Karnataka High Court

Rangaiah vs Srinivasa Murthy on 30 July, 2024

Author: H.T. Narendra Prasad

Bench: H.T. Narendra Prasad

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                                                             NC: 2024:KHC:29991
                                                           MFA No. 6785 of 2019




                           IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                               DATED THIS THE 30TH DAY OF JULY, 2024

                                               BEFORE
                           THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD
                      MISCELLANEOUS FIRST APPEAL NO. 6785 OF 2019 (MV)

                      BETWEEN:

                      1.    RANGAIAH
                            S/O RAMADAS
                            AGE 44 YEARS, COOLIE WORK.

                      2.    LAKSHMIDEVI M
                            W/O RANGAIAH
                            AGE 36 YEARS
                            HOUSE WIFE.

                            BOTH ARE R/O NO.60/5
                            DEVARAJ SOCIETY ROAD
                            NEAR GANESHA TEMPLE
                            LENIN EXTENSION, NITUVALLI
                            DAVANAGERE 577001                ...APPELLANTS

                      (BY SRI. R SHASHIDHARA .,ADVOCATE)
Digitally signed by
HEMALATHA A
Location: HIGH        AND:
COURT OF
KARNATAKA
                      1.    SRINIVASA MURTHY
                            S/O GOPALA KRISHNA SETTY
                            SRINIVASA AGENCY
                            CHITRADURGA TOWN 577 501.

                      2.    HUSAIN SAB BABULAL
                            S/O MADAN SAB, MAJOR
                            R/O DOOR NO.843/3
                            RENUKA BADAVANE
                            BEHIND FISH MARKET
                            DAVANAGERE CITY 577001.
                             -2-
                                        NC: 2024:KHC:29991
                                      MFA No. 6785 of 2019




3.   THE BRANCH MANAGER
     UNITED INDIA INSURANCE CO LTD.
     BRANCH OFFICE, PB NO.75
     DHUMMI COMPLEX, LAXMI BAZAR
     CHITRADURGA 577 501.               ...RESPONDENTS

(BY SRI.C SHANKAR REDDY., ADVOCATE FOR R3:
NOTICE TO R1 & R2 IS DISPENSED WITHV/O DATED:
31.10.2022)

     THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT
AGAINST THE JUDGMENT AND AWARD DATED: 11/07/2018,
PASSED IN MVC NO.258/2018, ON THE FILE OF THE II
ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL MACT-V,
CHITRADURGA, PARTLY ALLOWING THE CLAIM PETITION FOR
COMPENSATION     AND    SEEKING    ENHANCEMENT     OF
COMPENSATION.

    THIS APPEAL, COMING ON FOR HEARING, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM:   HON'BLE MR JUSTICE H.T. NARENDRA PRASAD

                    ORAL JUDGMENT

1. This appeal under Section 173(1) of Motor Vehicles

Act, 1988 (hereinafter referred to as 'the Act') has been

filed by the claimants being aggrieved by the judgment

dated 11.07.2018 passed by the II Additional Senior Civil

Judge and Additional MACT-V, Chitradurga (hereinafter

referred to as 'the Tribunal') in MVC No.258/2018.

NC: 2024:KHC:29991

2. Facts giving rise to the filing of the appeal briefly

stated are that on 27.12.2017 at about 1.30 p.m., when

the deceased Arun Kumar was proceeding on motorcycle

bearing registration No.KA-17/EX-5302 from Davanagere,

near Dhyamanna Kere road, Kodi Hosur Village,

Bhadravathi Taluk, at that time, Tata Ace bearing

registration No.KA-17/C-5749 being driven by its driver at

a high speed and in a rash and negligent manner, dashed

to the vehicle of the deceased. As a result of the aforesaid

accident, the deceased sustained grievous injuries and

succumbed to the injuries.

3. The claimants filed a petition under Section 166 of

the Act seeking compensation for the death of the

deceased along with interest.

4. Upon service of notice, the respondent Nos. 1 to 3

have appeared through counsel and filed written

statements denying the averments made in the claim

petition.

NC: 2024:KHC:29991

5. On the basis of the pleadings of the parties, the

Claims Tribunal framed the issues and thereafter, recorded

the evidence. The claimants, in order to prove the case,

examined claimant No.1 as PW-1, and got exhibited

documents namely Ex.P1 to Ex.P.19. On behalf of

respondents, no witnesses were examined but got

exhibited documents namely Ex.R1 to Ex.R4. The Claims

Tribunal, by the impugned judgment, inter alia, held that

the accident took place on account of rash and negligent

driving of the offending vehicle by its driver, as a result of

which, the deceased sustained injuries and succumbed to

the injuries. The Tribunal further held that the claimants

are entitled to a compensation of Rs.7,08,000/- along with

interest at the rate of 9% p.a. and directed the Insurance

Company to deposit the compensation amount along with

interest. Being aggrieved, this appeal has been filed.

