Partly allowed

Smt Rekha v. M/S Vrl Logistics

Karnataka HC13 Jan 2021MFA/4644/2019

Case brief

AI extract

What is this about?

The High Court allowed the motor accident compensation appeal partly. It reassessed the quantum of compensation based on the deceased's income and statutory guidelines, enhancing the award from Rs.23.5 lakhs to Rs.26.96 lakhs payable by the insurer with interest.

What did the court decide?

Enhanced total compensation awarded to Rs.26,96,800 with 6% interest from the date of claim petition till realization.

Smt Rekha Vs M/S Vrl Logistics — Motor Accident Claims | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 13^TH DAY OF JANUARY, 2021

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PRESENT

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THE HON’BLE MRS.JUSTICE S.SUJATHA

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AND

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THE HON’BLE MR. JUSTICE M.I.ARUN

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M.F.A.No.4644/2019 (MV)

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BETWEEN :

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1 . SMT.REKHA W/O LATE PRADEEP, AGED ABOUT 27 YEARS, HOUSEHOLD WORK

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2 . SRI D.H.CHANDRAPPA S/O DODDA HANUMAPPA, AGED ABOUT 52 YEARS, OCC: COOLIE.

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3 . SMT.C.RATHNAMMA W/O CHANDRAPPA AGED ABOUT 47 YEARS, OCC: COOLIE.

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4 . KUM. PAVITHRA D/O CHANDRAPPA AGED ABOUT 22 YEARS, STUDENT.

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5 . KUM. BINDUSHREE D/O LATE PRADEEP AGED ABOUT 2 YEARS, SINCE MINOR REP BY NATURAL GUARDIAN APPELLANT NO.1 SMT.REKHA

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ALL ARE R/O ANABUR VILLAGE, JAGALUR TALUK DAVANAGERE DISTRICT-577528 ...APPELLANTS

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(BY SRI N.K.SIDDESWARA, ADV.)

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AND :

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1 . M/s VRL LOGISTICS REGD. & ADMN. OFFICE, NH-4 ROAD, BANGALORE ROAD, VARUR, HUBLI-581207 REP BY ITS MANAGING DIRECTOR

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2 . UNITED INDIA INSURANCE CO. LTD., DIVISIONAL OFFICE NO.1 & 2, ENKAY COMPLEX, KESHAVAPURA, HUBLI-580023 REP BY ITS DIVISIONAL MANAGER …RESPONDENTS

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(BY SRI S.V.HEGDE MULKHAND, ADV. FOR R-2;

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VIDE COURT ORDER DATED 13.01.2021 NOTICE TO R-1 IS DISPENSED WITH.)

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THIS M.F.A. IS FILED UNDER SECTION 173(1) OF M.V.ACT AGAINST THE JUDGMENT AND AWARD DATED 04.01.2019 PASSED IN MVC No.602/2017 ON THE FILE OF THE ITINERARY SENIOR CIVIL JUDGE AND MACT, JAGALUR, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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THIS APPEAL COMING ON FOR ORDERS, THIS DAY, S. SUJATHA, J ., DELIVERED THE FOLLOWING:

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J U D G M E N T

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This appeal is directed against the judgment and award dated 04.01.2019 passed in MVC No.602/2017

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on the file of the Itinerary Senior Civil Judge and Motor Accident Claims Tribunal at Jagalur (‘Tribunal’ for short).

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The claimants instituted petition under

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Section 166 of the Motor Vehicles Act, 1988 claiming compensation for the death of Pradeep in the road traffic accident.

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It was averred in the claim petition that on 24.04.2017 at about 4.30 a.m., the deceased – Pradeep and one Upendra while proceeding in goods auto bearing registration No.KA-04-AA-9462 from Bidar towards Bengaluru, when they reached near Bhagyanagar Camp, besides the land of K. Channappa, Kolur Village, on Shiraguppa-Bellary road, all of a sudden VRL Logistics Bus bearing registration No.KA25-C-0964 (offending vehicle) came in a rash and negligent manner and dashed against the goods auto. Due to the said impact, the deceased sustained grievous

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injuries and Upendra died on the spot, whereas Pradeep was shifted to VIMS Hospital, Bellary. Later on while shifting to Davanagere Hospital for higher treatment, on the way, he succumbed to the injuries on 26.04.2017 at about 1.30 p.m. It was contended that the claimants had incurred huge expenses towards treatment of the deceased.

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It was contended that the deceased was earning Rs.30,000/- per month and contributing the same to the family. Due to the untimely death of the deceased, the claimants have suffered mental shock and agony. They were depending on the income of the deceased and they are suffering from loss of dependency etc., On these set of facts and grounds, the claimants sought for compensation.

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In response to the notice issued, the respondents appeared through their respective counsel and contested the claim. Respondent No.1 in his

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objection statement contended that the accident in question was taken place on account of rash and negligent driving of the driver of the goods auto. However, it was contended that the offending vehicle was insured with the respondent No.2 – insurer. The policy was in force and the liability, if any, has to be satisfied by respondent No.2.

