Partly allowed

The Manager , M/W Reliance General Insurance v. C Lakshmi Narasamma

Karnataka HC5 Sept 2024MFA/102052/2015

Case brief

AI extract

What is this about?

Claimants sought enhancement and the insurer challenged quantum of compensation for a fatal auto-motorcycle collision. Recomputing dependency from income tax returns after deducting tax, the court enhanced consortium, funeral and estate heads, modifying the award to Rs.7,74,932 with interest.

What did the court decide?

Total compensation enhanced to Rs.7,74,932 with 6% interest; insurer to pay within eight weeks; apportionment 80/10/10 among claimants.

The Manager , M/W Reliance General Insurance Vs C Lakshmi… — Insurance | Karnataka HC (2024)

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1 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 5^TH DAY OF SEPTEMBER 2024 BEFORE

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THE HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR

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MISCELLANEOUS FIRST APPEAL NO. 102879 OF 2015 C/W MISCELLANEOUS FIRST APPEAL NO. 102052 OF 2015

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IN MFA NO.102879/2015

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BETWEEN:

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SMT.C. LAKSHMI NARASAMMA W/O. LATE C.RATNAIAH, AGE:58 YEARS,

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C.R.MURALI MOHAN S/O. LATE.C.RATNAIAH, AGE:37 YEARS,

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MAMATHA D/O. LATE C.RATNAIAH AGE:30 YEARS, ALL ARE R/O: VASAVI COLONY, CHALLAKERE, NOW AT BALLARI

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…APPELLANTS

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(BY SRI. MANJUNATH JADAI, ADVOCATE)

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AND:

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YASHAVANT NARAYANKAR

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Location: HIGH COURT OF KARNATAKA

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G.PRAKASH S/O K.GOPALAPPA, HINDU, MAJOR, OWNER OF AUTO BEARING NO.KA-16/B-703, R/O: DODDA ULLARTHI VILLAGE, CHALLAKERE, CHITRADURGA DIST.

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THE MANAGER, RELIANCE INSURANCE CO. LTD., PARAVATHINAGAR, BALLARI.

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…RESPONDENTS

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(BY SMT. SHAILA BELLIKATTI, ADVOCATE FOR R1; SRI. S.K. KAYAKAMATH, ADVOCATE FOR R2)

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THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT 1988, PRAYS TO MODIFY THE JUDGMENT AWARD DATED 01.04.2015 PASSED IN LMVC NO.966/2011 ON THE FILE OF MOTOR ACCIDENT CLAIMS TRIBUNAL-V, AT BALLARI AND ENHANCE THE

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- 2 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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COMPENSATION BY ALLOWING THE APPEAL TO MEET THE JUSTICE AND EQUITY.

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IN MFA NO.102052/2015 BETWEEN:

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THE MANAGER , RELIANCE INSURANCE COMPANY LIMITED, BALLARI, NOW REPRESENTED BY ITS AUTHORIZED SIGNATORY, RELIANCE GENERAL INSURANCE COMPANY LIMITED, BRANCH OFFICE, CTS # 172/171, V.A. KALBURGI SQUARE, DESAI CROSS, DESHAPNDE NAGAR, HUBBALLI.

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…APPELLANT

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(BY SRI. S. K. KAYAKAMATH, ADVOCATE)

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AND:

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C. LAKSHMI NARASAMMA W/O. LATE C. RATNAIAH, AGED ABOUT 59 YEARS,

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C.R. MURALI MOHAN S/O LATE C. RATNAIAH AGED 38 YEARS,

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MAMATHA DAUGHTER OF LATE C. RATNAIAH, AGE:31 YEARS, ALL ARE RESIDENT OF VASAVI COLONY, CHALLAKERE, NOW AT BALLARI.

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G.NAGARAJA SON OF K. GOPALAPPA HINDU, MAJOR, DRIVER OF AUTO BEARING REGISTRATION NO. KA-16/B-703, RESIDENT OF DODDA ULLARTHI VILLAGE, CHALLAKERE, CHITRADURGA DISTRICT.

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G.PRAKASH SON OF K.GOPALAPPA, HINDU, MAJOR, OWNER OF AUTO BEARING REGISTRATION NO.KA.16/B-703, RESIDENT OF DODDA ULLARTHI VILLAGE CHALLKERE, CHITRADURGA DISTRICT.

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…RESPONDENTS (BY SRI. MANJUNATH JADAI, ADV. FOR RESPONDENT Nos.1 to 3. By SMT. SHAILA BELLIKATTI, ADV. FOR RESPONDENT NO.5. NOTICE TO LRs OF DECEASED R4 IS DISPENSED WITH.)

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3 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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THIS MFA IS FILED UNDER SEC. 173(1) OF MOTOR VEHICLES ACT, 1988 PRAYS TO CALL FOR THE RECORDS, HEAR THE PARTIES. AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 01.04.2015 PASSED BY THE MOTOR ACCIDENT CLAIMS TRIBUNAL NO.V, BALLARI, IN MVC NO.966/2011, WITH COST IN THE INTEREST OF JUSTICE AND EQUITY.

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THESE APPEALS COMING ON FOR FINAL HEARING THIS DAY, THE COURT DELIVERED THE FOLLOWING:

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CORAM: THE HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR

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ORAL JUDGMENT

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Miscellaneous First Appeal No.102879/2015 is filed by the claimants seeking enhancement of compensation.

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Miscellaneous First Appeal No.102052/2015 is filed by the insurance company challenging the quantum of compensation.

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Both the appeals are filed in respect of the judgment and award dated 01.04.2015 passed by the MACT V, Ballari, in MVC No.966/2011.

