Karnataka High Court
Sri. J. V. Ramachandra vs National Insurance Co Ltd, T P Hub on 4 June, 2024
Author: K.Somashekar
Bench: K.Somashekar
-1-
NC: 2024:KHC:19169-DB
MFA No. 3780 of 2017
C/W MFA.CROB No. 70 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF JUNE, 2024
PRESENT
THE HON'BLE MR JUSTICE K.SOMASHEKAR
AND
THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA
MFA NO. 3780 OF 2017 (MV-D)
C/W
MFA CROSS OBJECTION NO. 70 OF 2022 (MV-D)
IN MFA NO.3780/2017:
BETWEEN:
NATIONAL INSURANCE CO. LTD TP HUB
NO.144, SHUBARAM COMPLEX
M.G.ROAD, BANGALORE-560 001
REPRESENTED BY ITS MANAGER.
...APPELLANT
Digitally (BY SRI. S V HEGDE MULKHAND - ADVOCATE)
signed by
SUMATHY AND:
KANNAN
Location: High 1. SMT CHANDRAREKHA R
Court of W/O LATE PRASANNA KUAMR J R
Karnataka
AGED BOUT 32 YEARS
2. THREYA J P
S/O LATE PRASANNA KUAMR J R
AGED ABOUT 8 YEARS, MINOR
REP. BY RESPONDENT NO.1
HIS MOTHER NATURAL GUARDIAN
3. SRI J V RAMACHANDRA
S/O LATE J V VENKATACHALA SHETRU
AGED ABOUT 61 YEARS
RESPONDENTS NO.1 TO 3 ARE
R/O NO.3177, 24TH WARD
-2-
NC: 2024:KHC:19169-DB
MFA No. 3780 of 2017
C/W MFA.CROB No. 70 of 2022
GANNIGARAPETE
DODDABALLAPURA
BANGALORE RURAL-561203.
4. SMT MUDDU LAXMI
W/O SRI J V RAMACHANDRA
AGED ABOUT 57 YEARS
R/O NO.2853, GANIGARAPETE
WARD NO.24, DODDABALLAPURA
BANGALORE RURAL - 561203.
5. MR CHIRANJIVI
S/O CHANDRAHSEKAR ACHARYA
NO.62, LV COMPLEX
MUKTH AMBICA ROAD
DODDABALLAPUR
DODDABALLPUR TALUK
BANGALORE RUAL-561203.
...RESPONDENTS
(BY SRI N R RANGE GOWDA - ADVOCATE FOR RESPONDENTS
NO.1 & 2; SRI. BIMBADHAR M. GOWDAR - ADVOCATE FOR
RESPONDENTS NO.3 & 4; RESPONDENT NO.2 - MINOR REP. BY
RESPONDENT NO.1; RESPONDENT NO.5 SERVED,
UNREPRESENTED)
THIS MFA FILED UNDER SECTION 173(1) OF MV ACT
PRAYING TO SET ASIDE THE JUDGMENT AND AWARD
DATED13.03.2017 PASSED IN MVC NO.3391/2016 ON THE
FILE OF THE XXI-A.C.M.M. AND XXIII-A.S.C.J, BENGALURU.
IN MFA.CROB NO.70/2022:
BETWEEN:
1. SRI. J V RAMACHANDRA
S/O LATE J S VENKATACHALASHETRU
AGED ABOUT 65 YEARS
2. SMT. MUDDU LAXMI
W/O J V RAMACHANDRA
AGED ABOUT 61 YEARS
-3-
NC: 2024:KHC:19169-DB
MFA No. 3780 of 2017
C/W MFA.CROB No. 70 of 2022
BOTH ARE RESIDING AT:
NO.3177, WARD NO.24
GANIGARAPETE, DODDABALLAPURA
BANGALORE RURAL DISTRICT-561203.
