Lyla Kannikanda and Others vs Kumara and Others

N.K. Patil, J.—Being aggrieved by the impugned judgment and award dated 14/06/2010 passed in MVC NO.846/2009 on the file of the III Additional District & Sessions Judge, Mysore (for short ''Tribunal''), appellants have presented this appeal seeking just and reasonable compensation for the death of Sri. K.N. Shabhitha on account of the injuries sustained by him in the motor vehicle accident.

The brief facts of the case are:

"Appellants herein claim to be the wife and minor daughter of the deceased Sri. K.N. Shabhitha, who died in the motor vehicle accident that occurred on 7.4.2007 at about 3.15 p.m. when the deceased along with three persons were traveling from Mysore City to Bangalore via Mandya in Maruthi Car bearing No. KA-05/MB-5344, driven by the lst respondent in a high speed and in a rash and negligent manner and near Mallaiahna Doddbore, Mandya, he suddenly took the car to the left and dashed against the wall of Jyothi Feeds building. Due to which the car turned upside down and with the help of the villagers, car was lifted up and set right. In the said accident, deceased sustained fatal injuries and died at the spot.

It was further their case that the deceased was aged about 30 years, a businessman by occupation owning an establishment in the name and style of Bharath Cotton Products in Mysore, dealing in manufacture of cotton products and earning Rs. 20,000/- p.m. He was the sole bread winner in the family and the entire family was dependent on him."

On account of the death of the deceased, the appellants being the wife, daughter and mother of the deceased (respondent No. 3), filed the claim petition before the Tribunal seeking compensation in a sum of Rs. 30,00,000/-. The said claim petition had come up for consideration before the Tribunal. The Tribunal, after assessing the oral and documentary evidence and other relevant material on file, allowed the claim petition in part awarding Rs. 4,14,000/- with interest at 6% p.a. from the date of petition till deposit. The appellants being dissatisfied with the quantum of compensation have filed this appeal seeking enhancement.

Learned counsel for the appellants submits that the Tribunal has erred in assessing the income of the deceased at only Rs. 3,000/- p.m. as the deceased was an income tax assessee and had filed his returns for the assessment years 2004-05, 2005-06 and 2006-07 and the latest returns filed establishes that he had declared his income from business/profession at Rs. 55,970/- p.a. Therefore, the Tribunal ought to have accepted the same and awarded reasonable compensation. Further, the Tribunal has also erred in not awarding reasonable compensation towards conventional heads and therefore, it requires to be modified.

As against this, the learned counsel for the insurer sought to substantiate the impugned judgment and award of the Tribunal and submitted that it is just and reasonable and therefore, does not call for any enhancement.

After going through the grounds urged by the counsel appearing for the appellants and hearing the learned Counsel appearing for Insurance Company and after careful perusal of the judgment and award, the only point that arises for our consideration is,

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

The occurrence of the accident and death of the deceased are not disputed. The age and occupation of the deceased and the fact that the appellants and the mother of the deceased are dependent on him is also not disputed. However, the income of the deceased as assessed by the Tribunal at Rs. 3,000/- p.m. is not reasonable as the learned counsel for the appellants has produced returns filed by the deceased for the assessment years 2004-05, 2005-06 and 2006-07 along with I.A. 1/2015 and on perusal of the latest returns filed, it establishes that he has declared his income from business/profession at Rs. 55,970/- per annum. We accept the same and re-assess the monthly income at Rs. 5,000/- p.m. to meet the ends of justice. Further as the claimants are three in number, one-third of Rs. 5,000/- i.e. Rs. 1,666/- has to be deducted towards the personal expenses of the deceased from Rs. 5000/-; Accordingly after deducting the same, the net contribution to the family will be Rs. 3,334/- and as the deceased was aged 31 years as on the date of accident, the appropriate multiplier applicable would be ''16''. Accordingly, we determine the loss of dependency at Rs. 6,40,128/- (Rs. 3334/- x 12 x 16).

As rightly pointed out by the learned counsel for the appellants, compensation awarded towards conventional heads is also on the lower side. The 1st appellant being the wife has lost her life partner, 2nd appellant being the daughter has lost the love and affection, inspiration and guidance of her father and the third respondent/mother has lost security in life and also suffered lot of mental pain and agony. Taking these relevant factors into consideration, we award a sum of Rs. 50,000/- towards loss of consortium, Rs. 30,000/- towards loss of love and affection and Rs. 25,000/- towards loss of estate and Rs. 25,000/- towards transportation of dead body and funeral expenses.

In all, the appellants and third respondent are entitled to compensation of Rs. 7,70,128/- as against Rs. 4,14,000/- awarded by the Tribunal, thereby the compensation is enhanced by Rs. 3,56,128/- with interest at 6% p.a. from the date of petition till realization.

Accordingly, we pass the following

"i) The appeal filed by the appellants is allowed in part.

ii) The judgment and award dated 14.6.2010 passed by the Tribunal in MVC No. 846/2009 is hereby modified by awarding total compensation of Rs. 7,70,128/- as against Rs. 3,56,128/-. The enhanced compensation of Rs. 3,56,128/- shall carry interest @ 6% p.a. from the date of petition till the date of realisation. However, the appellants are not entitled to interest for the delayed period of 1025 days in filing the appeal.

iii) The 2nd respondent-Insurance Company is directed to deposit the enhanced compensation with interest within three weeks from the date of receipt of copy of this judgment and award."

Out of the enhanced compensation of Rs. 3,56,128/-, a sum of Rs. 1,00,000/- with proportionate interest shall be kept in Fixed deposit in any Nationalised or Scheduled Bank in the name of first appellant/wife for a period of 10 years renewable by another 10 years with permission to withdraw the accrued interest periodically.

Further, a sum of Rs. 1,00,000/- with proportionate interest shall be kept in Fixed deposit in any Nationalised or Scheduled Bank in the name of second appellant/daughter till she attains the age of 30 with liberty to the natural guardian/mother-first appellant to withdraw the interest periodically for the welfare of the appellant till she attains the age of 21 years. From 22 to 30 years the second appellant is entitled to withdraw the periodical interest.

A sum of Rs. 50,000/- with proportionate interest shall be kept in Fixed deposit in any Nationalised or Scheduled Bank in the name of third respondent/mother of deceased for a period of 5 years renewable by another 5 years with permission to withdraw the accrued interest periodically.

The remaining compensation of Rs. 1,06,128/- with proportionate interest shall be released in favour of appellant No. 1 and third respondent, in equal proportion, immediately on deposit of the amount by the 2nd respondent-Insurance Company.

Office to draw award, accordingly.