Partly allowed

Sri Thimmarayappa v. United India Ins. Co. Ltd.

Karnataka HC3 Nov 2022MFA.CROB/64/2019

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed two appeals in a motor accident case. The court modified the Tribunal's award by enhancing compensation for loss of dependency and consortium while reducing the interest rate from 7.5% to 6% per annum.

What did the court decide?

The Tribunal's award was modified;(compensation enhanced to Rs.15,55,842;interest rate reduced to 6% p.a.).

Sri Thimmarayappa Vs United India Ins. Co. Ltd. — Insurance | Karnataka HC (2022)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 3^RD DAY OF NOVEMBER, 2022

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BEFORE

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THE HON'BLE Mr. JUSTICE HANCHATE SANJEEVKUMAR

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M.F.A.No.1466/2018 (MV-D)

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C/W

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M.F.A.CROB No.64/2019

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IN MFA No.1466/2018:

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BETWEEN :

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UNITED INDIA INSURANCE COMPANY LTD REGIONAL OFFICE, 5TH & 6TH FLOORS, KRISHI BHAVAN, NRUPATHUNGA ROAD, HUDSOM CIRCLE, BENGALURU-560 001 REP. BY ITS DEPUTY MANAGER SMT.SUDHA D RAO.

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...APPELLANT

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(BY SRI KRISHNA KISHORE S, ADVOCATE)

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AND:

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1 . SRI THIMMARAYAPPA AGED ABOUT 53 YEARS, S/O LATE MUNIYAPPA.

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2 . Ms. SUMITHRA AGED ABOUT 29 YEARS, D/O THIMMARAYAPPA.

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3 . SRI SHIVAKUMAR

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AGED ABOUT 29 YEARS, S/O SRI THIMMARAYAPPA, ALL ARE RESIDING AT No.492, A.K.COLONY, KK COLONY, BANGALORE, No.1137, AAK COLONY, KACHARAKANAHALLI, BANGALORE-560 084.

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4 . SRI NAGARAJU S/O THIMMARAYAPPA, No.213, AK COLONY, HBR LAYOUT, KACHARAKANAHALLI, BANGALORE-560 084.

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...RESPONDENTS

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(BY SRI M H PRAKASH, ADVOCATE)

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THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:06.10.2017 PASSED IN MVC No.5326/2016 ON THE FILE OF THE XIX ADDITIONAL SCJ & MACT, AWARDING COMPENSATION OF Rs.8,09,842/- WITH INTEREST @ 7.5% P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION.

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IN MFA CROB.No.64/2019:

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BETWEEN:

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1 . SRI THIMMARAYAPPA AGED ABOUT 53 YEARS, S/O LATE MUNIYAPPA,

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2 . SUMITHRA AGED ABOUT 29 YEARS, D/O LATE MUNIYAPPA,

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3 . SRI SHIVAKUMAR AGED ABOUT 29 YEARS, S/O THIMMARAYAPPA, ALL ARE R/AT No.492, A.K.COLONY, KK COLONY, BANGALORE

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No.1137, AAK COLONY, KACHARAKANAHALLI, BANGALORE-560 084. ...CROSS OBJECTORS

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(BY SRI M H PRAKASH, ADVOCATE)

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AND:

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UNITED INDIA INS. CO. LTD., T.P.HUB, 6TH FLOOR KRISHI BHAVAN, BUILDING HUDSON CIRLCE BANALORE - 560 001. REP. BY ITS MANAGER.

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SRI NAGARAJU S/O THIMMARAYAPPA MAJOR R/AT: No.213, A K COLONY HBR LAYOUT KACHAKARANAHALLI BENGALURU - 560 084. ...RESPONDENTS

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(BY SRI KRIHSNA KISHORE S, ADVOCATE FOR R1)

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THIS MFA.CROB IN MFA No.1466/2018 IS FILED UNDER ORDER XLI RULE 22 OF THE CPC AGAINST THE JUDGMENT AND AWARD DATED:06.10.2017 PASSED IN MVC No.5326/2016 ON THE FILE OF THE XIX ADDITIONAL SMALL CAUSES JUDGE AND MACT, BENGALURU (SCCH17), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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THIS MFA AND MFA CROB COMING ON FOR ADMISSION THIS DAY, THE COURT DELIVERED THE FOLLOWING:

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JUDGMENT

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MFA No.1466/2018 is filed by the appellant-

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insurance company seeking reduction of the

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compensation.

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MFA Crob.No.64/2019 is filed by the appellantsclaimants seeking enhancement of compensation.

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Brief facts of the case in both the cases are

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as under:

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On July 24,2016 at about 6.20 p.m. in the evening at K.Narayanapura Road, Cristhu Jayanthi College, the deceased was riding pillion in Honda Deo Scooter bearing No.KA-03/HP-7962 driven by its driver in high speed, rash and negligent manner and lost control over the vehicle and all of a sudden stopped the vehicle, due to this, pillion rider lost control, she fell to ground and sustained grievous

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injuries and after taking treatment, she succumbed to the injuries. Hence, a claim petition was filed by the appellants-claimants under Section 166 of the M.V. Act, claiming compensation. The deceased was doing agriculture and was earning Rs.10,000/- per month. The appellants who are the husband and children were depending upon earning of the deceased. The Tribunal on appreciating the materials on record, allowed the petition in part and awarded the compensation of Rs.8,09,842/- along with interest at 7.5% per annum from the date of petition till realization.

