In this motor accident compensation appeal, the High Court issued (2020) 9 SCC 644. The bench dismissed the insurer's challenge against the quantum but modulated the interest rate from 9% to 6% per annum.
The total compensation remains Rs. 29,31,000 but the interest rate is reduced from 9% to 6% per annum on the total amount.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 21ST DAY OF JUNE, 2021
PRESENT
THE HON’BLE MRS.JUSTICE S.SUJATHA
AND
THE HON’BLE MR. JUSTICE E.S.INDIRESH
M.F.A.No.2869/2017 (MV)
BETWEEN :
THE CLAIM MANAGER FUTURE GENERAL INDIA INSURANCE COMPANY LIMITED T.P.CLAIMS HUB, 3RD & 4TH FLOOR NO.31, “SHARAVANEE KRISHNA” MANSION 100 FEET ROAD, 2ND BLOCK JAYANAGARA, BANGALORE-11 BY FUTURE GENERALI INDIA INSURANCE CO. LTD., NO.31, 3RD FLOOR, ABOVE CROMA SHOWROOM, SHARAVANEE KRISHNA MANSION, 100 FEET ROAD, II BLOCK, JAYANAGARA, BANGALORE-560011 BY ITS MANAGER ...APPELLANT
(BY SRI O.MAHESH, ADV.)
AND :
AGED ABOUT 13 YEARS
RESPONDENT 2 & 3 ARE MINORS REP BY MOTHER GUARDIAN 1ST RESPONDENT HEREIN
ALL ARE R/AT NO.25, 5TH MAIN ROAD 6TH CROSS, GKW LAYOUT, LAGGERE, PEENYA 2ND STAGE BANGALORE-560058
PRESENT ADDRESS: R/AT NO.33, BEERAMARANAHALLI VILLAGE & POST ANKALAKOPPA, GUBBI TALUK, TUMKUR DISTRICT-572213
6 . Mr. N.KEMPARAJU S/O LATE NARASIMAHAI, MAJOR R/A NO.201/16, 6TH CROSS, LAKSHMINAGAR, BASAVESHWARANAGAR BANGALORE-560079 …RESPONDENTS
(BY SRI K.T.GURUDEVA PRASAD, ADV. FOR R-1 TO R-5;
R-6 SERVED.)
THIS M.F.A. IS FILED UNDER SECTION 173(1) OF M.V.ACT AGAINST THE JUDGMENT AND AWARD DATED 07.01.2017 PASSED IN MVC No.2131/2016 ON THE FILE OF THE XVI ADDITIONAL JUDGE, MEMBER, MACT, COURT OF SMALL CAUSES, BANGALORE, AWARDING COMPENSATION OF
Rs.29,31,000/- WITH INTEREST AT 9% P.A. FROM THE DATE OF PETITION TILL PAYMENT.
THIS APPEAL COMING ON FOR ORDERS, THIS DAY, S. SUJATHA, J ., DELIVERED THE FOLLOWING:
J U D G M E N T
This appeal by the Insurer is directed against the judgment and award dated 07.01.2017 passed in MVC No.2131/2016 on the file of the XVI Additional Judge, Member, MACT, Court of Small Causes, Bangalore (‘Tribunal’ for short).
Sri. Boregowda in the road traffic accident.
norms, near Siddaiah Puranik road,
Basaveshwaranagar, Bangalore, a Car bearing registration No.KA-02-ME-1944 (offending vehicle) driven by its driver at a high speed and in rash and negligent manner, came and dashed against the motorcycle of the deceased. Due to the said impact, the deceased fell down and sustained grievous injuries. Immediately, he was shifted to Mathru Hospital, wherein first-aid treatment was given and thereafter he was shifted to NIMHANS Hospital for further treatment and again to B.G.S. Global Hospital. However, he succumbed to the fatal injuries on 30.12.2015 at about 11.45 a.m.
