SINDU AND ORS V. THE DEPUTY COMMISSIONER YADGIRI AND ANR

MFA/200226/2022

AI Insights

This case involves an appeal by the claimants, who are the family members of the deceased Sri Sharanayya Hiremath, against the compensation awarded by the Motor Accident Claims Tribunal (MACT), Yadgiri. The Tribunal had awarded a compensation of Rs.11,33,500 for the death of Sri Sharanayya Hiremath in a road accident. The appellants sought an enhancement of this compensation, which the High Court granted after re-evaluating the income, future prospects, and deductions applied in the original compensation calculation. The court's decision was based on the notional income guidelines from the Lok-Adalath for accidents in 2015, adjustments for the deceased's family size, and the legal principles governing compensation for loss of dependency and consortium.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 726495 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-06-2023
• Assessment Year: misc
• Laws Referred To: MV Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MALLIKARJUN BASAREDDY; SHARANAGOUDA PATIL
• Assessee Lawyers: B C JAKA
• Keywords: Compensation Enhancement; Future prospects; Motor vehicle accident; Multiplier; Notional income; Personal Expenses Deduction
• Section: 173(1)

Judgement Text

" - 1 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 8TH DAY OF JUNE, 2023 PRESENT THE HON'BLE MR JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR JUSTICE UMESH M ADIGA MISC. FIRST APPEAL NO. 200226 OF 2022 (MV-D) BETWEEN: 1. SMT. SINDU W/O SHARANAYYA HIRAMATH, AGED: 39 YEARS, OCC: HOUSEHOLD, 2. SUGAMMA D/O SHARANAYYA HIRAMATH, AGED ABOUT: 20 YEARS, OCC: STUDENT, 3. SOUNDARYA D/O SHARANAYYA HIRAMATH, AGED ABOUT: 18 YEARS, OCC: STUDENT, ALL THE APPELLANTS ARE R/O AT: GANDHI NAGAR, STATION AREA, YADGIRI-585201. …APPELLANTS (BY SRI. B.C.JAKA, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER YADGIRI. Digitally signed by SOMANATH PENTAPPA MITTE Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 2. THE KARNATAKA GOVERNMENT INS. DEPT. MOTOR BRANCH, BANGALURU THROUGH ITS BRANCH OFFICE, KGID BUILDING, BAMBOO BAZAR, KALABURAGI, REPRESENTED BY ITS AUTHORIZED OFFICER-585102. 3. SMT. JYOTHI W/O SARANAYYA SWAMY HIREMATH, AGED ABOUT: 37 YERS, OCC: HOUSEHOLD, 4. SAHANA D/O SARANAYYA SWAMY HIREMATH, AGED ABOUT: 9 YEARS, MINOR, 5. ANKITHA D/O SARANAYYA SWAMY HIREMATH, AGED ABOUT: 8 YEARS, MINOR. ALL ARE R/AT: HUNDEKAL, TQ: SHAHAPUR, DIST: YADGIRI, NOW R/AT: H.NO.4-5-74, HANUMAN TEMPLE, MANGALAVAR PET, RAICHUR-584101. …RESPONDENTS (BY SRI. MALLIKARJUN C. BASAREDDY, GOVT. ADVOCATE FOR R1 AND R2; SRI. SHARANAGOUDA V.PATIL, ADVOCATE FOR R3 TO R5; R4 AND R5 ARE MINORS) THIS MFA IS FILED U/S 173(1) OF MV ACT, PRAYING TO ALLOW THE APPEAL BY MODIFYING THE JUDGMENT AND AWARD DATED 23.03.2016, IN MVC NO.237/2015, PASSED BY THE MEMBER M.A.C.T.-II AT YADGIRI AND CONSEQUENTLY BE PLEASED TO ENHANCE THE COMPENSATION OF RS.23,66,500/- WITH INTEREST @ 12% PER ANNUM FROM THE DATE OF PETITION TILL ACTUAL REALIZATION, IN THE INTEREST OF JUSTICE AND EQUITY. - 3 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 THIS APPEAL COMING ON FOR ORDERS THIS DAY, B.M.SHYAM PRASAD J., DELIVERED THE FOLLOWING: JUDGMENT This appeal is by the claimants in MVC No. 237/2015 on the file of the MACT-II, Yadgiri (for short, ‘the Tribunal’). The Tribunal, by the impugned judgment and award dated 23.03.2016, has granted a total compensation of Rs.11,33,500/- along with interest at the rate of 6%. The compensation awarded is apportioned amongst the appellants, who are the wife and children of the deceased, Sri Sharanayya Hiremath, and also his mother, Smt. Sharanamma1. The apportionment inter se appellants and Smt. Sharanamma is in the ratio of 40: 20: 20: 20. 