS.21,80,112/- WITH INTEREST AT 9
PERCENT P.A. FROM THE DATE OF PETITION TILL ITS
REALIZATION.

     THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
VIJAYKUMAR A.PATIL J., DELIVERED THE FOLLOWING:

                             JUDGMENT

This appeal is filed by the appellant-Insurance

Company challenging the quantum of compensation

awarded by the Tribunal, in the judgment and award dated

29.08.2022 passed in M.V.C. No.271/2021 by the Court of

II Additional Senior Civil Judge and Additional MACT,

Ranebennur (for short, 'the Tribunal'), whereby the

Tribunal has awarded a total compensation of

Rs.21,80,112/- to the claimants alongwith interest at the

rate of 9% per annum from the date of petition till

realization.

2. Brief facts giving rise to the filing of this appeal

are that the respondent Nos.1 to 3 have filed claim

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petition under Section 166 of the Motor Vehicles Act, 1988

before the Tribunal seeking compensation for the death of

one Sri. Gopalappa D.N., who was walking towards his

agricultural filed on 22.12.2022, at that time, the rider of

the motorcycle bearing No.KA-17-EZ-2351 came in high

speed, in a rash and negligent manner and dashed

Sri.Gopalappa, resultantly, he sustained grievous injuries

and was shifted to the hospital and on 26.12.2020, he

succumbed to the injuries suffered in the accident.

3. It is averred that deceased Gopalappa D.N. was

aged about 44 years at the time of accident, he was hale

and healthy, doing agricultural work and was earning

Rs.40,000/- per month. Respondent No.1 is the wife and

respondent Nos.2 and 3 are the sons of deceased

Gopalappa D.N., who are fully dependant on the income of

deceased and have therefore filed the claim petition.

4. The appellant-Insurance Company has filed

objections denying the age, income and avocation of

Gopalappa D.N. by contending that there is delay of 4

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days in filing the FIR, however, it is admitted that the

motor cycle bearing No.KA-17-EZ-2351 involved in the

said road accident was insured with the appellant-

Insurance Company and hence, has sought for dismissal

of the claim petition.

5. The Tribunal has framed the issues and

recorded the evidence of parties. The respondent No.1

has examined herself as PW.1 and got marked Exhibits-P1

to P11 and the appellant-Insurance Company has not

adduced any oral evidence, however, with consent

marked, Ex.R1, copy of Insurance Policy. The Tribunal, on

appreciation of evidence awarded a total compensation of

Rs.21,80,112/- along with interest at the rate of 9% per

annum from the date of petition till its realization.

6. Sri. Rajashekhar S. Arani, learned counsel for

the appellant-Insurance Company submits that the

Tribunal has committed a grave error in assessing the

income of deceased at Rs.14,500/- per month, as the

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respondents-claimants have failed to produce any

evidence before the Tribunal to substantiate the claim of

income of deceased and in the absence of any such

evidence, the Tribunal ought not to have assessed the

income of deceased at Rs.14,500/- per month.

7. Learned counsel further submitted that the

Tribunal has committed an error by awarding 9% interest

per annum on the total compensation, which is exorbitant

and requires interference by this Court.

8. Per contra, Sri Chandrashekhar M. Hosamani,

learned counsel appearing for the respondents-claimants

supports the impugned judgment and award and submits

that deceased Gopalappa D.N. was aged about 44 years at

the time of accident and was earning Rs.40,000/- per

month from the agricultural work, and therefore, taking

note of the pleadings and evidence, the Tribunal has

awarded just and proper compensation, which does not

call for interference and hence, seeks for dismissal of the

appeal.

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9. Having heard learned counsel for the appellant,

learned counsel for the respondents and perused the

memorandum of appeal, the point that arises for

consideration is:-

"Whether the award of compensation by Tribunal to the respondents-claimants is just and proper?"

The answer to the above point is in the affirmative

for the following reasons:-

(i) The parties to the proceedings does not dispute

that in the road accident that took place on 22.12.2020,

one Gopalappa D.N., husband of respondent No.1 and

father of respondent Nos.2 and 3 has died. The appellant-

Insurance Company does not dispute it liability.

(ii) The dispute in the present appeal is with regard

to assessment of income of deceased by the Tribunal at

Rs.14,500/- per month. Admittedly respondents-claimants

have not placed any cogent or acceptable evidence before

the Tribunal to substantiate the income of deceased at

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Rs.14,500/- per month. When things stood thus, the

assessment of income of deceased at Rs.14,500/- per

month by the Tribunal is without any basis. Therefore, in

the absence of evidence on record, this Court and Lok

Adalath normally rely on the Notional Income Chart

prepared by the Karnataka State Legal Services Authority

for the purpose of assessing the income of deceased in

motor vehicle accident claims.

(iii) Taking into account the aforesaid Notional

Income Chart and that the accident is of the year 2020,

this Court assesses the income of the deceased at

Rs.13,750/- per month as against Rs.14,500/- per month

for determination of compensation. Further, the Tribunal

has rightly awarded 25% towards loss of future

prospects and has applied appropriate multiplier '14'

taking into account the age of deceased at the time of

accident and deducted 1/3rd towards personal expenses.

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Thus, the respondents-claimants are entitled for

compensation under the head, 'loss of dependency' as

hereunder:

Rs.13,750 + 25% X 12 X 14 x 2/3 = Rs.19,25,000/-

(iv) It is noticed that the compensation awarded on

the other heads is in consistent with law and does not call

for any interference.

(v) The Tribunal has awarded 9% interest per

annum on the total compensation. This Court is of the

considered view that the interest awarded by the

Tribunal is on the higher side. Taking note of the rate of

interest paid on Fixed Deposit by Nationalized Banks, it

would be just and appropriate to award interest at the

rate of 6% per annum on the total compensation from

the date of petition till its realization.

(vi) The respondents-claimants are entitled for the

following modified compensation with interest at the

rate of 6% per annum as hereunder:-

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1 Loss of dependency Rs.19,25,000/- 2 Loss of Estate Rs.15,000/-

3 Funeral Expenses Rs.15,000/- 4 Loss of Consortium (40,000X3) Rs.1,20,000/-

Total Rs.20,75,000/-

Thus, the claimants would be entitled to total

compensation of Rs.20,75,000/- as against

Rs.21,80,112/- awarded by the Tribunal.

10. Hence, we proceed to pass the following

order:-

ORDER

i. The appeal is allowed.

ii. The judgment and award dated 29.07.2022 passed in M.V.C No.271/2021 by the Tribunal, is modified to an extent that the respondents- claimants would be entitled to total compensation of Rs.20,75,000/- as against Rs.21,80,112/- awarded by the Tribunal.

iii. The total compensation of Rs.20,75,000/- shall carry interest at the rate of 6% per annum instead of 9% per annum as awarded by the

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Tribunal, from the date of petition till the date of payment.

iv. The amount in deposit shall be transferred to the Tribunal.

v. Respondent/Insurance Company shall deposit the 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.