V.N. Nagaraju and Others vs Shivappa Devaru and Others

N.K. Patil, J.—Though this appeal is posted for Admission, with the consent of the learned Counsel appearing for both the parties, the same is taken up for final disposal.

This appeal is by the claimants directed against the impugned judgment and award dated 10th July 2014 passed in M.V.C. No. 61/2012 on the file of the Senior Civil Judge and J.M.F.C, and M.A.C.T., Nanjangud (hereinafter referred to as ''Tribunal'' for short). The Tribunal by its impugned Judgment and Award, awarded a sum of Rs. 6,72,000/- with interest at the rate of 6% p.a. from the date of petition till the date of realization on account of the death of the deceased Late Sri. N. Shadakshan @ Sharath Kumar in the road traffic accident. The claimants have filed this appeal on the ground that the quantum of compensation and the rate of interest awarded by the Tribunal is inadequate and requires enhancement, by modifying the impugned Judgment and Award passed by the Tribunal.

The brief facts of the case on hand are that, the appellant Nos. 1 and 2 are the parents and appellant No. 3 is the sister of deceased. They have filed a claim petition under Section 166 of the Motor Vehicles Act, claiming compensation of Rs. 72,10,000/- against the respondents on account of untimely death of the deceased in the road traffic accident that occurred on 6.6.2012 at about 9.45 p.m. near Mallanamoole on Mysore - Nanjangud Road on account of rash and negligent driving of the Swaraj Mazda bearing Regn. No. KA-55/283 by its driver which dashed against the Bajaj Discover motor cycle of the deceased. Due to the impact, the deceased sustained fatal injuries and succumbed to the same on the way to Hospital.

It is the further case of the appellants that, the deceased was aged about 25 years, a businessman running Hotel and earning more than Rs. 25,000/- per month and the only earning member of the family and hale and healthy prior to the accident. Whatever the amount he earned out of his profession, he used to spend the same to the welfare of the family. Due to untimely death of the deceased, the parents have suffered mental pain and agony, sister has lost love and affection, inspiration and guidance. The social and economic condition of the family is very badly affected as he was the only bread earning member in the family. Taking all these aspects into consideration, they filed claim petition under Section 166 of the M.V. Act against the respondents before the Tribunal.

The said matter had come up for consideration before the Tribunal. The Tribunal in turn after due appreciation of the oral and documentary evidence has allowed the same in part by awarding a sum of Rs. 6,72,000/- with interest at 6% p.a. from the date of petition till realization and directed the 3rd respondent - Insurer to indemnify the award amount. Being dissatisfied with the quantum of compensation awarded by the Tribunal, the appellants herein have presented this appeal seeking enhancement of compensation.

It is the submission of the learned Counsel appearing for the appellants Smt. B.N. Manjula at the outset that, the Tribunal has erred in not awarding reasonable compensation towards loss of dependency and what is awarded by the Tribunal is inadequate. To substantiate her submission, she vehemently contended that the deceased was aged about 25 years, hale and healthy prior to the accident and an entrepreneur running a Hotel and only earning member of the family and whatever income he earned from his profession, he used to spend the same to the welfare of the family. On account of untimely death of the deceased, parents have suffered mental pain and agony and sister has lost love and affection, inspiration and guidance. The accident occurred on 06.06.2012 and therefore, she contended that the income of the deceased may be re-assessed and 50% may be deducted towards personal expenses of the deceased and by considering the age of the deceased by taking appropriate multiplier T8'' reasonable compensation towards loss of dependency be awarded. Further, she submitted that the Tribunal also erred in not awarding adequate compensation towards conventional heads. In the light of the judgments of Apex Court and this Court in host of judgments, the rate of interest may be awarded at 9% to 10% p.a. from the date of petition till realization, by modifying the impugned Judgment and Award passed by the Tribunal.