2. After the Tribunal’s impugned judgment, the third to fifth respondents have commenced the suit in O.S.No.202/2016 on the file of the Civil Judge, Yadgiri 1 Smt. Sharanamma, who is no more, is represented by the appellants and the third to fifth respondents. - 4 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 asserting that the third respondent is also married to Sri Sharanayya Hiremath and the fourth and fifth respondent are their children. This suit has ultimately ended in a compromise with the parties concerned agreeing that the first appellant and the third respondent [the two wives of Sri Sharanayya Hiremath] will be entitled for 20% of the compensation, the fourth appellant [the mother of Sri. Sharanayya Hiremath] would also be entitled for 20% of the compensation and each of the four children would be entitled to 10% of the compensation. It is stated that the appellants and the third to fifth respondents have not received compensation as awarded by the Tribunal and if there is any enhancement in this appeal, such enhancement and the amount awarded by the Tribunal will have to be shared amongst the appellants and the third to fifth respondents subject to this agreement. 3. The Tribunal has determined loss of dependency in a sum of Rs. 10,93,500/- taking the notional income of the deceased at Rs.6,000/- per month - 5 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 with the addition of 50% thereof as future prospects. The Tribunal has also deducted 1/4th of the notional income towards personal expenses, and has further deducted 10% of the total compensation towards income tax. Apart from the above, the Tribunal has awarded Rs.10,000/- each towards loss of love and affection, loss of estate, funeral charges and loss of consortium. The computation of compensation awarded by the Tribunal is as follows: By Tribunal Description Loss of dependency Rs.10,93,500/-2 Loss of Love and affection Rs.10,000/- Loss of Estate Rs.10,000/- Funeral Charges Rs.10,000/- Loss of Consortium Rs.10,000/- Total Rs.11,33,500/- 4. It is not disputed that Sri Sharanayya Hiremath died in a road accident on 21.02.2015 involving Innova Car bearing Reg. No. KA-33-G-7777 and the 2 The total dependency will be Rs.12,15,000/- and because of deduction towards income tax at 10%, a sum of Rs.10,93,500/- is awarded towards loss of dependency. - 6 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 liability to pay compensation would be with the second respondent. It is seen from the records, and it remains undisputed, that Sri. Sharanayya Hiremath, who was aged about 36 years as on the date of the accident, was maintaining a large family from his occupation as the owner of a Kirana shop, and there is no definite proof of his actual income. 5. Sri. B.C.Jaka, the learned counsel for the appellants, Sri. B.C. Jaka, Sri. Sharanagouda V Patil, the learned counsel for the third to fifth respondents, and Sri. Mallikarjun C. Basareddy, the learned Government Advocate, are heard for disposal of the appeal in the light of the sole question that arises for consideration viz., whether the Tribunal is justified in taking the notional income of the Sri. Sharanayya Hiremath at Rs.6000/-, in adding 50% towards future prospects, or in deducting 10% of the amount towards income tax and in awarding different sums as aforesaid. 6. The Tribunal has taken the notional income at Rs.6,000/- per month as aforesaid, but even according to - 7 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 the schedule evolved for settlement in Lok-Adalath for the accidents in the year 2015, the notional income is taken at Rs.8,000/- per month. There is no reason why this amount should not be taken as the claimants’ case is that the deceased was running a kirana shop. The compensation must be modulated taking Rs.8,000/- per month as the notional income of Sri. Sharanayya Hiremath. 