L&T General Insurance Co. Ltd. v. Govinda Bhovi S/o Dolla Bhovi
2018-03-13
B.A.PATIL
body2018
DigiLaw.ai
JUDGMENT : The present appeal has been preferred by the appellant-insurer assailing the judgment and award dated 01.03.2016 passed in MVC No.135/2015 on the file of the 16th Additional Judge, Court of Small Causes, MACT, Bengaluru. 2. Heard. The appeal is admitted. 3. With the consent of the learned counsel appearing for the parties, the same is taken up for final disposal. 4. The accident in question is not in dispute. So also the offending vehicle insured with the appellant–insurer. Learned counsel for the appellant-insurer submitted that he compensation awarded by the Tribunal is on the higher side. While taking the future prospects the Tribunal has erred in taking 50% instead of 40% and even compensation awarded under conventional heads is also on the higher side and the same requires to be reduced. On these grounds he prayed for allowing the appeal by reducing the compensation awarded by the Tribunal. 5. Per contra, learned counsel appearing on behalf of respondent-claimants by justifying the judgment and award passed by the Tribunal, prays to dismiss the appeal. 6. As could be seen from the impugned judgment and award passed by the Tribunal, it is the contention of the claimants that the deceased was working as a senior Assistant in Max Retail life style shop and was earning Rs.16,500/- per month and he was the sole earning member in his family. The Tribunal after taking into consideration the Ex.P10 Pay slips and bank statement Ex.P 11, it has come to the conclusion that the deceased was drawing a salary of Rs.16,323/- per month and after statutory deduction, his income has been taken at Rs.16,000/- per month and after adding 50% towards future prospects and after deducting 50% towards his personal expenses as he was a bachelor and, after applying the multiplier of ‘18’ has awarded Rs.25,92,000/- towards ‘Loss of dependency’. 7. On going through the impugned judgment and award, the method adopted by the Tribunal appears to be justifiable. But while adding the future prospects, the Tribunal has erred in taking 50% of the salary towards future prospects. But, in view of the decision of the Hon’ble Apex Court in case of “National Insurance Company Limited Vs. Pranay Sethi and Others” reported in AIR 2017 SC 5157 , the Tribunal ought to have added 40% towards future prospects to the income which has been taken. 8.
But, in view of the decision of the Hon’ble Apex Court in case of “National Insurance Company Limited Vs. Pranay Sethi and Others” reported in AIR 2017 SC 5157 , the Tribunal ought to have added 40% towards future prospects to the income which has been taken. 8. In the light of the aforementioned decision of the Hon’ble Apex court, if the income is taken at the rate of Rs.16,000/- per month and after adding 40% towards future prospects and after deducting 50% towards the personal expenses as the deceased was bachelor and after applying the multiplier of ‘18’ the claimants are entitled to an amount of Rs.24,19,200/- as against Rs.25.92,000/- awarded by the Tribunal. 9. Even as could be seen from the impugned judgment and award, the Tribunal has awarded an mount of Rs.90,000/- under the conventional heads. In view of the decision quoted supra, the claimants are entitled to an amount of Rs.50,000/- under the conventional heads. They are also entitled to an amount of Rs.1,85,000/- towards medical expenses which has been incurred by the claimants. 10. In the light of the discussion held by me above, the claimants are entitled to a total compensation of Rs.26,54,200/- with 6% interest as against Rs.28,67,000/- awarded by the Tribunal. 11. Accordingly, the appeal is allowed. The judgment and award dated 01.03.2016 passed in MVC No.135/2015 on the file of the 16th Additional Judge, Court of Small Causes, MACT, Bengaluru, is modified as indicated above. 12. The appellant-insurer is directed to deposit the entire compensation awarded by this court within a period of six weeks from the date of receipt of certified copy of this order. Registry is directed to draw the award accordingly. The amount in deposit shall be transferred to the jurisdictional Tribunal along with original records forthwith.