Allowed

The Divisional Manager v. Jaganath

Karnataka HC12 Jul 2024MFA/760/2019

Case brief

AI extract

What is this about?

Cross-appeals in a motor accident death claim. The court reassessed notional income using Karnataka Legal Services Authority guidelines, applied a 40% future prospects addition, multiplier 15, and enhanced compensation from about Rs.16.32 lakh to Rs.19.64 lakh with interest.

What did the court decide?

Compensation enhanced by Rs.3,32,000 to Rs.19,64,125 with 6% interest; impugned award modified; deposit transmitted to Tribunal.

The Divisional Manager Vs Jaganath — Insurance | Karnataka HC (2024)

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1 - NC: 2024:KHC:27765 MFA No. 760 of 2019 C/W MFA No. 1175 of 2019

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 12^TH DAY OF JULY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR MISCELLANEOUS FIRST APPEAL NO. 760 OF 2019 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 1175 OF 2019 (MV-D)

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IN M.F.A.No.760/2019

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BETWEEN:

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THE DIVISIONAL MANAGER, RELIANCE GIC LTD., DIVISIONAL OFFICE, 1^ST FLOOR, NANDA COMMERCIAL COMPLEX, PPC ROAD, UDUPI, NOW REPRESENTED BY MANAGER, RELIANCE GENERAL INSURANCE CO. LTD., NO.28, CENTENARY BUILDING, EAST WING, NEAR CITY BANK, 5^TH FLOOR, M.G.ROAD, BANGALORE – 560 001.

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…APPELLANT

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(BY SRI. PRADEEP B., ADVOCATE)

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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AND:

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JAGANATH, AGED ABOUT 37 YEARS, S/O LATE NAGA,

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JAYASHRI, AGED ABOUT 19 YEARS, D/O JAGANATH,

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ANUSHRI, AGED ABOUT 16 YEARS, D/O JAGANATH, REPRESENTED BY NATURAL F. GUARDIAN/ FATHER JAGANATH R1 ALL ARE RESIDING AT NETHAJI NAGAR, 80,

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NC: 2024:KHC:27765 MFA No. 760 of 2019 C/W MFA No. 1175 of 2019

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BADAGUBETTU, PARKALA POST, UDUPI TALUK & DISTRICT.

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MR. DAVID D'SOUZA, (MAJOR), S/O WILLIAM D'SOUZA, R/O PRINCE PALACE, PERNAL POST, SHIRVA, UDUPI TALUK AND DISTRICT.

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…RESPONDENTS

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(BY SMT.SWATHI G.A., ADVOCATE FOR SRI.H.PAVANA CHANDRA SHETTY H., ADVOCATE FOR R1 & R2;

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(R3 IS MINOR REPRESENTED BY R1); NOTICE TO R4 IS DISPENSED WITH VIDE ORDER DATED 09.03.2022)

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THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 25.10.2018 PASSED IN MVC NO.263/2016 ON THE FILE OF THE ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL M.A.C.T., UDUPI, AWARDING COMPENSATION OF RS.16,32,500/- WITH INTEREST AT 6% P.A. FROM THE DATE OF PETITION TILL REALIZATION.

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IN M.F.A.No.1175/2019

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BETWEEN:

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JAGANNATH, AGED ABOUT 37 YEARS, S/O LATE NAGA,

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JAYASHRI, AGED ABOUT 19 YEARS, D/O JAGANNATH,

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ANUSHRI, AGED ABOUT 16 YEARS, D/O JAGANNATH, REPRESENTED BY HER NATURAL GUARDIAN & FATHER JAGANNATH ALL ARE R/O NETHAJI NAGAR, 80, BADAGABETTU, PARKALA POST, UDUPI TALUK & DISTRICT – 576 201.

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…APPELLANTS

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(BY SMT.SWATHI, G.A., ADVOCATE FOR SRI.H.PAVANA CHANDRA SHETTY, ADVOCATE)

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3 - NC: 2024:KHC:27765 MFA No. 760 of 2019 C/W MFA No. 1175 of 2019

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AND:

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RELIANCE GENERAL INSURANCE CO. LTD., MANGALORE, REPRESENTED BY ITS NEAREST DIVISIONAL OFFICE, 1^ST FLOOR, NANDA COMMERCIAL COMPLEX, PPC ROAD, UDUPI – 576 201.,

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DAVID D'SOUZA, S/O WILLIAM D'SOUZA, R/O PRINCE PALACE, PERNAL POST, SHIRVA, UDUPI TALUK AND DISTRICT – 576 201.

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…RESPONDENTS

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(BY SRI.H.C.BETSUR, ADVOCATE FOR R1)

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THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 25.10.2018 PASSED IN MVC NO.263/2016 ON THE FILE OF THE ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL M.A.C.T., UDUPI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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

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ORDER

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These appeals under Section 173(1) of the Motor Vehicles Act arise from the judgment and award dated 25.10.2018 passed by the Additional Senior Civil Judge and Additional MACT, Udupi, in MVC Nos.262 and 263/2016. The appellants filed a claim petition under Section 166 of the Motor Vehicles Act seeking just and proper compensation for the death of Kusuma, who succumbed to injuries sustained in a road accident on 07.09.2015. The Tribunal awarded a total compensation of Rs.16,32,500/- with interest at 6%. The Insurance Company is in appeal (MFA No. 760/2019)

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4 - NC: 2024:KHC:27765 MFA No. 760 of 2019 C/W MFA No. 1175 of 2019

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challenging the quantum of compensation, while the claimant is in appeal (MFA No.1175/2019) seeking enhancement of compensation.

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The death of Kusuma in a road traffic accident on 07.09.2015 is not disputed. At the time of the accident, she was 36 years old. The deceased was employed as a sweeper at an Ayurvedic hospital, and her salary certificate (Exhibit P13) indicated she was earning Rs.7,000/- per month. PW.3, the Chief Medical Officer (CMO) of the hospital, testified that she received an annual increment of Rs.2,000/-, which is not disputed.

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In light of the circumstances, the notional income is assessed based on her salary at the hospital, as well as the services she rendered to her family, at Rs.9,000/- per month, in accordance with the Karnataka State Legal Services Authority guidelines. This is in contrast to the Rs.7,000/- per month assessed by the Tribunal. Adding 40% towards future prospects, deducting 1/3rd for personal expenses, and applying the multiplier of ‘15’, the claimants are entitled to compensation of Rs.15,12,000/- towards dependency. Additionally, the claimants are entitled to Rs.40,000/each towards loss of consortium, amounting to Rs.1,20,000/-, and Rs.30,000/- for loss of estate and funeral expenses. The compensation of Rs.2,81,325.77/- towards medical expenses and miscellaneous expenses of Rs.20,800/- remains unaltered.

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In total, the claimants are entitled to a compensation of Rs.19,64,125/-, as opposed to the Rs.16,32,125.77/- awarded by the Tribunal. The enhanced compensation of Rs.3,32,000/- shall

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NC: 2024:KHC:27765 MFA No. 760 of 2019 C/W MFA No. 1175 of 2019

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carry interest at 6% per annum from the date of the petition until realization.

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Accordingly, the appeals are allowed. To this extent, the impugned judgment and award stand modified. The amount deposited in MFA No.760/2019 shall be transmitted to the jurisdictional Tribunal.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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RKA

The Divisional Manager v. Jaganath

Case brief

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What did the court decide?

The Divisional Manager v. Jaganath

Case brief

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