Loading judgment…
No AI summary yet for this case.
- 1 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 02ND DAY OF AUGUST, 2022 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA MISCELLANEOUS FIRST APPEAL NO. 9009 OF 2019 (MV-D) C/W MFA CROB. NO. 69 OF 2021 (MV-D)
IN M.F.A.No.9009/2019 BETWEEN: 1. SMT. JAYAMMA, W/O LATE MUDLAIAH, AGED ABOUT 55 YEARS, 2. SRI. BYATARAJ, S/O LATE MUDLAIAH, AGED ABOUT 35 YEARS, 3. SRI. GURUDEV, S/O LATE MUDLAIAH, AGED ABOUT 33 YEARS, ALL ARE R/AT NO.56, PATTREDDYPALYA, KANAKAPURA MAIN ROAD, KAGGALIPURA POST, UTTARAHALLI HOBLI, BENGALURU - 560 082. …APPELLANTS (BY SRI. UDAYA KUMAR R L., ADVOCATE)
Digitally signed by PANKAJA S Location: HIGH COURT OF KARNATAKA
- 2 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
AND: 1. RELIANCE GENERAL INSURANCE CO. LTD., T.P.CLAIMS HUB, 6TH FLOOR, EAST WING, CENTENARY BUILDING, M.G.ROAD, BENGALURU - 560 076. 2. SRI. RAJESH H N., S/O NARAYANA SHASTRI, R/AT NO.13/4, 1ST CROSS, ANNAYAPPA GARDEN, JARAGANAHALLI, KANAKAPURA MAIN ROAD, J.P.NAGAR POST, BENGALURU - 560 078. …RESPONDENTS (BY SRI.ASHOK N PATIL, ADVOCATE FOR R1; NOTICE TO R2 IS DISPENSED WITH VIDE ORDER DATED 07.04.2021)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED.18.12.2018 PASSED IN MVC NO.4071/2017 ON THE FILE OF THE X ADDITIONAL JUDGE, COURT OF SMALL CAUSES, MOTOR ACCIDENT CLAIMS TRIBUNAL, BENGALURU, (SCCH-16), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.
IN M.F.A. CROB.No.69/2021 BETWEEN:
RELIANCE GENERAL INSURANCE COMPANY LIMITED, EAST WING, 5TH FLOOR, NO.28, CENTENARY BUILDING, M.G.ROAD,
- 3 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
BENGALURU - 560 001. NOW REPRESENTED BY MANAGER LEGAL. …CROSS OBJECTOR (BY SRI. ASHOK N PATIL, ADVOCATE) AND: 1. JAYAMMA, W/O LATE MUDLAIAH, AGED ABOUT 56 YEARS, 2. BYATARAJ, S/O LATE MUDLAIAH, AGED ABOUT 36 YEARS, 3. GURUDEV, S/O LATE MUDLAIAH, AGED ABOUT 34 YEARS, ALL THE RESPONDENTS R/AT NO.56, PATTAREDDYPALYA, KANAKAPURA MAIN ROAD, KAGGALIPURA POST, UTTARAHALLI HOBLI, BENGALURU - 560 082. 4. RAJESH H N., S/O NARAYANA SHASTRI, R/AT NO.13/4, 1ST CROSS, ANNAYAPPA GARDEN, JARAGANAHALLI, KANAKAPURA MAIN ROAD, J.P.NAGAR POST, BENGALURU - 560 078. …RESPONDENTS (BY SRI.UDAYA KUMAR R.L.,ADVOCATE)
- 4 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
THIS MFA CROB FILED UNDER ORDER XLI RULE 22 OF THE CPC AGAINST THE JUDGMENT AND AWARD DATED 18.12.2018 PASSED IN MVC NO.4071/2017 ON THE FILE OF THE X ADDITIONAL JUDGE, COURT OF SMALL CAUSES, M.A.C.T., BENGALURU, (SCCH-16), AWARDING COMPENSATION OF RS.16,50,000/- WITH INTEREST AT 9 PERCENT P.A. FROM THE DATE OF PETITION TILL REALIZATION.
