Partly allowed

Shivappa v. M/S.Shantadurga

Karnataka HC11 Oct 2023MFA/100265/2014

Case brief

AI extract

What is this about?

This First Appeal allowed in part, modified a Motor Vehicle Compensation award. Reducing loss of dependency to Rs.10,19,200 and loss of consortium to Rs.1,32,000 based on Supreme Court precedents, raising total compensation to Rs.11,84,200 with interest.

What did the court decide?

Total compensation fixed at Rs.11,84,200 including interest at 6% per annum; insurance company directed to deposit within eight weeks.

Shivappa Vs M/S.Shantadurga — Insurance | Karnataka HC (2023)

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NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH

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DATED THIS THE 11^TH DAY OF OCTOBER 2023

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BEFORE

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THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR

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MISCELLANEOUS FIRST APPEAL NO.100265/2014(MV-D)

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BETWEEN

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1 . SMT. SHIVAPPA S/O. CHANABASAPPA JUTTANAVAR, AGE: 54 YEARS, OCC: CYCLE SHOP BUSINESS, R/O: NESARGI, TQ: BAILHONGAL, DIST: BELGAUM.

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SHRI RAJU S/O. SHIVAPPA JUTTANAVAR, AGE: 24 YEARS, OCC: STUDENT, R/O: NESARGI, TQ: BAILHONGAL, DIST: BELGAUM.

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RAMESH S/O. SHIVAPPA JUTTANAVAR, AGE: 24 YEARS, OCC: CYCLE SHOP BUSINESS R/O: NESARGI, TQ: BAILHONGAL, DIST: BELGAUM.

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...APPELLANT

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(BY SRI HANAMANT R. LATUR, ADVOCATE)

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AND

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Digitally signed by BHARATHI H M

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1 . M/S SHANTADURGA TRANSPORT CO.PVT.LTD., SHOP NO.2, MANGALADEEP RESIDENCY, NEAR 2^ND RAILWAY GATE, TILAKWADI, BELGAUM.

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2 . THE CLAIM MANAGER, ROYAL SUNDARAM ALLIENCE INSURANCE CO.LTD., SUNDARAM TOWERS, 45 AND 46 WHITES ROAD, CHENNAI-600014, REGD. OFFICE 21, PAUTULLOS ROAD, CHENNAI-600002.

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…RESPONDENTS

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(BY SRI G.N.RAICHUR, ADVOCATE FOR R2; R1 IS SERVED)

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THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST JUDGMENT AND AWARD DTD: 21.11.2013, PASSED IN MVC.NO.2223/2012 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. MACT BAILHONGAL, PARTLY ALLOWING THE CLAIM PETITITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 27.09.2023, COMING ON FOR PRONOUNCEMENT OF JUDGMENT THIS DAY THE COURT DELIVERED THE FOLLOWING JUDGMENT.

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JUDGMENT

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This appeal is filed by the claimants challenging the judgment and award dated 21.11.2013 passed in MVC.No.2223/2012 by the Senior Civil Judge & Addl. MACT, Bailhongal, seeking enhancement of compensation.

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Heard the arguments and perused the material placed on record.

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In this case, the factum of accident, death of deceased in the said accident and coverage of insurance are not in dispute.

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In the present case, the tribunal awarded

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compensation under various heads as follows:

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Sl.No.	Heads.	Amount in (Rs.)
1.	Loss of dependency	5,04,000/-
2.	Loss of estate	15,000/-
3.	Loss of love and affection	15,000/-
4.	Loss of consortium	15,000/-
5.	Funeral and obsequies	15,000/-
	Total:	5,64,000/-

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NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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The tribunal awarded lesser amount of

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compensation contrary to the principles of law decided by the Hon’ble Supreme Court. Therefore, the same is required to be modified.

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The deceased was aged 44 years as on the date of accident and was a tailoring by profession. The accident is of the year 2012. Hence notional income is to be taken at Rs.6,500/- as recognized by the Karnataka State Legal Services Authority. In view of the decision of the Hon’ble Apex Court in case of National Insurance Company Limited vs. Pranay Sethi and others, reported in (2017) 16 Supreme Court Cases 680, 25% of the income is to be added towards loss of future prospects in life. There are totally three legal heirs. Therefore 1/3^rd of the income is to be deducted towards personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is 14. Therefore loss of dependency is re-assessed and quantified at Rs.10,19,200/- (Rs.6,500/- +40% x 2/3 x 14 x 12).

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4 - NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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In view of the decision of the Hon’ble Supreme

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Court in the case of Magma General Insurance Co. Limited v. Nanu Ram & Others, reported in 2018 ACJ 2782 and in the case of Pranay Sethi supra , the claimants are entitled to Rs.40,000/- each under the head

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‘loss of consortium’, along with 10% escalation. Accordingly, Rs.1,32,000/- (Rs.40,000 x 3 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’.

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Further, a compensation of Rs.15,000/- each is awarded under the head ‘loss of estate’ and ‘funeral and transportation’ respectively, along with 10% escalation. Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded.

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Thus, the claimants would be entitled for compensation under various heads as under:

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Sl.	Heads.	Amount in
No.		(Rs.)
1.	Towards loss of dependency	10,19,200/-
2.	Towards loss of consortium	1,32,000/-

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NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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Towards loss of estate and 33,000/-
transportation of dead body &
funeral expenses.
Total: 11,84,200/-

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Therefore, the claimants are entitled for total

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compensation of Rs.11,84,200/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.5,64,000/- awarded by the tribunal. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment.

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In the result, I proceed to pass the following:

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ORDER

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i) The appeal is allowed in part .

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ii) The judgment and award dated

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21.11.2013 passed in MVC.No.2223/2012 by

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the Senior Civil Judge & Addl. MACT, Bailhongal, stands modified.

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NC: 2023:KHC-D:12228 MFA No. 100265 of 2014

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iii) The claimants are entitled for total

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compensation of Rs.11,84,200/- along with interest at the rate of 6% p.a. from the date of petition till its realization.

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iv) The insurance company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment.

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v) No order as to costs.

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vi) Draw award accordingly.

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SD/JUDGE

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PB/CT:ASC

Shivappa v. M/S.Shantadurga

Case brief

What is this about?

What did the court decide?

Shivappa v. M/S.Shantadurga

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Cases cited

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