Prabhakar vs Vishal Retail Limited

B. Sreenivas Gowda, J.—By consent of learned counsel appearing for the parties, appeal is heard and disposed of finally at the stage of admission.

It is a case of death of a bachelor aged about 18 year in a road traffic accident. His parents, one younger brother and one younger sister filed a claim petition before the Senior Civil Judge and Addl. MACT, Basavakalyan (Camp at Humnabad) in MVC No. 68/2009, seeking compensation under Section 166 of Motor Vehicles Act, 1989, (hereinafter referred to as M.V. Act for short) from the owner and the insurer of the offending vehicle.

The Tribunal by the impugned judgment and award has awarded a sum of Rs. 3,85,000/- with interest at 6% p.a. from the date of petition till realisation. Aggrieved by the sum awarded by the Tribunal the claimants have preferred this appeal seeking enhancement of the same.

As there is no dispute regarding death of deceased in a road traffic accident that occurred on 05.09.2008 due to rash and negligent driving of the offending lorry bearing Reg. No. MH-04-DD-2896 by its driver and liability of the insurer of the said vehicle, the only point that arises for consideration in this appeal is:

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

After hearing the learned counsel appearing for the parties and perusing the judgment and award of the Tribunal, we are of the view that the compensation awarded by the Tribunal is not just and reasonable, it is on the lower side and therefore it is required to be enhanced.

The appellants-claimants in support of their contention that deceased by working as an instructor in a computer centre was earning Rs. 6,000/- per month, except examining the 2nd claimant-mother of the deceased as PW. 1 have not established their said contention by adducing cogent evidence. Therefore, in the absence of proof of income, considering the age of deceased as 18 years as on the date of accident, year of accident as 2008 and his avocation as daily wager and keeping in mind his future prospects his income could be easily assessed at Rs. 5,000/- per month as against Rs. 4,000/- per month assessed by the Tribunal. As deceased died as a bachelor, 50% of his income is to be deducted towards his living and personal expenses and remaining 50% has to be taken as contribution towards family. The multiplier of 15 applied by the Tribunal based on the age of his mother who was 40 years old at the time of accident is sound and proper. Therefore, loss of dependency works out to Rs. 4,50,000/- (Rs. 5,000/- x 1/2 x 12 x 15) and it is awarded as against Rs. 3,60,000/- awarded by the Tribunal.

It is to be seen that the parents-claimants 1 and 2 have lost their son at his young age and claimants 3 and 4 brother and sister have lost their brother therefore we award a sum of Rs. 50,000/- under the conventional heads such as love and affection, transportation of dead body and funeral expenses.

Thus, the claimants are entitled for the following compensation:

Since the accident has occurred in the year 2008, the interest awarded by the Tribunal at 6% p.a. is just and reasonable and there is no scope for enhancement of interest.

Thus, in all the claimants are entitled to Rs. 5,00,000/- as against Rs. 3,85,000/- awarded by the Tribunal and they are entitled to an additional compensation of Rs. 1,15,000/- with interest @ 6% per annum from the date of petition till realisation.

Accordingly, the appeal is allowed-in-part. The judgment and award of the Tribunal is modified to the extent stated herein above. The claimants are entitled to an additional compensation of Rs. 1,15,000/- with interest at 6% per annum from the date of claim petition till the date of realisation excluding interest for the period of delay of 163 days in filing the appeal.

The Insurance company is directed to deposit the enhanced compensation amount with interest @ 6% p.a. within two months from the date of receipt of a copy of this judgment.

From out of the additional compensation of Rs. 1,15,000/- a sum of Rs. 1,00,000/- with proportionate interest is ordered to be deposited in Fixed Deposit in the name of claimant No. 2- Tejemma W/o Prabhakar, in any Nationalised Bank or Grameena Bank for a period of 10 years with a right of option to withdraw the interest accrued thereon periodically and the remaining sum of Rs. 15,000/- with proportionate interest is ordered to be released in favour of all the claimants in equal proportionate.

It is further made clear that the Tribunal while releasing the remaining amount in equal proportionate in favour of claimants 1, 3 and 4 is also directed to issue FD slips in favour of the claimants, so that they can withdraw the FD amount on maturity and the Bank/the post office in which the FD will be invested is also directed to release FD on maturity without insisting for further order from the Tribunal.

Draw up the award accordingly.

No order as to costs.

Sri Sanjay M. Joshi, learned counsel who has argued on behalf of the insurance company is granted two weeks'' time to file vakalath.