Karnataka High Court
M/S New India Assurance Co.Ltd vs Sheela W/O C S Saseendan on 29 May, 2024
Author: S G Pandit
Bench: S G Pandit
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MFA No. 102054 of 2016
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 29TH DAY OF MAY, 2024
PRESENT
THE HON'BLE MR JUSTICE S G PANDIT
AND
THE HON'BLE MR JUSTICE G BASAVARAJA
MISCELLANEOUS FIRST APPEAL NO.102054 OF 2016 (MV-D)
BETWEEN:
M/S NEW INDIA ASSURANCE CO. LTD.,
"SAVITRI SADAN", OPP: KITTLE
COLLEGE, P.B.ROAD, DHARWAD.
NOW REP. BY IT'S DEPUTY MANAGER
DULY CONSTITUTED AUTHORITY,
BASAVARAJ C.ANGADI,
NEW INDIA ASSURANCE COMPANY LTD.,
MTP HUB SHRINATH COMPLEX,
NCM, HUBLI.
...APPELLANT
(BY SRI N.R. KUPPELUR, ADVOCATE)
AND:
Digitally signed
by SAROJA
HANGARAKI 1. SMT. SHEELA
Location: HIGH W/O. C.S. SASEENDRAN,
COURT OF AGE:47 YEARS, OCC:HOUSEHOLD,
KARNATAKA
R/O: HALIYAL ROAD, DANDELI-581325.
2. SHARAT
S/O. C.S. SASEENDRAN,
AGE:24 YEARS, OCC:STUDENT,
R/O: HALIYAL ROAD, DANDELI-581325.
3. MISS. SHARANYA
D/O. C.S. SASEENDRAN,
AGE:22 YEARS, OCC:STUDENT,
R/O: HALIYAL ROAD, DANDELI-581325.
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MFA No. 102054 of 2016
4. MR. YESUDAS
S/O. PETER FERNANDES,
AGE:MAJOR, OCC:DRIVER,
R/O: AT JAMACA COLONY,
AMBIKANAGAR, TQ: HALIYAL,
DIST: NORTH CANARA-581363.
5. MR. PETER D.FERNANDES,
AGE:MAJOR, OCC:OWENER OF VEHICLE,
R/O: AT JAMACA COLONY,
AMBIKANAGAR, TQ: HALIYAL,
DIST: NORTH CANARA-581363.
...RESPONDENTS
(BY SMT. BHARATI G.BHAT, ADVOCATE FOR R1 TO R3;
NOTICE TO RESPONDENTS NO.4 AND 5 ARE SERVED)
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 173(1) OF MV ACT, 1988, AGAINST THE JUDGMENT
AND AWARD DATED 29.03.2016 PASSED IN MVC NO.145/2011
ON THE FILE OF THE MEMBER, ADDITIONAL MOTOR
ACCIDENT CLAIMS TRIBUNAL, YELLAPUR, SITTING AT
HALIYAL, AWARDING COMPENSATION OF Rs.15,26,800/- WITH
INTEREST AT THE RATE OF 6% P.A. FROM THE DATE OF
PETITION TILL THE DATE OF PAYMENT IN FULL.
THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR
HEARING, THIS DAY, S G PANDIT, J., DELIVERED THE
FOLLOWING:
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MFA No. 102054 of 2016
JUDGMENT
The appellant/Insurance Company is before this Court
questioning quantum of compensation awarded under
judgment and award dated 29.03.2016 passed in MVC
No.145/2011 on the file of Additional M.A.C.T., Yellapur sitting
at Haliyal (for short, 'Tribunal') and praying for reduction of
compensation awarded.
2. The claimants, who are the legal heirs of one
C.S.Saseendran filed claim petition under Section 166 of the
Motor Vehicles Act, 1988 claiming compensation for the
accidental death of C.S.Saseendran in a road traffic accident
that occurred on 12.01.2011 involving motorcycle bearing
Registration No.KA-31/6333 and Jeep bearing Registration
No.MH-17/C-1159. It is stated that the deceased was doing
contract work and tyre business earning Rs.25,000/- per month
and he was aged about 45 years as on the date of the accident.
appeared before the Tribunal and only respondent
No.3/Insurance Company filed its objections. Respondent No.3
in its objections denied the claim petition averments and
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further contended that the accident occurred solely due to rash
and negligent driving of the deceased rider of the motorcycle.
Before the Tribunal, the claimant No.2, son of the deceased
Saseendran examined himself as PW1 apart from marking the
documents as Exs.P1 to P22. Respondents did not examine any
witness, but marked two documents as Ex.R1 & R2. The
Tribunal based on entire material evidence on record awarded
total compensation of Rs.15,26,800/- with interest at the rate
of 6% per annum from the date of petition till the date of
payment.
4. Heard Sri.N.R.Kuppellur, learned counsel for the
appellant-Insurance Company and perused the appeal papers.
5. Sri.N.R.Kuppellur, learned counsel for the appellant-
Insurance Company would contend that the compensation
awarded by the Tribunal is on the higher side and prays for
reduction in the compensation awarded. Further, learned
counsel would submit that the claimants have not placed on
record any document to establish the income of the deceased
and in the absence of material to establish the income, the
Tribunal committed grave error in assessing the income of the
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deceased at Rs.10,000/- per month. Further, learned counsel
would submit that the Tribunal also committed grave error in
awarding 30% towards future prospects of the deceased.
