Allowed

Smt. Rekha v. Ramesha

Karnataka HC10 Sept 2024MFA/6112/2023

Case brief

AI extract

What is this about?

Claimants in a motor accident case sought enhancement of compensation. The High Court held the Tribunal erred by deducting insurance premiums from the deceased's declared income of Rs.4,35,009 (AY 2019-20), recomputed loss of dependency at 25% future prospects, 1/4 deductions and multiplier 14, and enhanced compensation from Rs.47,80,100 to Rs.58,74,500 with 6% interest.

What did the court decide?

Compensation enhanced from Rs.47,80,100 to Rs.58,74,500 with 6% interest; insurer directed to deposit within eight weeks; apportionment intact.

Smt. Rekha Vs Ramesha — Motor Accident Claims | Karnataka HC (2024)

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1 - NC: 2024:KHC:36843 MFA No. 6112 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 10^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.6112 OF 2023(MV-D)

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BETWEEN:

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SMT. REKHA, W/O LATE HEMANTH KUMAR, AGED ABOUT 39 YEARS,

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LIKITHA. H., D/O. LATE HEMANTH KUMAR, AGED ABOUT 17 YEARS,

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NIKHIL. H., S/O. LATE HEMANTH KUMAR, AGED ABOUT 15 YEARS,

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SHIVAMMA, W/O. LATE RAMEGOWDA, AGED ABOUT 77 YEARS,

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Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA

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SINCE APPELLANT NO.2 AND 3 ARE MINORS

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REP. BY THEIR MOTHER APPELLANT No.1 NATURAL GUARDIAN REKHA

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ALL ARE RESIDING AT HONAGANAHALLI, KANIVEKOPPAL POST, PANDAVAPURA TALUK, MANDYA-571 455.

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…APPELLANTS

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(BY SRI. P.MAHADEVASWAMY, ADVOCATE)

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2 - NC: 2024:KHC:36843 MFA No. 6112 of 2023

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AND:

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RAMESHA S/O ANKEGOWDA, CHINAKURALI VILLAGE AND POST, AND HOBLI, PANDAVAPURA TLAUK, MANDYA DISTRICT - 571 455.

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THE MANAGER BHARATHI AXA GEN. INS. CO.LTD. 1^ST FLOOR, FERNS ICON, SY. NO. 28, DODDANKUNDI VILLAGE, K.R. PURAM HOBLI, BENGALURU - 560 037.

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…RESPONDENTS

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(BY SRI. B.C.SHIVANNE GOWDA, ADVOCATE FOR R2; NOTICE TO R1 DISPENSED WITH, V/O. DATED 19.09.2023)

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THIS MFA FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 30.08.2022 PASSED IN MVC NO.3823/2020 ON THE FILE OF THE X ADDITIONAL JUDGE, COURT OF SMALL CAUSES AND MEMBER, MACT, BENGALURU, (SCCH-16), 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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NC: 2024:KHC:36843 MFA No. 6112 of 2023

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ORAL JUDGMENT

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Heard Sri.P.Mahadevaswamy learned counsel for the appellants as well as Sri.B.C.Shivanne Gowda learned counsel for respondent No.2.

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Seeking enhancement of compensation, the

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claimants in MVC No.3823/2020 that stood pending before the Motor Accidents Claims Tribunal, Bangalore are before this Court disputing the order dated 30.08.2022.

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The short point involved as submitted by

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Sri.P.Mahadevaswamy learned counsel for the appellants in this case is with regard to income of the deceased Hemanth Kumar. The appellants are the wife, two minor children and the mother of the deceased Hemanth Kumar. As per the version of the appellants the deceased Hemanth Kumar by maintaining his own lorries and by supplying construction material, was earning Rs.1,00,000/- per month. The appellants produced Income Tax Returns for the assessment years 2018-19, 2019-20 and 202021. Making an observation that for the assessment years 2020-2021, the returns were filed after the death of Hemanth Kumar, hence, the Tribunal took into consideration the Income