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earnings to the maintenance of the family. Due to the untimely death of the deceased, the claimants are suffering mentally and financially besides loss of love and affection. On these set of facts and grounds, the claimants sought for compensation.
compensation claimed by the claimants is highly excessive, exaggerated and arbitrary. However, the issuance of the policy in favour of the insured in respect of the vehicle in question was admitted.
framed and answered by the Tribunal as per the reasons recorded in the impugned judgment allowing the petition in part awarding total compensation of Rs.29,31,000/- with interest at the rate of 9% per annum from the date of petition till its payment.
this appeal.
further argued that the compensation awarded under the conventional heads is meager and as such, the total compensation awarded by the Tribunal cannot be held to be excessive or exorbitant.
submissions of the learned counsel appearing for the parties and perused the original records.
Re. Negligence:
panchanama would indicate that the accident has occurred at the intersection of the roads i.e., in a junction. On analyzing the said documents, the Tribunal has rightly held that the traffic rules mandate the drivers to give preference to the vehicle coming on their right side. Since the car (offending vehicle) was coming on the left side of the motorcycle, there was no obligation on the part of the deceased to give way to the car. Police records also fortifies the negligence of the
driver of the offending vehicle. It is trite that sole or contributory negligence of the victim has to be proved by leading substantial evidence. In the absence of any evidence let in by the insurance company to establish the factum of negligence on the part of the deceased, the appeal preferred by the insurer challenging the finding on the negligence aspect is wholly unsustainable. Hence, the argument of the learned counsel for the insurer on this negligent aspect is negated.
Re. Quantum:
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the income has been added towards future prospects. Deducting 1/4th of the income towards the personal and living expenses of the deceased and applying the multiplier of ‘15’, the loss of dependency has been reckoned at Rs.26,25,000/-, which in our opinion is just and reasonable.
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would be negligible. Hence, we are not inclined to
interfere with the quantum of compensation awarded by the Tribunal.
Tribunal at 9% per annum requires to be reduced to 6% per annum keeping in mind the relevant factors like prevailing rate of interest and also to maintain uniformity in the orders keeping in mind the interest awarded at 6% per annum consistently in identical circumstances by this Court.
17. Hence, the following
ORDER
i) The appeal filed by the insurer is allowed in part insofar as rate of interest is concerned.
ii) The total compensation of Rs.29,31,000/awarded by the Tribunal remains undisturbed.
iii) However, the rate of interest awarded by the Tribunal at 9% per annum is modified and reduced to 6% per annum on the total compensation of Rs.29,31,000/- from the date of the claim petition till its realization.
iv) The portion of the order of the Tribunal inasmuch as liability, apportionment and disbursement remains intact.
v) The insurance company shall deposit the total compensation amount along with interest as aforesaid before the Tribunal within 90 days from the date of receipt of the certified copy of the judgment and order. vi) The aforesaid compensation amount shall be apportioned and disbursed in terms of the order of the Tribunal.
vii) Draw modified award accordingly.
viii) The Registry shall transfer the amount in deposit along with the original records to the jurisdictional Tribunal forthwith. ix) All pending I.As. stand disposed of accordingly.
Sd/JUDGE
Sd/JUDGE
PMR
2 issues framed by the court
Whether the High Court should modify the rate of interest awarded by the Motor Accident Claims Tribunal in a motor vehicle accident compensation case.
Whether the compensation amount awarded by the Tribunal is excessive and requires interference.
Colour shows how this judgement treated each authority
National Insurance Company Limited Vs. Pranay Sethi and othersReferred¶15
(2017)16 SCC 680 · Who else cites this
New India Assurance Company Limited v/s. Somwati and othersReferred¶15
(2020) 9 SCC 644 · Who else cites this
2 provisions across 1 enactments
The Claim Manager Future General India Insurance Company Limited
I Jayalakshmamma
Kumari B. Varsha
Master B. Shivu S/o Late Bore Gowda B.
Sri Bettappa @ Bettanna S/o Siddaiah
Smt. Lakshmamma W/o Bettappa @ Bettanna
S. Sujatha
E.S. Indires
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
