Rekha and Others vs N.B. Shivakumar and Others

N.K. Patil, J.—Though this appeal is posted for further orders, it is taken up for final disposal with the consent of the learned counsel appearing for both the parties.

This is claimants'' appeal filed against the impugned judgment and award dated 19th July 2013 passed in MVC No. 304/2012 on the file of the Itinerary Senior Civil Judge and Additional MACT at Hosadurga (hereinafter referred to as ''Tribunal'' for short) for enhancement of compensation.

The Tribunal by its judgment and award has awarded a sum of Rs. 12,69,632/- 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. 34,00,000/-, on account of the death of the deceased late Sri Rajappa @ Raju, in the road traffic accident.

In brief, the facts of the case are:

"The 1st appellant is the wife, 2nd, 3rd and 4th appellants are children and 5th appellant is mother of the deceased and they have filed a claim petition before the Tribunal under Section 166 of M.V. Act, claiming compensation of Rs. 34,00,000/- on account of the death of the deceased in the road traffic accident, contending that, on 13.08.2012 at about 1.30 p.m while deceased was going on road as pedestrian infront of Sapthagiri Hardware Shop, Hosadurga Town, the driver of Jayadeva Bus bearing Reg. No. KA-16/8736 came in rash and negligent manner and dashed against deceased and thereby accident took place. Due to accident, deceased sustained grievous injuries and fracture all over the body and while on way to C.G. Hospital, Davanagere he succumbed to the injuries sustained in the road traffic accident. Due to the death of the deceased, the appellants have suffered mental pain and agony and they have spent huge amount towards transportation of the dead body, funeral and obsequies of the deceased."

It is the further case of the appellants that, the deceased was aged about 45 years and hale and healthy and working as labour, earning Rs. 12,970/- p.m and looking after the welfare of the family and due to his untimely death, they suffered socially and economically. 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 record, has allowed the claim petition in part and awarded the compensation of Rs. 12,69,632/- under different heads 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.

The submission of Sri. B.M. Siddappa, learned counsel appearing for the appellants at the outset is that, the Tribunal has erred in not accepting Ex. P7 salary certificate for Rs. 12,970/- p.m and in the light of the decision in Sarla Verma''s case, 30% towards future prospects is to be added to the income of the deceased and out of which 1/4th may be deducted towards personal expenses of the deceased and apply ''14'' multiplier. Due to his un-timely death, claimants have lost their only breadwinner and facing great mental shock and monetary loss. The Tribunal also erred in not awarding reasonable compensation towards conventional heads and also submitted that the rate of interest awarded at 6% per annum is also on the lower side since the accident is of the year 2012 and the same may be enhanced to 9% to 10% per annum. Therefore, the impugned judgment and award passed by the Tribunal is liable to 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. It is passed after considering the oral and documentary evidence and interference by this Court is not called for. However, he fairly submitted that the compensation awarded towards other conventional heads may be modified 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 45 years at the time of accident, hale and healthy and looking after the welfare of the claimants and was working as Labour, earning Rs. 12,970/- p.m as gross salary as per Ex. P7. We accept the same. The claimants are none other than the wife, children and mother of the deceased, who have lost their future security due to his untimely death. If 30% is added towards future prospects of the deceased, it comes to Rs. 16,861/-. Out of which Rs. 150/- is deducted towards Professional Tax it come Rs. 16,711/-. Out of it, if 1/4th is deducted towards the personal expenses of the deceased, it comes to Rs. 12,534/- p.m. in the light of the decision in Sarla Verma''s case, the appropriate multiplier applicable is ''14'' taking the age of the deceased as 45 years. Accordingly, the claimants are entitled towards loss of dependency at Rs. 21,05,712/- (Rs. 12,534/- x 12 x 14).

However, considering the facts and circumstances of the case that, the wife has lost her life partner at an young age and the children have lost the love and affection, inspiration and guidance in life and mother has lost future security, we deem it fit to award Rs. 1,00,000/- towards loss of consortium, Rs. 25,000/- towards loss of estate, Rs. 1,25,000/- towards loss of love and affection at the rate of Rs. 25,000/- to each claimant and Rs. 25,000/- towards funeral and transportation expenses. In all, the claimants are entitled for Rs. 23,80,712/- as against Rs. 12,69,632/- 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 and 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 19th July 2013 in MVC No. 304/2012 is hereby modified. The total compensation payable comes to Rs. 23,80,712/- as against Rs. 12,69,632/- awarded by the Tribunal. There will be an enhancement of Rs. 11,11,080/- with 9% interest per annum, excluding interest for the delayed period of 228 days in filing the appeal.

The respondent No. 2 -Insurer is directed to deposit the enhanced compensation with interest at 9% p.a from the date of petition till the date of realization, excluding interest for the delayed period of 228 days in filing the appeal, within three weeks from the date of receipt of a copy of this judgment and award.

Out of the enhanced compensation, Rs. 5,00,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 1st appellant/wife for a period of fifteen years and renewable for another fifteen years, with liberty to her to withdraw the interest accrued on it periodically.

Rs. 1,00,000/- each with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 2nd, 3rd and 4th appellants for a period of five years and renewable for another five years, with liberty to them to withdraw the interest accrued on it periodically.

Rs. 1,00,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled Bank, in the name of the 5th appellant/mother of the deceased for a period of five years and renewable for another five years, with liberty to her to withdraw the interest accrued on it periodically.

The remaining Rs. 2,11,080/- with proportionate interest shall be released in favour of the 1st and 5th appellants, in equal proportion immediately, on deposit by the 2nd respondent-Insurer.

Draw the award, accordingly.