Partly allowed

Sri Ashfaq Ahmed v. M/S National Insurance Co. Ltd.

Karnataka HC19 Sept 2024MFA/3032/2021

Case brief

AI extract

What is this about?

Parents of a man killed in a 2019 road traffic accident sought enhancement of Tribunal-awarded compensation. The High Court took notional income as Rs.14,000 p.m., applied multiplier 18 with 40% future prospects and 50% deduction, added filial consortium, funeral expenses and loss of estate, enhancing compensation to Rs.21,86,800 with 6% interest.

What did the court decide?

Compensation enhanced from Rs.18,45,000 to Rs.21,86,800 with 6% p.a. interest; respondent No.1 to deposit within 8 weeks.

Sri Ashfaq Ahmed Vs M/S National Insurance Co. Ltd. — Motor Accident Claims | Karnataka HC (2024)

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1 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 19^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO.3032 OF 2021(MV-D)

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BETWEEN:

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SRI. ASHFAQ AHMED, S/O. GHOUSE KHAN, AGED ABOUT 60 YEARS,

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SMT. H. S. BABY NAZ W/O. ASFAQ AHMED, AGED ABOUT 55 YEARS,

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BOTH ARE RESIDING AT, GANGAMMAGUDI, ANEADDA RASTE, M. V. BADAVANE, HOSAKOTE, BENGALURU RURAL DISTRICT, PIN-562114.

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…APPELLANTS

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(BY SRI. GURUDEV PRASAD K. T, ADVOCATE)

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Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA

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AND:

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M/S NATIONAL INSURANCE CO. LTD MOTOR CLAIMS HUB, NO.144, SUBHARAM COMPLEX, M. G. ROAD, BENGALURU-560 001.

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M/S MAGNUM LOGISTICS, TCP GATE, KOHIMA CITY AND DISTRICT NAGALAND-797 001. AND ALSO AT NO.201 BUNGALOW THOTTAM, KADAPPANALLUR POST BHAVANI, ERODE DISTRICT,

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2 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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TAMILNADU-638 311.

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…RESPONDENTS

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(BY SRI. ASHOK N. PATIL, ADVOCATE FOR R1; R2- SERVED, UNREPRESENTED)

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THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 21.11.2019 PASSED IN MVC NO. 2429/2019 ON THE FILE OF THE V ADDITIONAL SMALL CAUSES JUDGE AND XXIV A.C.M.M., MEMBER, M.A.C.T, MAYO HALL UNIT, BENGALURU, SCCH-20, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA

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ORAL JUDGMENT

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Heard Sri.Gurudev Prasad.K.T, learned counsel for

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the appellants as well as Sri.Ashok.N.Patil, learned counsel for respondent No.1.

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The parents of Ayub Ahmed Khan who died in a

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road traffic accident that occurred on 31.03.2019 filed a petition claiming compensation of Rs.80,00,000/- in total.

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The Motor Accidents Claims Tribunal, Bengaluru which dealt with the case as MVC No.2429/2019 passed orders on 21.11.2019 granting a sum of Rs.18,45,000/- as

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3 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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compensation. Projecting the version that the said amount

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is grossly low, the claimants are before this Court.

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Arguing the matter Sri.Gurudev Prasad.K.T submits that the deceased Ayub Ahmed Khan (herein after referred to as the 'deceased' for brevity) was working at Intelnet Global Service Pvt. Ltd., and was earning Rs.16,000/- p.m. Though sufficient proof with regard to the educational qualification of the deceased, his occupation and earnings were produced, the Tribunal failed to take the actual earnings of the deceased i.e., Rs.16,000/- p.m. The Tribunal took the notional income as Rs.12,000/- p.m. and awarded a meager sum as compensation. Learned counsel contends that the accident occurred in the year 2019 and for the relevant period the Karnataka State Legal Services Authority is taking the notional income as Rs.14,000/- p.m. and at least the said figure should have been considered by the Tribunal.

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Learned counsel also states that the Tribunal

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failed to award any amount towards loss of consortium.

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NC: 2024:KHC:38663 MFA No. 3032 of 2021

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Learned counsel states that the appellants being the parents of the deceased are entitled to compensation under the head loss of filial consortium.

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The submission that is made by

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Sri.Ashok.N.Patil, learned counsel for respondent No.1, on the other hand is that though the appellants produced documents relating to the occupation and earnings of the deceased, they did not chose to examine the employer of the deceased and establish the genuineness of those documents. However, learned counsel Sri.Ashok.N.Patil did not raise any objection for taking the notional income as Rs.14,000/- p.m. as sought for by the learned counsel for the appellants. Also the notional income sought to be taken as Rs.14,000/- p.m. is justifiable. Thus taking the notional income of the deceased as Rs.14,000/- p.m. and without disturbing the other parameters i.e., adding of 40% towards future prospects, deducting 50% of the actual earnings towards personal and living expenses of the deceased which he would have incurred for himself

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5 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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had he been alive as he was a bachelor by the date of accident and applying the appropriate multiplier '18', the amount which the appellants are entitled to under the head loss of dependency is as under:

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Notional monthly income	Rs.14,000/-
Annual income	Rs.1,68,000/-
Add 40% towards future prospects	Rs.2,35,200/-
Deduct 50% towards personal and living expenses	Rs.1,17,600
On applying appropriate multiplier 18	Rs.21,16,800/-

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Thus the compensation which the appellants

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are entitled to under the head loss of dependency is Rs.21,16,800/-. Together with the said amount, the appellants are entitled to Rs.15,000/- towards funeral expenses and Rs.15,000/- towards loss of estate.

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As rightly contended by Sri.Gurudev Prasad.K.T, learned counsel for the appellants, the Tribunal failed to award any amount towards loss of

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6 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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consortium. The appellants being the parents of the deceased are entitled to Rs.40,000/- towards loss of filial consortium.

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Thus the total compensation which the

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appellants are entitled to is as under:

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Sl. No	Description	Amount
1	Loss of dependency	Rs.21,16,800
2	Funeral expenses	Rs.15,000
3	Loss of estate	Rs.15,000
4	Loss of consortium	Rs.40,000
	Total	Rs.21,86,800

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Thus in the light of the forgoing discussion, the

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justifiable sum which the appellants are entitled to as compensation is Rs.21,86,800/-

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Thus the appeal is disposed of with the following:

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ORDER

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(i) The appeal is allowed in part.

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7 - NC: 2024:KHC:38663 MFA No. 3032 of 2021

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(ii) The compensation that is awarded by the Motor Accidents Claims Tribunal, Bengaluru through orders in MVC No.2429/2019 dated 21.11.2019 is enhanced from Rs.18,45,000/to Rs.21,86,800/-.

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(iii) The enhanced sum shall carry interest at the rate of 6% p.a. from the date of petition till the date of deposit.

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(iv) Respondent No.1 is directed to deposit the enhanced sum within a period of 8(eight) weeks from the date of receipt of copy of this order.

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(v) On such deposit, the appellants are permitted to withdraw their respective shares.

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(vi) The apportionment made applies to enhanced sum as well.

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Sd/(DR.CHILLAKUR SUMALATHA) JUDGE

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NS CT:TSM, List No.: 1 Sl No.: 37

Sri Ashfaq Ahmed v. M/S National Insurance Co. Ltd.

Case brief

What is this about?

What did the court decide?

Sri Ashfaq Ahmed v. M/S National Insurance Co. Ltd.

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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