Smt. Manjula vs Sri. S.M. Subramanian and Others

N.K. Patil, J.—This appeal by the appellants- claimants is directed against the impugned judgment and award dated 05/04/2011 passed in MVC No. 692/2009, by the II Additional Senior Civil Judge & VI Additional Motor Accident Claims Tribunal, Davangere, (hereinafter referred to as ''Tribunal'' for short), for enhancement of compensation. The Tribunal by its judgment and award has awarded a sum of Rs. 12,84,232/- under different heads with interest at 6% per annum from the date of petition till the date of realization, as against the claim of the appellants for a sum of Rs. 80,00,000/-, fastening the liability on R1 and 2, on account of the death of the deceased Sri. Chandrashekar Chilukuri Hedgibal, in the road traffic accident.

In brief, the facts of the case are:

The appellant is the wife of the deceased. She along with parents and sister of the deceased had 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 19.9.2008 at about 8.30 a.m. deceased along with his friends was returning back to Raichur in a Tempo trax bearing Reg. No. KA. 36. M. 3882 and when it came near Yelladgi Cross on Athani-Bijapura road, the driver of the bus bearing Reg. No. KA. 23.9155 came in a rash and negligent manner with high speed and dashed against the tempo trax from opposite side. Due to which, deceased sustained grievous injuries. Immediately, he was taken to Wanless GMC Hospital, Miraj, where he was declared as dead.

It is the further case of the appellant that, deceased was aged about 27 years, hale and healthy prior to the accident, working as Executive Sales at Raichur District in Finolax Industries Ltd., Pune Company and drawing the salary of Rs. 20,000/- per month and looking after the welfare of the family. Due to his untimely death they suffered financially, as they have lost their earning member 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. 12,84,232/- under different heads with interest at 6% p.a., from the date of petition till the date of realization against R1 and 2.

Not being satisfied with the quantum of compensation awarded by the Tribunal, the appellant, wife of the deceased has presented this appeal, for enhancement of compensation.

We have heard the learned counsel appearing for the appellants and learned counsel for 2nd respondent-Insurer.

The submission of the learned counsel for the appellant is that, the Tribunal has erred in not awarding reasonable compensation towards loss of dependency and towards conventional heads. To substantiate the said submission, he submitted that, the Tribunal is justified in taking the net income of the deceased at Rs. 9,703/- per month after deducting special allowances. However, it has erred in not adding another 50% towards future prospects in the light of the decision of the Apex Court in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , since deceased was working as a Sales Executive in Finolex Industries Limited. Therefore, he submitted that, the judgment and award is liable to be modified by awarding reasonable compensation towards loss of dependency and conventional heads.

As against this, learned counsel appearing for Insurer, inter alia, submitted that, the ratio of the law laid down by the Apex Court in Sarla Verma''s case as submitted by the learned counsel for the appellant may not be applicable to the present case, since the deceased was working in a Private Company and it is not a stable job. Therefore, he submitted that the impugned judgment and award passed by the Tribunal is just and reasonable 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 is not in dispute. It is also not in dispute that, deceased was aged between 26 to 30 years, working as a Sales Executive in Finolex Industries Limited, he was the only earning member of the family and the dependants are his wife, parents and sister and on account of his untimely death, they suffered financially, apart from mental shock and agony. Further, it emerges that, the Tribunal, after assigning valid reasons in para-11 of its judgment, has justified in assessing the monthly income of the deceased at Rs. 9,703/- and we accept the same. But it has erred in not adding another 50% towards future prospects in the light of the judgment of the Apex Court (cited supra) on the ground that, deceased was working in a private limited company. Since the deceased was working in a Private Limited Company as Sales Executive, which is a stable job, the claimants are entitled for another 50% towards future prospects since deceased was aged between 26 to 30 years, as rightly submitted by the learned counsel for the appellant. If a sum of Rs. 4,851/-, 50% of Rs. 9,703/- is added to Rs. 9,703/-, the total income of the deceased comes to Rs. 14,544/- per month and per annum it works out to Rs. 1,74,648/-. Out of which, if a sum of Rs. 2,400/- is deducted towards Professional Tax, his net annual income comes to Rs. 1,72,248/-. Out of which, if 1/3rd ( Rs. 57,416/-) is deducted towards the personal and living expenses of the deceased since dependants are three in numbers viz., wife and parents, his remaining annual income comes to Rs. 1,14,832/-. Accepting the multiplier of ''17'' adopted by the Tribunal since deceased was aged between 26 to 30 years, as just and proper, we re-determine the loss of dependency at Rs. 19,52,144/- ( Rs. 1,14,832/- x 17) instead of Rs. 12,39,232/- awarded by the Tribunal and accordingly, it is awarded.

However, a sum of Rs. 45,000/- awarded by the Tribunal towards conventional heads, such as, towards loss of consortium, towards loss of estate, towards loss of love and affection and towards transportation and funeral expenses is just and reasonable and therefore, it does not call for interference. In all, the appellants are entitled for the total compensation of Rs. 19,97,144/- as against Rs. 12,84,232/- awarded by the Tribunal. There would be an enhancement of compensation of Rs. 7,12,912/- with interest at 6% p.a., from the date of petition till its realization. For the foregoing reasons, the appeal filed by the appellant is allowed in part. The impugned judgment and award passed by the Tribunal in MVC No. 692/2009 is hereby modified, awarding a sum of Rs. 7,12,912/- with interest at 6% 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. 7,12,912/- with interest at 6% 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. 7,12,912/-, a sum of Rs. 3,00,000/- with proportionate interest shall be invested in the Fixed Deposit in the name of appellant in any Nationalized or Scheduled Bank, for a period of ten years, renewable by another ten years, with liberty reserved to her 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 4th respondent, mother of the deceased, in any Nationalized or Scheduled Bank, for a period of ten years and renewable by another five 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 3rd respondent, father of the deceased, in any Nationalized or Scheduled Bank, for a period of five years and renewable by another five years, with liberty reserved to him to withdraw the interest accrued on it, periodically.

The remaining sum of Rs. 1,12,912/- with proportionate interest shall be released in favour of the appellant, respondent Nos. 3 and 4, in equal proportion immediately.

Draw the award, accordingly.