Karnataka High Court
Smt.Lakshmi Devi W/O Late K. Chinnappa ... vs Sri.M.S. Saifulla Khan S/O Sharief Sab on 1 February, 2024
Author: S G Pandit
Bench: S G Pandit
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MFA No. 101791 of 2017
C/W MFA No. 102537 of 2019
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 1ST DAY OF FEBRUARY, 2024
PRESENT
THE HON'BLE MR JUSTICE S G PANDIT
AND
THE HON'BLE MR JUSTICE K V ARAVIND
MISCELLANEOUS FIRST APPEAL NO. 101791 OF 2017 (MV-D)
C/W
MISCELLANEOUS FIRST APPEAL NO. 102537 OF 2019
IN MFA NO.101791/2017.
BETWEEN:
THE BRANCH MANAGER,
M/S. IFFCO TOKIO GENERAL INSURANCE
COMPANY LTD, K.C. ROAD, BALLARI-583102,
BY ITS AUTHORIZED SIGNATORY.
...APPELLANT
(BY SRI. G. N. RAICHUR, ADVOCATE)
AND:
1. SMT. LAKSHMI DEVI
Digitally signed by W/O. LATE K. CHINNAPPA REDDY,
CHANDRASHEKAR
LAXMAN
KATTIMANI
AGE: 43 YEARS, R/O: R. B. VANKA VILLAGE,
Date: 2024.02.13 RAYADURGA TALUK,
10:20:51 +0530
ANANTHPUR DISTRICT,
NOW RESIDING AT: D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
2. K. MOUNIKA
D/O. LATE CHINNAPPA REDDY
AGE: 24 YEARS, R/O. R. B. VANKA VILLAGE,
RAYADURGA TALUK,
ANANTHPUR DISTRICT,
NOW RESIDING AT: D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
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MFA No. 101791 of 2017
C/W MFA No. 102537 of 2019
3. K. MAMATHA
D/O. LATE K. CHINNAPPA REDDY
AGE: 43 YEARS, R/O R. B. VANKA VILLAGE,
RAYADURGA TALUK,
ANANTHPUR DISTRICT,
NOW RESIDING AT D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
4. SMT. K. GOVINDAMMA
W/O. LATE HANUMANTA REDDY,
AGE: 72 YEARS,
R/O: R. B. VANKA VILLAGE,
RAYADURGA TALUK, ANANTHPUR DISTRICT,
NOW RESIDING AT: D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
5. SRI. M. S. SAIFULLA KHAN
S/O. SHARIEF SAB,
AGE: 43 YEARS,
DRIVER OF S.R.E BUS BEARING
REG NO.KA-16/B-5414,
R/O. C/O. B. C. SANDESH,
S/O. B. S. CHIDANANDA REDDY,
PROP S.R.E. TRAVELS,
HEAD POST OFFICE ROAD,
CHITRADURGA-577501.
6. B. C. SANDESH
S/O. B. S. CHIDANANDA REDDY,
AGE: 42 YEARS, OWNER OF S.R.E BUS BEARING
REG NO.KA-16/B-5414, PROP. S.R.E. TRAVELS,
HEAD POST OFFICE ROAD, CHITRADURGA-577501.
...RESPONDENTS
(BY SRI.Y. LAKSHMIKANT REDDY, ADV. FOR RESPONDENT NO.1 TO 4,
NOTICE TO RESPONDENT NO.5 AND 6 HELD SUFFICIENT)
THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
PRAYING TO CALL FOR THE RECORDS AND HEAR THE PARTIES AND
MODIFY THE JUDGMENT AND AWARD DATED 31.01.2017 PASSED BY
THE PRINCIPAL SENIOR CIVIL JUDGE CUM MOTOR ACCIDENT
CLAIMS TRIBUNAL NO.III BALLARI IN MVC NO.1158/2015 BY
ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND
EQUITY.
