Partly allowed

The National Insurance Co., Ltd., v. Smt. G Sakunthala

Karnataka HC21 Nov 2024MFA/1986/2024

Case brief

AI extract

What is this about?

In an appeal by the insurer against the quantum of compensation awarded by the Motor Accidents Claims Tribunal for a road death, the High Court reassessed the deceased's income and reduced the total award by modifying the Tribunal's order.

What did the court decide?

The compensation award of the Tribunal is reduced from Rs. 60,83,000/- to Rs. 49,33,000/- with interest at 6% p.a. from the date of the petition.

The National Insurance Co., Ltd., Vs Smt. G Sakunthala — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:47286-DB MFA No.1986/2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21^ST DAY OF NOVEMBER, 2024

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PRESENT

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THE HON'BLE MRS. JUSTICE K.S.MUDAGAL

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AND

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THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL MISCELLANEOUS FIRST APPEAL NO.1986/2024 (MV-D)

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BETWEEN:

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THE NATIONAL INSURANCE CO., LTD., MOTOR CLAIMS HUB NO.144, 2ND FLOOR SUBHARAM COMPLEX M.G. ROAD, BANGALORE 560001 REP. BY ITS MANAGER.

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…APPELLANT

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Digitally signed by ARSHIFA BAHAR KHANAM Location: HIGH COURT OF KARNATAKA

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(BY SRI. JANARDHAN REDDY, ADV.,)

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AND:

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SMT. G.S. SAKUNTHALA W/O LATE G. BALAKRISHNAIAH AGED ABOUT 50 YEARS.

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SRI. G. KISHORE S/O LATE G. BALAKRISHNAIAH AGED ABOUT 22 YEARS.

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KUM. G. BHAVITHA D/O LATE G. BALAKRISHNAIAH AGED ABOUT 50 YEARS.

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SRI. G. VENKATARAMAIAH S/O G. VENKATAPPA AGED ABOUT 80 YEARS.

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SMT. G. CHENGAMMA W/O G. VENKATARAMAIAH AGED ABOUT 72 YEARS. RESPONDENT NO.1 TO 5 ARE

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R/AT NO 4-94-1, INDIRA NAGAR PILER TOWN, CHITTOR DISTRICT ANDHRA PRADESH.

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KUMARI. RAJAMANIKAM SHARA D/O V. RAJAMANIKAM MAJOR IN AGE R/AT NO 15-46 PADMAVATHI NAGAR M R PALLI, TIRUPATHI URBAN CHITTOR DISTRICT ANDHRA PRADESH 517502 (OWNER OF THE CAR NO AP-39-MG-8459).

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…RESPONDENTS

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(BY SRI. KAILAS SHANKAR P.S. ADV., FOR R1 TO R5 V/O/DTD:22/4/2024 NOTICE TO R6 IS D/W)

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THIS MFA IS FILED U/S.173(1) OF MV ACT, PRAYING TO CALL FOR THE RECORDS IN MVC NO.1495/2022 BEFORE XXI ADDL. SMALL CAUSES JUDGE & ACMM, BANGALORE, DATED 01/02/2024 EXAMINE THE SAME AND MODIFY THE AWARD IN THE INTEREST OF JUSTICE. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MRS. JUSTICE K.S.MUDAGAL and HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL

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ORAL JUDGMENT

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(PER: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL)

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Though the appeal is coming on for orders, with the

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consent of both side, the same is taken for final disposal.

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Challenging the judgment and award in MVC No.1495/2022 passed by the XXI Additional Small Causes

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3 - NC: 2024:KHC:47286-DB MFA No.1986/2024

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Judge and MACT, Bengaluru (SCCH-23), the insurance company has filed this appeal.

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The appellant was respondent No.2 and respondents Nos.1 to 5 were the claimants and respondent No.6 was respondent No.1 before the Tribunal. For the purpose of convenience, the parties are referred to henceforth according to their ranks before the Tribunal.

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It is the case of the claimants that on 04.03.2022 Sri.G.Balakrishnaiah was riding motorcycle bearing Reg.No.AP03-BL-7020 on Madanpalle-Tirupathi Road and when he reached near Bhakarpet Ghatt Road, Chinnagottigallu Mandal, Chittoor, Andhra Pradesh, the driver of Eeco Car bearing Reg.No.AP-39-MG-8459 drove the same in rash & negligent manner dashed to the motorcycle ridden by Sri.G.Balakrishnaiah. As a result, the G.Balakrishnaiah fell down, sustained grievous injuries and succumbed to those injuries in the hospital at Chittoor. It is contended that the deceased was aged about 49 years and was working as Principal of Sri.Medha Junior College and Sri.Chaithanya Degree College and earning a sum of Rs.1,00,000/- p.m. It is further

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contended that due to untimely death of the deceased, the claimants have lost the emotional and financial dependency. It is also contended that the accident is caused due to rash and negligent driving of the car by its driver, hence, the respondent Nos.1 and 2 are liable to pay the compensation of Rs.1,50,00,000/-.

