Partly allowed

Smt. Pushpa @ Pushpamma, v. Sri.N.Nagaraj

Karnataka HC23 Nov 2024MFA/9226/2017

Case brief

AI extract

What is this about?

Motor accident death claim enhancement dispute between claimants (deceased's parents) and insurer over compensation awarded by Tribunal. Court recalculated income at Rs.20,000 plus 40% future prospects, multiplier 17, raising total compensation to Rs.31,34,300, granting additional Rs.8,48,000 with interest reduced from 9% to 6% per annum.

What did the court decide?

Enhanced compensation of Rs.8,48,000 with interest at 6% p.a.; no interest on 167 days' delay in filing appeal; tribunal award otherwise intact.

Smt. Pushpa @ Pushpamma, Vs Sri.N.Nagaraj — Insurance | Karnataka HC (2024)

¶1

¶2

NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶3

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶4

DATED THIS THE 23^RD DAY OF NOVEMBER, 2024

¶5

BEFORE

¶6

THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.9226 OF 2017(MV-D)

¶7

C/W

¶8

MISCELLANEOUS FIRST APPEAL NO.7874 OF 2017(MV-D)

¶9

IN MFA No. 9226/2017

¶10

BETWEEN:

¶11

SMT. PUSHPA @ PUSHPAMMA, W/O. MUNIKRISHNAPPA, AGED ABOUT 45 YEARS.

¶12

SRI. MUNIKRISHNAPPA S/O. SOYYAPPA

¶13

Digitally signed by PAVITHRA B Location: HIGH COURT OF KARNATAKA

¶14

BOTH ARE R/AT KARAHALLI LAYOUT, BANGARAPET TALUK, KOLAR DISTRICT

¶15

…APPELLANTS

¶16

(BY SRI. H. SURESH, ADVOCATE)

¶17

AND:

¶18

SRI. N. NAGARAJ R/AT NO.B-58, BHARATHI NAGAR, B.E.M.L NAGAR POST, BANGARPET TALUK, KOLAR DISTRICT.

¶19

2 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶20

M/S. ICICI LOMBARD GENERAL INSURANCE

¶21

COMPANY LTD., NO. 89, SVR COMPLEX, HOSUR MAIN ROAD, MADIVALA, BENGALURU, (VIDE POLICY NO. 3005/2010827633/00/000), (VALID FROM 31.10.2013 TO 30.10.2014) OWNER OF BAJAJ DUKE MOTORCYCLE BEARING REG. NO. KA-08-R-8542)

¶22

RESPONDENTS

¶23

(BY SRI. B.C. SHIVANNE GOWDA, ADVOCATE FOR R2; V/O/D 19.04.2024, NOTICE TO R1 D/W)

¶24

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 21.03.2017 PASSED IN MVC NO.197/2015 ON THE FILE OF THE SENIOR CIVIL JUDGE & PRINCIPAL JMFC, MACT, KGF, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

¶25

IN MFA NO. 7874/2017

¶26

BETWEEN:

¶27

M/S. ICICI LOMBARD GENERAL INSURANCE COMPANY LTD., NO.89, SVR COMPLEX, HOSUR MAIN ROAD, MADIVALA, BANGALORE 68.

¶28

NOW REP. BY ITS MANAGER LEGAL, M/S. ICICI LOMBARD GIC LTD, REGIONAL OFFICE, THE ESTATE, 9^TH FLOOR, DICKENSON ROAD,

¶29

3 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶30

M.G. ROAD, BANGALORE 42

¶31

...APPELLANT

¶32

(BY SRI. B.C. SHIVANNE GOWDA, ADVOCATE)

¶33

AND:

¶34

SMT. PUSHPA @ PUSHPAMMA, W/O MUNIKRISHNAPPA, AGED ABOUT 47 YEARS.

¶35

MUNIKRISHNAPPA S/O SOYYAPPA, AGED ABOUT 53 YEARS.

¶36

BOTH ARE RESIDING AT KARAHALLI LAYOUT, BANGARPET TALUK, KOLAR DISTRICT 563 113.

¶37

N. NAGARAJ R/O B-58, BHARATHI NAGAR, BEML NAGARA POST, BANGARPET TALUK, KOLAR DISTRICT 563 113

¶38

..RESPONDENTS

¶39

(BY SRI. H. SURESH, ADVOCATE FOR R1 AND R2; R3 SERVED AND UNREPRESENTED)

¶40

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 21.03.2017 PASSED IN MVC NO.197/2015 ON THE FILE OF THE SENIOR CIVIL JUDGE AND PRINCIPAL J.M.F.C. AND MACT K.G.F., AWARDING COMPENSATION OF RS.22,86,300/- WITH INTEREST AT 9% P.A. FROM THE DATE OF FILING THE PETITION TILL THE DATE OF DEPOSIT.

¶41

4 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶42

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

¶43

CORAM: HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR

¶44

ORAL JUDGMENT

¶45

MFA No.9226/2017 is filed by the appellant/claimant seeking for enhancement of compensation and MFA No.7874/2017 is filed by the Insurance Company praying to reduce the quantum of compensation by challenging the judgment and award dated 21.03.2017 in MVC No.197/2015 passed by the Senior Civil Judge & Principal JMFC & MACT, KGF.

¶46

The factum of accident, death of deceased in the accident and liability of the Insurance Company are not in dispute. The grievances of both claimant and the Insurance Company are with regard to assessment of quantum of compensation.