6. The learned counsel for the claimants submits as

follows:

NC: 2024:KHC:29991

a) Firstly, the claimants assert that the deceased was

approximately aged about 20 years at the time of the

accident and he was a student studying Diploma in BIET

College and he had a very good academic records and he

had very good future after completion of his course. The

Tribunal assessed the monthly income as Rs.6,000/-,

which is on the lower side.

b) Secondly, as per the law laid down by the Hon'ble

Supreme Court in the case of NATIONAL INSURANCE

CO. LTD. -v- PRANAY SETHI AND OTHERS [AIR 2017

SC 5157], in case the deceased was self-employed or

received a fixed salary, an addition of 40% of the

established income towards 'future prospects' is warranted

when the deceased was below the age of 40 years. This

principle shall be considered in the present case.

c) Thirdly, as per the judgment of the Hon'ble Supreme

Court in the case of MAGMA GENERAL INSURANCE CO.

LTD. -V- NANU RAM [2018 ACJ 2782], each of the

claimants are entitled to compensation of Rs.40,000/-

NC: 2024:KHC:29991

under the head of 'loss of love and affection and

consortium'.

d) Lastly, considering the age and avocation of the

deceased, the overall compensation awarded by the

Tribunal is inadequate and on the lower side.

With the above submissions, learned counsel for the

appellant sought to allow the appeal.

7. On the other hand, the learned counsel for the

Insurance Company submits as follows:

a) Firstly, although the claimants claim that the deceased

was a student of Diploma, he had a bright future after

completion of degree, he is a non-earning member and no

document has been produced to show that the claimant

was doing any work or he has any earning at the time of

his death. Considering his age the Tribunal has rightly

assessed the notional income as Rs.6,000/- per month.

b) Secondly, since the claimants have not established the

income of the deceased, they are not entitled for

compensation towards 'future prospects'.

NC: 2024:KHC:29991

c) Thirdly, on appreciation of oral and documentary

evidence and considering the age and avocation of the

deceased, the overall compensation awarded by the

Tribunal is just and reasonable.

e) Lastly, in the light of the Division Bench decision of

this Court in the case of MS.JOYEETA BOSE AND

OTHERS -V- VENKATESHAN.V AND OTHERS (MFA

5896/2018 AND CONNECTED MATTERS DISPOSED

OF ON 24.8.2020), the rate of interest awarded by the

Tribunal at 9% p.a. on the compensation amount is on the

higher side.

With the above submissions, learned counsel for the

Insurance Company sought to dismiss the appeal.

8. Heard the learned counsel for the parties and perused

the judgment and award of the Tribunal and the original

records.

9. It is not in dispute that Arun Kumar died in the road

traffic accident occurred on 27.12.2017 due to rash and

negligent driving of the offending vehicle by its driver.

NC: 2024:KHC:29991

10. At the time of the accident the deceased was aged

about 20 years, he was studying in Diploma. Considering

his academic records and his age, I am of the opinion that

the monthly income of the deceased can be assessed at

Rs.12,500/-. To the aforesaid income, 40% has to be

added on account of future prospects in view of the law

laid down by the Constitution Bench of the Supreme Court

in 'PRANAY SETHI' (supra). Thus, the monthly income

comes to Rs.17,500/-. Since the deceased was a bachelor,

it is appropriate to deduct 50% of the income of the

deceased towards personal expenses and remaining

amount i.e., Rs.8,750/- has to be taken as his contribution

to the family,. The deceased was aged about 20 years at

the time of the accident and multiplier applicable to his

age group is '18'. Thus, the claimants are entitled to

compensation of Rs.18,90,000/- (Rs.8,750*12*18) on

account of 'loss of dependency'.

11. In addition, the claimants are entitled to compensation

of Rs.15,000/- on account of 'loss of estate' and

NC: 2024:KHC:29991

compensation of Rs.15,000/- on account of 'funeral

expenses'.

12. In view of the law laid down by the Supreme Court

in the case of 'MAGMA GENERAL INSURANCE' (supra),

claimants, parents of the deceased are entitled for

compensation of Rs.40,000/- each under the head of 'loss

of filial consortium'.

13. Thus, the claimants are entitled to the following

compensation:

           Compensation under                 Amount in
             different Heads                    (Rs.)

        Loss of dependency                      18,90,000

        Funeral expenses                           15,000

        Loss of estate                             15,000

        Loss of Filial consortium                  80,000

                          Total                20,00,000

2. In the result, the following order is passed:

ORDER

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NC: 2024:KHC:29991

a) The appeal is allowed in part.

b) The judgment of the Claims Tribunal is modified.

c) The claimants are entitled to a total compensation of

Rs.20,00,000/- as against Rs.7,08,000/- awarded by the

Tribunal.

d) Following the judgment of the Division Bench of this

Court in the case of 'MS.JOYEETA BOSE' (supra), the

enhanced compensation shall carry interest at 6% per

annum.

e) The Insurance Company is directed to deposit the

compensation amount along with interest from the date of

filing of the claim petition till the date of realization, within

a period of six weeks from the date of receipt of a copy of

this judgment.