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2022 Supreme(Kar) 1573

IN THE HIGH COURT OF KARNATAKA
H.T.Narendra Prasad, J.
Abdul Rahaman Shariff – Appellant
Versus
S.m.devaraj – Respondent
MFA No. 9407 of 2012(MV)
Decided On : 10-10-2022

Advocates appeared:
O.Mahesh, Advocate, Ambika, Advocate, Mohd Sheriff, Advocate

The main legal point established is the application of legal principles to assess compensation under the Motor Vehicles Act, including notional income, future prospects, and other heads of compensation.

Headnote:

Motor Vehicles Act - Compensation - Sec. 173(1) - Sec. 166 - Sec. 173(1)

Fact of the Case:

The deceased was involved in a road traffic accident due to rash and negligent driving, leading to his death. The claimants sought compensation under Sec. 166 of the Motor Vehicles Act.

Finding of the Court:

The court found that the accident resulted from the negligent driving of the offending vehicle, leading to the death of the deceased. The court assessed the compensation based on the deceased's notional income and applicable legal principles.

Issues: Dispute over the deceased's income, entitlement to future prospects compensation, and adequacy of the compensation awarded by the Tribunal.

Ratio Decidendi: The court applied the guidelines issued by the Karnataka State Legal Services Authority and legal precedents to determine the notional income, future prospects compensation, and other heads of compensation.

Final Decision: The appeal was allowed in part, and the claimants were awarded a total compensation of Rs.10,92,800.00 with interest. The Insurance Company was directed to deposit the amount within six weeks.

JUDGMENT/ORDER

1. This appeal under Sec. 173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act', for short) has been filed by the claimants being aggrieved by the judgment dtd. 25/1/2012 passed by the Fast Track Court-I and Additional Motor Accident Claims Tribunal at Mysore in MVC No.722/2011.

2. Facts giving rise to the filing of the appeal briefly stated are that on 1/3/2011 at about 0.30 hours the deceased Nawaz Mohammed Shariff was proceeding on a motor bike bearing registration No.KA-55/J-3783 from Kavalande to Mysore. When they reached Golur Village, he stopped the motor bike to repair another motor bike. At that time, a lorry bearing registration No. KA-03/D-4883 which was being driven in a rash and negligent manner, dashed against the two motor bikes. As a result of the aforesaid accident, the deceased sustained grievous injuries and succumbed to the injuries at the spot.

3. The claimants filed a petition under Sec. 166 of the Act seeking compensation for the death of the deceased along with interest.

4. On service of summons, the respondent Nos.1 and 2 appeared through counsel and filed written statements in which the averments made in the petition were denied. The age, occupation and income of the deceased are denied. It was pleaded that the petition itself is false and frivolous in the eye of law. It was further pleaded that the accident was due to the negligence of the deceased himself. It was further pleaded that the liability is subject to terms and conditions of the policy. It was further pleaded that the quantum of compensation claimed by the claimants is exorbitant. Hence, they sought for dismissal of the petition.

5. On the basis of the pleadings of the parties, the Claims Tribunal framed the issues and thereafter recorded the evidence. The claimants, in order to prove their case, examined claimant No.1 as PW-1 and other two witnesses as PW-2 and PW-3 and got exhibited documents namely Ex.P1 to Ex.P15. On behalf of respondents, no witness was examined but got exhibited document namely Ex.R1. 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, as a result of which, the deceased sustained injuries and succumbed to the injuries. The Tribunal further held that the claimants are entitled to a compensation of Rs.3,24,000.00 along with interest at the rate of 8% p.a. and directed the Insurance Company to deposit the compensation amount along with interest. Being aggrieved, this appeal has been filed.

6. The learned counsel for the claimants has raised the following contentions: Firstly, the claimants claim that the deceased was earning Rs.15,000.00 per month by working as a Lab Assistant in Rifa-Hul-Muslimeen Educational Trust. But the Tribunal is not justified in taking the monthly income of the deceased as only Rs.4,000.00. Secondly, as per the law laid down by the Hon'ble Supreme Court in the case of NATIONAL INSURANCE CO. LTD. vs. PRANAY SETHI AND OTHERS reported in AIR 2017 SC 5157, in case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income towards 'future prospects' should be the warrant where the deceased was below the age of 40 years. The same may be considered. Thirdly, as per the law laid down by the Hon'ble Supreme Court in the case of PRANAY SETHI (supra), the claimants are entitled for Rs.15,000.00 towards 'loss of estate' and Rs.15,000.00 towards 'funeral expenses'. Fourthly, as per the judgment of the Hon'ble Supreme Court in the case of MAGMA GENERAL INSURANCE CO. LTD. Vs. NANU RAM reported in 2018 ACJ 2782, each of the claimants are entitled for compensation of Rs.40,000.00 under the head of 'loss of love and affection and consortium'. Fifthly, the compensation awarded by the Tribunal under the conventional heads is on the lower side. Hence, she prays for allowing the appeal.

7. On the other hand, the learned co

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