Smt. Anupama Bhat and Master Aniruddha and H.K. Lakshminarayana V. The New India Assurance Company Ltd. and Sri. R. Veeraraghavan

MFA/3728/2014

AI Insights

This case involves an appeal by the claimants, Smt. Anupama Bhat, Master Aniruddha, and H.K. Lakshminarayana, against the judgment and award of the Principal District Judge and M.M.A.C.T., Chikmagalur, which partially allowed their claim for compensation due to the death of H.L. Nagaprakasha in a road traffic accident. The appellants sought enhancement of the compensation awarded, arguing that the initial amount was inadequate and did not sufficiently cover various heads of damages such as loss of dependency, loss of consortium, and other conventional heads. The respondents included the insurer and the owner-cum-driver of the vehicle involved in the accident. The court, after re-evaluating the compensation in light of precedents and the circumstances of the case, agreed with the appellants' arguments and enhanced the compensation accordingly.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 799215 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 14-03-2016
• Assessment Year: misc
• Other Referred Cases: Sarla Verma and Others vs Delhi Transport Corporation and Another, Santosh Devi vs National Insurance Col.Ltd. and Others
• Laws Referred To: Motor Vehicles Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S V MULKHAND
• Assessee Lawyers: M S PRASAD
• Keywords: Compensation; Conventional Heads; Enhancement of compensation; Interest Rate; Loss of dependency; Road traffic accident
• Section: 166; 173(1)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF MARCH 2016 PRESENT THE HON’BLE MR. JUSTICE N.K. PATIL AND THE HON’BLE MRS. JUSTICE RATHNAKALA M.F.A. NO.3728/2014 (MV) BETWEEN: 1. SMT.ANUPAMA BHAT W/O LATE H.L.NAGAPRAKASH AGED ABOUT 33 YEARS 2. MASTER ANIRUDDHA S/O LATE H.L.NAGAPRAKASH AGED ABOUT 5 YEARS MINOR REPRESENTED BY HIS MOTHER AND GUARDIAN APPELLANT NO.1 3. H.K.LAKSHMINARAYANA S/O LATE H.KRISHNAIAH AGED ABOUT 76 YEARS ALL ARE RESIDENTS OF BALAGADI KOPPA-577 126 CHICKMAGALUR DISTRICT. ...APPELLANTS (BY SRI M.S.RAGHAVENDRA PRASAD, ADV.) AND: 1. THE NEW INDIA ASSURANCE COMPANY LTD. HOSUR D.O (721800) NO.14/7 K.G.COMPLEX BAGALUR ROAD, HOSUR KRISHNAGIRI DISTRICT TAMILNADU-635 109 2 REP. BY ITS MANAGER (POLICY NO.72180031090100202058) VALID FROM 01.01.2010 TO 31.12.2010 2. SRI.R.VEERARAGHAVAN S/O A.P.RANGACHARI AGED ABOUT 62 YEARS MIG-17, PHASE VIII NEW ASTC COLONY HOSUR KRISHNAGIRI DISTRICT TAMILNADU-635 109. (OWNER CUM DRIVER) ..RESPONDENTS (BY SRI S.V.HEGDE MULKHAND, ADV. FOR R-1; R-2 SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 17.2.2014 PASSED IN MVC NO.274/2012 ON THE FILE OF THE PRL. DISTRICT JUDGE AND MMACT., CHIKMAGALUR, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, N.K.PATIL J., DELIVERED THE FOLLOWING:- J U D G M E N T This appeal by the claimants is directed against the impugned judgment and award dated 17th February 2014 passed in M.V.C.No.274/2012 on the file of the Principal District Judge and M.M.A.C.T., Chikmagalur (hereinafter referred to as ‘the Tribunal’ for brevity). 3 2. The Tribunal by its judgment and award awarded a compensation of Rs.33,60,300/- with interest at 6% p.a. from the date of petition till the date of realization, on account of the death of one H.L.Nagaprakasha in a road traffic accident. Being aggrieved by the inadequate compensation and also the rate of interest, his wife, minor child and his father have presented this appeal. 3. Brief facts of the case on hand are: The appellant No.1/wife, appellant No.2 being the minor child and respondent No.3 being the father of deceased H.L.Nagaprakasha have filed a petition under Section 166 of the Motor Vehicles Act, claiming compensation against the respondents/owner and insurer of the offending vehicle involved in the accident contending that, the deceased aged about 39 years was a Software Engineer and was the only earning member of the family and whatever he earned out of his job, he use to spend for the welfare of the family members. When things stood thus, he met with 4 a road traffic accident that occurred on 13.10.2010; at