Partly allowed

The New India Assurance Co. Ltd., v. Smt. Nagarathna

Karnataka HC18 Jan 2021MFA/5814/2018

Case brief

AI extract

What is this about?

The High Court enhanced the motor accident compensation awarded to legal representatives of a deceased person. While accepting the insurer's challenge that the quantum based on Rs. 12,000 monthly income was incorrect, the Court found evidence supporting a higher income of Rs. 14,000 monthly. The Court applied specific heads of compensation under relevant precedents to increase the total award from

What did the court decide?

Total compensation modified and enhanced to Rs. 27,75,600/- with interest at 6% p.a., payable by the insurer within 90 days.

The New India Assurance Co. Ltd., Vs Smt. Nagarathna — 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 18^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.3799/2018 C/w. M.F.A.No.5814/2018 (MV)

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IN MFA No.3799/2018:

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BETWEEN :

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SMT.NAGARATHNA W/O LATE VIJAY KUMAR AGED ABOUT 32 YEARS

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SMT.ALAMELAMMA

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W/O LATE NAGARAJU AGED ABOUT 52 YEARS

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ASHA.A.N., D/O LATE NAGARAJU MAJOR.

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ALL ARE R/AT No.315/B, 4^TH CROSS SIDDARTHANAGARA, 13^TH WARD MADDUR TOWN MADYA DISTRICT. ...APPELLANTS

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(BY SRI S.RAJU, ADV.)

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AND :

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SHRI. THIMMARAJU S/O SANNAPPA R/AT HOUSE No.18/54 MANGALAVARAPETE 13^TH CROSS, CHANNAPATNA TOWN RAMANAGARA DISTRICT-572139.

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THE NEW INDIA ASSURANCE COMPANY LTD., No.224/14 GIRIYAMMA SHAMBHUGOWDA COMPLEX CHURCH ROAD CHANNAPATNA TOWN-572159. …RESPONDENTS

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(BY SRI C.R.RAVISHANKAR, ADV. FOR R-2)

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THIS M.F.A. IS FILED UNDER SECTION 173(1) OF M.V.ACT AGAINST THE JUDGMENT AND AWARD DATED 07.03.2018 PASSED IN MVC No.383/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC, ADDITIONAL MACT, CHANNAPATTANA, RAMANAGAR DISTRICT, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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IN MFA No.5814/2018:

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BETWEEN :

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THE NEW INDIA ASSURANCE CO LTD., No.224/14, GIRIYAMMA SHAMBHUGOWDA COMPLEX, CHURCH ROAD CHANNAPATNA TOWN REP. BY T.P.HUB, No.9, 2^ND FLOOR MAHALAKSHMI CHAMBERS M.G. ROAD, BANGALORE-560001 REP. BY ITS MANAGER. ...APPELLANT

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(BY SRI C.R.RAVISHANKAR, ADV.)

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AND :

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SMT.NAGARATHNA W/O LATE VIJAY KUMAR AGED ABOUT 32 YEARS

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SMT.ALAMELAMMA W/O LATE NAGARAJU AGED ABOUT 52 YEARS

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ASHA.A.N., D/O LATE NAGARAJU, MAJOR.

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THE RESPONDENT Nos.1 TO 3 ARE R/AT No.315/B, 4^TH CROSS SIDDARTH NAGARA, 13^TH WARD MADDUR TOWN MADYA DISTRICT – 571410.

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SHRI. THIMMARAJU S/O SANNAPPA, MAJOR R/AT HOUSE No.18/54 MANGALAVARAPET 13^TH CROSS, CHANNAPATNA TOWN RAMANAGARA DISTRICT-571501. …RESPONDENTS

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(R-1 TO R-4 – SERVED.)

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THIS M.F.A. IS FILED UNDER SECTION 173(1) OF M.V.ACT AGAINST THE JUDGMENT AND AWARD DATED 07.03.2018 PASSED IN MVC No.383/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE & JMFC AND ADDITIONAL MACT, CHANNAPATTANA, RAMANAGAR DISTRICT, AWARDING COMPENSATION OF Rs.25,18,000/- WITH COSTS AND FUTURE INTEREST AT 6% P.A., FROM THE DATE OF PETITION TILL THE DATE OF DEPOSIT.

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THESE APPEALS COMING ON FOR ADMISSION, THIS DAY, S. SUJATHA, J ., DELIVERED THE FOLLOWING:

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J U D G M E N T

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The insurer as well as the claimants are before

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this Court challenging the judgment and award dated 07.03.2018 passed in MVC No.383/2016 on the file of the Senior Civil Judge and JMFC and Additional MACT,

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Channapattana ['Tribunal’ for short].

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The claimants being the widow, mother and

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sister of the deceased Vijay Kumar.N instituted the petition under Section 166 of the Motor Vehicles Act, 1988 claiming compensation for the death of Sri.Vijay Kumar.N in the road traffic accident as his legal representatives and dependants.

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It was averred that on 10.07.2016 at about 06.30 p.m., when the deceased Vijay Kumar.N and his friend one Kumar were proceeding in the Activa motorcycle bearing registration No.KA-41-EF-5351, near

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Neelakantanahalli village, Channapatna-

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Hodikehosahalli road, the rider of the motorcycle bearing registration No.KA-05-ET-6809 [offending vehicle] came in a rash and negligent manner and dashed against the deceased Vijay Kumar’s vehicle which caused the accident in question. As a result, the deceased fell down and sustained severe injuries. Immediately, he was shifted to General hospital,

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Channapatna and thereafter to Mandya District Hospital, Mandya. However, he succumbed to the injuries in the said hospital.