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MFA No. 101791 of 2017
C/W MFA No. 102537 of 2019
IN MFA NO.102537/2019
BETWEEN:
1. SMT. LAKSHMI DEVI,
W/O. LATE K. CHINNAPPA REDDY,
AGED ABOUT 43 YEARS,
OCC: AGRICULTURIST,
R/O: R. B. VANKA VILLAGE,
RAYADURGA TALUK,
ANANTHPUR DIST.
NOW RESIDING AT: D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
2. K. MOUNIKA
D/O. LATE K. CHINNAPPA REDDY,
AGED ABOUT 24 YEARS,
OCC: AGRICULTURIST,
R/O. R. B. VANKA VILLAGE,
RAYADURGA TALUK,
ANANTHPUR DIST.
NOW RESIDING AT: D.NO.86/2, W.NO.12,
SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
3. K. MAMATHA
D/O. LATE K. CHINNAPPA REDDY,
AGED ABOUT 43 YEARS,
OCC: AGRICULTURIST,
R/O. R. B. VANKA VILLAGE,
RAYADURGA TALUK,
ANANTHPUR DIST. NOW RESIDING AT D.NO.86/2,
W.NO.12, SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
4. SMT. K. GOVINDAMMA
W/O. LATE HANUMANTA REDDY,
AGED ABOUT 72 YEARS,
OCC: AGRICULTURIST,
R/O: R. B. VANKA VILLAGE, RAYADURGA TALUK,
ANANTHPUR DIST. NOW RESIDING AT: D.NO.86/2,
W.NO.12, SANNA DURUGAMMA TEMPLE STREET,
BALLARI-583101.
...APPELLANTS
(BY SRI. Y. LAKSHMINKANT REDDY, ADVOCATE)
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MFA No. 101791 of 2017
C/W MFA No. 102537 of 2019
AND:
1. SRI. M. S. SAIFULLA KHAN
S/O. SHARIEF SAB,
AGED ABOUT 43 YEARS,
OCC: DRIVER OF SRE BUS BEARING
REG NO.KA-16/B-5414,
R/O. C/O. B. C. SANDESH,
S/O. B. S. CHIDANANDA REDDY,
PROP. SRE TRAVELS,
HEAD POST OFFICE ROAD,
CHITRADURGA.
2. B. C. SANDESH
S/O. B. S. CHIDANANDA REDDY,
AGED ABOUT 42 YEARS,
OCC: OWNER OF THE SRE BUS BEARING
REG NO.KA-16/B-5414,
R/O. PROP. SRE, TRAVELS,
HEAD POST OFFICE ROAD,
CHITRADURGA.
3. THE BRANCH MANAGER,
M/S. IFFCO-TOKIO GENERAL INSURANCE
COMPANY LIMITED, K. C. ROAD,
BALLARI-583101,
...RESPONDENTS
(BY SRI. G. N. RAICHUR, ADVOCATE FOR RESPONDENT NO.3,
NOTICE TO RESPONDENT NO.1 AND 2 DISPENSED WITH)
THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
PRAYING TO ALLOW THE APPEAL BY MODIFYING THE JUDGMENT
AND AWARD DATED 31.1.2017 PASSED BY THE PRINCIPAL SENIOR
CIVIL JUDGE CUM MOTOR ACCIDENT CLAIMS TRIBUNAL-III, AT
BALLARI, IN MVC NO.1158/2015 BY ENHANCING THE
COMPENSATION AND AWARDING A TOTAL ADDITIONAL
COMPENSATION OF RS. 10,00,000/- TO THE APPELLANT.
THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY,
K V ARAVIND, J., DELIVERED THE FOLLOWING:
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MFA No. 101791 of 2017
C/W MFA No. 102537 of 2019
JUDGMENT
Though the appeals are listed for admission, they are
taken up for final disposal, with the consent of learned
counsel for both the parties.
2. The parties are referred to as per their rank
before the Tribunal for convenience.