¶47

The Tribunal has awarded the compensation under various heads as follows:

¶48

Loss of dependency	Rs.19,89,000/-
Loss of love and affection (petitioner No.1)	Rs. 50,000/-

¶49

- 5 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶50

Loss of love and affection (petitioner No.2)	Rs. 50,000/-
Medical expenses	Rs. 1,57,300/-
Loss of estate	Rs. 10,000/-
Expenses towards transportation of dead body and funeral expenses	Rs. 30,000/-
Total	Rs.22,86,300/-

¶51

It is stated that the deceased was running a Garage

¶52

in the name and style of M/s Bharath Garage at Bangarpet and claims to be earning Rs.30,000/- per month. The claimants have produced Ex.P7, copy of the rental agreement showing that deceased has taken the shop on rental basis for running the Garage and also a licence issued by the Labour Department would prove that deceased was running Garage by employing two labourers.

¶53

P.W.3, who is the eyewitness and who was the employee under the deceased has stated that P.W.3 was working in the Garage under the employment of the deceased. This evidence proves that deceased was running a Garage by doing the work as Mechanic. The Tribunal has assessed the income of the deceased as Rs.750/- per day. Since the

¶54

6 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶55

deceased has employed two employees in his Garage, therefore, the income assessed by the Tribunal by holding the notional income at 750/- per day is found to be correct, justified and legal. The Tribunal has stated that on four Sundays, Garage would be closed and therefore, daily income of Rs.750/- is taken for 20 days in a month which comes to Rs.19,500/-. The assessment made by the Tribunal in this regard is correct. Therefore, it is proper to take monthly income of the deceased as Rs.20,000/-.

¶56

The deceased was 26 years old as on the date of accident and therefore, appropriate multiplier is 17.

¶57

The Tribunal has not added income towards future prospects in life for the reason that the deceased was a self employed person and the claimants have not produced the income of the deceased. This observation of the Tribunal is not correct.

¶58

As per the decision in National Insurance Co. Ltd. Vs. Pranay Sethi reported in (2017) 16 SCC 680 , 40% of monthly income of deceased is added towards ‘Loss of Future Prospects in Life’, i.e., Rs.8,000/- (Rs.20,000/- x 40%).

¶59

7 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶60

Therefore, the monthly income of the deceased is taken at Rs.28,000/- (Rs.20,000/- + Rs.8,000/-). The deceased was a bachelor. Therefore, 50% of deceased income is deducted towards personal and living expenses and the contribution to the family is taken as Rs.14,000/- per month. Therefore, the compensation under the head ‘Loss of Dependency’ is recalculated and quantified as follows:

¶61

Rs.28,000 x 50% x 17 x 12 = Rs.28,56,000/-

¶62

The claimants are the parents of the deceased.

¶63

As per Magma General Insurance Company Limited v. Nanu Ram and Others, reported in 2018 ACJ 2782, Rs.40,000/- is to be awarded under the head 'loss of consortium'. As per the dictum of Hon'ble Apex Court in the case of Rasmita Biswal vs. Div. Manager, National Insurance Co., Ltd., reported in AIR 2022 SC 85, for every three years 10% income is to be raised. Therefore, a sum of Rs.44,000/- each is awarded under the head 'loss of consortium'. Accordingly, a sum of Rs.88,000/- is awarded under the head 'loss of consortium' as against a sum of Rs.1,00,000/- awarded by the Tribunal towards 'Loss of love and affection'.

¶64

8 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶65

The Tribunal has granted a sum of Rs.30,000/towards 'Funeral expenses' and Rs.10,000/- towards ‘Loss of estate’. It is just and reasonable to award a sum of Rs.16,500/- each under the head ‘Transportation of dead body, funeral expenses, etc.,’ and 'Loss of estate'.

¶66

The amount of Rs.1,57,300/- awarded towards medical expenses is found to be just and proper and same is kept intact.

¶67

Therefore, the appellants are entitled to the enhanced compensation as follows:

¶68

1	Loss of dependency	Rs.28,56,000/-
2	Medical expenses	Rs.1,57,300/-
3	Transportation of dead body and funeral expenses	Rs.16,500/-
4	Loss of Estate	Rs.16,500/-
5	Towards Filial Love/loss of consortium	Rs.88,000/-
	Total	Rs.31,34,300/-

¶69

The appellants-claimants are entitled for a total enhanced compensation of Rs.31,34,300/- as against

¶70

9 - NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶71

Rs.22,86,300/- awarded by the Tribunal. Hence, the appellants are entitled for an additional Compensation of Rs.8,48,000/(Rs.31,34,300 - Rs.22,86,300), along with interest at the rate of 6% per annum from the date of petition till the date of realization.

¶72

The Tribunal has awarded interest at 9% per annum and the same is reduced to 6%. Therefore, insofar as rate of interest is concerned, the appeal filed by the Insurance Company is allowed in-part.

¶73

Accordingly, I pass the following:-

¶74

ORDER

¶75

i. MFA No.9226/2017 and MFA No.7874/2017 are allowed

¶76

in-part.

¶77

ii. The judgment and award dated 21.03.2017, passed in MVC No.197/2015, on the file of Senior Civil Judge & Prl.JMFC, & MACT, KGF, is modified to the above extent.

¶78

iii. The appellants are entitled to an enhanced compensation

¶79

of Rs.8,48,000/- (Rs.31,34,300 - Rs.22,86,300), along with interest at the rate of 6% per annum from

¶80

NC: 2024:KHC:47941 MFA No. 9226 of 2017 C/W MFA No. 7874 of 2017

¶81

10 -

¶82

the date of petition till the date of realization, in addition

¶83

to what has been awarded by the Tribunal.

¶84

iv. 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.

¶85