Partly allowed

Sri. Chandra Reddy. R v. Sri. v Veluswamy

Karnataka HC6 Mar 2024MFA/2285/2017

Case brief

AI extract

What is this about?

Parents of a 17-year-old pillion rider killed in a lorry-motorcycle collision sought enhancement of compensation and challenged exoneration of the insurer. The High Court applied the pay-and-recover principle, fixed notional income at Rs.8,000 with 40% prospects, multiplier 18, and enhanced compensation from Rs.4,43,700 to Rs.15,40,300, payable by the insurer with recovery rights against the owner

What did the court decide?

Compensation enhanced from Rs.4,43,700 to Rs.15,40,300 with 6% p.a. interest; insurer directed to pay within eight weeks and recover from vehicle owner.

Sri. Chandra Reddy. R Vs Sri. v. Veluswamy — Insurance | Karnataka HC (2024)

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 6^TH DAY OF MARCH, 2024

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BEFORE

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THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 2285 OF 2017 (MV-D)

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BETWEEN:

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SRI. CHANDRA REDDY. R, S/O. LATE RAMANASWAMY REDDY, AGED ABOUT 42 YEARS,

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AMARAVATHI, W/O. R. CHANDRA REDDY,

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AGED ABOUT 39 YEARS,

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THE PETITIONERS RESIDING AT BODANAHOSAHALLI VILLAGE, ANUGONDANAHALLI POST, HOSAKOTE TALUK, BANGALORE DISTRICT - 562 114.

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…APPELLANTS

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Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA

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(BY SRI. A.K. BHAT, ADVOCATE)

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AND:

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SRI. V. VELUSWAMY, (MAJORE IN AGE), S/O VENKATACHALAM, R/AT NO.57, EAST STREET, THATNA IYENGARPET, MUSARI TALUK, TRICHY DISTRICT, TAMIL NADU - 620 007.

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THE LEGAL MANAGER, M/S. SRIRAM GENERAL INSURANCE CO. LTD.,

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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NO.305, 3RD FLOOR, S.S. CORNER BUILDING, OPP: BOWRING & LADY CURZON HOSPITAL, SHIVAJINAGARA, BANGALORE - 02.

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…RESPONDENTS

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(BY SRI. B.C. SHIVANNE GOWDA, ADVOCATE FOR R2; VIDE ORDER DATED 17.11.2023 NOTICE TO R1 IS DISPENSED WITH)

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THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.09.2016 PASSED IN MVC NO.124/2013 ON THE FILE OF THE VIII ADDL.DISTRICT AND SESSIONS JUDGE, BENGALURU RURAL DISTRICT, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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

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JUDGMENT

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Aggrieved by the Award dated 24.09.2016 passed in M.V.C.No.124/2013 by the VIII Addl. District and Sessions Judge, Bangalore Rural District, Bangalore by the Court of the Senior Civil Judge & XIV Motor Accident Claims Tribunal at Thipur, the claimant is before this Court seeking enhancement of the compensation and also questioning the liability fixed on the owner of the vehicle.

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3 - NC: 2024:KHC:9362 MFA No. 2285 of 2017

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The case of the claimants is that on 07.05.2013 at

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about 9.00 pm, the deceased was proceeding as a pillion rider on a motor cycle bearing Reg. No.KA-03-EJ-1074. At that time, the driver of the lorry bearing Reg.No.TN-72AC-8294 came in a rash and negligent manner and dashed against the motor cycle and the deceased sustained severe head injuries and other injuries on all over his body. He was shifted to the hospital and in the hospital he succumbed to the injuries on 08.05.2013. According to the claimants the deceased was studying in first year Diploma in Mechanical Engineering and they spent huge amount towards transportation, funeral and other expenses. The Court below basing on the evidence i.e., Ex.P4 and Ex.P6 to P8, observed that the driver of the offending vehicle has a valid driving license to drive the LMV-non transport and motor cycle with gear and he is driving a heavy goods vehicle. As such, the Court below has held that the owner of the vehicle is liable to pay a compensation and exonerated the Insurance Company. When it comes to

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4 - NC: 2024:KHC:9362 MFA No. 2285 of 2017

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the compensation, the Court below has granted

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compensation as per the table given below:

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Heads		C	ompensation Awarded
Pecuniary Damages	:	Rs.	1,65,000/-
Non-pecuniary Damages	:	Rs.	50,000/-
Transportation of dead body	:	Rs.	5,000/-
Medical Expenses	:	Rs.	1,88,700/-
Loss of love and affection	:	Rs.	10,000/-
Loss of estate	:	Rs.	10,000/-
Funeral and other expenses	:	Rs.	15,000/-
Total			4,43,700/-

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Learned counsel for the appellants submits that the Court below went wrong in exonerating the insurance Company from the liability. It is submitted that whether it is a case of no driving license or valid driving license, the deceased being a third party, still the insurance Company is liable to pay compensation and recover the same from the owner of the vehicle. It is further submitted that when

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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it comes to the compensation, in this case the deceased was 17 years old at the time of his death and granting compensation of an amount of Rs.4,43,700/- is contrary to the settled law and to the evidence available on record.

