High CourtsDivision Bench(2010) 04 KAR CK 0243

Sunitha R. Rao and Others vs National Insurance Co. Ltd. and Mohamed Yaseen

Karnataka High Court · Decided on 8 April 2010

HON’BLE JUDGES
N.K. Patil, J · H.S. Kempanna, J
CASE NUMBER
Miscellaneous First Appeal No. 9521 of 2005

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Judgment

16 paragraphs · 1,190 words

N.K. Patil, J.—Admit.

2.

This is a claimants'' appeal for enhancement of compensation directed against the impugned judgment and award dated 18th of April 2005 passed in M V C No. 2782/2002 on the file of IV Addl. Judge, Member, MACT, Bangalore, SCCH No. 6, (hereinafter referred to as ''Tribunal'' for short).

3.

By its judgment and award, the Tribunal has awarded a sum of Rs. 5,55,346/- with 6% interest per annum as against the claim of the appellants for Rs. 20,00,000/-, on account of the death of the deceased-Ramachandra Rao, in the road traffic accident.

4.

In brief, the facts of the case are:

Appellant No. 1 is the wife, appellant Nos. 2 and 3 are the children and appellant No. 4 is the father of the deceased. They filed a claim petition u/s 166 of the Motor Vehicles Act, claiming compensation of Rs. 20,00,000/- on account of death of Ramachandra Rao in the road traffic accident that occurred on 25.4.2002 at about 12 a.m. The deceased was riding a scooter on Nandi Durg road. Bangalore. At that time the driver of an Ambassador Car bearing registration No. MEU 163 came in a high speed in a rash and negligent manner and dashed against the deceased. Due to the impact, he fell down and sustained grievous injuries and was immediately shifted to Hosmat hospital for treatment. He survived for a period of 5 days. In spite of best medication, the deceased could not be saved and he succumbed to the injuries on 30.4.2002. Further, the case of the appellants is that the deceased was aged about 42 years and was a Proprietor of a Provision Store cum Book Stall. He had filed his income tax returns with income @ Rs. 14,000/- per month. It is their further case that on account of the death of the deceased, they have lost the sole bread winner of the family and are in great financial distress and their hopes and security are jeopardized. Therefore, they filed the claim petition against the respondents before the Tribunal. The Tribunal, in turn, after careful consideration of the relevant material available on file and after appreciation of the oral and documentary evidence, allowed the claim petition in part awarding a sum of Rs. 5,55,346/- with interest @ 6% per annum from the date of petition till the date of payment. Being dissatisfied with the quantum of compensation awarded by the Tribunal, the appellants are in appeal before this Court, seeking enhancement of compensation.

5.

We have heard learned Counsel for the appellants and learned Counsel for respondent No. 1/Insurance Company for considerable length of time.

6.

After careful evaluation of the original records and after perusal of the impugned judgment and award passed by the Tribunal, the appellants'' case is that the deceased was aged about 42 years and running a Provision Store cum Book Stall, earning Rs. 14,000/- per month, which appears to be little exaggeration. However, after microscopic evaluation of the original records, it emerges that the deceased has filed Income tax returns for the assessment years 2000-01 with gross income of Rs. 96,183/-, for the year 2001-02 with gross income of Rs. 1,31,085/- and for the year 2002-03 with gross income of Rs. 1,47,227/-. The average gross annual income of these three years comes to Rs. 1,24,832/- per annum. The income tax paid by the deceased for the aforesaid years is respectively, Rs. 3,744/-, Rs. 2,939/- & Rs. 12,031/-. The average of the same comes to Rs. 6,238/-. After deducting Income tax of Rs. 6,238/- from the gross income of Rs. 1,24,832/- per annum, the net annual income comes to Rs. 1,18,594/-. If 1/4th of the same is deducted towards personal expenses of the deceased, the net income comes to Rs. 88,946/- per annum. The deceased was aged about 42 years as on the date of accident and hence the appropriate multiplier applicable in this case is 14, in the light of the judgment of the Apex Court in Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, . Accordingly, we accept and redetermine compensation payable towards loss of dependency at Rs. 12,45,244/- (Rs. 88,946/-x14) as against Rs. 5,35,346/- awarded by the Tribunal.

7.

Further, the Tribunal also erred in awarding only Rs. 20,000/- towards conventional heads and the same is on the lower side. Therefore, having regard to the facts and circumstances of the case, we award a sum of Rs. 10,000/- towards loss of consortium, Rs. 10,000/- towards loss of estate, Rs. 10,000/- towards love and affection, Rs. 10,000/- towards funeral expenses. The Tribunal has committed a grave error in not considering the medical bills submitted by the appellants at Ex.P 24 series. After evaluation of the records and the medical bills submitted, it appears the amount mentioned therein is little exaggeration. However, having regard to the fact that the deceased survived for 5 days after the accident and in spite of best medication, he could not be saved, we deem it fit to award lumpsum compensation towards medical expenses in a sum of Rs. 30,000/-, to meet the ends of justice.

8.

In the light of the facts and circumstances of the case, as stated above, the Appeal filed by the appellants is allowed in part. The impugned judgment and award dated 18th of April 2005 passed in M V C No. 2782/2002 on the file of Motor Accident Claims Tribunal, Bangalore, is hereby modified and the break-up is as under:

(1) Towards loss of Dependency Rs. 12,45,244-00 (2) Towards loss of consortium Rs. 10,000-00 (3) Towards loss of estate Rs. 10,000-00 (4) Towards loss of love and affection Rs. 10,000-00 (5) Towards Medical expenses Rs. 30,000-00 (6) Towards Transportation of dead body Rs. 10,000-00 and funeral expenses ---------------- Rs. 13,15,244-00 ----------------

In all, the appellants are entitled for total compensation Rs. 13,15,244/-, as against Rs. 5,55,346/- awarded by the Tribunal with interest at 6% per annum from the date of Petition till the date of realisation.

The respondent No. No. 1/Insurance Company is directed to deposit the enhanced compensation of Rs. 7,59,898/- with interest at 6% per annum from the date of Petition till the date of realisation, within a period of four weeks from the date of receipt of copy of the judgment and award.

Out of the enhanced compensation of Rs. 7,59,898/-, Rs. 3,00,000/- shall be kept in Fixed Deposit, in the name of the appellant No. 1, Rs. 1,00,000/- each with proportionate interest in the names of appellant Nos. 2 and 3 in any Nationalised or Scheduled Bank, for a period of five years, and renewable by another five years with liberty reserved to them to withdraw the periodical interest.

A sum Rs. 1,00,000/- shall be kept in Fixed Deposit in the name of 4th appellant in any Nationalized or Scheduled Bank for a period of five years with liberty reserved to him to withdraw the interest periodically.

The remaining Rs. 1,59,898/- with proportionate interest, shall be released in equal proportion favour of all the appellants, immediately on deposit of the said sum by the respondent No. 1/Insurance Company.

Office to draw award, accordingly.