IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ALOK ARADHE, M.G.S. KAMAL, JJ.
Raju @ Rajegowda S/O Kalegowda - Appellant
Versus
The Manager United India Insurance Co. LTD. – Respondent
M.F.A. NO.8807 OF 2015 (MV-D) C/W M.F.A. NO.25 OF 2015 (MV-D)
Decided on : 23-03-2021
Motor Vehicles Act, 1988 – Section 173(1), 166 – Compensation – Seeking enhancement – Pensionary – Inter alia – Since, both appeals preferred under Section 173(1) of the Motor Vehicles Act, 1988 arise out of same accident as well as same judgment passed by Tribunal, they were heard together and are being decided by this common judgment –Held, Thus, claimants are held entitled – In addition, claimants are held entitled account of loss of estate and funeral expenses – Thus, in all, claimants are held entitled to a total compensation Needless to state that enhanced amount of compensation shall carry interest at rate of 6% per annum from date of filing of petition till payment is made – To aforesaid extent, judgment passed by Claims Tribunal is modified – Held that death benefits received by claimants from employer on account of group insurance, provident fund or other pensionary benefits cannot be deducted from compensation payable to claimants as same accrues to claimants on account of contractual transaction which the deceased would have entered into – Ordered Accordingly.
JUDGMENT :
1. M.F.A. No. 8807/2015 has been filed by the claimants seeking enhancement of the amount of compensation, whereas M.F.A. No. 25/2015 has been filed by the insurance company being aggrieved, by the judgment dated 27.05.2016 passed by the Motor Accidents Claims Tribunal (hereinafter referred to as 'the Tribunal' for short). Since, both the appeals preferred under Section 173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act' for short) arise out of the same accident as well as same judgment passed by the Tribunal, they were heard together and are being decided by this common judgment.
2. Facts giving rise to the filing of the appeal briefly stated are that on 26.06.2011, the deceased Naveen R was proceeding as a pillion rider in a motorcycle bearing registration No.MP-04-MR-8901. When he reached near Mandal Tyre Shop, JK Road, Bhopal, a truck bearing Registration No. MP-04-HB-2376 (hereinafter referred to as 'the offending vehicle' for short), which was being driven by its driver in a rash and negligent manner, dashed against the motorcycle in which the deceased was traveling. As a result of the aforesaid accident, the deceased sustained grievous injuries and succumbed to the same.
3. The claimants thereupon filed a petition under Section 166 of the Act claiming compensation on the ground that the deceased was aged about 29 years at the time of accident and was employed as a Senior Technical Assisstant at ISRO and was earning a sum of Rs.33,791/-per month. It was further pleaded that accident took place solely on account of rash and negligent driving of offending vehicle by its driver. The claimants claimed compensation to the tune of Rs.4,00,00,000/-along with interest.
4. The insurance company filed written statement, in which the mode and manner of the accident was denied. It was also pleaded that the wife of the deceased had also filed a similar claim petition, in respect of the same accident for the death of the deceased at Bhopal. It was further pleaded that the claim petition was not maintainable. The age, avocation and income of the deceased was also denied and it was pleaded that the claim of the claimants is exorbitant and excessive.
5. On the basis of the pleadings of the parties, the Claims Tribunal framed the issues and thereafter recorded the evidence. The claimant No.1 examined himself as PW-1 and got exhibited documents namely Ex.P1 to Ex.P10. The respondents examined Shewta N (RW1), Narayana KA (RW2), N Ananjaneya Sarma (RW3), C Surendra (RW4) and got exhibited documents namely, Ex.R1 to Ex.R22. The Claims Tribunal, by the impugned judgment, inter alia, held that the accident took place on account of rash and negligent driving of the offending vehicle by its driver. It was further held, that as a result of aforesaid accident, the deceased sustained injuries and succumbed to the same. The Tribunal further held that the claimants are entitled to a compensation of Rs.55,37,674/-along with interest at the rate of 6% per annum. Being aggrieved, these appeals have been filed.
6. Learned counsel for the Insurance Company submitted that the Tribunal erred in assessing the income of the deceased by placing reliance on Ex.R3 which did not disclose the accurate monthly salary of the deceased as the same contained a special allowance to the extent of Rs.5,000/-which was not paid to the deceased in other months as evident from Ex.R15. It is further submitted that the Tribunal erred in not deducting a sum to the extent of Rs.10,00,000/-and Rs.12,34,091 which formed a part of the death benefits given to the claimants on account of death of the deceased in the accident. It is also submitted that Rs.5,229/-per month should be deducted from the income of deceased for the purpose of computation of compensation under the head 'loss of dependency' on account of the pensionary benefits being drawn by the wife of the deceased. On the other hand, the learned counsel for the claimants submitted that Tribunal
Vimal Kanwar And ORS VS. Kishore Dan And Ors (2013) 7 SCC 476
New India Assurance Company Limited VS Gopali And Ors (2012) 12 SCC 198
Pappu deo yadav VS Naresh Kumar AIR 2020 SC 4424
National Insurance Company Ltd. VS. Indira Srivastava (2008) 2 SCC 763
National Insurance Company Limited Vs. Pranay Sethi And Others’ AIR 2017 SC 5157
Magma General Insurance Co. LTD. VS. Nanu ram & ORS.’ (2018) 18 SCC 130
United India Insurance Co. LTD. Vs. Satinder Kaur And Ors.’ AIR 2020 SC 3076
Sebestiani Lakra And Ors VS. National Insurance Co. LTD. AIR 2018 SC 5034
Helen Rebello Vs Maharashtra Road Transport Corporation (1999) 1 SCC 90
The assessment of notional income, future prospects, and various heads of compensation under the Motor Vehicles Act influenced the court's decision to modify the judgment of the Claims Tribunal.
The court's decision emphasized the importance of accurately determining the deceased's income for calculating compensation, relying on bank statements and considering fluctuations and deductions.
Calculation of compensation for loss of dependency based on the deceased's fluctuating and contractual income, and the application of a multiplier to determine the enhanced compensation.
Assessment of compensation under the Motor Vehicles Act involves determining the notional income of the deceased and applying the appropriate multiplier based on the age group, as per the guidelines ....
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