Master Mithun L. vs The United India Insurance Co. Ltd.

N.K. Patil, J.—This appeal by the appellants-claimants is directed against the impugned judgment and award dated 06/06/2013 passed in MVC No. 5883/2011, by the VI Additional Judge, Court of Small Causes and Member, Motor Accident Claims Tribunal, Bangalore (SCCH-2), (hereinafter referred to as '' Tribunal'' for short), for enhancement of compensation., on the ground that, a sum of Rs. 8,66,000/- awarded by the Tribunal under different heads with interest at 6% per annum from the date of petition till the date of realization, as against the claim Rs. 25,00,000/-, on account of the death of the deceased Sri. R.N. Lakshmikumar, in the road traffic accident is inadequate.

In brief, the facts of the case are:

The appellants are the minor son, wife and mother of the deceased. They filed a claim petition before the Tribunal u/s 166 of M.V. Act, claiming compensation against the respondents, on account of the death of the deceased in the road traffic accident, contending that, on 15.9.2011 at about 8.45 p.m. deceased was riding his TVS Apache bike bearing Reg. No. KA.04.HH.1357 along with his friend Sri. Ananda as the pillion rider from Gowribidanur to Bangalore. When he came near Rajanakunte near Suryodhaya school, at that time, the driver of the Lorry bearing Reg. No. KA.05.AC.7772 came with high speed in a rash and negligent manner and suddenly applied the brake without giving any signal and on account of which, the bike hit the back right side of the lorry. As a result, the rider of the bike sustained grievous head injuries and succumbed to the same at the spot and pillion rider also sustained grievous injuries.

It is the further case of the appellants that, deceased was aged about 28 years, hale and healthy prior to the accident, working as a Mechanic in I.G. Work shop, Laggere, Bangalore and earning Rs. 18,000/- per month and looking after the welfare of the family by contributing his entire earnings to the family. Due to his untimely death, the appellants who were depending on the deceased have suffered financial loss as they have lost their bread earner, apart from mental shock and agony.

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 file, has allowed the claim petition in part and awarded the compensation of Rs. 8,66,000/- under different heads with interest at 6% p.a., from the date of petition till the date of realization.

Being dis-satisfied with the quantum of compensation awarded by the Tribunal, the appellants have presented this appeal, for enhancement of compensation.

We have heard the learned counsel appearing for the appellants. Respondents are served and unrepresented.

The submission of the learned counsel appearing for the appellants, at the outset is that, the compensation awarded by the Tribunal towards loss of dependency and conventional heads is on the lower side and is liable to be modified. To substantiate the said submission, he submitted that, deceased was aged about 28 years, B.E. Graduate and working in I.G. Workshop, Laggere, Bangalore and drawing the salary of Rs. 7,550/- as per Ex. P7 and P10 and appellants are entitled for another 50% towards future prospects since he has a stable job and after deducting 1/3rd towards his personal and living expenses and applying multiplier of ''17'' since he was aged about 28 years, the loss of dependency may be re-determined reasonably. Further, he submitted that the compensation awarded by the Tribunal towards conventional heads is on the lower side and is liable to be modified as the appellants are his minor son, wife and mother and on account of his untimely death, they suffered mental shock and agony apart from financial distress. Further he submits that, the accident is of the year 2011 and the rate of interest awarded at 6% p.a. is on the lower side and it requires to be enhanced to atleast to 9% p.a. Therefore, he submitted that the impugned judgment and award is liable to be modified by awarding reasonable compensation towards loss of dependency and towards convention heads.

After hearing the learned counsel appearing for the appellants and after careful perusal of the original records available on file at threadbare, including the impugned judgment and award passed by the Tribunal, the only point that arises for our consideration is:

