Krishnachari and Others vs R. Rama and Others

N.K. Patil, J.—This is claimants'' appeal filed against the impugned judgment and award dated 10th July 2013 passed in MVC No. 3413/2012 on the file of the XXI ACMM & XXIII ASCJ, MACT, Court of Small Causes, Bengaluru (ACMM-21) (hereinafter referred to as ''Tribunal'' for short), for enhancement of compensation.

The Tribunal by its judgment and award has awarded a sum of Rs. 5,51,000/- 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. 5,00,00,000/-, on account of the death of the deceased late Vinod Kumar in the road traffic accident.

In brief, the facts of the case are:

The 1st and 2nd appellants are parents and 3rd and 4& appellants are sister and brother of the deceased and they have filed a claim petition before the Tribunal under Section 166 of M.V. Act, claiming compensation of Rs. 5,00,00,000/- on account of the death of the deceased in the road traffic accident, contending that on 14.4.2012, when the deceased Vinod Kumar was proceeding on his motor cycle from LRDE Circle to Chowdaiah Road, near Raj Bhavan at about 6.05 a.m., the driver of Qualis bearing Reg. No. TN-10; K-5060 drove the same in a rash and negligent manner, in one-way, without following the traffic rules and dashed against the motor cycle. Due to the impact, the deceased fell down and sustained grievous injuries. Immediately he was shifted to Bowring Hospital, where the doctor declared him dead. The appellants have spent huge amount towards transportation and funeral expenses. Due to the untimely death of the deceased they filed claim petition, which came up for consideration before the Tribunal. The Tribunal after appreciating the oral evidence of PW. 1 and documentary evidence at Exs. P. 1 to P. 14 and Ex. R. 1 and other material available on record, has allowed the claim petition in part and awarded the compensation of Rs. 4,86,000/- towards loss of dependency, Rs. 25,000/- towards funeral expenses, Rs. 20,000/- towards transportation, Rs. 20,000/- towards loss of love and affection. In all Rs. 5,51,000/- is awarded, with interest at 6% p.a., from the date of petition till the date of deposit. Not being satisfied with the compensation awarded by the Tribunal, the appellants have presented this appeal, for enhancement of compensation.

Sri. B.N. Shivanna, learned counsel appearing for the appellants, at the outset submitted that the Tribunal erred in awarding inadequate compensation towards loss of dependency and it requires enhancement. He further submitted that due to non-availability of necessary documents, the appellants could not produce the details regarding Bank accounts to show the exact salary earned by the deceased. Now they have produced the entire documents regarding bank accounts from 2011 to 2012, Salary Certificates of January 2012 to March 2012 along with LA No. 2/2013. Further, he submitted that relevant pay slip for the Month of March 2012 may kindly be accepted and the income of the deceased may be reassessed at Rs. 30,000/- p.m. Out of which, income tax and professional tax may be deducted. But as per the salary slip for the month of March 2012, if P.F. of Rs. 1,945/- was deducted, net salary would be Rs. 28,877/-. Therefore he submitted that the net salary may be rounded of to Rs. 30,000/- p.m. and considered as income of the deceased. Further he placed reliance upon the Judgment of the Apex Court in Sarla Verma''s case (ACJ 2009 page 1298) and submitted that 50% of income may be added towards future prospects as the deceased was working in a Multinational Company and earning substantially. He further submitted that the Tribunal also erred in not awarding reasonable compensation towards conventional heads. Further he submitted that the rate of interest awarded at 6% per annum is also on the lower side since the accident is of the year 2011 and the same may be enhanced to 9% to 10% per annum. Therefore, he submitted that the impugned judgment and award passed by the Tribunal is liable to be modified.

Per contra, the learned counsel appearing for the Insurer inter alia contended and substantiated that, the impugned judgment and award passed by the Tribunal is just and proper. However after careful perusal of documents produced along with LA No. 2/2013 by way of additional evidence, viz. Bank statement pertaining to deceased and pay slip for the months of January to March 2012, submitted that the average income of the deceased may be taken as Rs. 30,000/- p.m. and in the light of judgment of Apex Court in Sarla Varma''s case, 50% of income may be added towards future prospects and 50% of income may be deducted towards personal expenses and income tax and professional tax may be deducted and compensation may be calculated by applying appropriate multiplier taking the age of the mother of the deceased, who is the only dependant of the deceased awarded compensation, in accordance with law.

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 32 years at the time of accident, hale and healthy and looking after the welfare of the appellants. The claimants are none other than the parents and sisters of the deceased, who have lost their future security due to his untimely death. He was Floor Leader in Altisource Company and earning Rs. 30,000/- p.m. as per the pay slip for the month of March 2012. The said fact is supported by the statement of accounts maintained by the Axis Bank. We accept the same and on account of untimely death of the deceased the parents and unmarried sisters have suffered mental pain and agony. Following the Judgment of Apex Court in Sarla Varma''s case, we add 50% of the income towards future prospects. It comes to Rs. 45,000/- p.m. i.e., Rs. 5,40,000/- per annum, out of which 20% Income tax and Rs. 2,400/- towards professional Tax is deducted i.e., a total of Rs. 1,10,400/- it comes to Rs. 4,29,600/-. Out of which, if 50% is deducted towards the personal expenses of the deceased as the deceased was a bachelor, it comes to Rs. 2,14,800/- and in the light of decision in Sarla Verma''s case, the appropriate multiplier applicable is ''9'' for the age of the mother of the deceased, being 58 years. Accordingly, the appellants are entitled to Rs. 19,33,200/- (Rs. 2,14,800/- x 9) towards loss of dependency.

Considering the facts and circumstances of the case that, the parents have lost their son and sisters have lost the love and affection, inspiration and guidance in life, we deem it fit to award Rs. 25,000/- towards loss of estate, Rs. 1,00,000/- towards loss of love and affection at the rate of Rs. 25,000/- to each appellant and Rs. 25,000/- towards funeral and transportation expenses. In all, the claimants are entitled for Rs. 20,83,200/- as against Rs. 5,51,000/- awarded by the Tribunal.

As rightly pointed out by the learned counsel appearing for the appellants, the rate of interest awarded by the Tribunal at 6% p.a. is on the lower side as accident occurred in the year 2012. Therefore, 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 is allowed in part. The impugned judgment and award passed by the Tribunal dated 10th July 2013 in MVC No. 3413/2012 is hereby modified. The total compensation payable comes to Rs. 20,83,200/- as against Rs. 5,51,000/- awarded by the Tribunal. There will be an enhancement of Rs. 15,32,200/- with 9% interest per annum.

The 2nd respondent-Insurer is directed to deposit the enhanced compensation of Rs. 15,32,200/- with interest at 9% p.a., from the date of petition till the date of realisation, within three weeks from the date of receipt of a copy of this judgment.

Out of the enhanced compensation, Rs. 6,00,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 2nd appellant/mother Smt. Indrani for a period of five years and renewable for another five years, with liberty to her to withdraw the interest accrued on it periodically.

Rs. 4,00,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 1st appellant/father Sri. Krishnachari for a period of five years, with liberty to him to withdraw the interest accrued on it periodically.

The remaining Rs. 5,32,200/- with proportionate interest shall be released in favour of the 1st to 4th appellants, in equal proportion, immediately, on deposit by the 3rd respondent-Insurer.

Draw the award, accordingly.

Sri. C. Shankara Reddy is permitted to file vakalath for R. 3 within four weeks.