Sri. N. Vishwanatha Raju and Smt. Kuppamma V. The New India Assurance Co. Ltd. and Sri. K.A. Saleel and ICICI Lombard General Insurance Co. Ltd. and Sri. R. Jagadish

MFA/3385/2015

AI Insights

The case involves an appeal by the claimants, Sri. N. Vishwanatha Raju and the late Smt. Kuppamma, against the judgment of the Motor Accident Claims Tribunal which partially allowed their claim for compensation following a fatal accident. The accident occurred when a lorry collided with a Tempo Traveler, resulting in the death of the deceased, Srinivasulu, who was a passenger. The claimants sought enhancement of the compensation awarded, arguing that the Tribunal erred in calculating the income and deductions from the deceased's salary and in applying the multiplier for calculating the compensation. The Insurance Company defended the original compensation amount as just and proper.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 690269 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-04-2021
• Assessment Year: misc
• Other Referred Cases: NATIONAL INSURANCE COMPANY LIMITED Vs. PRANAY SETHI AND OTHERS, MAGMA GENERAL INSURANCE CO. LTD. VS. NANU RAM & ORS., UNITED INDIA INSURANCE CO. LTD. Vs. SATINDER KAUR AND ORS.
• Laws Referred To: Motor Vehicles Act, 1988
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A K BHAT
• Assessee Lawyers: SHRIPAD SHASTRI
• Keywords: Claims Tribunal; Compensation; Enhancement of compensation; Motor Accident; Negligent driving
• Section: 173(1); 166(1)