... CROSS OBJECTORS
(BY SRI. BIMBADHAR M GOWDAR - ADVOCATE)
AND:
1. NATIONAL INSURANCE CO LTD., T P HUB
NO.144, SHUBARAM COMPLEX
M G ROAD, BANGALORE - 560 001
REP. BY ITS MANAGER.
2. SMT. CHANDRAREKHA R
W/O LATE PRASANNA KUMAR J R
AGED ABOUT 36 YEARS
3. THREYA J P
S/O LATE PRASANNA KUMAR J R
AGED ABOUT 12 YEARS
(BEING MINOR, REP. BY HIS MOTHER
AND NATURAL GUARDIAN RESPONDENT NO.2)
RESPONDENTS NO.2 & 3 ARE RESIDING AT:
NO.3177, WARD NO.24
GANIGARAPETE, DODDABALLAPURA
BANGALORE RURAL DISTRICT - 561 203.
4. CHIRANJIVI
S/O CHANDRASHEKAR ACHARYA
R/AT NO.62, L V COMPLEX
MUKTHAMBICA ROAD
DODDABALLAPURA TALUK
BANGALORE - 561203.
... RESPONDENTS
(BY SRI. S V HEGDE MULKHAND - ADVOCATE FOR
RESPONDENT NO.1)
-4-
NC: 2024:KHC:19169-DB
MFA No. 3780 of 2017
C/W MFA.CROB No. 70 of 2022
THIS MFA.CROB FILED UNDER ORDER 41 RULE 22 OF
THE CODE OF CIVIL PROCEDURE, 1908 PRAYING TO, ALLOW
THE CROSS OBJECTIONS AND THEREBY MODIFY THE
JUDGMENT AND AWARD DATED 13.03.2017 IN MVC
NO.3391/2016 AND FURTHER CONSIDER THE CLAIM PUT
FORTH BY THE CROSS OBJECTORS, AND AWARD AN
ENHANCED COMPENSATION OF RS.4,00,000/- EACH TO THE
CROSS OBJECTORS HEREIN.
THESE MFA AND MFA.CROB, COMING ON FOR
ADMISSION, THIS DAY, DR.CHILLAKUR SUMALATHA .J.,
DELIVERED THE FOLLOWING:
JUDGMENT
Heard Shri S.V. Hegde Mulkhand, learned counsel who
is appearing for the Insurance Company, i.e., the appellant in
MFA No.3780/2017 and who is representing Respondent No.1
in MFA Crob.70/2022, Shri Bimbadhar M. Gowdar, learned
counsel who is appearing for the Cross-objectors / claimants 2
and 3, in the Cross Appeal, and who is representing claimants 3
and 4 i.e., Respondent Nos.3 and 4 in MFA No.3780/2017 and
Shri N.R. Range Gowda, learned counsel who is representing
the Claimants 1 and 2, i.e., Respondent Nos.1 and 2 in MFA
No.3780/2017.
NC: 2024:KHC:19169-DB
2. In the light of the death of the husband of the first
claimant by name Prasanna Kumar J.R. who is none other than
the father of the second claimant and the son of the claimants
3 and 4, all the claimants moved an application claiming
compensation of Rs.25 lakhs in toto. The said petition came up
for consideration as MVC No.3391/2016 before the Motor
Accidents Claims Tribunal, Bengaluru, and the same stood
disposed of on 13.03.2017. The Tribunal, awarded a sum of
Rs.21,25,000/- as compensation with interest at the rate of 8%
per annum from the date of petition till the date of deposit.
3. With a version that the amount awarded as
compensation is excessive and that the rate of interest is also
on higher side, the Insurance Company preferred an appeal,
i.e., MFA No.3780/2017. On the other than, the claimants 3
and 4, i.e., the parents of the deceased Prasanna Kumar J.R
preferred a Cross appeal, i.e., MFA Crob.No.70/2022, seeking
enhancement of compensation.
