Shobha and Others vs Shabu and Others

N.K. Patil, J.—Though this matter is posted today for orders, with the consent of learned counsel appearing for both the parties, the same is taken up for Final disposal.

This appeal by the appellants-claimants is directed against the impugned judgment and award dated 11/10/2013, passed in MVC No. 460/2013, by the Principal Senior Civil Judge and Member, Additional Motor Accident Claims Tribunal, Hassan, (hereinafter referred to as ''Tribunal'' for short), for enhancement of compensation, on the ground that, a sum of Rs. 8,69,000/- awarded by the Tribunal under different heads with interest at 6% per annum from the date of petition till deposit, as against the claim Rs. 30,00,000/-, on account of the death of the deceased Sri Thippeswamy, in the road traffic accident is inadequate.

In brief, the facts of the case are:

The appellants are the wife, children and mother of the deceased. They filed a claim petition before the Tribunal under Section 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 8.2.2012 at about 9.00 p.m. deceased was proceeding on a motor cycle bearing Reg. No. KA.18.S.7360 at Ajjampura near Hosadurga, at that time, the driver of the canter lorry bearing Reg. No. KA.19.C.1099 came in a rash and negligent manner and dashed against the motor cycle in which deceased was proceeding. Due to which, deceased sustained grievous injuries, he took treatment and while proceeding to his native, he died on the way. The motorcycle of the deceased was also completely damaged.

It is the further case of the appellants that, deceased was aged about 40 years, hale and healthy prior to the accident, doing tailoring work from several years and earning Rs. 25,000/- per month and he was also doing contract work and agriculture work and earning Rs. 30,000/- and looking after the welfare of the family by contributing his entire earnings to the family. Due to his untimely death, appellants 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. 8,69,000/- under different heads with interest at 6% p.a., from the date of petition till deposit.

Being dis-satisfied with the quantum of compensation and the rate of interest awarded by the Tribunal, the appellants have presented this appeal.

We have heard the learned counsel appearing for the appellants and learned counsel for Insurer.

The submission of the learned counsel appearing for the appellants, at the outset is that, the Tribunal has erred in not assessing the income of the deceased reasonably and what is assessed by the Tribunal at Rs. 6,500/- per month is on the lower side and it is liable to be enhanced atleast at Rs. 10,000/- per month, on the ground that, deceased was a Tailor by profession and doing well in his profession and entire family was depending on his income. Further, he submits that, compensation awarded towards conventional heads and the rate of interest awarded by the Tribunal is on the lower side and it is liable to be enhanced reasonably in the light of the judgment of the Apex Court and this Court. Therefore, he submitted that the impugned judgment and award is liable to be modified by enhancing reasonable compensation towards loss of dependency and towards conventional heads.

As against this, 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 and after due appreciation of the oral and documentary evidence available on file and therefore, it does not call for interference.

After hearing the learned counsel appearing for the parties and after careful perusal of the material available on record 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. It is case of the appellants that deceased was aged about 40 years, hale and healthy prior to the accident, tailor by profession and only earning member in the family, entire family was depending on his income and on account of the untimely death of the deceased, wife has lost her companion, children are deprived of the love and affection, guidance and inspiration of their father and mother has lost her son. Having regard to the age, occupation, year of the accident and the number of dependants, we re-assess his income at Rs. 7,500/- per month instead of Rs. 6,500/- per month as assessed by the Tribunal to meet the ends of justice. Out of which, if 1/4th ( Rs. 1,875/-) is deducted towards the personal and living expenses of the deceased as rightly done by the Tribunal, his net income comes to Rs. 5,625/- per month. The proper multiplier applicable is ''15'' since deceased was aged about 40 years instead of ''14'' adopted by the Tribunal. Therefore, we re-determine the loss of dependency at Rs. 10,12,500/- ( Rs. 5,625/- x 12 x 15) instead of Rs. 8,19,000/- as awarded by the Tribunal and accordingly, it is awarded.

Having regard to the facts and circumstances of the case and in the light of the law laid down by the Apex Court and this Court, we award a sum of Rs. 1,00,000/- towards loss of consortium Rs. 1,00,000/- towards loss of love and affection at the rate of Rs. 25,000/- to each of the appellant Nos. 1 to 4, Rs. 25,000/- towards loss of estate and Rs. 25,000/- towards transportation and funeral expenses.

Regarding rate of interest, 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 2013. 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 instead of 6% p.a. awarded by the Tribunal.

In all, the appellants are entitled to a total compensation of Rs. 12,62,500/- instead of Rs. 8,69,000/- awarded by the Tribunal. There would be an enhancement of Rs. 3,93,500/- 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 common judgment and award dated 11/10/2013, passed in MVC No. 460/2013, by the Principal Senior Civil Judge and Member, Additional Motor Accident Claims Tribunal, Hassan, is hereby modified, awarding a sum of Rs. 3,93,500/- with interest at 9% p.a., from the date of petition till its realization, in addition to the compensation awarded by the Tribunal.

The 2nd respondent-Insurer is directed to deposit the enhanced compensation of Rs. 3,93,500/- with interest at 9% p.a., from the date of petition till the date of realization, within a period of three weeks from the date of receipt of a copy of this judgment.

Immediately on deposit by the Insurer, out of the enhanced compensation of Rs. 3,93,500/-, a sum of Rs. 1,00,000/- with proportionate interest shall be invested in the Fixed Deposit in the name of appellant No. 1, wife of the deceased, in any Nationalized or Scheduled or Grameena Bank, for a period of 15 years, renewable by another 15 years, with liberty reserved to her to withdraw the interest accrued on it, periodically.

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

A sum of Rs. 50,000/- with proportionate interest shall be invested in the Fixed Deposit in the name of appellant No. 2, in any Nationalized or Scheduled or Grameena Bank, till he attains 30 years, with liberty reserved to him to withdraw the interest accrued on it, periodically.

A sum of Rs. 50,000/- with proportionate interest shall be invested in the Fixed Deposit in the name of appellant No. 4, mother of the deceased, in any Nationalized or Scheduled or Grameena Bank, for a period of 05 years, renewable by another 05 years, with liberty reserved to her to withdraw the interest accrued on it, periodically.

Remaining sum of Rs. 93,500/- with proportionate interest shall be released in favour of appellant Nos. 1 and 4 in equal proportion immediately.