Kempamma and Others vs Basavaraju S.C. and Others

N.K. Patil, J.—1. These two appeals by the claimant and the insurer filed against the impugned judgment and award dated 12th March 2015 passed in MVC No. 137/2014 on the file of the Additional MACT and Principal Senior Civil Judge and C.J.M., Ramanagara (hereinafter referred to as ''Tribunal'' for short).

The Tribunal by its judgment and award has awarded a sum of Rs. 5,58,000/- under different heads with interest at 6% per annum from the date of petition till the date of deposit, as against the claim of the claimants for a sum of Rs. 25,00,000/-, on account of death of the deceased late Sri Neelaiah in the road traffic accident.

It is the case of the claimants that the quantum of compensation awarded by the Tribunal is inadequate and it requires enhancement and case of the insurer is the quantum of compensation awarded by the Tribunal is to be modified by reducing the compensation awarded by the Tribunal.

In brief, the facts of the case are:

"The 1st claimant is the wife, 2nd, 3rd and 4th claimants are major children of the deceased and they had filed a claim petition before the Tribunal under Section 166 of M.V. Act, claiming compensation of Rs. 25,00,000/- on account of the death of the deceased in the road traffic accident, contending that on 01.01.2014 at about 3.30 p.m. when the deceased was standing in front of his house and was watching the coon producer stand (Chandrike), at that time, the rider of the motorcycle bearing Reg. No. KA-42-A-4298 came from Revanasiddeshwara Hill, in a very rash and negligent manner, endangering the human life and dashed against the deceased, as a result, the deceased fell down and sustained grievous head injury and other parts of the body. Immediately, the deceased has shifted to Government Hospital, Ramangara for treatment and then shifted to NIMHANS, Bangalore for higher treatment. But the deceased did not recover and succumbed to the injuries on 23.01.2014 at about 6.00 a.m. Due to the death of the deceased, the claimants have suffered mental agony and they have spent amount towards transportation of the dead body, funeral and obsequies of the deceased."

It is the further case of the claimants, the deceased was aged between 61-65 years at the time of accident, hale and healthy and was an agriculturist and also Sericulturist and doing diary forming and earning Rs. 25,000/- p.m. and looking after the welfare of the family and due to his untimely death, they suffered socially and economically. The said claim petition had come up for consideration before the Tribunal. The Tribunal after appreciating the oral and documentary evidence and other material available on record, has allowed the claim petition in part and awarded the compensation of Rs. 5,58,000/- under different heads with interest at 6% p.a., directing the 2nd respondent to deposit the compensation from the date of petition till the date of deposit. Not being satisfied with the compensation awarded by the Tribunal, the claimants and insurer have presented these two appeals, for enhancement of compensation and reduction of compensation awarded by the Tribunal respectively.

The submission of Sri. K. Shantharaj, learned counsel appearing for the claimants at the outset is that Tribunal has failed to assess the just and reasonable income of the deceased and the income assessed by the Tribunal is on the lower side since the accident has occurred on 1.01.2014 and the deceased was aged between 61 and 65 years and by profession he was agriculturist, Sericulturist and doing diary forming and earning Rs. 25,000/- p.m. Therefore, he submitted that the income of the deceased may be reassessed between Rs. 8,500/- and Rs. 9,000/-. Due to his un-timely death, claimants have lost their only breadwinner and facing great mental shock and monetary loss. Further he submitted that since all the claimants are majors, then 1/3rd may be deducted towards personal expenses and taking appropriate multiplier of 7'' reasonable compensation be awarded towards loss of dependency and also conventional heads and also submitted that the rate of interest awarded at 6% per annum is also on the lower side since the accident is of the year 2014 and the same may be enhanced to 9% to 10% per annum. Therefore, the impugned judgment and award passed by the Tribunal is liable to modified.

Per contra, Sri. R. Jai Prakash, the learned counsel appearing for the Insurer inter alia contended and substantiated that, the Tribunal erred in assessing the income of the deceased at Rs. 7,500/- p.m., and the same is disproportionate to the income of the deceased and deducting 1/4th towards personal expenses of the deceased is also not proper. The compensation awarded towards loss of dependency and other conventional heads may be reduced by modifying the impugned judgment and award passed by the Tribunal.

After considering the submissions made by the learned counsel appearing for both the parties and on perusal of the material available on record, including the impugned judgment and award passed by the Tribunal, the only point that arise for consideration is:

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

It is not in dispute that the deceased died in the road traffic accident. Further it is not in dispute that, the deceased was aged about 61 to 65 years at the time of accident, hale and healthy and looking after the welfare of the claimants and was an agriculturist and Sericulturist and doing dairy forming and earning Rs. 25,000/- p.m. The claimants are none other than the wife and major children of the deceased, who have lost their love and affection and future security due to his untimely death. The Tribunal has failed to assess the just and reasonable income of the deceased and the income assessed is on the lower side since the accident has occurred on 01.01.2014. Having regard to the age and number of avocations and year of accident, we can safely re-assess the income of the deceased at Rs. 8,500/- per month to meet the ends of justice as against the income assessed by the Tribunal, considering the fact that the wife has lost life partner and companion and the children have lost love and affection and inspiration and guidance and future security. Having regard to the age, avocation and year of accident and dependents are all majors and in the light of the judgment of Apex Court and this Court and as rightly submitted by the learned counsel appearing for the insurer we can safely deduct 1/3rd towards the personal expenses of the deceased, as all the dependents are majors. Accordingly, the remaining amount comes to Rs. 5,667/- and in the light of decision in Sarla Verma''s case, the appropriate multiplier applicable is 7'' for the age of the deceased between 61-65 years. Accordingly, the claimants are entitled towards loss of dependency at Rs. 4,76,028/- (Rs. 5,667/-x12x7).

Considering the facts and circumstances of the case that, the wife lost life partner and companion and children lost love and affection and future security and inspiration and guidance in life, we deem it fit to award Rs. 1,00,000/- towards loss of consortium, Rs. 25,000/- towards loss of estate, Rs. 1,00,000/- towards loss of love and affection and Rs. 25,000/- towards funeral and transportation expenses. However, the Tribunal has rightly awarded a sum of Rs. 10,500/- towards Medical Expenses. Therefore, interference by this Court is not called for. In all, the claimants are entitled for Rs. 7,36,528/- as against Rs. 5,58,000/- awarded by the Tribunal.

As rightly pointed out by the learned counsel appearing for the claimants that the rate of interest awarded by the Tribunal at 6% p.a is on the lower side an accident occurred in the year 2014. In the light of catena of Judgments, we deem it fit to award 9% interest per annum on enhanced compensation.

Having regard to the facts and circumstances of the case, as stated above, appeal filed by claimants is allowed in part and the appeal filed by Insurer is dismissed. The impugned judgment and award passed by the Tribunal dated 12.03.2015 in MVC No. 137/2014 is hereby modified. The total compensation payable comes to Rs. 7,36,528/- as against Rs. 5,58,000/- awarded by the Tribunal. There will be an enhancement of Rs. 1,78,528/- with 9% interest per annum.

Out of the enhanced compensation, Rs. 1,00,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 1st appellant/wife for a period of five years and renewable for another five years, with liberty to her to withdraw the interest accrued on it periodically.

The remaining Rs. 78,528/- with proportionate interest shall be released in favour of the 1st appellant, immediately, on deposit by the 2nd respondent-Insurer.

The amount deposited by the insurer in MFA 5136/2015 shall be transmitted to the Jurisdictional Tribunal immediately.

Draw the award, accordingly.