7. The addition towards future prospects, because of the Sri. Sharanayya Hiremath’s age and because he was not in permanent employment, must be 40% and not 50%. There must be necessary change in this regard as well. Further, with a large family of four children, a dependent mother and two wives, the deduction towards personal expenditure will have to be 1/3rd and not 1/4th. Admittedly, the appropriate multiplier will be ‘15’. The loss of dependency with these parameters will be in a sum of Rs.13,44,000/- as per the following computation. - 8 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 Description By this Court Income Rs.8,000.00 Addition of such Income at the rate 40% towards future prospects Rs.3,200.00 Monthly Income with the addition towards future prospects Rs.11,200.00 Deduction of 1/3rd towards personal expenses Rs.3,733.33 Monthly income [With addition of future prospects] after deduction towards personal expenses Rs.7,466.67 Therefore, Annual Income Rs.89,600.00 Multiplier 15 Loss of Dependency Rs.13,44,000.00 8. Sri Sharanayya Hiremath has left behind four minor children and two ladies dependent on him apart from the dependent mother, and each of the four children would be entitled for a sum of Rs.40,000/- as loss of consortium. And similarly, there must be grant of Rs.40,000/- to the first appellant and third respondent as also the deceased mother. The total amount of compensation towards loss of consortium will have to be in a sum of Rs.2,80,000/-. In addition, the appellants - 9 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 and third to fifth respondents would be entitled to a sum of Rs.30,000/- towards conventional heads. It is trite that there can be deduction towards income tax, as no income tax is payable on the amount received as compensation. Hence, the total compensation would be in a sum of Rs. 16,54,000/- as per the following tabulation. By Tribunal By this Court Description Loss of dependency Rs.10,93,500.00 Rs.13,44,000.00 Loss of consortium Rs.10,000.00 Rs.2,80,000.00 Loss of Love and affection Rs.10,000.00 Rs.0.00 Loss of Estate Rs.10,000.00 Rs.0.00 Funeral Expenses Rs.10,000.00 Rs.0.00 Conventional Heads Rs.0.00 Rs.30,000.00 Total Rs.11,33,500. Rs.16,54,000.00 Enhancement Rs.5,20,500.00 ORDER The appeal stands disposed of modifying the judgment and award dated 23.03.2016 in MVC No.237/2015 before the Tribunal in the following terms: - 10 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 a) The appellants and the third to fifth respondents together will be entitled for a total sum of Rs.16,54,000/-, which includes enhancement of Rs.5,20,500/-. The second respondent shall deposit this amount of Rs.16,54,000/- within eight weeks along with interest at the rate of 6% from the date of the application. The amount in deposit, if any, in these appeals shall be transferred to the Tribunal. b) The appellants and the third to fifth respondent will not be entitled for the interest the delay of 1363 days in filing the appeal, but in the event there is any delay, for the delay period, the second respondent shall deposit interest at the rate of 9%. c) The apportionment of the compensation inter- se the appellants and the third to fifth respondents shall be as follows: - 11 - NC: 2023:KHC-K:5131-DB MFA No. 200226 of 2022 The first appellant at the rate of 20% Rs.3,30,800.00 The second appellant at the rate of 15% Rs.2,48,100.00 The third appellant at the rate of 15% Rs.2,48,100.00 The third respondent at the rate of 20% Rs.3,30,800.00 The fourth Respondent at the rate of 15% Rs.2,48,100.00 The fifth respondent at the rate of 15% Rs.2,48,100.00 Rs.16,54,000.00 d) The disbursement and deposit however shall be as ordered by the Tribunal, and insofar as the compensation payable to the fourth and fifth respondents, the same shall also be in deposit until they attain the age of majority. Sd/- JUDGE Sd/- JUDGE SMP List No.: 1 Sl No.: 19 "