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2024 Supreme(Online)(KAR) 23719

HIGH COURT OF KARNATAKA
MR JUSTICE VIJAYKUMAR A.PATIL, J
M/S. CHOLAMANDALAM MS GENERAL INSURANCE – Appellant
Versus
SMT. SHAHIDA BANU W/O LATE SRI MAQTUM JANI – Respondent
MFA 103910/2018



Important Points

The court modified the compensation awarded by the Tribunal, emphasizing the need for proper evidence in assessing income and appropriate deductions for dependents.

Subject

Motor Vehicles - Compensation Claims

Act Referred

Motor Vehicles Act, 1988

Headnote

(A) Motor Vehicles Act, 1988 - Compensation assessment - Claims for enhancement of compensation and challenge to quantum by insurer - Tribunal awarded Rs.15,87,000/-; court re-assessed income of deceased at Rs.8,000/- p.m., allowing for future prospects and appropriate deductions - Total modified compensation awarded is Rs.14,90,000/-. (Paras 6, 7, 9)

(B) Appeal - The court re-evaluated the income and deductions, emphasizing the need for evidence in compensation claims. (Paras 3, 4)

Facts of the case:
Claimants sought enhancement of compensation after the deceased sustained injuries in an accident and later succumbed. The Tribunal awarded compensation based on the deceased's income and deductions for dependents.

Findings of Court:
The court modified the Tribunal's award after re-assessing the income and deductions, allowing for a total of Rs.14,90,000/-.

Issues: The court addressed the appropriate income assessment, deductions for dependents, and the validity of the Tribunal's award.

Ratio Decidendi: The court found the Tribunal's assessment to lack evidentiary support for the income and adjusted the calculation accordingly, emphasizing the necessity of proper evidence in such claims.

Result: Both appeals stand allowed in part.

Advocates:
SRI. GURUKUMAR V. A, ADVOCATE; SRI. SUBHASH T. BADDI, ADV. FOR R2; SRI. SUBHASH J. BADDI, ADVOCATE

JUDGEMENT

1. MFA.No.101828/2019 is filed by the claimants seeking enhancement of compensation. MFA.No.103910/2019 is filed by the Insurer challenging the quantum of compensation awarded by the Tribunal.

2. Both the appeals are arising out of the judgment and award dated 31.7.2018, passed in MVC No.692/2016 on the file of III Addl. MACT, Ballari (for short, ‘Tribunal’).

3. Sri.Subhash J Baddi, learned counsel for the Insurance Company submits that the Tribunal has committed grave error in assessing the income of the deceased at Rs.9,000/- per month without any evidence. He further submits that the Tribunal has wrongly deducted 1/5th towards the living and personal expenses of the deceased. As there are five dependents, appropriate deduction would be 1/4th. Hence, he submits that the award of compensation by the Tribunal is required to be interfered in the appeal filed by the Insurance Company.

4. Per Contra, Sri.Gurukumar.V.A., learned counsel for the appellants/claimants supports the impugned judgment and award of the Tribunal, insofar as assessment of the income. He further submits that the Tribunal has awarded just and proper compensation on all other heads except under the conventional heads. Hence, he seeks to re-assesses the same by allowing the appeal filed by the claimants.

5. I have heard the arguments of learned counsel for the claimants and the learned counsel for the Insurance Company and perused the material available on record.

6. It is not in dispute that Sri. Maqtum Jani met with road accident on 21.12.2015, sustained grievous injuries and later, he succumbed to the injuries. The claim petition is filed by the dependents/legal representatives of the deceased. The Tribunal, considering the evidence available on record, awarded total compensation of Rs.15,87,000/- along with interest at the rate of 8% p.a.

7. The Tribunal assessed the income of the deceased at Rs.9,000/- p.m. Admittedly, the claimants have not placed any evidence with regard to the income of the deceased.

Hence, this court re-assesses the income of the deceased at Rs.8,000/- per month notionally placing reliance on the notional chart prepared by the KSLSA. The appellants are also entitled to addition of 25% under the head of loss of future prospects of the deceased. There are five dependents, hence appropriate deduction would be 1/4th and appropriate multiplier would be

14. Hence, the loss of dependency is re-assessed as under: 8000 + 25 % x 12 x 3/4 x 14 = Rs.12,60,000/-

8. The claimants are entitled to Rs.2,00,000/- (40,000x5) under the head of loss of consortium. The appellants are entitled to Rs.15,000/- under the head of loss of estate and Rs.15,000/- under the head of transportation of dead body and funeral expenses.

9. Thus, the appellants/claimants would be entitled to modified compensation on the following heads:

    Thus, the claimants are entitled to total compensation of Rs.14,90,000/- as against Rs.15,87,000/- awarded by the Tribunal.
ParticularsAmount (in Rs.)
Loss of dependency12,60,000/-
Loss of estate15,000/-
Funeral expenses15,000/-
Loss of consortium2,00,000/-
Total14,90,000/-

10. In the result, I proceed to pass the following:

    ORDER a) Both appeals stand allowed in part.
    b) The impugned judgment and award of the Tribunal is modified to an extent that the appellant/claimant would be entitled to total compensation of Rs.14,90,000/- as against Rs.15,87,000/- awarded by the Tribunal. c) The enhanced compensation amount shall carry interest at the rate of 6% per annum from the date of petition till the date of payment.
    d) The Insurance Company shall deposit the enhanced compensation amount with accrued interest before the Tribunal within a period of six weeks from the date of receipt of certified copy of this judgment.
    e) Apportionment, deposit and disbursement shall be made as per the award of the Tribunal.
    f) The amount in deposit made by the Insurance Company be transmitted to the Tribunal.
    g) Draw modified award accordingly.
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