Dismissed

B M Venkatesh v. M/S the New India Ass.Co Ltd.

Karnataka HC24 Oct 2024MFA/463/2023

Case brief

AI extract

What is this about?

This Court heard a Motor Vehicles Appeal filed by accident victims to enhance compensation for a lorry-accident death and a Motor Vehicles Application filed by the insurer to reduce such compensation. The bench held that the Tribunal's assessment of the deceased's notional income and the awarded compensation were just and fair, and dismissed both appeals.

What did the court decide?

The appeals filed by the claimants and the insurer were dismissed, the impugned judgment and award of the Tribunal were upheld, and the amount in deposit was directed to be transmitted to the Tribunal

B M Venkatesh Vs M/S the New India Ass.Co Ltd. — Insurance | Karnataka HC (2024)

¶1

¶2

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶3

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF OCTOBER, 2024 PRESENT

¶4

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

¶5

AND

¶6

THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL MISCELLANEOUS FIRST APPEAL NO.463/2023 (MV-D)

¶7

C/W

¶8

MISCELLANEOUS FIRST APPEAL NO.8356/2022 (MV-D)

¶9

IN M.F.A. No.463/2023

¶10

BETWEEN:

¶11

B.M. VENKATESH S/O MUNISHAMAPPA AGED ABOUT 63 YEARS.

¶12

Digitally signed by RUPA V Location: HIGH COURT OF KARNATAKA

¶13

SMT. VIJAYA W/O B.M. VENKATESH AGED ABOUT 40 YEARS.

¶14

SINCE DEAD BY LRS.

¶15

SARALA B.V. D/O VENKATESH B.M. AGED ABOUT 28 YEARS.

¶16

SWATHI B.V. D/O VENKATESH B.M. AGED ABOUT 28 YEARS.

¶17

ALL ARE R/AT NO.135 ATTIBELE ROAD, NEAR GAYATHRI TEMPLE BIDARAGUPPE, BENGALUU 562107.

¶18

…APPELLANTS

¶19

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

¶20

2 - NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶21

AND:

¶22

M/S. THE NEW INDIA ASS. CO., LTD., 3RD PARTY CLAIMS HUB NO.9/2, MAHALAKSHMI CHAMBERS M.G. ROAD, BENGALURU 560001 BY ITS MANAGER.

¶23

M/S VISHALAKSHI .S W/O SATISH KUMAR R/AT NO 1/14, ANBUNAGAR NARAYANAMPALYAM KARUVEPPAMPATTI TIRUCHENGODE TALUK NAMAK, TIRUCHENGODU TAMILNADU 637211.

¶24

…RESPONDENTS

¶25

(BY SMT. A.N. KRISHNA SWAMY, ADV., FOR R1 V/O/DTD: 19.01.2023 NOTICE TO R2 IS D/W)

¶26

THIS MFA IS FILED U/S.173(1) OF MV ACT, PRAYING TO CALL FOR THE RECORDS ON THE FILE OF THE JUDGMENT AND AWARD PASSED BY THE II ADDITIONAL SMALL CAUSES JUDGE, AND ACMM, MEMBER MACT AT BENGALURU (SCCH-13) DATED 04.07.2022 PASSED IN MVC NO.4191/2018, ENHANCE THE COMPENSATION WITH COURT COSTS AND INTEREST AGAINST THE RESPONDENTS IN THE INTEREST OF JUSTICE.

¶27

IN M.F.A. NO.8356/2022

¶28

BETWEEN:

¶29

THE MANAGER THE NEW INDIA ASSURANCE CO. LTD., MOTOR THIRD PARTY HUB 9/2, MAHALAKSHMI CHAMBERS II FLOOR, M G ROAD BENGALURU - 560001.

¶30

...APPELLANT

¶31

(BY SRI. A.N. KRISHNA SWAMY, ADV.,)

¶32

3 - NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶33

AND:

¶34

B.M. VENKATESH S/O MUNISHAMAPPA AGED ABOUT 62 YEARS.

¶35

SMT. VIJAYA SINCE DEAD BY LRS.

¶36

SARALA B.V. D/O VENKATESH B.M. AGED ABOUT 29 YEARS.

¶37

SWATHI B.V. D/O VENKATESH B.M. AGED ABOUT 28 YEARS. ALL ARE R/AT NO.135 ATTIBELE ROAD NEAR GAYATHRI TEMPLE BIDARAGUPPE, BENGALURU - 562107.

¶38

VISHALAKSHI .S W/O SATISH KUMAR R/AT 1/14, ANBU NAGAR NARAYANAMPALYAM KARUVEPPAMPATTI TIRUCHEGODE TALUK NAMAK, TIRUCHENGODU TAMIL NADU - 637211.

