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2024 Supreme(Kar) 1322
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
CHILLAKUR SUMALATHA, J.
The Manager, Cholamandalam MS GIC Ltd. – Appellant
Versus
Thimmaiah, S/o. Giriyappa and Ors. – Respondents
Miscellaneous First Appeal No.61 of 2024 (MV-D)
Decided On : 23-08-2024
For the Appellant : Sri. Mallikarjuna Reddy N.A. Adv., for Sri. Pradeep B, Adv.
For the Respondents: Sri. M.B. Ryakha, Adv.
In case of a deceased bachelor, 50% of earnings should be deducted for personal expenses, as per the Supreme Court precedent, superseding any lesser deduction by the Tribunal.
Headnote:(A) Motor Vehicles Act, 1988 - Compensation Determination - Deduction for Personal and Living Expenses - A bachelor’s earnings must have 50% deducted for personal expenses per Supreme Court ruling (Smt. Sarla Verma v. Delhi Transport Corporation, AIR 2009 SC 3104).
(B) Appeal adjudication - Court affirms that Tribunal’s deduction of 1/3rd was erroneous. (Para 3)
Facts of the case:
The insurer appeals against the Tribunal’s compensation amount, arguing for a proper deduction percentage due to the deceased being a bachelor. The Tribunal deducted 1/3rd despite recognizing the bachelor status.
Findings of Court:
Deducting 50%, the loss calculated leads to an adjustment in compensation awarded excessively.
Issues: The main issue was determining the appropriate percentage for deduction from a bachelor’s earnings.
Ratio Decidendi: The court reasoned that 50% must be deducted based on statutory guidelines for bachelors, highlighting an error in the Tribunal’s calculations.
Result: Appeal is allowed in part, with compensation reduced by Rs.8,06,400/-.
| Table of Content |
|---|
| 1. aggrieved party's appeal regarding compensation amount. (Para 2) |
| 2. deduction of living expenses for deceased bachelor. (Para 3 , 4) |
| 3. appeal allows partial compensation reduction. (Para 5) |
JUDGMENT :
CHILLAKUR SUMALATHA, J.
Heard Sri.Mallikarjun Reddy.N.A learned counsel who represents Sri.Pradeep.B, learned counsel on record for the appellant as well as Sri.M.B.Ryakha, learned counsel for respondent Nos.1 and 2.
2. The insurer aggrieved by the quantum of amount that is awarded as compensation by the Motor Accidents Claims Tribunal, Tiptur through orders in MVC No.596/2021 dated 04.01.2023, is before this Court.
3. The short point involved, as submitted by Sri.Mallikarjuna Reddy for the appellant is that the deceased died as a bachelor and therefore, 50% of the earnings of the deceased are required to be deducted towards the personal and living expenses which the deceased would have incurred for himself had he been alive. However, the Tribunal has deducted 1/3rd of the earnings which is erroneous. Learned counsel thereby seeks to pass necessary orders.
4. Learned counsel Sri.M.D.Ryakha though contended that the amount awarded as compensation is reasonable, did not deny the fact that the deceased died as a bachelor. The Tribunal in the impugned order though made a mention that the deceased was shown to be a bachelor, yet considering the fact that the dependants are two in number, deducted 1/3rd of the earnings of the deceased towards his personal and living expenses. However, as per the decision of the Hon’ble Apex Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another reported in AIR 2009 SC 3104, where the death of a person occurs and that person is a bachelor by the date of death, 50% of the earnings are required to be deducted towards his personal and living expenses. Therefore, this Court is of the view that the plea taken by the appellant in this regard is justifiable. Thus on deducting 50% of the earnings towards personal and living expenses, without interfering with any other parameters as applied by the Tribunal, the loss of dependency on calculation will be as under:
| Notional monthly income | Rs.14,000/- |
| Annual income | Rs.1,68,000/- |
| Add 40% towards future prospects | Rs.2,35,200/- |
| Deduct 50% towards personal and living expenses | Rs.1,17,600 |
| Applying appropriate multiplier 18 | Rs.21,16,800 |
5. Under the head loss of dependency, the Tribunal awarded a sum of Rs.29,23,200/- as compensation. Thus the amount which is awarded in excess of the entitled amount is Rs.8,06,400/- Therefore, the appeal is disposed of with the following:
ORDER
(i) Appeal is allowed in part.
(ii) The compensation that is awarded by Motor Accidents Claims Tribunal, Tiptur through orders in MVC No.596/2021 dated 04.01.2023 is reduced by Rs.8,06,400/-.
(iii) The award of the Tribunal in all other aspects holds good.
(iv) The amount if any, in deposit be transmitted to the concerned Tribunal forthwith.
