High CourtsDivision Bench(2013) 11 KAR CK 0157

M/s. The Oriental Insurance Company Limited vs Smt. Sadhu Madivalthi and Others Smt. Sadhu Madivalthi, Raghu Madivala, Suresha Madivala and Miss. Akkayya Vs K. Rajarama Shetty and The Oriental Insurance Co. Ltd.

Karnataka High Court · Decided on 25 November 2013

HON’BLE JUDGES
N.K. Patil, J · Budihal R.B., J
CASE NUMBER
M.F.A. No. 7922 of 2009 (MV) and Miscellaneous CVL 16447 of 2010 C/W. M.F.A. No. 5212 of 2010 (MV)

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Judgment

22 paragraphs · 1,504 words

N.K. Patil, J.—These two appeals by the Insurer and by the claimants are directed against the same judgment and award dated 06/08/2009 passed in MVC No. 491/2006, by the Additional Civil Judge (Sr. Dn.) and Motor Accident Claims Tribunal, Udupi, (for short ''Tribunal''). The Tribunal by its judgment and award has awarded a sum of Rs. 4,74,000/- under different heads with interest at 6% per annum from the date of petition till realization, as against the claim of the claimants for a sum of Rs. 20/- lakhs, on account of the death the deceased Sri. Gopala Madivala, in the road traffic accident.

2.

It is the case of the Insurer that the quantum of compensation awarded by the Tribunal is disproportionate to the source of income of the deceased and therefore, it is liable to be reduced Whereas, it is the case of the claimants that the quantum of compensation awarded by the Tribunal is inadequate and it requires enhancement.

3.

In brief, the facts of the case are:

The claimant No. 1 is the mother, claimant Nos. 2 to 4 are the brothers and sister of the deceased Sri. Gopala Madivala. On account of the death of the deceased in the road traffic accident, they filed a claim petition before the Tribunal u/s 166 of M.V. Act, claiming compensation contending that, on 16.4.2006 at about 12.40 p.m. the deceased was driving his auto rickshaw bearing No. KA.20.A.7064 from Byndoor to Kollur and when he came near Vasre bridge curve, the driver of the Lorry bearing Reg. No. KA.20.3022 came with high speed in a rash and negligent manner and dashed against the auto. Due to which, the auto was pushed forward and then fell beneath the bridge. On account of which, deceased sustained grievous injuries and on the way to Byndoor Hospital, he succumbed to the injuries.

4.

It is the further case of the claimants that, deceased was aged about 30 years, hale and healthy prior to the accident and was owner- cum -driver of the auto bearing No. KA.20.A.7064 and earning a sum of Rs. 7,500/- per month and also running rice mill and earning Rs. 7,500/- per month and in all, Rs. 14,500/- per month and contributing the same to the family. Due to his untimely death, claimants have lost their bread earner and put to great hardship, apart from mental shock and agony.

5.

The said claim petition had come up for consideration before the Tribunal. The Tribunal, after appreciating the oral and documentary evidence, has allowed the claim petition in part, awarding the compensation of Rs. 4,74,000/- under different heads with interest at 6% p.a., from the date of petition till realization.

6.

Being aggrieved by the said judgment and award, both the Insurer and the claimants have presented these appeals.

7.

We have heard the learned counsel appearing for the Insurer and the learned counsel appearing for claimants in these appeals.

8.

Learned counsel appearing for the Insurer, at the outset, submitted that, the income of the deceased assessed by the Tribunal at Rs. 4,500/- per month for calculating loss of dependency, is on higher side and is liable to be reduced. Further, he submits that, mother is the only dependant and brothers and sister are not dependants. Therefore, he submitted that the impugned judgment and award passed by the Tribunal is liable to be modified by reducing the compensation substantially.

9.

Per contra, learned counsel appearing for claimants, inter-alia, contended the income of the deceased assessed by the Tribunal at Rs. 4,500/- per month is on lower side and it needs to be enhanced, on the ground that, deceased was aged about 30 years, owner- cum- driver of the auto and earning Rs. 7,500/- per month and apart from that, he was running a rice mill and getting the income of Rs. 7,000/- per month and in all, Rs. 14,500/- per month. Therefore, he submitted that the income of the deceased may be reassessed reasonably since the dependants are the mother, brothers and sister of the deceased. Further, he submits that the compensation awarded by the Tribunal towards conventional head is on lower side and it needs to be enhanced. Therefore, she submitted that, the impugned judgment and award passed by the Tribunal is liable to be modified by awarding reasonable compensation towards loss of dependency and conventional heads.

