Kazi Mohammed Zafrul Haq and Others vs Mujju and Others

N.K. Patil, J—This appeal is by the claimants directed against the impugned judgment and award dated 17th November 2011 passed in M.V.C. No. 794/2010 on the file of the Motor Accident Claims Tribunal, II Additional Small Causes Judge and XXVIII ACMM, Bengaluru (SCCH-13) (hereinafter referred to as ''Tribunal'' for short). The Tribunal by its impugned Judgment and Award, awarded a sum of Rs. 46,54,808/- with interest at the rate of 6% p.a. from the date of petition till the date of realisation on account of the death of the deceased in the road traffic accident. The claimants have filed this appeal on the ground that the quantum of compensation awarded by the Tribunal is inadequate and requires enhancement.

The brief facts of the case of the claimants are that, the claimants No. 1 and 2 are the parents and the claimants 3 and 4 are brothers of the deceased. They have filed a claim petition under Section 166 of the Motor Vehicles Act, claiming compensation of Rs. 8,00,00,000/- (Rupees Eight Crores only) against the respondents on account of untimely death of the deceased in the road traffic accident that occurred on 30.12.2009 at about 4.00 a.m. contending that when the deceased and his friends were proceeding to Goa in Toyota Qualis bearing No. KA-05/C-3651 on NH-206 on Beerur - Tharikere Road, near 2nd Railway Gate, at that time the driver of the said Car drove the same at a high speed and in a rash and negligent manner and tried to over take a lorry which was going ahead and after seeing the KSRTC bus coming from opposite side, lost control over the vehicle and suddenly took the vehicle to the left side and dashed against lorry bearing No. KA-09/9032. Due to the impact, the deceased who was sitting in the front seat sustained fatal/grievous injuries on the vital parts and other parts of the body and succumbed to the same at the spot.

It is the further case of the appellants that, deceased was aged about 26 years at the time of accident, very bright student and had an excellent educational career and prosecuting his higher education at Detroit Medical Centre, USA, getting salary of Rs. 21,25,290/- per annum. On account of untimely death of the deceased in the road traffic accident, the parents have lost their bright son, suffered social and mental pain and agony, brothers have lost love and affection, inspiration and guidance of their brother. The parents are deprived to see the bright future of their son who was a bright and had excellent career in Medical Profession and lost his higher educational career. Taking all these aspects into consideration, they filed claim petition under Section 166 of the M.V. Act before the Tribunal, claiming compensation against the respondents.

The said matter had come up for consideration before the Tribunal. The Tribunal in turn after due consideration of the oral and documentary evidence and other material available on record, allowed the claim petition in part by awarding compensation of Rs. 46,54,808/- with interest at 6% p.a. from the date of petition till the date of realization. Being dissatisfied with the impugned Judgment and Award passed by the Tribunal, the appellants herein have presented this appeal seeking enhancement of compensation.

It is the submission of the learned Counsel appearing for the appellants, Sri. Suresh Kumar H.M. that, the Tribunal has erred in not awarding reasonable compensation towards loss of dependency and what is awarded is inadequate and further submitted that the deceased was aged about 26 years, Bachelor, prosecuting higher Medical Education at USA, drawing salary of Rs. 21,25,296/- per annum in Indian currency and had excellent educational career and had bright prospects in Medical Education. He further submitted that, out of the said income, the permissible deduction is only towards Income Tax and Professional Tax. Therefore, the same may be deducted in the light of the judgment of Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, (2009) ACJ 1298 : AIR 2009 SC 3104 : (2009) CLT 1055 : (2009) 6 JT 495 : (2009) 6 SCALE 129 : (2009) 6 SCC 121 : (2009) 5 SCR 1098 : (2009) 5 UJ 2280 : (2009) AIRSCW 4992 : (2009) 3 Supreme 487 . After deducting the Income Tax and Professional Tax, 50% towards personal expenses may be deducted as he was a Bachelor and taking the same as contribution to the family, reasonable compensation may be awarded towards loss of dependency taking the age of the younger parent, who was aged about 48 years and the appropriate multiplier applicable is ''13'' and reasonable compensation may be awarded under the conventional heads also by modifying the impugned judgment and award passed by the Tribunal..

