Sanjeevi N. Shetty Vs Srinivas Shetty <BR> The Branch Manager National Insurance Co. Ltd. Vs Sanjeevi N. Shetty

Karnataka High Court 29 Oct 2014 Miscellaneous First Appeal No. 5061 of 2012 a/w MFA. CROB. No. 26 of 2013 (2014) 10 KAR CK 0192
Bench: Division Bench

Judgement Snapshot

Case Number

Miscellaneous First Appeal No. 5061 of 2012 a/w MFA. CROB. No. 26 of 2013

Hon'ble Bench

Ravi V. Malimath, J; K.L. Manjunath, J

Advocates

H. Pavana Chandra Shetty and O. Mahesh, Advocate for the Appellant; O. Mahesh and H. Pavana Chandra Shetty, Advocate for the Respondent

Judgement Text

Translate:

Ravi V. Malimath, J.@mdashThe case of the claimants is that on 8.8.2009 at about 14.30 hours deceased Naveenchandra Shetty was riding his motor cycle bearing No. AP-15-AF-1000 from Kundapura to Gulavady side. At that time, the driver of a bus bearing No. KA-20 A-3098 drove the vehicle in a rash and negligent manner and dashed against the ''motor cycle. The deceased fell down, sustained injuries and died. He was working as an electric contractor and was earning more than Rs. 3,00,000/- p.a. The petitioners being his wife and minor child, filed a claim petition under Section 166 of Motor Vehicles Act, 1973. The Tribunal awarded Rs. 13,64,333/- along with interest. Seeking enhancement of compensation, the claimants have filed MFA No. 5061/2012. The insurer has filed MFA. Crob. No. 26/2013 questioning the excessive grant of compensation.

2. Heard learned counsel.

3. The Tribunal considered the income tax returns of the deceased filed by the claimants for various years. For the year 2003-04, the returns was to the tune of Rs. 60,855/- and Rs. 68,450/-, Rs. 72,150/-, Rs. 58,750/-, Rs. 75,850/-, Rs. 90,450/- for the consecutive years For the year 2009-10, income from business was shown as Rs. 1,26,540/-. That was the year of the accident. However, the Tribunal was of the view that since the returns were filed subsequent to the death of the deceased, the same could not be accepted. It considered the fact that there was an increase of income to the tune of Rs. 15,000/- to Rs. 20,000/- per annum from the year 2007 onwards. Therefore, holding the basis of the income for the year 2008-09 at Rs. 90,450/- per annum, Rs. 15,000/- was added to arrive at the notional income of Rs. 1,05,000/- per annum. To that, an amount of Rs. 31,500/- was added as future prospects and Rs. 18,000/- p.a. was added as agricultural income and an amount of Rs. 4,000/- was deducted towards income tax, holding the notional income at Rs. 1,50,500/- p.a.

4. We are of the considered view that the notional income held by the Tribunal requires to be modified. The income tax returns for the year 2009-10 shows income from business to the tune of Rs. 1,26,540/-. The returns for the previous years are increased by Rs. 15,000/- to Rs. 20,000/- annually. Therefore, it cannot be said that only because the returns were filed by the legal representatives, the same should be disbelieved. Since the returns for the year 2009-10 have been filed, the same figure requires to be adopted as income from business. For the years 2002 to 2004, the income from agriculture was showed at Rs. 13,000/- p.a. Hence, for the accident that occurred in the year 2009, we are of the view that notional agricultural income of Rs. 15,000/- p.a. be considered. Hence, income from business and from agriculture would be Rs. 1,26,540 + Rs. 15,000/- = Rs. 1,41,540/- p.a. 30% of the same requires to be added towards future prospects since the deceased was aged 45 years at the time of accident which would come to of Rs. 42,462/-. Hence, the notional income would be Rs. 1,41,540/- + Rs. 42,462/- = Rs. 1,84,002/- which is rounded to Rs. 1,84,000/-. 1/3rd of the same is deducted towards the personal expenses of the deceased and the same would come to Rs. 1,22,666/-. He was aged 45 years at the time of accident. Hence, the appropriate multiplier would be 14. Hence, the compensation to be awarded towards ''loss of dependency'' would be Rs. 17,17,324/-.

5. Towards other conventional heads like, ''loss of consortium'' ''loss of love and affection'', ''funeral expenses'', etc., a sum of Rs. 2,00,000/- is awarded in all.

6. Hence, the total compensation to be awarded to the claimants is Rs. 19,17,324/- which shall carry interest at 9% p.a. which shall be settled within eight weeks from the date of receipt of the certified copy of this order.

7. Consequently, MFA No. 5061/2012 is allowed in the aforesaid terms. MFA. Crob. No. 26/2013 is dismissed.

The amount in deposit if any, in MFA. Crob. No. 26/2013 shall be transmitted to the concerned Tribunal.

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