Research › Search › Judgment

Karnataka High Court · body

2013 DIGILAW 22 (KAR)

Amulya Reddy v. New India Assurance Company Ltd.

2013-01-02

B.S.INDRAKALA, N.K.PATIL

body2013
JUDGMENT : N.K. Patil, J. This appeal by the appellant is directed against the impugned and award dated 7th September, 2009, passed in M.V.C. No. 1272/2008 on the file of the X Additional Judge, Member, M.A.C.T., Bangalore (SCCH-16) (hereinafter referred to as 'Tribunal' for short). The Tribunal by its judgment and award has awarded a sum of Rs. 43,38,000 under different heads with interest at 6% per annum from the date of petition till its payment, on account of the death of the deceased Chandra Mohan Reddy in the road traffic accident. In brief, the facts of the case are: The appellant No. 1 is the wife and appellant No. 2 is the minor child and appellant Nos. 3 and 4 are the parents of deceased Chandra Mohan Reddy. It is contended by the claimants that on 14th December, 2007, at about 10.45 a.m. while the said Chandra Mohan Reddy riding his motorcycle bearing registration No. AP-28-AG-9539, carefully and cautiously, observing all the traffic rules, proceeding on the left side of the outer ring road, Marathahalli, Bangalore at that time a lorry bearing registration No. KA-03-7269 being driven by its driver in a rash and negligent manner came from behind and dashed against the deceased. Due to the impact deceased was thrown out fell down and sustained severe injuries on vital parts of the body and succumbed to the injuries on the spot. Further it is contended that the deceased was aged about 35 years at the time of his death and he was working as a Senior System Engineers in the multinational I.T. sector, drawing a salary of Rs. 1,05,400 per month as per Ext. P-23. It is the further case of the claimants that the deceased was the sole bread earner of the family and the 1st appellant has lost her life partner at the age of 25 years and appellant No. 2 who aged 4 years at the time of death of his father has lost father's love and affection. The father was aged about 70 years and mother was aged about 60 years and they have lost their only son. It is the further case of the claimants that the deceased was an efficient employee in the company and had bright future and career and he stood distinction throughout his career and he was getting a substantial salary of more than Rs. It is the further case of the claimants that the deceased was an efficient employee in the company and had bright future and career and he stood distinction throughout his career and he was getting a substantial salary of more than Rs. 1 lakh at the age of 35 years itself and he has filed the income tax return and he was paying Rs. 12,678 per month towards income tax Rs. 200 towards professional tax. It is the further case of the claimants that due to the untimely death of the deceased in the road traffic accident, the family is displaced and they are in great financial distress and have lost only hope, social and financial security and aspiration in life and the future life of wife, minor child and parents has become jeopardised. Taking all these factors into consideration, they were constrained to file a claim petition u/s 166 of the M.V. Act before the Tribunal against the respondents for awarding reasonable compensation. 2. The said matter had come up for consideration before the Tribunal. The respondent-insurer has not entered the witness box nor marked any documents. The Tribunal has recorded a finding that due to the rash and negligent driving by the driver of the lorry in question the accident had occurred and that the vehicle was insured with the 2nd respondent-insurer and they are liable to indemnify the award amount and has allowed the claim petition awarding Rs. 44,20,000 towards loss of dependency, taking the income of the deceased at Rs. 20,000 per month and after deducting 1/3rd towards personal expenses and applying the multiplier of 18' having regard to the youngest age of the wife of the deceased in view of the well settled law of the Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, , and Rs. 15,000 under other conventional heads such as loss of love and affection and towards transportation of dead boy with 6% interest from the date of petition till the date of realisation. Being dissatisfied with the compensation awarded by the Tribunal the claimants felt necessitated to present this appeal seeking enhancement of compensation. 3. The learned Counsel for the appellants at the outset submitted that there is miscarriage of justice by the Tribunal. Being dissatisfied with the compensation awarded by the Tribunal the claimants felt necessitated to present this appeal seeking enhancement of compensation. 3. The learned Counsel for the appellants at the outset submitted that there is miscarriage of justice by the Tribunal. He submits that, the Tribunal ought to have taken into consideration the clinching evidence on record i.e., the evidence of P.W. 1, who has stated that the deceased was getting salary of Rs. 1,05,400 per month and after paying income tax and professional tax, the net salary was Rs. 92,522 per month. He further submits that, 50% should be added to the income of the deceased towards loss of future prospects in view of the decision in Sarla Verma case (supra), and 1/4th is to be deducted towards personal expenses having regard to the number of dependent. Therefore, he submits that what is awarded by the Tribunal is on the lower side and, therefore, just and reasonable compensation be awarded towards loss of dependency by taking note of the fact that the deceased was a Software Engineer by modifying the impugned judgment and passed by the Tribunal. 