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The respondent No.1 filed written statement denying the averments made in the claim petition. It is contended that the driver of car was not negligent and deceased himself was riding motorcycle negligently and caused the accident in question. It is further contended that the car owned by her was duly insured with respondent No.2 and policy was in force as on the date of accident, hence, respondent No.2 is liable to pay compensation, if any.

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Respondent No.2, the insurer, filed written

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statement denying the age, avocation and income of the deceased. It is contended that the liability, if any, is subject to compliance of terms and conditions of the policy. It is further contended that the rider of the motorcycle himself was negligent and there was head-on collusion, the rider of

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motorcycle was not wearing helmet and he has caused the accident. Hence, they are not liable to pay any compensation.

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The Tribunal recorded the evidence. The claimant No.1 was examined as PW-1 and claimants got examined other three witnesses as PWs-2 to 4 and got marked Exs.P-1 to P-30. Respondents examined the driver of the offending car as RW-1 and got marked Exs.R-1 to R-3. The Tribunal, on appreciation of pleading and evidence on record, has assessed the income of the deceased at Rs.40,000/- p.m., added 25% under the head of loss of future prospects, deducted 1/4^th towards personal and living expenses of the deceased and by applying 13 multiplier, awarded a sum of Rs.58,50,000/- under the head of loss of dependency and in all, the Tribunal awarded the compensation of Rs.60,83,000/-. Being aggrieved, the insurance company is in appeal challenging the quantum of compensation awarded by the Tribunal.

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Sri.Janardhan Reddy, learned counsel for the appellant-insurance company submits that Tribunal has committed grave error in assessing the income of the deceased at Rs.40,000/- p.m. without appreciating the evidence on

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record. It is submitted that saddling of entire liability on the insurance company is also contrary to the material available on record. It is further submitted that at the time of accident the deceased was aged about 50 years, hence compensation awarded by the Tribunal is exorbitant. Hence, seeks to allow the appeal by reducing the compensation appropriately.

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Per contra, Sri.Kailas Shankar P.S., learned counsel for the respondent Nos.1 to 5/claimants supports the impugned judgment of the Tribunal and submits that deceased was working as Principal in Sri.Medha Junior College and one of the partner and Principal in Sri.Chaithanya Degree College and was earning Rs.1,00,000/- p.m. and in support of the same they have produced the evidence. Considering the same, the Tribunal has assessed the income of the deceased at Rs.40,000/- p.m. and awarded just compensation to the claimants. It is submitted that the Tribunal taking note of Exs.P-1 to P-8 has come to the conclusion that the driver of the car bearing Reg.No.AP-39-MG-8459 was negligent and saddled the liability on the appellant-insurance company which does not call for any interference. Hence, he seeks to dismiss the appeal.

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Considering the rival submissions of the parties and examining the materials on record, the point that arises for consideration is “ Whether the impugned judgment and award of the Tribunal calls for any interference”?

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ANALYSIS

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The pleading and evidence on record indicate that in a road traffic accident that occurred on 04.03.2022, Sri.G.Balakrishnaiah, the husband of claimant No.1, father of claimant Nos.2 & 3 and son of claimant Nos.4 & 5 sustained grievous injuries and succumbed to those injuries. The jurisdictional police recorded the information about the accident and registered the FIR which is marked as Ex.P-1. On completion of investigation, the police filed charge sheet at Ex.P-8 against the driver of the car bearing Reg.No.AP-39-MG8459. The charge sheet material, more particularly, the sketch at Ex.P-3 and IMV report at Ex.P-5 indicate that the front side of the car is fully damaged and the rider of the motorcycle was on the left side of the road and he was hit by the car from the opposite direction. The insurance company has examined RW1, the driver of the car, who has deposed that the accident is caused due to head on collusion between two wheeler and the

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car, however the testimony of the said witness cannot be the sole basis to come to the conclusion that he was not negligent as he is an interested witness and the police has filed charge sheet against him. The insurance company has not examined any independent witness nor produced any evidence to disbelieve the charge sheet material. The Tribunal, on appreciation of oral and documentary evidence, recorded the finding that the driver of car bearing Reg.No.AP-39-MG-8459 was negligent and saddled the liability on the appellantinsurance company. The said finding of the Tribunal is neither perverse nor contrary to the evidence available on record calling for interference in this appeal. Accordingly, the contrary contention urged by the insurance company is rejected.