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4 - NC: 2024:KHC:36843 MFA No. 6112 of 2023

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Tax Returns for the assessment year 2019-2020. Basing on the returns of assessment year 2019-2020, the Tribunal took the annual income of the deceased as Rs.3,49,400/-. However, as rightly projected by learned counsel Sri.P.Mahadevaswamy, for the assessment year 2019-2020, the income of the deceased Hemanth Kumar was Rs.4,35,009/-. The Tribunal deducted the premium paid towards life insurance and other deductions. However, as the said document reveals that for the assessment year 2019-2020 the income was declared as Rs.4,35,009/-, this Court is of the view that the said figure is required to be considered for assessing the amount that is required to be awarded under the head loss of dependency. Learned counsel Sri.B.C.Shivanne Gowda did not deny the submission made by learned counsel Sri.P.Mahadevaswamy in this regard.

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Taking the annual income of deceased as Rs.4,35,009/-, as the deceased Hemanth Kumar died at the age 44 years, adding 25% of the earnings towards future prospects, deducting 1/4th of the earnings towards personal and living expenses which the deceased Hemanth Kumar would have incurred for himself had he been alive, applying

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5 - NC: 2024:KHC:36843 MFA No. 6112 of 2023

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appropriate multiplier ’14’, the amount that is required to be

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awarded under the head loss of dependency is as under:

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Description	Amount In Rs.
Annual Income	4,35,009-00
Add 25% towards future prospects	5,43,761-25
Deduct 1/4^thtowards personal and living expenses	4,07,821-00
On applying appropriate multiplier '14', loss of dependency comes to	57,09,494-00

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Thus, the appellants are entitled to a sum of Rs.57,09,494/- towards loss of dependency. Together with the said amount, the appellants are entitled to Rs.16,500/- towards funeral expenses and Rs.16,500/- towards loss of estate. Appellant No.1 being the wife of the deceased is entitled to Rs.44,000/- towards loss of spousal consortium. Appellant Nos.2 and 3 being the children of the deceased are entitled to Rs.44,000/- towards loss of parental consortium. Appellant No.4 being the mother of the deceased is entitled to Rs.44,000/- towards loss of filial consortium. Thus, the compensation which the appellants are entitled to is as under:

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NC: 2024:KHC:36843 MFA No. 6112 of 2023

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Sl No.	Compensation	Amount in Rs.
1	Loss of dependency	57,09,494-00
2	Loss of estate	16,500-00
3	Funeral expenses	16,500-00
4	Loss of spousal consortium	44,000-00
5	Loss of parental consortium	44,000-00
6	Loss of filial consortium	44,000-00
	TOTAL	58,74,494-00
	Rounded to	58,74,500-00

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The Tribunal through the impugned order awarded a sum of Rs.47,80,100/- as compensation. However, the justifiable sum which the appellants are entitled to is Rs.58,74,500/-. Therefore, 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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(ii) The compensation that is granted by the Motor Accident Claims Tribunal, Bangalore, through orders in MVC No.3823/2020, dated 30.08.2022 is enhanced from Rs.47,80,100/- to Rs.58,74,500/-.

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7 - NC: 2024:KHC:36843 MFA No. 6112 of 2023

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

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(iv) Respondent No.2 is directed to deposit the enhanced sum within a period of eight weeks from the date of receipt of copy of this order.

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(v) The apportionment made remains intact.

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(vi) On deposit, the appellant Nos.1 and 4 are permitted to withdraw their respective shares.

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(vii) The amount that fell to the share of appellant No.2 and 3 shall be invested in any interest yielding fixed deposit scheme of any nationalised bank till they attain the age of majority.

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(viii) On their attaining the age of majority, they are permitted to withdraw their share along with accrued interest.

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Sd/(DR.CHILLAKUR SUMALATHA) JUDGE

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List No.: 1 Sl No.: 55

Smt. Rekha v. Ramesha

Case brief

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Smt. Rekha v. Ramesha

Case brief

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