IN THE HIGH COURT OF KARNATAKA AT BANGALORE BEFORE THE HON BLE MR JUSTICE N.ANANDA MISCELLANEOUS FIRST APPEAL NO.2693/2012

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1 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 27 th DAY OF JUNE 2014 BEFORE THE HON BLE MR JUSTICE N.ANANDA MISCELLANEOUS FIRST APPEAL NO.2693/2012 BETWEEN: 1. S LATHA W/O LATE S MUNIGOPAL AGED ABOUT 33 YEARS 2. S YASASWINI D/O LATE S MUNIGOPAL AGED ABOUT 12 YEARS MINOR REP BY MOTHER S LATHA 3. S VENNELA D/O LATE S MUNIGOPAL AGED ABOUT 10 YEARS MINOR REP BY MOTHER S LATHA 4. K SUSEELAMMA W/O LATE K SUBRAMANYA VADIYAR AGED ABOUT 66 YEARS ALL ARE R/AT NO 28, 19TH CROSS, HARIJANA SEVA SANGAM C.M.H ROAD, ULSOOR BANGALORE. APPELLANTS (BY SRI. A SREENIVASAIAH, ADV.)

2 2 AND: 1. SRINIVAS RAO T S/O VENKATA SUBBAIAH MALLAVARAPPADU TANGUTTUR PRAKASAM DISTRICT, ANDHRA PRADESH 2. THE MANAGER ORIENTAL INSURANCE CO LTD., RO NO 44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALOER RESPONDENTS (BY SRI.SOWRI RAJU, ADV. FOR R-2; R1-SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED: PASSED IN MVC NO.3860/2010 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE, MACT, BANGALORE, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, THE COURT DELIVERED THE FOLLOWING: J U D G M E N T The matter is listed for admission. With the consent of learned counsel for parties, the matter is taken up for final disposal. 2. The only question raised in this appeal is whether the Tribunal was right in deducting 30% of

3 3 the income of deceased towards income tax though salary of deceased (income of deceased) was within taxable limits and claimants are entitled for enhancement of compensation. The Tribunal has determined income of deceased at Rs.10,000/- per month. His annual income was Rs.1,20,000/-. The accident took place on The salary of deceased (income of deceased) was within taxable limits. In the circumstances, the Tribunal was not justified in deducting 30% out of salary of deceased towards income tax. Therefore, claimants are entitled to additional compensation of Rs.6,02,640/-. Thus claimants are entitled to compensation at Rs.20,08,800/- towards loss of dependency. 3. In a decision reported in 2013 ACJ 1403 (Rajesh and others Vs. Rajbir Singh and others), the Supreme Court has held that wife of deceased is entitled to compensation of Rs.1,00,000/- towards loss of consortium and claimants are entitled to

4 4 compensation of Rs.25,000/- towards funeral expenses. The compensation awarded by the Tribunal is modified as follows: Loss of dependency Rs.20,08, Loss of consortium Rs. 1,00, Funeral expenses Rs. 25, Total Rs.21,33, The claimants are entitled to total compensation of Rs.21,33,800/- as against Rs.14,56,200/- awarded by the Tribunal. In the result, I pass the following: O R D E R The appeal is accepted in part. The impugned award is modified. The compensation of Rs.14,56,200/- awarded by the Tribunal is enhanced to Rs.21,33,800/- with interest at 6% per annum from the date of the petition till the date of deposit. The compensation awarded in terms of the judgment shall be apportioned amongst the claimants 1 to 4 in the ratio of 30:25:25:20, respectively.

5 5 The compensation shall be invested in the names of the claimants in fixed deposits in any nationalized bank. As regards claimants 2 and 3, the investment shall be for the period till they attain majority. The first claimant shall be authorized to draw the accrued interest on the amount invested in her name and amount invested in the names of the claimants 2 and 3. The fourth claimant shall be authorized to draw the interest on the amount to be invested in her name. The entire interest on the enhanced amount shall be apportioned equally and paid to claimants 1 and 4. Sd/- JUDGE RS/*