4. As against the learned Counsel appearing for the respondent/insurer substantiating the impugned judgment award passed by the Tribunal inter alia contended that the Tribunal was justified in awarding the compensation after due appreciation of the oral and documentary evidence available on record and hence, interference by this Court is not called for. However, after perusal of the Tribunal's records, he fairly submitted that the matter requires consideration. He further submits that the deceased was getting a net salary of Rs. 92,522 per month after deducting tax and professional tax and 50% be added towards future prospects of the deceased and deducting 1/4th towards personal expenses of the deceased and applying the proper multiplier of 16' having regard to the age of the deceased being 35 years reasonable compensation be awarded under the head of loss of dependency and conventional heads, in accordance with law. 5. The learned Counsel appearing for the appellant and the learned Counsel appearing for the insurer after thorough evaluation of the original records available in file, fairly submitted that income of the deceased may be assessed at Rs. 1,05,400 per month as per Ext. P-23. 6. 5. The learned Counsel appearing for the appellant and the learned Counsel appearing for the insurer after thorough evaluation of the original records available in file, fairly submitted that income of the deceased may be assessed at Rs. 1,05,400 per month as per Ext. P-23. 6. After careful consideration of the Counsel appearing for both parties and after evaluation of the entire material available on the file and on 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"? 7. The occurrence of the accident and the resultant death of the deceased late Chandra Mohan Reddy in the road traffic accident that occurred on 14th December, 2007, are not in dispute. Further it is not in dispute that claimants are none other than the wife-son and parents of the deceased. The deceased was aged 35 years and working as a Senior System Manager in a multinational I.T. sector. In the light of the submission of the learned Counsel appearing for both parties the income of the deceased is assessed at Rs. 1,05,400 per month. It is also not in dispute that the deceased was an income tax assessee as per the income tax returns filed and the same is made available before the Tribunal. As rightly pointed out by the learned Counsel appearing for the appellant in view of the law laid down by the Hon'ble Apex Court in Sarla Verma's case, 50% is to be added to the said income. Accordingly if 50% is added the income comes to Rs. 1,58,100 (1,05,400 + Rs. 52,700). Out of this, a sum of Rs. 47,430 being 30% of the income tax and Rs. 200 being professional tax are to be deducted. After such deduction, the net income comes to Rs. 1,10,670 per month. Out of this, 1/4th has to be deducted towards personal expenses of the deceased since number of dependants are four. Accordingly, if 1/4th is deducted (i.e., Rs. 27,617), the net income comes to Rs. 82,853 per month. Since the deceased was aged about 35 years, the appropriate multiplier applicable is 16' following the aforecited judgment of the Apex Court. Accordingly, we re-determine the compensation towards loss of dependency at Rs. 1,59,07,776 (Rs. 82,853 x 12 x 16). 8. Accordingly, if 1/4th is deducted (i.e., Rs. 27,617), the net income comes to Rs. 82,853 per month. Since the deceased was aged about 35 years, the appropriate multiplier applicable is 16' following the aforecited judgment of the Apex Court. Accordingly, we re-determine the compensation towards loss of dependency at Rs. 1,59,07,776 (Rs. 82,853 x 12 x 16). 8. Having regard to the facts and circumstances of the case we, deem if fit to award a sum of Rs. 45,000 under conventional heads towards loss of consortium, loss of estate, loss of love and affection, transportation, funeral, obsequies and other expenses. Thus, the total compensation would come to Rs. 1,59,52,776 (i.e., Rs. 59,07,776 + Rs. 45,000) as against Rs. 43,38,000 awarded by Tribunal, with interest at 6% per annum from the date of petition till the date of realization. There will be enhancement of Rs. 1,16,14,776. For the foregoing reasons, the appeal filed by the appellants is allowed in part. The judgment and award dated 7th September, 2009, passed in M.V.C. No. 1272/2008 on the file of the X Additional Judge Member, M.A.C.T., Bangalore (SCCH-16) is hereby modified, awarding a sum of Rs. 1,16,14,776 to the claimants with interest at 6% p.a. from the date of petition till the date of realisation in addition to the compensation awarded by the Tribunal. The 1st respondent-insurer is directed to deposit the enhanced compensation amount with interest within three weeks from the date of receipt of a copy of this judgment. Out of the enhanced compensation of Rs. 1,16,14,776, Rs. 50 lakh with proportionate interest shall be invested in the name of the 1st appellant in any Nationalised/Scheduled Bank initially 14 for a period of ten years and to be renewed for a period of another ten years. She is entitled to withdraw the interest periodically. Rs. 25 lakh with proportionate interest in the name of 2nd appellant shall be invested in any Nationalised/Scheduled Bank till he attain the age of 30 years. Appellant No. 1 mother is entitled to withdraw the accrued interest periodically till appellant No. 2 attains the age of 20 years and from 21 years to 30 years the appellant No. 2 is entitled to withdraw the accrued interest periodically. Rs. 15 lakh each with proportionate interest in the name of appellant Nos. 3 and 4 shall be invested in any Nationalized/Scheduled Bank for a period are of five years. Rs. 15 lakh each with proportionate interest in the name of appellant Nos. 3 and 4 shall be invested in any Nationalized/Scheduled Bank for a period are of five years. They entitled to withdraw the interest periodically. The remaining amount of Rs. 11,14,776 with proportionate interest shall be released in favour of appellant Nos. 1,3 and 4 in equal proportion on deposit by the insurer. Draw the awarded accordingly.