Per contra, the learned Counsel appearing for the 2nd respondent - insurer Sri. H.N. Keshava Prashanth inter-alia contended and sought to substantiate stating that the impugned Judgment and award passed by the Tribunal is after due consideration of entire oral and documentary evidence available on record. He further submitted after going through the reasoning given in paragraphs 19 and 20 of Judgment that there is an apparent error on the face of the record and reasoning given by the Tribunal. The same requires modification and appropriate order may be passed in accordance with law.

After careful consideration of the submission of the learned Counsel appearing for both the parties and after perusal of the impugned judgment and award passed by the Tribunal, the only point that arises for consideration is:

"Whether the quantum of compensation awarded by the Tribunal is just and reasonable"

The occurrence of the accident and the resultant death of the deceased are not in dispute. It is also not in dispute that the deceased was aged about 26 years, prosecuting higher Medical Education in USA and drawing salary of Rs. 21,25,296/- per annum in Indian currency. Out of which permissible deductions are Income Tax and Professional Tax, following the Judgment of Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, (2009) ACJ 1298 : AIR 2009 SC 3104 : (2009) CLT 1055 : (2009) 6 JT 495 : (2009) 6 SCALE 129 : (2009) 6 SCC 121 : (2009) 5 SCR 1098 : (2009) 5 UJ 2280 : (2009) AIRSCW 4992 : (2009) 3 Supreme 487 as referred above. Accordingly, we deduct Income Tax and profession Tax of Rs. 6,39,988 and the net income of the deceased comes to Rs. 14,85,308/- p.a. Out of which, if 50% is deducted towards personal expenses of the deceased as he was a Bachelor, the net income towards the contribution to the family on the part of the deceased comes to Rs. 7,42,654/- p.a. Further, the age of younger parent - mother was 38 years and the appropriate multiplier applicable is ''13''. Accordingly, we re-determine the compensation towards loss of dependency at Rs. 96,54,502/- (Rs. 7,42,654/- x 13) and accordingly, awarded.

Having regard to the facts and circumstances of the case, we deem fit to award Rs. 50,000/- towards conventional heads i.e. loss of love and affection, loss of estate, transportation and funeral expenses. In all, the claimants are entitled to a total compensation of Rs. 97,04,502/- as against Rs. 46,54,808/- awarded by the Tribunal. There would be enhancement of Rs. 50,49,694/- with interest at 6% p.a. from the date of petition till realization.

Having regard to the facts and circumstances referred above, the instant appeal filed by the appellants is allowed in part. The impugned Judgment and Award passed by the Tribunal dated 17th November 2011 in M.V.C. No. 794/2010 on the file of the Motor Accident Claims Tribunal, II Additional Small Causes Judge and XXVIII ACMM, Bengaluru (SCCH-13) is hereby modified awarding Rs. 50,49,695/- with interest at 6% p.a. from the date of petition till payment in addition to the compensation awarded by the Tribunal.

The 2nd respondent - Insurer herein is directed to deposit the enhanced compensation amount of Rs. 50,49,694/- with interest at 6% p.a. from the date of petition till realisation, within a period of three weeks from the date of receipt of copy of this judgment and award.

Out of the enhanced compensation of Rs. 50,49,694/-, Rs. 33,00,000/- with proportionate interest shall be invested in Fixed Deposit in the name of the appellant No. 2 - mother of the deceased Smt. Asma Begum in any Nationalized or Scheduled Bank or Grameena Bank, for a period of 10 years and renewable for another 5 years and she is entitled to withdraw the periodical interest accrued on it.

A sum of Rs. 12,00,000/- with proportionate interest shall be invested in Fixed Deposit in the name of the appellant No. 1 - father of the deceased Sri. Kazi Mohammed Zafrul Haq in any Nationalized or Scheduled Bank or Grameena Bank, for a period of 5 years and renewable for another 5 years and he is entitled to withdraw the periodical interest accrued on it.

Remaining amount of Rs. 5,49,694/- with proportionate interest shall be released in favour of the appellant Nos. 1 and 2 in equal proportion, immediately on deposit by the 2nd respondent - Insurer.

Draw the award, accordingly.