Learned counsel would submit that the deceased was aged 50
years 5 months and 25 days as on the date of the accident in
terms of Ex.P7-Pan Card. Therefore, it is clear that the
claimants would be entitled for only 25% of the assessed
income towards future prospects.
6. Further, the learned counsel would also submit that
the Tribunal committed grave error in applying multiplier as 14
and submits that taking note of the age of the deceased as 50
years 5 months 25 days as on the date of the accident, the
appropriate multiplier applicable would be 13. Thus, learned
counsel prays for allowing the appeal.
7. Having heard the learned counsel for the appellant
and on perusal of the appeal papers, following points would
arise for our consideration in this appeal:
(i) Whether the Tribunal is justified in assessing the
income of the deceased at Rs.10,000/- per month?
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(ii) Whether the Tribunal is justified in adopting
multiplier of 14 and in adding 30% of the assessed
income towards future prospects?
8. Our answer to point No.(i) is in the affirmative and
point No.(ii) is in the negative for the following reasons.
9. The occurrence of the accident on 12.01.2011
involving motorcycle bearing registration No.KA-31/6333 and
Jeep bearing registration No.MH-17/C-1159, resultant death of
C.S.Saseendran is not in dispute in this appeal. The Insurance
Company is in appeal questioning quantum and praying for
reduction of compensation awarded.
10. The claimants have stated that the deceased was a
contractor and was doing other business earning Rs.25,000/-
per month. The claimants have placed on record Ex.P6-Civil
contractor pass book issued by KPC Ltd.; Ex.P7-Pan card;
Ex.P8-BAT registration certificate; Ex.P9-Certificate of
registration by Central Excise; Ex.P10-Certificate of registration
issued by KPC Ltd.; Ex.P12-Provident Fund Organization
Certificate and Ex.P22-Certificate of registration for service tax
registration.
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11. Above documents would clearly indicate that the
deceased was carrying on contractor work and he had
registered under various Statutory Authorities including Service
Tax and Central Excise. Though the claimants have not placed
on record any document to establish the income of the
deceased and though the notional income fixed by the
Karnataka State Legal Services Authority at Rs.6,000/- per
month for the accident of the year 2011, the assessment of
notional income of the deceased at Rs.10,000/- taking note of
the various certificates and the contract work of the deceased
by the Tribunal is just and proper and it needs no interference.
12. The claimants have placed on record Ex.P7-Pan
card which would indicate the date of birth of the deceased as
17.08.1960 which would mean that as on the date of the
accident, the deceased was aged 50 years 5 months 25 days.
For the age of 50 years, the appropriate multiplier applicable
would be 13. Therefore, the Tribunal committed grave error in
adopting the multiplier as 14 as against multiplier of 13.
13. In terms of the decision of the Hon'ble Apex Court
in the case of National Insurance Company Limited Vs.
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Pranay Sethi & Others1 the claimants would be entitled for
adding 25% of the assessed income towards future prospects if
the deceased was aged between 40 to 50 years. In the instant
case, as the deceased was 50 years as on the date of the
accident, the Tribunal ought to have added 25% of the
assessed income towards future prospects, but committed
grave error in adding 30% of the assessed income towards
future prospects. Thus, the claimants would be entitled for
adding 25% of the assessed income towards future prospects.
14. The deduction at 1/3rd since there are three
dependents, is proper and correct. Thus, the claimants would
be entitled for modified compensation on the head of loss of
dependency as under:
Rs.13,00,000/- (Rs.10,000 + 25% x 12 x 13 x 2/3).
15. It is well settled law that claimants No.1 to 3 would
be entitled to Rs.40,000/- each towards loss of consortium as
held by the Hon'ble Apex Court in the case of Magma General
Insurance Company Ltd., Vs. Nanu Ram and Others2. In
2017 (16) SCC 680
2018 ACJ 2782
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terms of decision of the Hon'ble Apex Court in the case of
National Insurance Company Limited Vs. Pranay
Sethi and Others, the claimants would be entitled to
Rs.15,000/- towards loss of estate, besides Rs.15,000/-
towards transportation of dead body and funeral expenses. The
award of compensation by the Tribunal under the heads of
'medical expenses' and 'attendant charges' is unaltered. Thus,
the claimants would be entitled for modified compensation on
the following heads:
Sl. No. Particulars Amount
(In Rupees)
1. Loss of dependency 13,00,000/-
2. Loss of estate & Funeral 30,000/-
expenses
3. Loss of consortium (Rs.40,000/- 1,20,000/-
each)
4. Medical expenses and attendant 15,000/-
charges
Total 14,65,000/-
16. Thus, the claimants would be entitled to total
compensation of Rs.14,65,000/- as against Rs.15,26,800/-
awarded by the Tribunal.
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17. In the result, we proceed to pass the following:
ORDER
a) The above appeal is allowed in part.
b) The impugned judgment and award of
the Tribunal is modified to an extent that
the claimants are entitled to total
compensation of Rs.14,65,000/- as
against Rs.15,26,800/- awarded by the
Tribunal.
c) The compensation amount will bear
interest at the rate of 6% per annum
from the date of claim petition till date of
realization.
d) The appellant-Insurance Company shall
deposit the compensation amount with
accrued interest before the Tribunal
within six weeks from the date of receipt
of certified copy of this judgment.
e) Apportionment, deposit & disbursement
of the compensation shall be made as per
the award of the Tribunal.
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f) Registry to transmit the amount in
deposit, if any, along with records, if any,
to the Tribunal, forthwith.
g) Draw modified award accordingly.
Sd/-
JUDGE
Sd/-
JUDGE
RH
