Karnataka High Court

The Manager vs Smt Monisha S K on 31 July, 2024

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                                                      NC: 2024:KHC:30291-DB
                                                            MFA No. 601/2023



                     IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                          DATED THIS THE 31ST DAY OF JULY, 2024
                                            PRESENT
                          THE HON'BLE MRS JUSTICE K.S.MUDAGAL
                                              AND
                        THE HON'BLE MR JUSTICE VENKATESH NAIK T
                     MISCELLANEOUS FIRST APPEAL NO.601/2023 (MV-D)
                BETWEEN:

                      THE MANAGER,
                      M/S ICICI LOMBARD GENERAL INSURANCE
                      COMPANY LTD.,
                      PANCHAJANYA TOWER, 2ND FLOOR,
                      NO.1022/33, DR. RAJKUMAR ROAD,
                      4TH BLOCK, RAJAJINAGARA,
                      BANGALORE - 560 010.
                      NOW REP. BY ITS MANAGER
                      M/S ICICI LOMBARD GIC LTD,
                      REGIONAL OFFICE, THE ESTATE,
                      9TH FLOOR DICKENSON ROAD,
                      M.G.ROAD, BANGALORE - 42                   ... APPELLANT

                (BY SRI. B.C.SHIVANNE GOWDA, ADVOCATE)
                AND:
Digitally
signed by A K   1.    SMT. MONISHA S.K.,
CHANDRIKA             W/O LAKSHMINARAYANA. R.
Location:             AGED ABOUT 30 YEARS
High Court of
Karnataka
                2.    BABY DUVITHA
                      D/O LAKSHMINARAYANA R.
                      AGED ABOUT 3 YEARS,
                      SINCE MINOR REPT. BY HER MOTHER
                      AND NATURAL GUARDIAN SMT. MONISHA. S.K.

                3.    SRI. K.E. RAJEGOWDA
                      S/O EREGOWDA,
                      AGED ABOUT 68 YEARS

                4.    SMT. T.SUSHILAMMA
                      W/O K.E. RAJEGOWDA,
                      AGED ABOUT 64 YEARS
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                                          NC: 2024:KHC:30291-DB
                                              MFA No. 601/2023



     ALL ARE R/AT
     VOLAMBIGE VILLAGE, SINGAPURA POST,
     HOLENARASIPURA TALUK,
     HASSAN DISTRICT-573 211.
     SRI. HARISH D.K.,
     SINCE DEAD BY HIS LRS

5.   SHASHANK
     S/O LATE HARISH
     FLAT NO.77, 2ND FLOOR,
     DHRUVAH APARTMENT,
     RMV 2ND STAGE, SANJAYANAGARA,
     BANGALORE - 560 094                         ... RESPONDENTS

(BY SRI. P. NATARAJU., ADVOCATE FOR R1, R3 AND R4;
   R2 IS MINOR REPRESENTED BY R1;
   R5 SERVED AND UNREPRESENTED)

      THIS M.F.A. IS FILED UNDER SECTION 173(1) OF MV ACT,
PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED
29.09.2022 PASSED IN MVC NO.2727/2021 ON THE FILE OF THE
XVII ADDITIONAL JUDGE, COURT OF SMALL CAUSES AND MEMBER,
MACT, BENGALURU SCCH-21, PARTLY ALLOWING THE CLAIM
PETITION FOR COMPENSATION.

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

CORAM:      HON'BLE MRS JUSTICE K.S.MUDAGAL
            and
            HON'BLE MR JUSTICE VENKATESH NAIK T

                        ORAL JUDGMENT

(PER: HON'BLE MRS JUSTICE K.S.MUDAGAL)

Though this matter has come up for admission, with the

consent of learned Counsel for the parties, it is taken up for final

disposal.

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2. "Whether the compensation awarded to the claimants

under the impugned award is just?" is the question to be

involved in this appeal.

3. Respondent Nos.1 to 4 were claimants, appellant was

respondent No.1 and respondent No.5 was respondent No.2 in

MVC No.2727/2021 on the file of the XVII Additional Judge,

Court of Small Causes and Member, MACT, Mayohall, Bangalore.

For the purpose of convenience, parties are referred to

henceforth according to their ranks before the Tribunal.

4. Claimant No.1 is the wife, claimant No.2 is the

daughter and claimant Nos.3 & 4 are the parents of deceased

Lakshminarayana. On 23.12.2020 at 8.45 p.m., when deceased

Lakshminarayana was travelling in Volvo Car bearing No.KA-02-

ML-5670 on NH42, near Chikkagurki Village, on Uravakonda-

Bellary road, the said car capsized and in that accident,

Lakshminarayana suffered grievous injuries. He was shifted to

Anushka Hospital, Ballary and from there, he was shifted to

Ramaiah Medical College, Bangalore. There he was treated as

in-patient upto 17.01.2021. On 17.01.2021, he succumbed to

the injuries.