3. MFA No.102537/2019 is preferred by the
claimants-petitioners for enhancement of compensation. MFA
No.101791/2017 is by the insurer questioning the quantum
of compensation awarded. Both appeals arises from MVC
No.1158/2015 dated 31.01.2017 on the file of Member,
MACT-III, Ballari (for short, 'Tribunal').
4. The petitioners are wife, children and mother of
deceased filed a claim petition under Section 166 of the
Motor Vehicles Act, 1988 seeking compensation on account
of death of K.Chinnappa Reddy due to accident on
03.11.2015 involving motorcycle bearing registration
No.AP-02/AW-5517 and SRE Bus bearing registration
No.KA-16/B-5414. It is pleaded that deceased was 42 years,
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earning a sum of Rs.5,00,000/- per annum as on the date of
accident.
5. On issuance of notice, respondents appeared
through their counsel. Respondent No.1 has not filed any
statement of objection. Respondent No.2 filed objection
statement denying the petition averments, contended that
policy was valid, driver was possessing effective driving
licence and if any liability, to be saddled on the 3rd
respondent. Respondent No.3 admitted the policy, contended
that liability is subject to compliance of conditions of the
policy, 1st respondent has no valid and effective driving
licence. On the above contentions, prayed to dismiss the
claim petition.
6. Petitioner No.1 examined herself as PW1 and got
marked the documents as Exs.P1 to P13. Respondents have
not examined any witness and no documents are marked.
7. The Tribunal considering the material evidence on
record awarded compensation of Rs.43,75,000/- under
various heads as under:
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Loss of dependency Rs.31,50,000/-
30% future prospects Rs. 9,45,000/-
Loss of consortium to P-1 Rs. 50,000/-
Loss of love and affection
(P2 to P5, Rs.20,000/- each) Rs. 80,000/-
Loss of estate
(P1 to P5, Rs.25,000/- each) Rs. 1,25,000/-
Transportation of dead body
and funeral expenses Rs. 25,000/-
Total Rs.43,75,000/-
8. The Tribunal while awarding above compensation
considered the annual income at Rs.3,00,000/- per annum,
age of the deceased at 44 years and applied multiplier '14'.
9. Heard Sri Y.Lakshmikant Reddy, learned counsel
for the claimants, Sri G.N.Raichur, learned counsel for
insurer and perused the appeal papers along with original
records.
10. Learned counsel for the claimants submits that
the deceased was a progressive agriculturist earning
substantial income from agriculture. The income adopted by
the Tribunal is on the lower side. Learned counsel further
submits that the compensation awarded under different
heads is on the lower side. It is further submitted that all the
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claimants are entitled for consortium as per the law laid
down by the Hon'ble Supreme Court in the case of Magma
General Insurance Company Limited V/s Nanu Ram @
Chuhru Ram and others1. On the above submissions,
prays to enhance the compensation.
11. Learned counsel appearing for the Insurance
Company submits that the income assessed by the Tribunal
at Rs.25,000/- per month is without any basis, compensation
awarded at Rs.1,25,000/- under the head loss of estate is on
the higher side and contrary to law laid down by the Hon'ble
Supreme Court in National Insurance Company Limited
V/s Pranay Sethi and others2. He further submits that the
Tribunal awarded 9% interest on the compensation amount,
which is on the higher side and same requires to be reduced
to 6%. Thus, prays to re-determine the compensation.
12. Having heard the learned counsel for the parties
and on perusal of the appeal papers and records, the point
that arises for our consideration is as under:
(2018) 18 SCC 130
(2017) 6 SCC 680
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"Whether the compensation awarded by the
Tribunal needs interference of this Court?"
13. Our answer to the above point is 'in the
affirmative' for the following reasons.