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF APRIL 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE M.G.S. KAMAL M.F.A. NO.3385 OF 2015 (MV-D) BETWEEN: 1. SRI. N. VISHWANATHA RAJU S/O LATE MUNISWAMY RAJU AGED ABOUT 65 YEARS. 2. SMT. KUPPAMMA W/O N VISHWANATHA RAJU AGED ABOUT 56 YEARS SINCE DIED ON 23.11.14. ALL ARE R/AT SINGASAMUDRAM VILLAGE KOTTAYAM, KERALA - 686 006 TAMILNADU - 631 304. ... APPELLANTS (BY MR. SHRIPAD V. SHASTRI, ADV.,) AND: 1. THE NEW INDIA ASSURANCE CO. LTD., NO.2B UNITY BUILDING, ANNEXE MISSION ROAD, BANGALORE BY ITS MANAGER. 2. SRI. K.A. SALEEL R/AT UNITED ENTERPRISES NO. 8/101, J. KATTUVEETTIL BUILDINGS, 2ND FLOOR 2 SH MOUNT POST PALLIPET TALUK THIRUVALLUR DISTRICT. 3. ICICI LOMBARD GENERAL INSURANCE CO. LTD., PRESTIGE CORNICHE 62/1, 2ND FLOOR RICHMOND ROAD BENGALURU - 560 025 BY ITS MANAGER. 4. SRI. R. JAGADISH S/O RAMANJANAPPA R/AT CHIKKAGOLLAHALLI VILLAGE KOLARA POST DEVANAHALLI TALUK BANGALORE RURAL - 562 110. ... RESPONDENTS (BY MR. A.K. BHAT, ADV., FOR R1 R2 TO R4 SERVICE OF NOTICE D/W V/O DTD:01.02.2021) - - - THIS M.F.A. IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 14.08.2014 PASSED IN MVC NO.9359/2009 ON THE FILE OF THE IX ADDITIONAL SMALL CAUSES JUDGE & XXIV ACMM, MEMBER, MACT-7, COURT OF SMALL CAUSES, BANGALORE, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS M.F.A. COMING ON FOR FURTHER ORDERS, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT This appeal under Section 173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the Act’, for short) has been filed by the claimant against the 3 judgment dated 14.08.2014 passed by the Motor Accident Claims Tribunal (hereinafter referred to as 'the claims tribunal' for short). 2. Facts leading to filing of this appeal briefly stated are that on 19.09.2009 at about 11.50 p.m. the deceased Srinivasulu was traveling as a passenger in the Tempo Traveler bearing registration No.KA-02-D- 7389. When the aforesaid vehicle reached the road from Palakkadu-thissur on National Highway Road, at that time, a lorry bearing registration No.KL-05-W-2518, which was being driven by its driver in a rash and negligent manner dashed against the tempo traveler vehicle, in which the deceased was traveling. As a result of the aforesaid accident, the deceased fell down and sustained grievous injuries and ultimately succumbed to the same. 3. The claimant filed a petition under Section 166(1) of the Act inter alia on the ground that the 4 accident took place solely on account of rash and negligent driving of the driver of the lorry. It was further pleaded that the deceased was aged about 29 years and was employed as a Software Engineer and was earning a monthly salary of Rs.43,738/-. The claimant claimed compensation to the tune of Rs.45,00,000/- along with interest at the rate of 12% per annum. The owner did not appear and was proceeded exparte. The Insurance Company filed the written statement in which inter alia it was denied that the accident took place on account of rash and negligent driving of the driver of the lorry. The age, avocation and income of the deceased was also denied. It was further pleaded that the compensation claimed by the claimant is excessive and exorbitant. 4. The Claims Tribunal on the basis of the pleadings of the parties, framed issues and recorded the evidence. The claimant in order to prove their case got examined claimant No.1 viz., Sri.N.Vishwanatha Raju as PW1 and another witness Sri.Jayarajan C., as PW2 and 5 got exhibited 51 documents viz., Ex.P1 to Ex.P51. The respondents did not examine any witness and have placed on record copy of insurance policy as Ex.R1. The Claims Tribunal vide impugned judgment dated 14.08.2014 inter alia held that the accident took place on account of rash and negligent driving of the driver of the lorry. It was further held that the claimant are entitled to a compensation of Rs.24,74,709/- along with interest at the rate of 6% per annum from the date of petition till its payment. Being aggrieved, the claimant have filed this appeal seeking enhancement of the amount of compensation. 5. Learned counsel for the appellant submitted that the Claims Tribunal grossly erred in deducting a sum of Rs.81,733/- from the income of the deceased and ought to have deducted a sum of Rs.15,050/-. It is further submitted that the age of the deceased ought to have been taken into account while adopting the multiplier and the amount of compensation deserves to 6 be enhanced suitably under various heads. On the other hand, learned counsel for the Insurance Company submitted that the amount of compensation, which has been awarded by the Claims Tribunal is just and proper. 6. We have considered the submissions made by learned counsel for the parties and have perused the record. The only issue which arises for consideration in this appeal is with regard to quantum of compensation. Admittedly, the deceased was aged about 29 years and was employed as a Software Engineer. From perusal of income tax returns Ex.P11, it is evident that the annual income of the deceased was Rs.3,77,461/-. From the aforesaid amount, the deceased had paid a sum of Rs.15,010/- towards income tax. Therefore, the aforesaid amount ought to have been deducted from the income of the deceased on account of income tax. Therefore, the annual income of the deceased is assessed at Rs.3,62,451/-. 7 7. In view of the law laid down by the Constitution Bench of the Supreme Court in ‘NATIONAL INSURANCE COMPANY LIMITED Vs. PRANAY SETHI AND OTHERS’ AIR 2017 SC 5157, 40% of the amount has to be added on account of future prospects. Thus, the annual income comes to Rs.5,07,431/-. Since, the deceased is a bachelor, half of the amount has to be deducted towards personal expenses and therefore, the monthly dependency comes to Rs.2,53,716/-. Taking into account the age of the deceased which was 29 years at the time of accident, the multiplier of ‘17’ has to be adopted. Therefore, the claimant are held entitled to (Rs.2,53,716x17) i.e., Rs.43,13,172/- on account of loss of dependency. 8. In view of laid down by the Supreme Court in ‘MAGMA GENERAL INSURANCE CO. LTD. VS. NANU RAM & ORS.’ (2018) 18 SCC 130, which has been subsequently clarified by the Supreme Court in ‘UNITED INDIA INSURANCE CO. LTD. Vs. SATINDER KAUR 8 AND ORS.’ AIR 2020 SC 3070 each of the claimant’s are entitled to a sum of Rs.40,000/- on account of loss of consortium and loss love and affection. Thus, the claimant is held entitled to Rs.40,000/-. In addition, claimant is held entitled to Rs.30,000/- on account of loss of estate and funeral expenses. Thus, in all, the claimant is held entitled to a total compensation of Rs.43,83,172/-. Needless to state that the enhanced amount of compensation shall carry interest at the rate of 6% per annum from the date of filing of the petition till the payment is made. To the aforesaid extent, the judgment passed by the Claims Tribunal is modified. In the result, the appeal is disposed of. Sd/- JUDGE Sd/- JUDGE ss "