4. When Shri S.V. Hegde Mulkhand, learned counsel
for the Insurance Company states that the Tribunal erred in
adding 50% of the income towards 'Future prospects' and
thereby arrived at a wrong calculation, learned counsels
NC: 2024:KHC:19169-DB
appearing for the claimants, i.e., Shri Bimbadhar M. Gowdar
and Shri N.R. Range Gowda submit that the amount awarded
as compensation should be increased. A perusal of the record
goes to show that the claimants failed to establish the exact
income of the deceased by the date of accident. However, the
accident occurred in the year 2016. Therefore, as rightly
contended by the learned counsels appearing for the claimants,
the Tribunal instead of taking the notional income as Rs.8,000/-
per month, ought to have taken the notional income as
Rs.9,500/- per month, which figure is taken into consideration
even by the Karnataka State Legal Services Authority while
dealing with the matters. Therefore, we are of the view that
the notional income of the deceased has to be taken as
Rs.9,500/- per month instead of Rs.8,000/-.
5. Also, as rightly submitted by Shri S.V. Hegde
Mulkhand, in the absence of any evidence with regard to the
actual occupation of the deceased by the date of accident,
having considered the fact that the deceased was aged about
34 years by the date of accident, as per the decision of the
Hon'ble Apex Court in the case of National Insurance
Company Vs. Pranay Sethi and others (AIR 2017 SC
NC: 2024:KHC:19169-DB
5157), 40% of the earnings ought to have been added towards
'future prospects'. However, there is no reason to interfere
with the multiplier taken, i.e., '16', and the deduction of one-
fourth of the actual earnings towards 'personal and living
expenses', which the deceased would have incurred for himself,
had he been alive.
6. Such being the situation, the 'loss of dependency' if
calculated, would come as under:
Notional income of the Rs. 9,500/-
deceased
Annual income Rs. 1,14,000/-
Adding 40% towards 'future Rs. 1,59,600/-
prospects'
On deducting one-fourth of the Rs. 1,19,700/-
actual earnings
On applying appropriate Rs.19,15,200/-
multiplier '16'
Together with the said amount, a sum of Rs.70,000/- is
required to be added under conventional heads. Thus, the
compensation which the claimants are entitled to is,
Rs.19,85,200/-.
7. The Tribunal had awarded a sum of Rs.21,25,000/-
as compensation. In the light of the discussion that went on
NC: 2024:KHC:19169-DB
supra, the amount awarded as compensation is liable to be
decreased from Rs.21,25,000/- to Rs.19,85,200/-.
8. Coming to the rate of interest, as rightly submitted,
the claimants are entitled to receive the compensation that is
awarded with interest at the rate of 6% per annum instead of
8% per annum. Thus, the following:
ORDER
i) MFA No.3780/2017 is allowed in part.
ii) The amount awarded as compensation by the Motor
Accidents Claims Tribunal, Bengaluru, in MVC No.3391/2016 is
decreased from Rs.21,25,000/- to Rs.19,85,200/-.
iii) The rate of interest is decreased from 8% to 6%
per annum.
iv) The compensation awarded shall be paid to the
claimants with interest at the rate of 6% per annum from the
date of petition till the date of deposit.
v) The Insurance Company is directed to deposit the
entire compensation within eight weeks from the date of receipt
of a copy of this order.
NC: 2024:KHC:19169-DB
vi) Out of the compensation awarded, the first
claimant who is the wife of the deceased, is entitled to
Rs.5,00,000/-.
vii) The second claimant who is the minor son of the
deceased, is entitled to Rs.7,00,000/-.
viii) The third claimant who is the father of the
deceased, is entitled to Rs.3,00,000/-.
ix) The fourth claimant who is the mother of the
deceased is entitled to Rs.4,85,200/-.
The appeal in MFA Crob.70/2022 is accordingly
disposed of.
The amount if any in deposit, be transmitted to the
concerned Tribunal, immediately.
Any amount if paid in excess, be refunded to the
Insurance Company, after due identification.
Sd/-
JUDGE
Sd/-
JUDGE
KS