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Learned counsel appearing for the

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Insurance Company submits that the Court below had rightly granted the compensation and exonerated the Insurance Company from the liability. It is submitted that

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no grounds are made out seeking interference with the well considered order passed by the Court below.

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5. Having heard the learned counsel on either

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side, perused the entire material on record. First, coming

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to the issue of liability, in this case the Court below had absolved the Insurance Company from the liability only on the ground that the driver of the vehicle is having a driving license to drive light motor vehicle and he is driving a heavy transport vehicle. Even in such a case, as per the settled law, the principles of pay and recover will apply. In such cases the Insurance Company is liable to

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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pay the compensation and can recover the same from the owner of the vehicle. In view of the same, this Court is of the view that the Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle. Then, coming to the compensation, here in this case, the age of the deceased is 17 years and he is admitted into the diploma course in mechanical engineering. Though there is no evidence with regard to the income of the deceased, considering the future prospectus and the notional income chart prepared by the Karnataka Legal Services Authority, as this accident is of the year 2013, this Court is considering the income at Rs.8,000/- per month as notional income. As the deceased

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was 17 years old, 40% future prospectus would come to Rs.3,200/- that is Rs.11,200/-(Rs.8,000+Rs.3,200). The deceased was a bachelor, 50% of the income has to be deducted towards his personal expenses, then, his contribution to the family is an amount of Rs.5,600/-. The multiplier applicable is '18', under the head of loss of

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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dependency, they are entitled for an amount of

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Rs.12,09,600/- (Rs.5,600x12x18).

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6. When it comes to consortium, the parents are the claimants, they are entitled for consortium at Rs.48,000x2=Rs.96,000/-. Towards, funeral expenses an amount of Rs.36,000/- is granted. The Court below had awarded an amount of Rs.1,88,700/- towards medical expenses and this Court finds no reasons to interfere with the same.

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In the light of the law laid down by the Hon'ble Supreme Court in the case of V.MEKALA vs. M. MALATHI AND ANOTHER¹ , the claimant is entitled for an amount of Rs.10,000/- towards legal expenses . Altogether, the claimant is entitled for an amount of Rs.15,40,300/-/- .

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1 (2014) 11 SCC 178

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8 - NC: 2024:KHC:9362 MFA No. 2285 of 2017

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The claimants are therefore, entitled to the

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compensation under the following heads:

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Sl. No	Compensation Head	Amount Awarded by the Tribunal (`)	Amount awarded by this Court (`)
1	Pecuniary Damages	1,65,000/-	-
2	Non-pecuniary Damages	50,000/-	-
3	Transportation of dead body	5,000/-	-
4	Medical Expenses	1,88,700/-	1,88,700/-
5	Loss of love and affection	10,000/-	-
6	Loss of estate	10,000/-	-
7	Loss of future income	-	12,09,600/-
8	Loss of consortium	-	96,000/-
9	Funeral expenses	-	36,000/-
10	Legal expenses	-	10,000/-
	Total	4,43,700/-	15,40,300 /-

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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Accordingly, the appeal is allowed in part, by enhancing the compensation from an amount of

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Rs.4,43,700/- to an amount of Rs.15,40,300/- .

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i. The enhanced amount shall carry interest at 6% p.a. from the date of petition till the date of realization.

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ii. The respondent - insurance Company is liable to pay the compensation within a period of eight weeks from the date of receipt of copy of the judgment and recover the same from the owner of the vehicle. On such deposit, the claimant is entitled to withdraw the entire amount without furnishing any security.

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iii. 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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10 -

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NC: 2024:KHC:9362 MFA No. 2285 of 2017

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iv. No costs.

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Pending miscellaneous petitions, if any, shall stand

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closed.

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SD/JUDGE

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JS List No.: 1 Sl No.: 26 CT: BHK

Sri. Chandra Reddy. R v. Sri. v Veluswamy

Case brief

What is this about?

What did the court decide?

Sri. Chandra Reddy. R v. Sri. v Veluswamy

Case brief

What is this about?

What did the court decide?

What the court decided

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