High CourtsDivision Bench(2013) 09 KAR CK 0206

K.P. Balasubrahmanya, Smt. Asha Balasubrahmanya and Master K.B. Aniruddha vs Mallikarjuna and Others <BR> Manager, The Oriental Insurance Co. Ltd. Vs K.P. Balasubrahmanya and Others

Karnataka High Court · Decided on 11 September 2013

HON’BLE JUDGES
Mohan M. Shantanagoudar, J · B. Sreenivase Gowda, J
RESULT
Dismissed
CASE NUMBER
Miscellaneous First Appeal No. 9654 of 2010 (MV) C/W Miscellaneous First Appeal No. 9872 of 2010 (MV)

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Judgment

17 paragraphs · 1,127 words

B. Sreenivase Gowda, J.—MFA No. 9654/2010 is filed by the claimants seeking enhancement of compensation awarded by the Tribunal.

MFA No. 9872/2010 is filed by the insurer of the offending vehicle challenging the judgment and award of the Tribunal on the ground of liability as well as quantum.

For the sake of convenience parties are referred to as they are referred to in the claim petition before the Tribunal

2.

As there is no dispute regarding death of deceased K.B. Abhishek in the road traffic accident that occurred on 5-7-2003 while he was proceeding on his motor cycle bearing registration No. KA-05-EM-5180 due to rash and negligent driving of the BMTC bus bearing registration No. KA-01-AA-1213 by its driver, only points that arise for our consideration in the appeals are:

Whether the Tribunal is justified in fastening liability on the insurer of the offending bus?

Whether the quantum of compensation awarded by the Tribunal is just and reasonable or does it call for reduction or enhancement?

3.

Sri. A.N. Krishnaswamy, the learned Counsel appearing for the insurer of the offending bus submits, BMTC was the owner of the offending bus as it had possession and control over the vehicle as on the date of accident and the vehicle was being plied at the instance of BMTC for its purpose. The Tribunal without noticing the ratio laid down by the Apex court in the case of Rajasthan State Road Transport Corporation Vs. Kailash Nath Kothari and other etc., and the decision of this Court in the case of North West Karnataka Road Transport Corporation Vs. Sri D. Kenchappa and Others, has committed an error in fastening the liability on the insurer.

4.

Alternatively he submits, quantum of compensation awarded is on the higher side, and therefore, he prays for allowing the appeal filed by the Insurance Co. and dismissing the appeal filed by the claimants.

5.

Per contra learned Counsel appearing for the claimants as well as the BMTC submit, the issue relating to liability has been concluded finally against the Insurance Co. by virtue of the judgment of the Apex Court in the case of Uttar Pradesh State Road Transport Corporation Vs. Kulsum and Others, .

6.

Learned Counsel for the claimants submits, quantum of compensation awarded is on the lower side and therefore, he prays for allowing the appeal filed by the claimants by enhancing the compensation and dismissing the appeal filed by the Insurance Co.

7.

It is a case of lease of the offending bus by its registered owner in favour of the BMTC. The bus was insured with the Oriental Insurance Co. and the policy was in force as on the date of accident. The issue that in case of lease of a private bus by its registered owner in favour of the Corporation, and if accident takes place during the subsistence of the said lease period due to rash and negligent driving of the said bus by it''s driver and in the said accident if any third parties including the passengers sustained injuries/died, the liability has to be fastened on the insurer of the bus as per the latest judgment of the Apex Court in the case of Uttar Pradesh State Road Transport Corporation Vs. Kulsum and Others, . The said issue is no longer in integra. Therefore, the finding of the Tribunal on liability in directing the insurer of the bus to deposit/pay the compensation amount to the claimants is in accordance with the latest judgment of the Apex Court and it does not call for our interference.

8.

Now we have to see whether quantum of compensation awarded by the Tribunal is just and reasonable or does it call for enhancement or reduction.

9.

The deceased Abhishek was a bachelor aged about 22 years. The claim petition is filed by his parents seeking compensation under Sec. 166 of the Motor Vehicles Act. Ex. P.26 - B.E. certificate reveals that deceased had done B.E. in Computer Science and Engineering, As per Ex. P.20 the appointment letter dt. 3-7-03 issued by Appu Point Software Solutions the deceased was supposed to have reported for duty on 07-07-2003 as Software Engineering Consultant with Appu Point Software Solutions. It was unfortunate that he died on 5-7-03 itself. The insurer of the bus have not adduced any contra evidence disputing the appointment order issued by Appu Point Software Solutions Co. If the deceased had not met with the accident, he would have joined as Software Engineering Consultant with Appu Point Software Solutions Co. on annual remuneration of Rs. 2,59,600/-. Therefore, the Tribunal is justified in assessing his annual income at Rs. 2,59,600/-. It is admitted that even before joining the said employment, the deceased met with an accident and died. Therefore, it is not a case where we can add 50% or 30% of his salary to his income towards future prospects, because confirmation of the proposed employment depends upon successful completion of probation period and several other contingencies. As deceased was a bachelor, 50% of his income is liable to be deducted towards his personal expenses and remaining 50% can be taken as his contribution to family. Multiplier of ''14'' adopted by the Tribunal based on the age of the mother of the deceased who was 44 years at the relevant point of time is sound and proper. Thus the compensation of Rs. 15,59,040/- awarded by the Tribunal under the head of loss of dependency'' is in accordance with law and there is no scope for either reduction or enhancement under this head.

10.

However we feel Rs. 20,000/- awarded by the Tribunal towards funeral expenses, conveyance charges and loss of estate, is on the lower side. Therefore, we award a sum of Rs. 50,000/- under conventional heads such as love and affection, loss of estate, transportation of dead body and funeral expenses.

11.

Thus claimants are entitled to a total compensation of Rs. 16,09,040/- as against Rs. 15,79,040/- awarded by the Tribunal with interest at 6% p.a. on the additional compensation of Rs. 30,000/- from the date of claim petition till the date of realisation.

12.

The insurance Co. is directed to deposit the additional amount together with interest at 6% p.a. from the date of claim petition till the date of payment and within six weeks from the date of receipt of this order and the same is ordered to be released in favour of the parents of the deceased in equal proportion. In view of confirming the finding of the Tribunal on liability and in view of allowing the appeal filed by the claimants and enhancing the compensation awarded by the Tribunal, appeal filed by the Insurance Co. does not survive for consideration. Accordingly, it is dismissed.

No order as to costs.