Whether the 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. Further, it is not in dispute that deceased was aged about 28 years, hale and healthy prior to the accident, Mechanic by profession and working in I.G. Workshop, Laggere, Bangalore, and drawing the salary of Rs. 7,550/- per month as per Exs. P8 and P10, the only earning member in the family and the dependants are his minor son, wife and mother. On account of his untimely death, appellant No. 2 has lost her husband and appellant No. 1 is deprived of the love and affection, security and guidance of his father and mother has lost her son who was her future hopes and security. Having regard to the age and occupation of the deceased and the year of the accident and accepting Exs. P8 and P10, we re-assess his income at Rs. 7,550/- per month instead of Rs. 6,000/- per month as assessed by the Tribunal. As the deceased was aged about 28 years at the time of death and as he had a stable job, appellants are entitled for future income of the deceased at 50% of the net income drawn by the deceased as on the date of his death, in view of the law laid down by the Apex Court in Sarla Verma''s case reported in 2009 ACJ 1298, 50% of Rs. 7,550/- comes to Rs. 3,775/- and if the same is added to Rs. 7,550/-, his total income comes to Rs. 11,325/- per month. Out of which, if 1/3rd ( Rs. 3,775/-) is deducted towards the personal and living expenses of the deceased, since there are three dependants, his net income comes to Rs. 7,550/- per month. Accepting the multiplier of ''17'' adopted by the Tribunal as just and proper since deceased was aged about 28 years we re-determine the loss of dependency at Rs. 15,40,200/- ( Rs. 7,550/- x 12 x 17) instead of Rs. 8,16,000/- as awarded by the Tribunal and accordingly, it is awarded.

Having regard to the facts and circumstances of the case as stated above and following the judgment of this Court dated 25th June 2014 passed in M.F.A. No. 7737/2013 (Smt. Padmavathi and others Vs. Sri. K. Ravichandran and another (paragraph 20), we award Rs. 1,00,000/- towards loss of consortium, Rs. 30,000/- towards loss of love and affection at the rate of Rs. 10,000/- each to appellant Nos. 1 to 3, Rs. 25,000/- towards loss of estate and Rs. 25,000/- towards transportation of dead body and funeral expenses.

Regarding rate of interest is concerned, as rightly pointed out by the learned counsel appearing for the appellants, 6% interest per annum awarded by the Tribunal is on the lower side, since the accident is of the year 2011. In the light of the judgment of Apex Court and this Court we award the rate of interest at 9% per annum on the enhanced compensation. In all, the appellants are entitled to a total compensation of Rs. 17,20,200/- instead of Rs. 8,66,000/- awarded by the Tribunal. There would be an enhancement of Rs. 8,54,200/- with interest at 9% p.a., from the date of petition till its realization.

For the foregoing reasons, the appeal filed by the appellants is allowed in part. The impugned judgment and award dated 06/06/2013 passed in MVC No. 5883/2011, by the VI Additional Judge, Court of Small Causes and Member, Motor Accident Claims Tribunal, Bangalore (SCCH-2), is hereby modified, awarding a sum of Rs. 8,54,200/- with interest at 9% p.a., from the date of petition till its realization, in addition to the compensation awarded by the Tribunal.

First respondent-Insurer is directed to deposit the enhanced compensation of Rs. 8,54,200/- with interest at 9% p.a., from the dare of petition till the date of realization, within a period of three weeks from the date of receipt of a copy of this judgment and award.

Immediately on such deposit by the first respondent-Insurer, out of the enhanced compensation of Rs. 8,54,200/-, a sum of ''3,00,000/- with proportionate interest shall be invested in the Fixed Deposit, in the name of the appellant No. 2, in any Nationalized or Scheduled or Grameena Bank, for a period of 20 years and renewable by another 10 years, with liberty reserved to the appellant No. 2 to withdraw the interest accrued on it, periodically.

A sum of Rs. 3,00,000/- with proportionate interest shall be invested in the Fixed Deposit, in the name of appellant No. 1, in any Nationalized or Scheduled or Grameena bank, till he attains 30 years, with liberty reserved to the appellant No. 2 to withdraw the interest accrued on it, periodically, for the welfare of appellant No. 1 till he attains 21 years and thereafter, from 22 years to 30 years, he is at liberty to withdraw the interest accrued on it, periodically.

A sum of Rs. 2,00,000/- with proportionate interest shall be invested in the Fixed Deposit, in the name of appellant No. 3, mother of the deceased, in any Nationalized or Scheduled or Grameena Bank, for a period of 10 years and renewable by another 5 years, with liberty reserved to her to withdraw the interest accrued on it, periodically.

The remaining sum of Rs. 54,200/- with proportionate interest shall be released in favour of appellant Nos. 2 and 3 in equal proportion immediately.

Draw the award, accordingly.