¶39

...RESPONDENTS

¶40

(BY SRI. K.T. GURUDEV PRASAD, ADV., FOR C/R1 TO R3 R4 SERVED & UNREPRESENTED)

¶41

THIS MFA IS FILED U/S.173(1) OF MV ACT, PRAYING TO CALL FOR RECORDS AND TO SET ASIDE THE JUDGMENT AND AWARD DATED 04.07.2022 PASSED BY THE II ADDL. JUDGE & ACMM & SMALL CAUSE MOTOR ACCIDENT CLAIMS TRIBUNAL AT BENGALURU (SCCH-23) IN MVC NO.4191/2018 AND TO PASS SUCH OTHER ORDER IN THE INTEREST OF JUSTICE AND EQUITY.

¶42

4 - NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶43

THESE APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

¶44

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

¶45

ORAL JUDGMENT

¶46

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

¶47

Challenging the judgment and award passed in MVC No.4191/2018 on the file of the II Addl. Judge and ACMM, Court of Small Causes and MACT, Bengaluru, claimants have preferred MFA No.463/2023 and insurer has preferred MFA No.8356/2022.

¶48

The appellants and respondents in MFA No.463/2023 were the claimants and respondents respectively before the Tribunal. In MFA No.8356/2022, the appellant was respondent No.1, respondent Nos.1 to 3 were the claimants and respondent No.4 was respondent No.2 before the Tribunal. For the purpose of convenience, the parties are referred to henceforth according to their ranks before the Tribunal.

¶49

The father and sisters of the deceased Sri.Hari Ram Prasad filed claim petition seeking compensation of

¶50

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶51

¶52

Rs.54,00,000/- for the death of Sri.Hari Ram Prasad in a road accident dated 16.07.2018. It was contended that on 16.07.2018 about 8 p.m., the deceased was proceeding on motorcycle bearing registration No.KA-51-ET-8872 along with pillion rider Yeshwanth Umashankar on Hosur-Bengaluru road. When they reached near Attibele toll, the driver of the lorry bearing registration No.TN-34 AB-0592 driven in a rash and negligent manner, dashed the motorcycle resultantly rider and pillion rider fell down. The rider succumbed to the injuries on the spot and pillion rider sustained grievous injuries. It was further contended that the deceased was aged about 20 years at the time of accident, had completed B.Com. degree and was intending to join MBA Course. It was also contended that the deceased was a brilliant student, secured first class in B.Com degree and was also having knowledge about computer applications. The claimants sought compensation of Rs.54,00,000/-.

¶53

Respondent No.1 filed written statement denying the age, academic performance and entitlement of compensation. They denied that accident was caused due to the negligence of the driver of the lorry. They contended that

¶54

6 - NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶55

the rider of the motorcycle was negligent which resulted in the accident. It was contended that the policy issued in favour of respondent No.2 in respect of lorry and the liability if any is limited to the terms and conditions of the policy and subject to driver having valid and effective driving license on the date of accident. Respondent No.2 did not appear before the Tribunal and was placed exparte.

¶56

The Tribunal recorded common evidence in two

¶57

claim petitions. Claimant No.1 examined himself as PW-1 and got marked Exs.P1 to P14(a). Respondent examined RW-1 but did not produce any documents. The Tribunal, after appreciation of pleading and evidence, recorded the finding that the accident was caused due to the rash and negligent driving of the lorry bearing registration No.TN-34 AB-0592 and saddled the liability on respondent No.1. The Tribunal notionally assessed the income of the deceased at Rs.18,000/- p.m. and awarded compensation of Rs.27,21,600/- under the head of loss of dependency and in total, awarded a sum of Rs.28,76,600/- along with interest @ 6% p.a. Being aggrieved by the quantum of compensation awarded by the Tribunal, the claimants are in appeal seeking for enhancement of

¶58

¶59

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶60

compensation and the insurer is seeking for reduction of compensation.

¶61

Sri.Gurudev Prasad K.T., learned counsel appearing for the claimants submits that the Tribunal has committed error in assessing the income of the deceased at Rs.18,000/- p.m. which is on the lower side. It is submitted that the deceased was a B.Com graduate and was aspiring to continue his studies in MBA course, appeared for entrance examination also. It is further submitted that considering the academics of the deceased and potential earning capacity, the Tribunal ought to have assessed the income of the deceased atleast at Rs.30,000/- p.m. and awarded just compensation. It is also submitted that award of compensation on other heads requires to be enhanced appropriately by allowing the appeal filed by the claimants.

¶62

Sri.A.N.Krishna Swamy, learned counsel appearing for the Insurance Company submits that the deceased was aged about 20 years at the time of accident and was not earning. However, the Tribunal notionally assessed his income exorbitantly at Rs.18,000/- p.m. He submits that as per the

¶63

8 - NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶64

notional income chart prepared by the Karnataka State Legal Services Authority, for the year 2018 accident, the notional income is Rs.12,500/- p.m. and the same may be considered and compensation may be re-assessed appropriately. It is further submitted that the award of compensation under the conventional heads is also on the higher side and seeks to reassess the same by allowing the appeal filed by the insurer.