Per contra, the learned Counsel appearing for the 3d respondent - insurer Sri. S. Srihaila, inter-alia contended and sought to substantiate stating that the impugned Judgment and award passed by the Tribunal is after due consideration of oral and documentary evidence available on record and taking into consideration the age, avocation and year of accident, is justified in taking the income of the deceased and awarding reasonable compensation towards loss of dependency and conventional heads. Therefore, interference by this Court is not called for.

After careful consideration of the submission of the learned Counsel appearing for both the parties and after perusal of the impugned judgment and award passed by the Tribunal, the only point that arises for consideration is:

"Whether the quantum of 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 also not in dispute that the appellants are none other than parents and sister of the deceased and parents have suffered mental pain and agony and sister has lost love and affection, inspiration and guidance. It is also not in dispute that the deceased was aged about 25 years, running Hotel business under the name and style of "Hotel Guruprasad" earning a sum of Rs. 25,000/- per month. But the appellants have not produced any credible documents before the Tribunal nor before this Court to establish that the deceased was earning a sum of Rs. 25,000/- per month.

After, careful consideration of the oral and documentary evidence and having regard to the age, avocation of the deceased and year of accident being 06.06.2012, we can safely re-assess the income of the deceased at Rs. 8,000/- per month to meet the ends of justice. The deceased was Bachelor and if we deduct 50% towards his personal expenses i.e. Rs. 4,000/- per month, the remaining net income towards the contribution by the deceased to the family works out to Rs. 4,000/- per month. The claimants are none other than parents and sister of the deceased. As rightly pointed out by the learned Counsel appearing for the appellants, in the light of the Judgment of Apex Court in the case of Munna Lal Jain and another v. Vipin Kumar Sharma and others (AIR 2015 SCW 3105) the age of deceased is taken into consideration. Accordingly, for the age of the deceased, the multiplier applicable is ''18''. Accordingly, we re-determine the compensation towards loss of dependency at Rs. 8,64,000/- (Rs. 4,000/- x 12 x 18) and accordingly, awarded.

Having regard to the facts and circumstances of the case and also in the light of the judgments of Apex Court and this Court in host of judgments, we deem fit to award Rs. 75,000/- towards loss of love and affection at the rate of Rs. 25,000/- to each appellant, Rs. 25,000/- towards loss of estate and Rs. 25,000/- towards transportation and funeral expenses. In all, the appellants/claimants are entitled to a total compensation of Rs. 9,89,000/- as against Rs. 6,72,000/- awarded by the Tribunal. There would be enhancement of Rs. 3,17,000/-. In the light of hosts of judgments of Apex Court and this Court, we award interest at the rate of 9% p.a. on the enhanced compensation from the date of petition till realization.

Having regard to the facts and circumstances of the case referred above, the instant appeal filed by the appellants is allowed in part. The impugned Judgment and Award passed by the Tribunal dated 10th July 2014 passed in M.V.C. No. 61/2012 on the file of the Senior Civil Judge and J.M.F.C, and M.A.C.T., Nanjangud is hereby modified awarding Rs. 3,17,000/- with interest at 9% p.a. from the date of petition till realization in addition to the compensation awarded by the Tribunal.

The 3rd respondent - Insurer herein is directed to deposit the enhanced compensation amount with interest at 9% p.a. from the date of petition till realization, within a period of three weeks from the date of receipt of copy of this judgment and award.

Out of the enhanced compensation of Rs. 3,17,000/-, Rs. 1,00,000/- each with proportionate interest shall be invested in Fixed Deposit in the names of the appellant Nos. 1 and 2 -parents of the deceased in any Nationalized or Scheduled or Grameena Bank, for a period of 10 years and renewable for 5 years and they are entitled to withdraw the periodical interest accrued on it.

A sum of Rs. 1,17,000/- with proportionate interest shall be released in favour of the appellant Nos. 1 to 3, in equal proportion, immediately on deposit by the 3rd respondent -Insurer.

Draw the award, accordingly.