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Sofar as quantum of compensation, the claimants have pleaded that the deceased was earning Rs.1,00,000/- pm. as he was working as Principal of Sri.Medha Junior College and as Lecturer in Sri.Chaithanya Degree College. In support of the claim, the claimants have produced Exs.P-10 & P-11, the documents indicating the qualification of the deceased. The claimants have produced Exs.P-25 to P-27 which indicate that the deceased was working at Sri.Medha Junior College and

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drawing salary of Rs.3,60,000/- annually. In support of the said claim one Sri.L.Lokeshwara Babu, Principal of Sri.Medha Junior College was examined as PW-3. The claimants have also examined PW-4, Principal of Sri.Chaithanya Degree College and got marked Exs.P-28 to P-30, the income tax returns of Sri.Chaithanya Degree College, Auditor's report and the salary certificate. However those documents do not show that the deceased was one of the partner and part time Lecturer of Sri.Chaithanya Degree College.

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The respondents-claimants have filed a memo dated 21.11.2024 along with copy of Form No.16 issued to the deceased by the Principal, Sri.Medha Junior College, Piler, Chittoor district, which indicates that the deceased was drawing a sum of Rs.32,000/-p.m. which is not seriously disputed by the learned counsel for the appellant. Considering the evidence available on record, we are of the view that the interest of justice would be met if we re-assess the income of the deceased at Rs.32,000/- p.m. Ex.P-16, the Aadhaar Card of the deceased indicates that the date of birth of the deceased was 04.04.1972 and as on the date of accident he was aged about 49 years, hence appropriate multiplier would be 13. The

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claimants are entitled to addition of 25% of the assessed income of the deceased under the head of loss of future prospects. Each of the claimants are entitled to consortium of Rs.40,000/- with 10% escalation. The claimants are also entitled to Rs.15,000/- with 10% escalation under head of loss of estate and Rs.15,000/- with 10% escalation under the head of transportation of dead body and funeral expenses. The claimants are the wife, children and parents of the deceased hence, the appropriate deduction would be 1/4^th towards personal and living expenses of the deceased. Hence, the

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compensation is re-determined as under:

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Sl.No.	Particulars	Amount (Rs.)
1	Loss of dependency (Rs.32,000 + 8000 (25%) =Rs.40,000 - 1/4 X 12 X 13)	Rs.46,80,000
2	Loss of consortium (Rs.44,000 X 5)	Rs.2,20,000
3	Loss of estate	Rs.16,500
4	Transportation of dead body and funeral expenses	Rs.16,500
	Total	Rs.49,33,000
	Awarded by Tribunal	Rs.60,83,000
Re	duction of compensation	Rs.11,50,000

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NC: 2024:KHC:47286-DB MFA No.1986/2024

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The compensation awarded carries interest at the rate of

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6%p.a. For the aforementioned reasons, we pass the following:

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ORDER

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Appeal is allowed in part. The impugned judgment and award of the Tribunal is modified as follows:

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i. The claimants are entitled to compensation of Rs.49,33,000/- as against Rs.60,83,000/- awarded by the Tribunal with interest thereon at the rate of 6% p.a. from the date of petition till its realization.

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ii. Respondent No.2, the insurer, shall deposit the said amount before the Tribunal within four weeks from the date of receipt of copy of this judgment on adjusting the amount already deposited, if any.

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iii. The award with regard to apportionment of compensation amongst the claimants and investment is maintained.

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iv. Transmit the amount in deposit to the Tribunal forthwith.

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NC: 2024:KHC:47286-DB MFA No.1986/2024

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v. I.A.No.2/2024 does not survive for

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consideration and is disposed of accordingly.

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Sd/(K.S.MUDAGAL) JUDGE

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Sd/-

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(VIJAYKUMAR A. PATIL)

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JUDGE

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BSR

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List No.: 1 Sl No.: 22

The National Insurance Co., Ltd., v. Smt. G Sakunthala

Case brief

What is this about?

What did the court decide?

The National Insurance Co., Ltd., v. Smt. G Sakunthala

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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