¶65

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

¶66

ANALYSIS

¶67

The undisputed facts are that on 16.07.2018 Sri.Hari Ram Prasad succumbed to the injuries sustained by him in the accident. The accident in question was reported to the jurisdictional police, they have registered the F.I.R. and on investigation filed charge sheet against the driver of the offending lorry bearing Reg.No.TN-34-AB-0592. It is also not in dispute that the said lorry was insured with the respondent

¶68

¶69

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶70

No.1-insurer and liability is saddled on it by the Tribunal. Admittedly, the insurer is not challenging the liability in its appeal, but the insurer is aggrieved by the quantum of compensation awarded by the Tribunal.

¶71

The Tribunal has assessed the income of the deceased at Rs.18,000/- p.m., deducted 50% of the assessed income towards personal and living expenses of the deceased, added 40% of the assessed income under the head of loss of future prospects, applied 18 multiplier and awarded the compensation. The claimants as well as the insurer are challenging the assessment of income by the Tribunal in these appeals.

¶72

The claimants have not produced any documentary evidence in proof of actual income of the deceased. The deceased was aged about 20 years at the time of accident and completed B.Com., degree as is evident from Exs.P-11 & P-12. Ex.P-12 indicates that the deceased intend to appear for MBA entrance examination, but in the meantime he met with accident and succumbed to injuries. Ex.P-10 is the copy of the passport of the deceased and Ex.P-13 is the copy of the Sports

¶73

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶74

10 -

¶75

Events Certificates of the deceased. The oral testimony of PW-1 and documentary evidence at Exs.P-10 to P-13 indicate that deceased was a bright student and intended to study further. Considering the age and academic excellence of the deceased, the Tribunal notionally assessed the income of the deceased at Rs.18,000/-, we do not find any perversity or error in the finding of the Tribunal with regard to assessment of income of the deceased. No doubt, the notional income chart prepared by the Karnataka State Legal Services Authority (KSLSA) indicates the notional income at Rs.12,500/- p.m. for the year 2018. The said chart is prepared by the KSLSA considering the minimum wages notification issued by the appropriate Government under the provisions of Minimum Wages Act, 1948.

¶76

In the instant case, the deceased was a B.Com., graduate and intend to join MBA course. Considering the age and potential earning capacity of the deceased, we are of the considered view that the Tribunal is justified in assessing the income of the deceased at Rs.18,000/- p.m. The Tribunal applying the ratio laid down by the Hon'ble Supreme Court in

¶77

11 -

¶78

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶79

the case of Sarala Verma vs. Delhi Transport Corporation¹ applied 50% deduction towards personal and living expenses of the deceased and properly applied the multiplier as per the age and awarded just compensation.

¶80

The Tribunal has awarded Rs.1,20,000/- under the head of loss of consortium. We are of the considered view that taking note of the fact that claimant No.2 - mother of the deceased passed away during the pendency of the proceedings before the Tribunal, the claimants, who are the father and two sisters of the deceased, are entitled to consortium at Rs.40,000/- each with escalation of 10% which comes to Rs.1,32,000/- (Rs.44,000 x 3), however, we are not inclined to consider the same as the Tribunal has awarded additional sum of Rs.5,000/- (Rs.20,000 - Rs.15,000) under the head of loss of estate. Hence, the said amount can be adjusted towards the escalation of 10% referred supra. Therefore, in our considered view the compensation awarded by the Tribunal under the impugned judgment and award is just and fair compensation and does not call for any modification.

¶81

1 2009 ACJ 1298

¶82

12 -

¶83

NC: 2024:KHC:42942-DB MFA No.463/2023 C/W MFA No.8356/2022

¶84

For the aforementioned reasons, we proceed to

¶85

pass the following:

¶86

ORDER

¶87

i. The appeals are dismissed.

¶88

ii. The amount in deposit in MFA No.8356/2022

¶89

and TCRs shall be transmitted to the Tribunal

¶90

forthwith.

¶91

iii. No order as to costs.

¶92

Sd/(K.S.MUDAGAL) JUDGE

¶93

Sd/(VIJAYKUMAR A. PATIL) JUDGE

¶94

RV/BSR List No.: 1 Sl No.: 33

B M Venkatesh v. M/S the New India Ass.Co Ltd.

Case brief

What is this about?

What did the court decide?

B M Venkatesh v. M/S the New India Ass.Co Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

L Kiran Kumar Vs Managing Partner

Sri K H Bommalingaiah Vs the State of Karnataka

The Oriental Insurance Co. Ltd. Vs Indiramma

Sri Pramod Vs Sujay Kamath

P.R. Nagarathna @ Kavya Vs Yogish Kutkunje Pai

Mr Rippon Shaik Alias Riyan Vs National Investigation Agency