about 10.15 a.m. while the deceased was riding his motor cycle bearing registration No.KA-05/EQ-3652 on the left side of the Hosur-Bangalore Main Road. At that time, a Maruti car bearing registration No.TN- 01/S-785 driven by its owner came in a rash and negligent manner and dashed against the motor cycle of the deceased. Due to the impact, the deceased sustained grievous injuries. Immediately he was shifted to NIMHANS and later on shifted to Bangalore Hospital, where he was kept in ICU for 7 days and on 20.10.2010 at 4.00 p.m., he succumbed to the injuries, leaving behind the wife, minor son and father. On account of untimely death of the deceased, appellant No.1/wife has lost her husband at her young age, minor child has lost love, affection, inspiration and guidance of his father and father, who is a senior citizen, has suffered mental pain and agony. The deceased was working as a Software Engineer at M/s.Enerpact Solutions Pvt.Ltd., Bangalore and earning Rs.28,000/- per month and on account of his 5 untimely death, there is total social and economic loss to the family. Taking all these factors into consideration, the claimants have filed a petition seeking compensation against the respondents. 4. The said matter came up for consideration before the Tribunal. The Tribunal after due consideration of the oral and documentary evidence has partly allowed the petition, awarding compensation of Rs.33,60,300/- with interest @ 6% per annum from the date of petition till its realization. Being dissatisfied with the impugned judgment and award passed by the Tribunal, the appellants have presented this appeal seeking enhancement of compensation. 5. The learned Counsel appearing for the appellants, Sri.M.S.Raghavendra Prasad, at the outset submitted that the Tribunal has erred in not awarding reasonable compensation towards conventional heads and also not awarding reasonable compensation towards loss of dependency and what is awarded is 6 inadequate, which requires enhancement including the rate of interest. The deceased was working as a Software Engineer at M/s.Enerpact Solutions Pvt.Ltd., Bangalore and earning income of Rs.28,000/- per month. In the light of the judgment of the Apex Court in Sarla Verma and Others –vs- Delhi Transport Corporation and Another reported in 2009 ACJ 1298, another 50% towards future prospects of the deceased is liable to be added. Further it is vehemently submitted that appellant No.1 lost her husband at young age and minor son lost his father at the age of 3 years and father has suffered mental pain and agony at the age of 74 years. The deceased was the only bread-earner in the family. Further, the Tribunal has also erred in not awarding sufficient compensation towards loss of love and affection, loss of consortium, loss of estate and funeral expenses. Further it is submitted that the Tribunal has also erred in awarding interest at only 6% per annum. In the light of the judgments of the Apex Court and this Court, interest may be awarded @ 9% per annum from 7 the date of petition till realization. Therefore, he submitted that the impugned judgment and award may be modified by enhancing the compensation. 6. As against this, learned Counsel appearing for respondent No.1/insurer Sri.S.V.Hegde Mulkhand interalia contended and sought to substantiate that the Tribunal after due consideration and evaluation of the oral and documentary evidence has awarded just and reasonable compensation towards loss of dependency and conventional heads including medical expenses. Therefore, interference by this Court is not called for. 7. After careful consideration of the submission made by the learned Counsel for both parties and after perusal of the impugned judgment and award, the point that arises for our consideration is: Whether the quantum of compensation awarded by the Tribunal is just and reasonable? 