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Respondent No.2 – insurer contested the claim by filing the written statement denying the petition averments. The defence set up was that the driver of the bus had entrusted the vehicle to the person who was not holding the valid and effective driving licence and the respondent No.1 had contravened the terms and conditions of the policy. Accordingly, sought for dismissal of the claim petition.

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On the basis of the pleadings, issues were

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framed and answered as per the reasons recorded in the impugned judgment allowing the petition in part

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awarding total compensation of Rs.23,50,000/- with

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interest at the rate of 8% per annum from the date of the petition till its realization.

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Being aggrieved by the quantum of

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compensation awarded by the Tribunal, the claimants have preferred this appeal seeking enhancement of compensation.

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appellants/claimants submitted that the deceased was working as a driver at Sree Road Line Transports, Bengaluru and getting monthly salary of Rs.20,000/-.

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PW.3, the manager of the said Sree Road Line Transports was examined to prove the same. Ex.P11 would fortify that the deceased was working as a driver in a goods vehicle. Despite the same, the Tribunal has determined the monthly income of the deceased at Rs.10,000/- which is on the lower side. It was further submitted that the compensation awarded under the

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different conventional heads is meager and the same requires to be enhanced substantially.

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Learned counsel for the insurer submitted that the Tribunal on appreciating the oral and documentary evidence on record has awarded just and reasonable compensation which has no scope for further enhancement. Accordingly, prays for dismissal of the appeal.

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We have carefully considered the rival submissions of the learned counsel appearing for the parties and perused the material on record.

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The Tribunal has determined the monthly income of the deceased at Rs.10,000/- and added 40% of the same towards future prospects in determining the loss of dependency. The deceased was aged about 25 years at the time of the accident and was working as a driver. Though the claimants contended that the

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deceased was drawing monthly salary of Rs.10,000/along with Rs.400/- batta per day, no concrete evidence was placed to establish the income towards batta. Hence, the Tribunal has determined the monthly income of the deceased at Rs.10,000/-. In the absence of proof of income, this Court is consistently referring to the chart prepared by the Karnataka State Legal Services Authority to determine the income of the victim of the road traffic accident, notionally. Having regard to

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the same, the monthly income of the deceased could be safely determined at Rs.11,000/-. Adding 40% towards the future prospects, the total monthly income would be Rs.15,400/-. Considering the age of the deceased at 25 years, applying multiplier of ‘18’ and deducting 1/4^th towards personal and living expenses of the deceased, the loss of dependency would work out to

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Rs.24,94,800/- (15400 x 12 x 18 x ¾).

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In terms of the dictum of the Hon'ble Apex

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Court in National Insurance Company Limited Vs. Pranay Sethi and others reported in (2017)16 SCC 680 and New India Assurance Company Limited v/s. Somwati and others reported in (2020) 9 SCC 644 , the claimants are entitled to Rs.40,000/- towards loss of spousal consortium; Rs.40,000/- towards loss of parental consortium; Rs.80,000/- towards loss of filial consortium (Rs.40,000/- to each parent); Rs.15,000/towards loss of estate and Rs.15,000/- towards funeral expenses.

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The medical expenses of Rs.12,000/-

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awarded by the Tribunal remains intact.

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For the reasons aforesaid, the total

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compensation awarded by the Tribunal is re-assessed as under:

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Sl.No.	Particulars	Amount [in Rs.]
1.	Loss ofdependency	24,94,800/-
2.	Loss of spousal consortium	40,000/-
3.	Loss of parental consortium	40,000/-
4.	Loss of filial consortium (Rs.40,000/- to each parent)	80,000/-
5.	Loss ofestate	15,000/-
6.	Towards funeral expenses	15,000/-
7.	Medicalexpenses	12,000/-
	Total	26,96,800/-

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Thus, the claimants shall be entitled to total

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compensation of Rs.26,96,800/- with interest at the rate of 6% per annum on the enhanced compensation amount from the date of the claim petition till the date of realization.

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Hence, the following:

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ORDER

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i) The appeal is allowed in part.

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ii) The total compensation awarded by the Tribunal is modified and enhanced to

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Rs.26,96,800/(Rupees Twenty Six Lakhs Ninety Six Thousand Eight Hundred only) as against Rs.23,50,000/with interest at the rate of 6% per annum on the enhanced compensation amount from the date of the claim petition till its realization.

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iii) The portion of the order of the Tribunal inasmuch as liability, apportionment and disbursement remains intact.

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iv) The insurance company shall deposit the amount determined as aforesaid before the Tribunal within 90 days from the date of receipt of the certified copy of the judgment and order.

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v) The modified compensation amount shall be apportioned and disbursed in terms of the order of the Tribunal.

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vi) Draw modified award accordingly.

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