Second appellate court enhanced compensation in a motor accident claim. Court assessed notional income due to lack of proof and applied legal propositions for future prospects and consortium, directing deposit of increased amount with interest.
Compensation enhanced to Rs. 24,58,000 with interest at 6% p.a.; Insurance directed to deposit within six weeks.
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 5TH DAY OF DECEMBER, 2022
BEFORE
THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD MISCELLANEOUS FIRST APPEAL NO.466 OF 2022(MV-D)
BETWEEN:
Digitally signed by C MALATHI Location: High Court of Karnataka
ALL ARE R/AT MEDIHALLI VILLAGE
DEVANAGUNDI POST ANUGONDANAHALLI HOBLI HOSAKOTE TALUK BANGALORE RURAL DISTRICT
…APPELLANTS
(BY SRI. KAILAS SHANKAR P S., ADVOCATE)
MFA No. 466 of 2022
AND:
…RESPONDENTS
(BY SRI.P.B. RAJU., ADVOCATE FOR R2: NOTICE TO R1 IS DISPENSED WITH V/O DATED: 05.12.2022)
THIS MFA IS FILED UNDER SECTION.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED:03.09.2021 PASSED IN MVC NO.4250/2019 ON THE FILE OF THE CHIEF JUDGE, COURT OF SMALL CAUSES AND MEMBER, PRL. MACT, BENGALURU, (SCCH-1), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.
THIS APPEAL, COMING ON FOR ORDER, THIS DAY, THE COURT DELIVERED THE FOLLOWING:
MFA No. 466 of 2022
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 claimants being aggrieved by the judgment dated 03.09.2021 passed by the Motor Accident Claims Tribunal, Bengaluru in MVC
No.4250/2019.
MFA No. 466 of 2022
side. As a result of the aforesaid accident, the deceased sustained grievous injuries and succumbed to the injuries.
The respondent No.1 did not appear before the Tribunal inspite of service of notice and hence was placed ex-parte.
MFA No. 466 of 2022
MFA No. 466 of 2022
Firstly, the claimants claim that the deceased was aged about 42 years at the time of the accident and he was earning Rs.30,000/- per month by working as agriculturist and he was also doing catering work. But the Tribunal is not justified in taking the monthly income of the deceased as merely as Rs.10,000/-.
Secondly, as per the law laid down by the Hon’ble Supreme Court in the case of NATIONAL INSURANCE CO.
LTD. -v- PRANAY SETHI AND OTHERS [AIR 2017 SC 5157], in case the deceased was self-employed or on a fixed salary, an addition of 25% of the established income towards ‘future prospects’ should be the warrant where the deceased was between the age group of 40-50 years. The same may be considered.
Thirdly, as per the judgment of the Hon’ble Supreme
Court in the case of MAGMA GENERAL INSURANCE CO. LTD. –V- NANU RAM [2018 ACJ 2782], each of the claimants are entitled for compensation of Rs.44,000/-
MFA No. 466 of 2022
under the head of ‘loss of love and affection and consortium’.
Fourthly, the compensation awarded by the Tribunal under the conventional heads is on the lower side. Hence, he prays for allowing the appeal.
Firstly, even though the claimants claim that the deceased was earning Rs.30,000/- per month, the same is not established by the claimants by producing documents. Therefore, the Tribunal has rightly assessed the income of the deceased notionally.
Secondly, since the claimants have not established the income of the deceased, they are not entitled for compensation towards ‘future prospects’.
MFA No. 466 of 2022
Thirdly, on appreciation of oral and documentary evidence and considering the age and avocation of the deceased, the overall compensation awarded by the Tribunal is just and reasonable. Hence, he prays for dismissal of the appeal.
The claimants claim that deceased was earning Rs.30,000/- per month. But they have not produced any documents to prove the income of the deceased. In the absence of proof of income, the notional income has to be assessed. As per the guidelines issued by the Karnataka State Legal Services Authority, for the accident taken place in the year 2019, the notional income of the deceased has to be taken at Rs.14,000/- p.m.
MFA No. 466 of 2022
To the aforesaid income, 25% has to be added on account of future prospects in view of the law laid down by the Constitution Bench of the Supreme Court in ‘PRANAY SETHI’ (supra). Thus, the monthly income comes to Rs.17,500/-. Since there are four dependents, it is appropriate to deduct 1/4th of the income of the deceased towards personal expenses. Thus, the monthly income of the deceased comes to Rs.13,125/-. The deceased was aged about 42 years at the time of the accident and multiplier applicable to his age group is ‘14’. Thus, the claimants are entitled to compensation of Rs.22,05,000/(Rs.13,1251214) on account of ‘loss of dependency’.
In addition, the claimants are entitled to compensation of Rs.16,500/- on account of ‘loss of estate’ and compensation of Rs.16,500/- on account of ‘funeral expenses’.
In view of the law laid down by the Supreme Court in the case of ‘MAGMA GENERAL INSURANCE’ (supra),
MFA No. 466 of 2022
claimant No.1, wife of the deceased is entitled for compensation of Rs.44,000/- under the head of 'loss of spousal consortium', claimant Nos.2 and 3, children of the deceased are entitled for compensation of Rs.44,000/each under the head of ‘loss of parental consortium’ and claimant Nos.4 and 5, parents of the deceased are entitled for compensation of Rs.44,000/- each under the head of
‘loss of filial consortium’.
compensation:
| Compensation under different Heads |
Amount in (Rs.) |
|---|---|
| Loss of dependency | 22,05,000 |
| Funeral expenses | 16,500 |
| Loss of estate | 16,500 |
| Loss of spousal consortium | 44,000 |
| Loss of Parental consortium | 88,000 |
| Loss of Filial Consortium | 88,000 |
| Total | 24,58,000 |
MFA No. 466 of 2022
The judgment of the Claims Tribunal is modified.
The claimants are entitled to a total compensation of Rs.24,58,000/- as against Rs.14,90,000/- awarded by the Tribunal.
The Insurance Company is directed to deposit enhanced compensation amount along with interest at 6% p.a. from the date of filing of the claim petition till the date of realization, within a period of six weeks from the date of receipt of copy of this judgment.
Sd/JUDGE
HA
List No.: 2 Sl No.: 21
3 issues framed by the court
Whether the claimants are entitled to enhanced compensation given that established income documents were not produced and notional income must be assessed.
Whether the adjudicated compensation quantum for loss of dependency and consortium heads is just, reasonable, and legally sustainable.
Whether the insurance company is directed to deposit the enhanced compensation amount with the prescribed rate of interest.
Colour shows how this judgement treated each authority
NATIONAL INSURANCE CO. LTD. -v- PRANAY SETHI AND OTHERSApplied¶61
AIR 2017 SC 5157 · Who else cites this
MAGMA GENERAL INSURANCE CO. LTD. –V- NANU RAMApplied¶48
2018 ACJ 2782
2 provisions across 1 enactments
SMT RADHA W/O LATE SRINIVAS
H S HARRSHAVARDHANA S/O LATE SRINIVAS
KUM M S KRUTHIKA D/O LATE SRINIVAS
SRI A M RAMAIAH S/O ANNAYYAPPA
SMT SUSHEELAMMA W/O A M RAMAYYA
THE MANAGER THE ROYAL SUNDARAM ALIANCE GENERAL INSURANCE CO LTD
H.T. NARENDRA PRASAD
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