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It was contended that the deceased was aged about 29 years, working as an Assistant in Motherson Automotive Techonologies and Engineering and was earning Rs.22,290/- p.m. Due to the untimely death of the deceased, the claimants have lost the earning member of the family and are suffering from loss of dependency, loss of love and affection etc. On these set of facts and grounds, the claimants had sought for compensation.

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In pursuant to the service of notice, the respondents appeared through their respective counsel. Respondent No.2 filed written statement denying the petition averments. The defence set up was that the accident was not occurred due to the negligence of the driver of the offending vehicle; the driver of the offending

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vehicle had no valid driving licence on the date of the accident. Admitting the coverage of the insurance policy in respect of the offending vehicle on the date of the accident, it was contended that the liability is subject to terms and conditions of the policy. Accordingly, sought for dismissal of the petition.

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On the basis of the pleadings, the Tribunal

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framed the issues and allowed the petition in part awarding total compensation of Rs.25,18,000/- with interest at the rate of 6% p.a., from the date of the petition till its realization, fastening the liability on the insurer to satisfy the award.

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Being aggrieved by the quantum of

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compensation, the claimants have preferred MFA No.3799/2018 contending that the quantum of compensation awarded is inadequate whereas the insurer has preferred MFA No.5814/2018 contending

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that the quantum of compensation awarded by the Tribunal is excessive.

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Learned counsel for the insurer would

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submit that the Tribunal grossly erred in determining the monthly income of the deceased at Rs.12,000/- and adding 50% of the same towards future prospects in the absence of any material evidence to prove the established regular income of the deceased with a stable job. It was further argued that the compensation awarded under the different heads is exorbitant.

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9. Learned counsel for the claimants would

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argue that the deceased was working as an Assistant in Motherson Automotive Technologies and Engineering and was earning Rs.22,290/- p.m. The appointment letter at Ex.P11, Identity card at Ex.P12, Salary Slip extracts at Ex.P13 to P16, ITI marks card at Ex.P18, Bank statement extract Ex.P23 and salary slip extract at Ex.P24 are the documents produced by the claimants

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to establish the income of the deceased. The Tribunal though noticed the same, determined the monthly income of the deceased notionally at Rs.12,000/- p.m., which is palpably erroneous. It was argued that the compensation awarded by the Tribunal under the different heads is meager. Accordingly, sought for enhancement of the compensation.

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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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11. The crux of the controversy lies in a narrow

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compass inasmuch as the income of the deceased determined by the Tribunal. We have perused the original documents. Exhibits referred to by the learned counsel for the claimants though indicates the gross total income of the deceased as Rs.18,302/- p.m., for the month of April to July, 2016 [Ex.P13 to Ex.P16]. But to substantiate the same, no satisfactory evidence has

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been produced. The bank statements produced by the claimants would not disclose the said sum of

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Rs.18,302/- drawn towards salary regularly by the deceased. On the other hand, it varies from month to month. Ex.P9, copy of the SSLC marks card, Ex.P18, copy of the ITI course marks card would indicate that the deceased was qualified to work as a skilled employee.

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Having regard to the educational qualification of the deceased and his employment with Motherson Automotive Technologies and Engineering as an Assistant, we deem it appropriate to re-determine the monthly income of the deceased at Rs.14,000/-. In the absence of concrete evidence to establish the stable and regular job, 40% of the same is added towards future prospects which amounts to Rs.19,600/-. Considering the same, applying the multiplier of 17 as the deceased was aged

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about 29 years, deducting 1/3^rd of the income towards the personal and living expenses, the loss of dependency would be Rs.26,65,600/- [19,600 x 12 x 2/3 x 17].

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In terms of the ruling of the Hon'ble Apex Court in National Insurance Company Limited Vs.

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Pranay Sethi and others ((2017)16 SCC 680) and New India Assurance Company Limited V/s. Somwati and Others 2020 [SCC ONLINE SC 720] , the claimants are entitled to compensation of Rs.1,10,000/- under the conventional heads viz., Rs.40,000/- towards filial consortium; Rs.40,000/towards the spousal

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consortium; Rs.15,000/- towards funeral expenses and Rs.15,000/- towards loss of estate.

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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	26,65,600/-
2.	Loss of FilialConsortium	40,000/-
3.	Loss ofSpousalConsortium	40,000/-
4.	Loss of Estate	15,000/-
5.	Funeralexpenses	15,000/-
	Total	27,75,600/-

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Thus, the claimants shall be entitled to total compensation of Rs.27,75,600/as against Rs.25,18,000/- with interest at the rate of 6% per annum from the date of the claim petition till the date of realization.

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15. Hence, the following:

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ORDER

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i) Appeal filed by the claimants in MFA No.3799/2018 stands allowed in part. Appeal filed by the insurer in MFA No.5814/2018 stands dismissed.

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ii) The total compensation awarded by the Tribunal is modified and enhanced to Rs.27,75,600/- (Rupees Twenty Seven Lakh

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Seventy Five Thousand and Six hundred Only) as against Rs.25,18,000/- with interest at the rate of 6% per annum from the date of the claim petition till its realization subject to clause (iii).

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iii) However, the claimants shall not be entitled to interest for the delayed period of 316 days caused in filing the recalling application before this Court, in terms of the order of this Court dated 04.12.2020.

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

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v) 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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