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Facts of the petitioners’ case are as under: That on 01.08.2011 at about 9:00am, while C.Ratnaiah was proceeding on his motorcycle

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4 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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bearing registration No.KA.16/S-7658 from Challakere to Banda Thimmalapura village slowly and cautiously on the proper side of the road, at that time, 1^st respondent being the driver of auto bearing registration No.KA.16/B-703 drove the said vehicle in a rash and negligent manner and dashed against the said motorcycle. As a result of which, C.Ratnaiah sustained grievous injuries and succumbed to the injuries at the spot. C.Ratnaiah was hale and healthy prior to his death and was running a groundnut mill, ragi and rice business. He was an income tax assessee, that out of his business he was earning more than Rs.50,000/- per month and used to contribute the same towards maintenance of the family and due to the above accident, they have sustained heavy loss and hence they made a claim for compensation.

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5 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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The Tribunal, after recording evidence and appreciation of evidence and documents on record, has awarded compensation as under:

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Sl.	HEADS		Amount in
No.			Rs.
1	Towards loss of dependency		6,75,000/-
2	Towards loss of consortium		20,000/-
3	Towards transportation, expenses	funeral	20,000/-
4	Towards loss of estate		10,000/-
		TOTAL	7,25,000/-

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Being dissatisfied with the quantum of compensation awarded by the Tribunal, the

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claimants have sought for enhancement, on the other hand, the insurance company has filed an appeal challenging the quantum of compensation awarded by the Tribunal.

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Heard the learned counsel for the

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claimants and the learned counsel for the insurance company.

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The learned counsel for the claimants would contend that the deceased was aged 65 years and he was doing partnership business with his sons

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6 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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and due to his death, there is loss of income of the deceased. The deceased was getting remuneration and also share in the partnership firm business. He contends that the Tribunal has rightly taken two years average income of the deceased for calculating the compensation. He contends that the Tribunal has awarded a sum of Rs.20,000/- only towards loss of consortium and as the dependants of the deceased are 3 in number, they are entitled to a sum of Rs.1,20,000/-(Rs.40,000x3) towards loss of consortium. On these grounds, he sought for enhancement of compensation.

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On the other hand, learned counsel for the insurance company would contend that the Tribunal has taken the gross income of two years which are contained in the Income Tax returns at Exs.P.10 and 11 and without deducting the income tax paid. The said income of the deceased as shown in Exs.P.10 and P-11, after deducting the income tax paid has to be taken and average income of the deceased has to

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7 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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be calculated. With this, he prayed to allow the appeal.

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Having heard the learned counsel, this

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Court has perused the impugned judgment and award and the trial Court records.

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It is not in dispute that the deceased was aged 55 years and he was doing business with his sons. Exs.P-10 andP-11 are the Income Tax returns filed by the deceased. Ex.P-10 is the income tax returns pertaining to Assessment Year 2008-09 wherein gross total income is Rs.1,15,333/-and tax paid is Rs.3,927/- after deducting the tax, the income of the deceased is Rs.1,11,406/- for the year 2008-09. Under Ex.P-11 i.e. income tax returns for the assessment year 2009-10 the gross income is Rs.1,57,223/and tax paid is Rs.800/-. After deducting tax paid, the income is Rs.1,56,423. Therefore, average income of two years after deducting income tax paid has to be taken into

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8 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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consideration. Therefore, the average of two years income of Rs.2,67,820/- comes to Rs.1,33,914/-. The petitioners are 3 in number and they are dependents of the deceased. Therefore, 1/3^rd has to be deducted towards personal expenses of the deceased which comes to Rs.44,638/-. Therefore, loss of future income is Rs.6,24,932/- (Rs.89,276/x7). Loss of consortium awarded by the Tribunal in a sum of Rs.20,000/- is not proper. The claimants are entitled to a sum of Rs.1,20,000/- towards loss of consortium. Apart from that, the claimants are entitled to compensation for funeral expense in a sum of Rs.15,000/- and Rs.15,000/- towards loss of estate.

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In view of the above, the claimants are

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entitled to compensation as under:

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Sl.	HEADS	Amount in
No.		Rs.
1	Loss of dependency	6,24,932/-
2	Loss of consortium	1,20,000/-
3	Transportation of dead body and traveling expenses	15,000/-
4	Loss of estate	15,000/-
	TOTAL	7,74,932/-

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9 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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Therefore, the claimants are entitled to total compensation of Rs.7,74,932/as against Rs.7,25,000/- as awarded by the Tribunal.

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In view of the above, the following

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ORDER

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Both the appeals are allowed in part. The judgment and award dated 01.04.2015 passed by the MACT V, Ballari, in MVC No.966/2011, is modified. The claimants are entitled to total compensation of Rs.7,74,932/- with interest at 6% per annum from the date of petition till realization.

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The insurance company shall pay the compensation awarded with interest within a period of eight weeks from the date of receipt of certified copy of the judgment.

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Claimant No.1 is entitled to 80% of the

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compensation awarded.

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Claimant Nos.2 and 3 are entitled to 10% each of the compensation awarded.

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10 - NC: 2024:KHC-D:12851 MFA No. 102879 of 2015 C/W MFA No. 102052 of 2015

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The claimants are entitled to release of entire compensation amount.

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Amount in deposit shall be transmitted to the

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Tribunal concerned.

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Draw the award accordingly.

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Sd/(SHIVASHANKAR AMARANNAVAR) JUDGE

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List No.: 1 Sl No.: 26

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kmv

The Manager , M/W Reliance General Insurance v. C Lakshmi Narasamma

Case brief

What is this about?

What did the court decide?

The Manager , M/W Reliance General Insurance v. C Lakshmi Narasamma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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