Case Note & Summary
The appeal was filed by the Karnataka State Road Transport Corporation against the judgment and award dated 26.07.2011 passed by the 14th Additional Judge, Court of Small Causes and MACT, Bengaluru City (SCCH.10) in MVC No.3227/2010. The Tribunal had awarded a compensation of Rs.23,94,154/- with interest at 6% p.a. from the date of petition till payment to the claimants, who are the wife and sons of the deceased Laxmanachar Joshi, who died in a road traffic accident. The claimants had sought Rs.40,00,000/-. The appellant-Corporation contended that the award was on the higher side and disproportionate to the income of the deceased. The facts are that the deceased was a priest aged about 55 years. The Tribunal assessed his monthly income at Rs.15,000/- based on the evidence of the claimants. The High Court found that the claimants did not produce any documentary evidence to prove the income of the deceased. Therefore, the court assessed the notional income at Rs.6,000/- per month. After deducting 1/3rd towards personal expenses and applying a multiplier of 11 (as per Sarla Verma case), the loss of dependency was calculated at Rs.5,28,000/-. The court also awarded Rs.10,000/- towards loss of consortium, Rs.5,000/- towards loss of estate, and Rs.5,000/- towards funeral expenses. Thus, the total compensation was reduced to Rs.5,48,000/-. The appeal was allowed in part, reducing the compensation from Rs.23,94,154/- to Rs.5,48,000/- with interest at 6% p.a. from the date of petition till payment.
Headnote
A) Motor Accident Claims - Compensation - Quantum - Appeal against award - Deceased was a priest aged 55 years - Claimants claimed Rs.40,00,000/- - Tribunal awarded Rs.23,94,154/- - Appellant-Corporation contended award is excessive - Held that Tribunal erred in taking monthly income as Rs.15,000/- without proper proof - Income assessed at Rs.6,000/- per month - After deducting 1/3rd towards personal expenses and applying multiplier of 11, loss of dependency reduced - Compensation reduced to Rs.5,28,000/- with interest at 6% p.a. (Paras 1-6)
Issue of Consideration
Whether the compensation awarded by the Tribunal is excessive and requires reduction.
Final Decision
Appeal allowed in part. Compensation reduced from Rs.23,94,154/- to Rs.5,48,000/- with interest at 6% p.a. from the date of petition till payment.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for death
- Multiplier method
- Income proof
- Future prospects