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The existence of insurance policy as per contravention is not disputed. Therefore, both owner and insurer of the offending vehicle are jointly and severally liable to pay the compensation. In view thereof, the Insurance Company shall indemnify the owner and pay compensation to the claimant.

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4. Learned counsel for the appellants-

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claimants in MFA Crob.No.64/2019 submitted that the

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compensation awarded by the Tribunal is on the lower side and seeks to enhance the compensation and prays to allow the appeal.

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On the other hand, learned counsel for the

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respondent-insurance company submitted that the judgment and award passed by the Tribunal is just and proper and hence there is no need of interference by this Court. Therefore, he prays for dismissal of the appeal.

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6. The compensation awarded by the Tribunal

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under various heads are as follows:

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a	Towards loss of dependency Rs.	5,04,000/-
b	Towards loss of consortium Rs.	1,00,000/-
c	Towards loss of love and affection, care & guidance of minor children Rs.	1,00,000/-
d	Towards medical expenses Rs.	80,842/-
e	Towards funeral expenses & Transportation of dead body Rs.	25,000/-
	TOTAL Rs.	8,09,842/-

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The Tribunal has considered the notional

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income of Rs.3,000/- p.m. only and when the income towards 'loss of future prospects in life' is added, the amount granted under this head seems to be on lesser side which is not correct. Therefore, the same has to be modified accordingly.

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In the present case, the deceased was 45 years old and he is an agriculturist and the accident was caused in the year 2016. Therefore, in absence of proof of income, the notional income of Rs.9,500/p.m. has to be taken as recognized by the Karnataka State Legal Services Authority. Since deceased was 45 years old, 25% of the income has to be added towards 'loss of future prospects in life' as per the judgment of Hon'ble Apex Court in the case of National Insurance Co. Ltd. Vs. Pranay Sethi¹ and the appropriate multiplier is 14. Therefore, the loss

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of dependency is reassessed and quantified as follows:

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Rs.9,500/- + 2,375 (25% of 9,500)x2/3x14x12 =Rs.13,29,999/which is rounded off to Rs.13,30,000/-.

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Further, the Tribunal has awarded

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compensation of Rs.1,00,000/- towards 'loss of consortium' and Rs.1,00,000/- towards 'loss of love and affection and these two heads are more or less having same connotation. As per the judgment passed by the Hon'ble Apex Court in the case of Magma General Insurance Co.Ltd. V. Nanu Ram² , each of the legal dependent of the deceased are entitled to get Rs.40,000/- under the head 'loss of consortium'. Therefore, the compensation of Rs.1,20,000/- (Rs.40,000 per person x 3) is awarded towards 'loss of consortium'. Therefore, on other conventional heads, the compensation awarded by the Tribunal is correct as discussed above and

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1reported in (2017) 16 SCC 680

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2 reported in 2018 SCC online SC 1546

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there is no ground for interference. Accordingly, the

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said heads are kept in tact.

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Thus in all, this Court has awarded the

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compensation under various heads as follows:

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a	Towards loss of dependency	Rs. 13,30,000/-
b	Towards loss of consortium	Rs. 1,20,000 /-
c	Towards medical expenses	Rs. 80,842/-
d	Towards funeral expenses & Transportation of dead body	Rs. 25,000/-
	TOTAL	Rs. 15,55,842/-

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Hence, the appellants-claimants in MFA

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Crob.No.64/2019 are entitled for a total enhanced compensation of Rs.15,55,842/- as against Rs.8,09,842/- awarded by the Tribunal. Hence, the appellants-claimants are entitled for an additional compensation of Rs.7,46,000/- (Rs.15,55,842/- - Rs.8,09,842/-), along with interest at the rate of 6%

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per annum from the date of petition till the date of realization.

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The Tribunal has granted interest at the rate

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of 7.5% p.a. and the same is scaled down to 6% p.a. from the date of petition till realization.

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Accordingly, I pass the following:

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ORDER

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i. Appeal filed by the appellant-insurance company in MFA No.1466/2018 and the cross appeal filed by the appellants-claimants in MFA Crob.No.64/2019 are allowed in part .

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ii. The judgment and award dated 06.10.2017 passed in MVC No.5326/2016, by the Court of Motor Accident Claims Tribunal, Bangalore (SCCH-17) is modified to the above extent.

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iii. The appellants-claimants in MFA Crob.No.64/2019 are entitled to an enhanced compensation of Rs.7,46,000/(Rs.15,55,842/Rs.8,09,842/-)

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along with interest at the rate of 6% per annum from the date of petition till the date of realization, in addition to what has been awarded by the Tribunal.

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iv. Registry is directed to return the Trial Court records to the Tribunal, along with certified copy of the order passed by this Court forthwith without any delay.

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v. Draw award accordingly.

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Sd/JUDGE

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SSD

Sri Thimmarayappa v. United India Ins. Co. Ltd.

Case brief

What is this about?

What did the court decide?

Sri Thimmarayappa v. United India Ins. Co. Ltd.

Case brief

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What did the court decide?

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