High CourtsSingle Bench(2012) 03 KAR CK 0085

United India Insurance Co. Ltd. vs Sri. Chinnarayana and Others

Karnataka High Court · Decided on 13 March 2012

HON’BLE JUDGES
A.N. Venugopala Gowda, J
RESULT
Allowed
CASE NUMBER
M.F.A. No. 4099 of 2011 (MV)

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Judgment

9 paragraphs · 585 words

A.N. Venugopala Gowda

1.

With consent of learned counsel on both sides, appeal is taken up for final hearing. Claim petition filed u/s 165 of MV Act, 1988 by respondents 1 to 4 herein, in the MACT, against the 5th respondent and the appellant, was allowed in part and compensation of Rs. 3,09,000/- with interest at 7.5% was ordered to be paid by the appellant. Feeling aggrieved, the insurance company has filed this appeal.

2.

Smt. Harini Shivananda, learned Advocate for the appellant contended that the Tribunal having held that there is no loss of dependency and the loss suffered is only towards loss to estate, has erred in quantifying the sum under the head ''loss to estate'' at Rs. 2,64,000/-, much against the ratio of the decision reported in ILR 2009 Kar 3268. Learned counsel further contended that the interest allowed at 7.5% is on the higher side and is against the settled principles.

3.

Sri Rajanna, learned Advocate for respondent Nos. 1 to 4, on the other hand, would argue in support of the findings recorded by the MACT and submits that there being just and reasonable award by the MACT, no interference in the matter is called for.

4.

Keeping in view the rival contentions and the record of the case, which I have perused, only point for consideration is, Whether there is an excess award by the MACT?''

5.

Deceased Butra Suryaprakash, as on 22.04.2008, was aged about 23 years and was a student of II Semestar B.C.A. Course. Claimants are his father and elder brothers. Mother of Butra Suryaprakash had predeceased him. Indisputably, deceased was a non-earning person. However, keeping in view the fact that he was a student of II Semester B.C.A. Course and aged about 23 years, the income was taken on notional basis at Rs. 4,000/- p.m. by the MACT. In view of the admission of PW.1 that he owns about 15 acres of land and himself and other claimants being not dependents on the deceased, the loss to estate should have been quantified in terms of the ratio of the decision at ILR 2009 Kar 3268, at 25% of the amount assessed at Rs. 2,64,000/-. Thus, there is excess award by the MACT.

6.

Deceased having sustained fatal injuries on 22.04.2008, was taken to Hospital and while undergoing treatment passed away on 23.04.2008. The claimants have incurred expenditure towards his treatment, which the Tribunal has accepted as Rs. 25,000/-. Claimants are untitled to the said sum. In addition they are also entitled to award of Rs. 30,000/- under the heads, loss of love and affection, transportation of dead body and expenses incurred towards funeral and obsequies ceremonies. Thus, the just and reasonable award which the Tribunal ought to have passed is Rs. 1,51,000/-, as against which, Rs. 3,09,000/- with interest has been awarded.

7.

In motor vehicle accident claim cases, specialty fatal accidents, interest at 6% has only been allowed. In the circumstances, Tribunal has committed error in allowing the interest at 7.5% p.a. on the assessed compensation amount.

In the result, appeal is allowed in part impugned judgment and award is modified, Compensation payable by the respondents is determined at Rs. 1,51,000/-, which shall carry interest at 6% p.a. from the date of filing of claim petition till date of deposit in the MACT. The amount in deposit be transferred to the MACT. Appellant to deposit the balance amount in the MACT within a period of two months from today. No order as to costs.