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2019 Supreme(Kar) 776
IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
L. Narayana Swamy, B.M. Shyam Prasad, JJ.
Manager Reliance General Insurance Co. Ltd. - Appellant
Vs.
Shivaleela - Respondent
Miscellaneous First Appeal No. 100162 of 2014
Decided On : 11-09-2019
A.L. Sandrimani, Adv., R.M. Kulkarni, Adv., Nagaraj C. Kolloori, Adv.
The main legal point established in the judgment is the determination of just and reasonable compensation under Section 168 of the Motor Vehicles Act, 1988, based on the appropriate multiplicand and multiplier under the capitalization method.
Headnote:
Compensation - Motor Accident Claims - Motor Vehicles Act - Sections 279, 337, 338, 304(A), 134, 187 - The court awarded a total sum of Rs. 1,40,75,120/- along with interest at the rate of 8% per annum from the date of the petition till the date of deposit.
Fact of the Case:
The deceased, Sri Prakash Patil, succumbed to injuries in a road accident. The claimants, his wife and two minor children, sought compensation for loss of dependency and other heads.
Finding of the Court:
The court found that the Tribunal erred in awarding highly exaggerated amounts towards loss of dependency and conventional heads. The court determined the just and reasonable compensation to be Rs. 1,40,75,120/- along with interest at 8% per annum.
Issues: The issues included the reason for the road accident, the quantum of compensation, and who should pay such compensation.
Ratio Decidendi: The court emphasized the need to grant just and reasonable compensation as per Section 168 of the Motor Vehicles Act, 1988, cautioning against both bonanza and pittance. The determination of compensation is based on the appropriate multiplicand and multiplier under the capitalization method.
Final Decision: The appeal was allowed in part, and the claimants were awarded a total sum of Rs. 1,40,75,120/- along with interest at the rate of 8% per annum from the date of the petition till the date of deposit.
JUDGMENT :
B.M. Shyam Prasad, J.
This appeal is filed by the Insurer of the Tata Indica Car bearing Reg.No.KA-22/1274 calling in question the judgment and award dated 19.11.2013 in MVC.No.1863/2011 on the file of the 5th Additional District Judge and 6th Additional Motor Accident Claims Tribunal, Belagavi (for short, 'the Tribunal'). The Tribunal has allowed the claim petition in MVC.No.1863/2011 in part awarding a sum of Rs.2,55,65,500/- to the claimants viz., the wife and two minor children of the deceased, Sri Prakash Patil. The Tribunal has awarded interest at the rate of 8% per annum from the date of the petition till the date of deposit.
2. The Insurer has filed this appeal challenging the quantum of compensation awarded by the Tribunal. There is no dispute that the deceased Sri Prakash Patil succumbed to the injuries in the road accident on 21.12.2009 at about 04.45 p.m. on Chikkodi- Shankeshwar Road near Nidasosi Gate or that the Insurer is liable to pay just and reasonable compensation to the dependents of Sri Prakash Patil. Further, there is no dispute that the claimants4 respondents No.1 to 3 are the wife and children of Sri Prakash Patil and they are entitled for compensation as his dependents.
3. The necessary details for the purposes of this case could be described as follows: Sri.Prakash Patil was waiting, along with others including students from a nearby college, for a Bus to return to Belgaum. Sri Prakash Patil and the others were waiting for the bus at the edge of the Eastern Side of Chikkodi - Shankeshwar Road measuring 32 feet in width. The Tata Indica Car coming from Chikkodi side ran into Sri Prakash Patil and others who were waiting on the eastern side of the road. The Tata Indica Car was being driven rashly and negligently. Sri Prakash Patil and others namely, Sri.Balasahed Dastagir, Smt. Neelambika Pattar and Sri.Basavaraj Badiger were severely injured and the four others suffered simple injuries. Sri Prakash Patil was shifted to Government5 Hospital, Sankeswar for initial treatment, and he was later shifted to KLE Hospital, Belgaum for further treatment. Sri Prakash Patil who was under treatment in the said Hospital breathed his last on 25.12.2009 at about 08.50 a.m. The jurisdictional police registered FIR in Crime No.298/2009 against the driver of the Tata Indica Car. The jurisdictional police, after investigation, filed the Final Report against the driver of Tata Indica Car for offences punishable under Sections 279,337,338,304 (A) of IPC and Section 134 and 187 of the Motor Vehicles Act.
4. The claimants i.e., wife of Sri Prakash Patil, and his two minor children aged about 09 years and 05 years, filed the claim petition in MVC.No.1863/2011 before the Tribunal seeking compensation in a sum of Rs.1,05,00,000/. The owner of the Tata Indica Car and the Insurer were arraigned as parties. The owner of the Tata Indica Car filed his objections statement perfunctorily denying the entire case; the Insurer also6 filed objections statement denying the entire case but with the qualification that the liability of the Insurance Company, if any, would be subject to the terms and condition of the policy.
5. Insofar as the pecuniary loss caused to claimants because of the untimely demise of Sri.Prakash Patil, the claimants contended that Sri Prakash Patil, was an Engineering Graduate from the Karnataka University. He graduated in Engineering in the year 1990. He was also a Post-Graduate in Business Administration from the Karnataka University. He obtained such Post-Graduation in the year 1994. He was employed between 10.04.1996 and 31.07.2003 as Marketing Head with M/s. Gujarat Guardian Limited.
6. Sri Prakash Patil was later employed as Area Sales Manager of East and Central Africa with M/s. Asiaguard Float Glass Company Limited. Sri Prakash Patil was employed with this company between August 2003 and July 2008,