10.

After hearing the learned counsel 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 arise for our consideration is:

Whether the compensation awarded by the Tribunal is just and reasonable?

11.

The occurrence of the accident on 16.4.2006 and the resultant death of the deceased Sri. Gopala Madivala are not in dispute. It is also not in dispute that claimants are the mother, brothers and sister of the deceased. The deceased was aged about 30 years, auto driver by profession, he was owning auto and also running rice mill. It is the case of the claimants that, deceased was earning Rs. 14,500/- per month from the above avocations. But they have not produced any documents to prove his income. The Tribunal, has assessed the income of the deceased at Rs. 4,500/- per month which is on lower side and it needs to be enhanced. Having regard to the age, occupation of the deceased and the year of accident and that the dependants are his mother, brothers and sisters, we re-assess his income at Rs. 6,000/- per month instead of Rs. 4,500/- as assessed by the Tribunal. Out of which, if 1/3rd ( Rs. 2,000/-) is deducted towards personal and living expenses of the deceased, since there are four claimants, his net income comes to Rs. 4,000/- per month. The proper multiplier applicable to the case in hand, taking the age of the mother of the deceased as 55 years as on the date of the accident is ''11''. Therefore, we re-determine the loss of dependency at Rs. 5,28,000/-( Rs. 4,000/- x 12 x 11) instead of Rs. 4,59,000/- and accordingly, it is awarded.

12.

Having regard to the facts and circumstances of the case as stated above, we award a sum of Rs. 45,000/- towards conventional heads, such as, towards loss of love and affection, towards loss of estate and towards transportation and funeral expenses instead of Rs. 15,000/- awarded by the Tribunal. In all, the claimants are entitled for the compensation of Rs. 5,73,000/- instead of Rs. 4,74,000/- awarded by the Tribunal. There would be an enhancement of Rs. 99,000/- with interest at 6% p.a., from the date of petition till its realization.

13.

So far as the submission made by learned counsel for the Insurer that, the income of the deceased assessed by the Tribunal at Rs. 4,500/- per month is on higher side and is liable to be reduced is concerned, the said submission cannot be accepted and is liable to be rejected, for the reason that, the accident has occurred in the year 2006 and deceased was a driver of an auto by profession and also running rice mill. Nor the Insurer has made out any good grounds to reduce the compensation and in fact, the claimants have made out a case for enhancement of compensation. Therefore, the above submission of the learned counsel for the Insurer is liable to be rejected and accordingly, it is rejected. For the foregoing reasons, the appeal filed by the Insurer is dismissed as devoid of merits and the appeal filed by the claimants is allowed in part.

The impugned judgment and award dated 06/08/2009 passed in MVC No. 491/2006, by the Additional Civil Judge (Sr. Dn.) and Motor Accident Claims Tribunal, Udupi, is hereby modified, awarding a sum of Rs. 99,000/- with interest at 6% p.a., from the date of petition till its realization, in addition to the compensation awarded by the Tribunal.

The Insurer is directed to deposit the enhanced compensation of Rs. 99,000/- with interest a 6% p.a., from the date of petition till its realization, within three weeks from the date of receipt of the copy of this judgment.

Immediately on deposit by the Insurer, out of the enhanced compensation of Rs. 99,000/-, a sum of Rs. 50,000/- with proportionate interest shall be invested in the Fixed Deposit in any Nationalized or Scheduled bank, in the name of the claimant No. 1 for a period of ten years and renewable by another ten years, with liberty reserved to her to withdraw the interest accrued on it, periodically.

The remaining sum of Rs. 49,000/- with proportionate interest shall be released in favour of the claimant No. 1 immediately.

The amount deposited by the Insurer shall be transmitted to the jurisdictional Tribunal forthwith.

Draw the award, accordingly.

In view of disposal of main matter on merits, the relief sought by the claimants in Misc. Cvl. 16447/2010 in M.F.A. No. 7922/2009 does not survive for consideration. Hence, it is disposed off as having become infructuous.