8. The date, time and place of the accident are not in dispute. The deceased aged 39 years was 8 working as a Software Engineer at M/s.Enerpact Solutions Pvt.Ltd., Bangalore and was earning Rs.28,000/- per month. He was the only earning member in the family. Whatever he earned out of his job, he used to spend for the welfare of the family. Due to his untimely death, there is economic distress in the family. Appellant No.1/wife has lost her husband at her young age and the minor child has lost the love, affection, inspiration and guidance of his father and they also suffered mental pain and agony. In the light of the judgment of the Apex Court in Santosh Devi –vs- National Insurance Col.Ltd. and Others reported in 2012 AIR SCW 2892 and having regard to the facts and circumstances of the case, another 30% can be added towards future prospects of the deceased. If 30% of the income of the deceased is added, the total income of the deceased comes to Rs.36,400/- per month, which works out to Rs.4,36,800/- per annum. Out of the said income, if income tax and profession tax are deducted @ Rs.31,000/-, the amount works out to Rs.4,05,800/- 9 per annum. The claimants are three in number. Out of the said amount, if 1/3rd is deducted towards personal expenses of the deceased, it comes to Rs.2,70,534/- per annum. The deceased was aged 39 years at the time of his death. The appropriate multiplier would be ‘15’. Accordingly, we re-determine the loss of dependency at Rs.40,58,010/- as against Rs.32,03,088/-. 9. As rightly pointed out by the learned Counsel for the appellants as stated supra, the Tribunal has erred in not awarding reasonable compensation towards conventional heads. Having regard to the facts and circumstances of the case stated supra, we deem it proper to award Rs.1,00,000/- towards loss of consortium; Rs.1,50,000/- towards loss of love and affection; Rs.25,000/- towards loss of estate and Rs.25,000/- towards transportation and funeral expenses. The Tribunal is justified in awarding a sum of Rs.1,42,209/- towards medical expenses; the same is just and reasonable and does not call for 10 interference by this Court. In all, the appellants are entitled for a compensation of Rs.45,00,219/- as against Rs.33,60,300/- awarded by the Tribunal, thereby there will be enhancement of Rs.11,39,919/-. 10. In the light of the judgments of the Apex Court and this Court, we deem it proper to award interest @ 8% per annum from the date of petition till realization. 11. For the foregoing reasons, the instant appeal filed by the appellants is allowed in part. The judgment and award dated 17th February 2014 passed in M.V.C.No.274/2012 on the file of the Principal District Judge and M.A.C.T., Chikmagalur, is hereby modified, awarding additional compensation of Rs.11,39,919/- with interest at the rate of 8% p.a. from the date of claim petition till realization. The first respondent / insurer is directed to deposit the enhanced compensation amount along 11 with interest @ 8% per annum within 3 weeks from the date of receipt of the copy of this judgment and award. On such deposit being made by the Insurance Company, out of enhanced compensation, a sum of Rs.3,50,000/- with proportionate interest shall be invested in the name of first appellant in Fixed Deposit in any Nationalized/Scheduled/Grameena Bank for a period of ten years renewable for ten years, with liberty to her to withdraw the interest accrued on it, periodically. Further, a sum of Rs.3,50,000/- with proportionate interest shall be invested in the name of appellant No.2, minor child of the deceased, in Fixed Deposit, in any Scheduled/Nationalized/Grameena Bank, till he attains the age of 30 years and the appellant No.1 is at liberty to withdraw the interest periodically for his welfare till he attains the age of 21 years and thereafter, from 22 years to 30 years, the appellant No.2 is entitled to withdraw the interest periodically. 12 A sum of Rs.1,50,000/- with proportionate interest shall be invested in the name of appellant No.3/father of the deceased, in Fixed Deposit, in any Scheduled/Nationalized/Grameena Bank, for a period of three years renewable for three years with liberty reserved to him to withdraw the periodical interest. Remaining sum of Rs.2,89,919/- with proportionate interest shall be released in favour of appellant Nos.1 and 3, in equal proportion, immediately. Office to draw award, accordingly. Sd/- JUDGE Sd/- JUDGE KNM/- "