THIS MFA AND MFA CROB COMING ON FOR ADMISSION, THIS DAY, THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
In respect of the death of Sri.Mudalaiah as a result of a motor cycle accident, the Tribunal by determining the monthly income of the deceased at the rate of Rs.19,081/- per month and has awarded the following sums: Sl. No. Particulars Amount in (Rs.) 1. Loss of Dependency 15,79,968-00 2. Loss of Consortium 40,000-00 3. Loss of estate 15,000-00 4. Funeral and transportation e penses 15,000-00
Total 16,49,968-00
The claimants are in appeal seeking for enhancement, principally on the ground that the Tribunal has committed a mistake in deducting about Rs.7,000/-
- 5 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
from the net pay and the entire net pay ought to have been taken into consideration for the purpose of calculating the compensation. 3. The insurer has also filed cross objection contending that the Tribunal ought to have adopted the split multiplier, since the deceased had only one year of service left and the award of interest at the rate of 9% per annum was on the higher side. 4. The pay slip which was produced before the Tribunal at Ex.P17 indicates that the claimant was getting the following sums: Earnings Amount Deductions Amount Others Amount Basic Pay 15250.00 PT 200.00 BbmpSc StSoc.C on 4350.00 DA 6596-00 EWF 30.00 BbmpPk Soc. Con 3500.00 HRA 4575.00 Benevolent 10.00
CCA 350.00
Medical 100.00
Uniform 300.00
Total Earnings 27171.00
Total Deduct- ions 8090.00 Nett:19081.00 (Nineteen Thousands Eighty One Only.
- 6 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
out of which the deductions were only Rs.240/- towards Professional Tax, the Employee Welfare Fund and Benevolent Fund and other deductions are in relation to the payments made to two societies. In my view, the deductions of Rs.7,850/- made towards two societies could not have been taken into consideration by the Tribunal. Consequently, the monthly income would have to be determined at (Rs.27,171/- - Rs.240/-) = Rs.26,931/-.
The Tribunal has correctly added 15% of the salary towards future prospects, deducted 1/3rd towards personal expenses and applied multiplier of ‘9’ and therefore, the claimant would be entitled to a sum of [(Rs.26,931+15%- 1/3rd) = Rs.20,647/- x 12 x 9 = Rs.22,29,876/-. 6. The argument of the learned counsel for the insurer that a split multiplier would have to be adopted cannot be accepted. The Apex Court has stated that only in exceptional cases, the split multiplier concept will have to be adopted. It is to be kept in mind, that a deceased was
- 7 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
a Poura Karmika and even after he attaining the age of 60 years, he would engage himself in some activities to earn his livelihood. 7. In that view of the matter, the application of split multiplier as advocated by the learned counsel for the insurer is untenable. 8. Learned counsel for the insurer contends that 10% would have to be deducted as Income Tax. The deceased was employed by BBMP. If the deceased had the liability to pay Income Tax, necessarily, the BBMP would have deducted the same from his income. Since no Income Tax has been deducted from the employer BBMP, it will have to be assumed that the deceased did not have any liability to pay income tax and was entitled to the entire sum that was paid to him from his employer. 9. In addition the claimants being the wife and two sons would each be entitled to Rs.44,000/- towards ‘loss of
- 8 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
consortium’ ie., (Rs.44,000 x 3) = Rs.1,32,000/- and also a sum of Rs.33,000/- under the ‘conventional heads’. 10. Consequently the award of the Tribunal is modified and the claimant would be entitled to the following compensation: Sl. No. Particulars Amount in (Rs.) 1. Loss of Dependency 22,29,876.00 2. Loss of Consortium 1,32,000.00 3. Conventional heads 33,000.00
Total 23,94,876.00
Thus, the *appeal and the cross objection are allowed in part. The claimant is entitled to an enhanced compensation of (Rs.23,94,768 - Rs.16,49,968) = Rs.7,44,908/-. 12. The Tribunal has awarded interest of 9% per annum. However, it would be appropriate to adopt the interest at the rate of 6% per annum. *Corrected vide chamber order dated:02.03.2023.
- 9 -
MFA No. 9009 of 2019 C/W MFA.CROB No. 69 of 2021
The Insurance Company is directed to deposit the enhanced compensation within eight weeks from the date of receipt of a certified copy of this order. 14. The amount in deposit shall be transferred to MACT for disbursal in terms of the impugned award.
SD/- JUDGE