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2023 Supreme(Online)(KAR) 4668

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MFA No. 102058 of 2016

IN THE HIGH COURT OF KARNATAKA,

DHARWAD BENCH

DATED THIS THE 11TH DAY OF JANUARY, 2023

BEFORE

THE HON'BLE MR JUSTICE RAVI V.HOSMANI

MISCELLANEOUS FIRST APPEAL NO.102058 OF 2016 (MV-D)

BETWEEN:

THE MANAGING DIRECTOR,

N.W.K.R.T.C., HUBBALLI,

THROUGH DIVISIONAL CONTROLLER,

NWKRTC, CHIKODI DIVISION,

CHIKODI. (OWNER AND INTERNAL

INSURER OF NWKRTC BUS BEARING

NO. KA-28/F-1502), R/BY THE

CHIEF LAW OFFICER, N.W.K.R.T.C.,

CENTRAL OFFICE, HUBBALLI.

…APPELLANT

(BY SHRI I. C. PATIL, ADVOCATE)

AND:

1.

NINGAPPA RAMU KURADE,

AGE:59 YEARS, OCC:AGRICULTURE,

R/O: NEJ, TQ: CHIKODI,

DIST: BELAGAVI-591201.

2.

MALLAPPA RAMU KURADE,

AGE:56 YEARS, OCC:AGRICULTURE,

R/O: NEJ, TQ: CHIKKODI,

DIST: BELAGAVI-591201

…RESPONDENTS

(BY SHRI SANTOSH HATTIKATAGI, ADVOCATE)

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MFA No. 102058 of 2016

THIS MFA FILED U/SEC.173(1) OF MV ACT, 1988,

AGAINST THE JUDGMENT AND AWARD DATED:05.11.2015

PASSED IN MVC NO.2257/2014 ON THE FILE OF THE SENIOR

CIVIL JUDGE AND MEMBER, ADDITIONAL MOTOR ACCIDENT

CLAIMS TRIBUNAL, CHIKODI, AWARDING COMPENSATION OF

Rs.4,23,000/- WITH INTEREST AT RATE OF 9% P.A. FROM THE

DATE OF PETITION TILL PAYMENT.

THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY,

THE COURT DELIVERED THE FOLLOWING:

Brothers of the deceased are entitled to compensation for loss of estate but not for loss of dependency.

Headnote:

COMPENSATION - QUANTUM - BROTHERS OF DECEASED - LOSS OF ESTATE - INTEREST - MODIFICATION

Fact of the Case:

Brothers of the deceased filed a claim petition seeking compensation for the death of their brother in a road accident. The Tribunal awarded compensation of Rs. 4,23,000/- along with interest at 9% per annum.

Finding of the Court:

The court held that the brothers were not entitled to compensation for loss of dependency but only for loss of estate. The court also reduced the rate of interest to 6% per annum.

Issues: 1. Whether the brothers were entitled to compensation for loss of dependency?2. Whether the rate of interest awarded by the Tribunal was justified?

Ratio Decidendi: 1. The court relied on the ratio in A. Manavalagan Vs A. Krishnamurthy and others to hold that the brothers were not entitled to compensation for loss of dependency.2. The court relied on the ratio in Shriram General Insurance Company Limited, Rajasthan Vs. Smt. Laxmi and others to reduce the rate of interest to 6% per annum.

Final Decision: The court allowed the appeal in part and reassessed the compensation payable to the brothers at Rs. 3,30,000/- along with interest at 6% per annum.

Challenging

judgment

and

award

dated

05.11.2015 passed by Senior Civil Judge and Addl.

MACT,

Chikodi

(for

short,

‘tribunal’)

in

MVC

No.2257/2014,

this

appeal

is

filed

by

NWKRTC/owner of bus.

Appeal is on quantum of compensation.

Therefore, occurrence of accident on 29.03.2014

and

death

of

Shankar

Ramu

Kurade

in

said

accident due to rash and negligent driving of bus

by its driver is not in dispute. In claim petition

filed

by

his

brothers,

Tribunal

assessed

compensation

and

passed

award

against

respondent-NWKRTC.

Challenging

said

award,

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respondent-NWKRTC

is

in

appeal

on

limited

ground.

3.

Shri

I.C.Patil,

learned

counsel

for

appellant-claimants

submitted

that

admittedly

claimants were brothers of deceased. From age

and occupation mentioned in claim petition, they

were independent and earning. Therefore, they

would not be entitled for any compensation under

loss of dependency. They would only be entitled

for compensation towards loss of estate as per

ratio laid down by this Court in case of A.

Manavalagan Vs A. Krishnamurthy and others

reported in ILR 2004 KAR 3268 and sought for

modification of award.

4.

It was further submitted that even award

of rate of interest at 9% per annum was without

any specific reason and unjustified.

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5.

On

other

hand

Shri

Santosh

S.

Hattikatagi,

learned

counsel

for

claimants-

respondents

submitted

that

while

passing

impugned

award,

Tribunal

applied

multiplier

corresponding to age of claimant no.1 instead of

deceased, contrary to ratio in case of National

Insurance Co. Ltd. Pranay Sethi and Others

reported in (2017) 16 SCC 68.

6.

It was submitted that even income of

deceased taken at Rs.7,000/- per month even

when claimants had stated it to be Rs.9,000/- was

erroneous and sought reassessment by taking

notional income of Rs.7,500/-. In addition, it was

contended that tribunal has passed award taking

into account that claimants were living together

with deceased and were dependent on him.

7.

Heard learned counsel for both parties

and perused impugned judgment and award.

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8.

From above submission only point that

arises for consideration would be:

‘Whether award passed by Tribunal calls

for modification as sought for?’

9.

Admittedly, claimants are brothers of

deceased Shankar Ramu Kurade. Deceased was

stated to be doing coolie work. Tribunal has given

finding regarding their relationship. Even if they

were residing together, they would be entitled for

compensation

only

in

terms

of

ratio

in

A.

Manavalagan’s case (supra).

10. While passing impugned award, Tribunal

determined

age

of

deceased

as

42

years.

Therefore, appropriate multiplier would be ‘14’.

Insofar as monthly income, though claimant failed

to substantiate with specific evidence, notional

income for year 2014 has to be considered. Thus,

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compensation towards loss of estate would be as

follows:

‘Rs.7,500/- x 25% x 12 x 14 = Rs.3,15,000/-.’

11. Apart from said compensation, claimants

would be entitled for Rs.15,000/- towards funeral

expenses. Thus, claimants would be entitled for

total compensation of Rs.3,30,000/- as against

Rs.4,23,000/- awarded by Tribunal.

12. Further, while passing impugned award,

Tribunal granted interest at rate of 9% per annum

which would be contrary to ratio in case of Shriram

General Insurance Company Limited, Rajasthan Vs.

Smt. Laxmi and others reported in 2018(4) AKR

808. Following same, it is reduced to 6%.

Thus, point for consideration is answered

partly in affirmative as above.

13. In result, I pass following:

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ORDER

i.

Appeal is allowed in part.

ii. Claimants

are

held

entitled

for

reassessed

compensation

of

Rs.3,30,000/- as against Rs.4,23,000/-

awarded by tribunal along with interest

at rate of 6% per annum.

iii. Insurers are directed to deposit balance

compensation within a period of two

months from date of receipt of certified

copy of this order.

iv. Directions issued by tribunal regarding

apportionment

and

release

of

compensation

would

proportionately

apply to reduced compensatio

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