Smt Padma Vs the Managing Director

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 11/10/2018, PASSED IN MVC NO.475/2018, ON THE FILE OF THE III ADDITIONAL JUDGE & MEMBER, MACT, COURT OF SMALL CAUSES, BENGALURU (SCCH-18), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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NC: 2025:KHC:28126 MFA No. 10337 of 2018

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HC-KAR

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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 MR. JUSTICE C.M. POONACHA

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ORAL JUDGMENT

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The present appeal is filed by the claimant under Section 173(1) of the Motor Vehicle Act, 1981¹ challenging the judgment and award dated 11.10.2018 passed in MVC.No.475/2018 by the III Additional Judge & Member, MACT, Court of Small Causes, Bengaluru (SCCH-18)² , whereunder the Tribunal has partly allowed the claim petition and awarded a total compensation of 6,16,339/-. After deducting an interim compensation of 35,000/-, the Tribunal ordered for payment of a sum of `5,81,339/- together with interest @ 9% p.a.

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The submissions of learned counsel Sri Shripad V Shastri for the appellant/claimant and learned counsel Sri M.Ashok Kumar for the respondent/KSRTC have been heard and the records, including the records of the Tribunal, have been perused.

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1 hereinafter referred to as 'MV Act' for short

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2 Hereinafter referred to as ‘ Tribunal’

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NC: 2025:KHC:28126 MFA No. 10337 of 2018

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HC-KAR

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The findings of the Tribunal on negligence and liability are not under challenge and have attained finality. Hence, the only question that is to be adjudicated in the present appeal is with regard to the adequacy of quantum of compensation.

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The deceased was aged 57 years as on the date of the accident i.e., 17.12.2017. Accordingly, the Tribunal has applied the appropriate multiplier of '9', which is just and proper.

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The deceased is stated to have been a tailor having monthly income of 20,000/-. However, no documents have been produced to demonstrate his income. The Tribunal has assessed the notional income of the deceased at 7,500/-. Having regard to the date of the accident, it is just and proper that the notional income of the deceased be re-assessed as `11,000/- per month.

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10% of the income is required to be taken towards future prospects, having regard to the judgment of the Hon'ble Supreme Court in the case of NATIONAL INSURANCE

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NC: 2025:KHC:28126 MFA No. 10337 of 2018

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HC-KAR

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COMPANY LTD V/S PRANAY SETHI AND ORS³ . 1/3^rd is

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to be required to be deducted towards personal expenses, since the deceased is married and survived by his wife and two sons. Accordingly, 'loss of dependency' is reassessed as (11,000/- + 10% - 1/3 x 12 x 9) 8,71,236/- as against `4,45,500/awarded by the Tribunal.

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Compensation towards 'loss of consortium' is required to be awarded to the three claimants in terms of the judgment of Hon'ble Supreme Court in the case of MAGMA

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GENERAL INSURANCE COMPANY V/S NANU RAM ALIAS CHUBRU RAM AND ORS⁴ , at Rs.40,000/- each together with escalation 20%. Accordingly, the said compensation is reassessed as (48,000 x 3) 1,44,000/- as against `1,20,000/- awarded by the tribunal.

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The compensation towards 'funeral expenses and

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loss of estate' is to be awarded as 15,000/- each, together with escalation at 20%. Accordingly, the said compensation is reassessed as 18,000/- each as against `15,000/- each awarded by the tribunal.

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3 “(2017)16 SCC 680”

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4 “(2018)18 SCC 130”

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NC: 2025:KHC:28126 MFA No. 10337 of 2018

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HC-KAR

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The tribunal awarded a sum of `20,839/- towards

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'medical expenses' as per the actual bills the same is just and proper.

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In view of the aforementioned, the compensation

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re-assessed is as follows:

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Sl.No	Compensation Head	Amount Awarded by the Tribunal (`)	Amount awarded by this Court (`)
1	Loss of dependency	4,45,500.00	871236.00
2	Loss of estate	15000.00	18000.00
3	Loss of consortium	120000.00	144000.00
4	Funeral expenses	15000.00	18000.00
5	Medical expenses	20839.00	20839.00
	Total	616339.00	1072075.00
	Less interim	35000.00
	compensation	581339.00

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Accordingly, the claimants are entitled to enhanced

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compensation of (10,72,075/- - 5,81,339/-) = `4,90,736/-.

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Taking judicial notice of the rate of interest awarded

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towards fixed deposits, interest on the enhanced compensation is awarded as 7% per annum.

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In view of the aforementioned, the following:

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6 - NC: 2025:KHC:28126 MFA No. 10337 of 2018

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HC-KAR

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ORDER

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i) The appeal is allowed in part;

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ii) The judgment and award dated 11.10.2018 passed in MVC.No.475/2018 by the III Additional Judge and Member, Motor Accidents Claims Tribunal and Court of Small Causes, Bengaluru (SCCH-18), is hereby modified to the extent stated herein. In all other respects, the judgment and award of the Tribunal remains unaltered;

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iii) The appellants/claimants are entitled to an enhanced compensation of `4,90,736/- together with interest at 7% per annum from the date of the petition till its realization in addition to the compensation awarded by the Tribunal;

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iv) Respondent No.2 – insurer shall deposit the said compensation together with accrued interest within a period of six weeks;

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v) Upon such deposit, the entire enhanced compensation together with interest accrued thereupon shall be payable to claimant No.1. Out of

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HC-KAR

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the enhanced compensation 50% of the amount shall be disbursed to the claimant No.1/appellant No.1 forthwith and balance 50% shall be kept in a fixed deposit in a Nationalised Bank of the choice of the claimant No.1 for a period of two years, upon the expiry of which term, the said amount together with accused interest shall be disbursed to the claimant No.1/appellant No.1 without any further orders in this regard either from the Tribunal or from this Court.

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vi) The Registry to draw the modified award accordingly;

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vii) Records of the Tribunal be transmitted to the Tribunal forthwith.

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No costs.

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Sd/(C.M. POONACHA) JUDGE

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HJ

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List No.: 1 Sl No.: 22

Smt Padma v. the Managing Director

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Smt Padma v. the Managing Director

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