14. The death of Chinnappa Reddy on 03.11.2015
due to accident involving motorcycle bearing No.AP-02/
AW-5517 and bus bearing No.KA-16/B-5414 is not in dispute
in these appeals. The Tribunal on the basis of Ex.P10-Krushi
book reflecting the holding of 10 acres of land by the
deceased has assessed monthly income of the deceased at
Rs.25,000/- per month. Ex.P10 does not indicate the income
from the land. In the absence of any income being proved
from Ex.P10, the Tribunal ought to have assessed the
income of the deceased notionally. Considering the year of
accident during 2015, as per the chart prepared by the
Karnataka State Legal Services Authority (KSLSA), the
monthly income of the deceased is to be notionally assessed
at Rs.8,000/- per month. As per Ex.P10, the deceased was
holding 10 acres of land. Though the land remains with the
legal representatives, contribution/assistance in cultivation of
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the land by the deceased is deprived to the claimants. We
deem it appropriate to award a sum of Rs.5,000/- towards
supervisory charges as the petitioners have to bear the loss
of contribution by the deceased in cultivation of the lands.
Hence, the monthly income of the deceased is computed at
Rs.13,000/- per month (Rs.8,000/- notional income +
Rs.5,000/- supervisory charges).
15. The age of the deceased has been arrived at 44
years as per Ex.P9 and the same is not in dispute. As per
Sarla Verma & Others V/s Delhi Transport Corporation
and Another3, the applicable multiplier is '14', which is
rightly adopted by the Tribunal. Considering the age and
avocation of the deceased, the future prospects is to be
computed. The assessment of future income at 30% by the
Tribunal is incorrect. As per Pranay Sethi supra, future
prospects is to be computed at 25% of the assessed income.
Considering the five dependents, 1/4th of the assessed
income has to be deducted towards personal expenses.
Thus, the claimant would be entitled for compensation on the
(2009) 6 SCC 121
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head of loss of dependency at Rs.20,47,500/- (Rs.13,000
+ 25% x 12 x 14 x 3/4).
16. The Tribunal committed an error in awarding a
sum of Rs.50,000/- towards loss of consortium. As per
decision of the Hon'ble Supreme Court in the case of Magma
General Insurance Company Limited Vs. Nanu Ram &
Others4, each claimants would be entitled to Rs.40,000/-
under the head consortium. The Tribunal committed an error
in awarding a sum of Rs.25,000/- towards funeral expenses.
As per Pranay Sethi supra, the petitioners are entitled for
Rs.15,000/- towards loss of estate, Rs.15,000/- towards
funeral expenses. Thus, the compensation is recomputed as
under:
Sl.No. Particulars Amount
1. Loss of dependency Rs.20,47,500.00
2. Towards loss of consortium Rs.1,60,000.00
3. Towards loss of estate Rs.15,000.00
4. Towards funeral expenses Rs.15,000.00
Total Rs.22,37,500.00
2018 (18) SCC 130
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17. The Tribunal while awarding compensation
granted rate of interest at 9% per annum. Taking note of
the present rate of Bank interest, we are inclined to reduce
the rate of interest on the compensation amount from 9%
awarded by the Tribunal to 6% per annum.
18. For the above reasons, we pass the following:
ORDER
a) MFA No.102537/2019 filed by claimants is
dismissed.
b) MFA No.101791/2017 filed by the insurer is
allowed in part.
c) The impugned judgment and award of the
Tribunal is modified to the extent that the
claimants are entitled to total compensation
Rs.22,37,500/- as against Rs.43,75,000/-
awarded by the Tribunal.
d) The entire compensation amount will bear
interest at the rate of 6% per annum from the
date of claim petition till date of realization.
e) The respondent-Insurance Company shall
deposit the entire compensation amount with
accrued interest before the Tribunal within six
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weeks from the date of receipt of certified
copy of this judgment, if not deposited.
f) The claimants shall be entitled to
compensation amount in the ratio of
40:20:20:20, deposit and disbursement of the
enhanced compensation shall be made as per
the award of the Tribunal.
g) The amount in deposit, if any be transmitted
to the Tribunal along with original records
forthwith.
h) Draw modified award accordingly.
i) No order as to costs.
Sd/-
JUDGE
Sd/-
JUDGE
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