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5. At the relevant point of time, respondent No.2 was

the registered owner and driver of the offending vehicle. The

claimants filed claim petition in MVC No.2727/2021 contending

that the accident and consequent death of Lakshminarayana

occurred due to actionable negligence on the part of respondent

No.2 and they were dependent on the income of the deceased.

He was an agriculturist and earning Rs.1 Lakh per month. They

also spent huge amount towards medical expenses and

therefore, they claimed compensation of Rs.3,50,00,000/-.

6. It appears that respondent No.2 has also suffered

injuries in the accident and died. Therefore, his son was

impleaded as his legal representative. Respondent No.2 did not

contest the petition at all. Respondent No.1-Insurer did not

seriously dispute the occurrence of the accident due to

negligence on the part of deceased respondent No.2. However,

it disputed the age occupation and income of the deceased and

quantum of compensation claimed.

7. The Tribunal after recording the evidence of the

claimants and respondent No.1 and on hearing the parties, by

the impugned award held that accident occurred due to

actionable negligence on the part of the deceased second

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respondent. The Tribunal considered the age of the deceased at

34 years and notionally assessed his income at Rs.20,000/- per

month added future prospects at 40%, deducted 1/4th from the

same for personal expenses, applied the multiplier of '16' and

awarded total compensation of Rs.54,57,920/- on different

heads as follows:

Towards love and affection Rs. 60,000/-

Towards funeral expenses & Rs. 15,000/- transportation charges

Towards loss of dependency Rs.40,32,000/-

Towards loss of estate                            Rs.   15,000/-

Towards loss of consortium                        Rs.   40,000/-

Towards filial consortium                         Rs.   40,000/-

Towards medical expenses                          Rs.12,55,920/-

                                    Total       Rs.54,57,920/-

8. The Insurer has challenged the award solely on the

ground that notional income considered by the Tribunal is on the

higher side.

9. Counsel for the claimants/respondents also concede

that there was no proof of income. In para 23 of the impugned

award Tribunal itself states that there was no proof of actual

income and therefore, it adopted notional income as fixed by

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this Court for the purpose of Lok-Adalaths in the State.

Admittedly, as per the said chart, for the accident taken place in

the year 2020, notional income fixed is Rs.14,500/- p.m., but

the Tribunal has considered the income at Rs.20,000/- p.m.

without assigning any reason and without there being

any ground to deviate the same from the said income of

Rs.14,500/-.

10. As per the judgment of the Hon'ble Supreme Court

in National Insurance Co.Ltd. Vs. Pranay Sethi1 and Magma

General Insurance Co.Ltd. Vs. Nanu Ram Alias Chuhru Ram2,

40% has to be included to the income by way of future

prospects which comes to Rs.5,800/-. In view of the judgment

of the Hon'ble Supreme Court in Sarla Verma & Ors. Vs. Delhi

Transport Corporation & another3, as the deceased had four

dependents, 1/4th has to be deducted towards his personal

expenses and the claimants are entitled to 3/4th income. The

applicable multiplier is '16'. Therefore, the compensation

towards loss of dependency would work out to Rs.29,23,200/-

(Rs.14,500+5,800x12x16x3/4= Rs.29,23,200/-).

AIR 2017 SC 5157

(AIR 2018 SC 1249) 3 (AIR 2009 SC 3104)

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11. As per the judgment of the Hon'ble Supreme Court

in Pranay Sethi's and Magma General Insurance Co.Ltd.'s

cases each of the claimants are entitled to compensation of

Rs.40,000/- on the head 'loss of consortium' with escalation of

10%. Similarly, they are entitled to compensation of

Rs.15,000/- + Rs.15,000/- under the head loss of estate and

funeral expenses with 10% escalation. Therefore, the

compensation payable on the head of loss of consortium comes

to Rs.1,76,000/- and under the conventional heads namely, loss

of estate and funeral expenses comes to Rs.33,000/-. Both

counsel concede that medical expenses of Rs.12,55,920/- spent

for treatment of deceased was based on the supporting medical

bills. Therefore, the just compensation payable is as follows:

Towards loss of dependency Rs.29,23,200/- Towards loss of consortium Rs. 1,76,000/- Towards loss of estate and funeral Rs. 33,000/- expenses Towards medical expenses Rs. 12,55,920/-