SMT. KALAVATI & ORSversusMIRZA KAISAR BAIG & ANR.
- Citation
- 2022 INSC 1019
- Decided
- 23 September 2022
- Disposal
- Case Partly allowed
- Bench
- M R SHAH
Holding
Loss of dependency must be calculated on a monthly income of Rs.10,000 for the deceased drivers, with a 40% addition for future prospects, deduction of one‑third for personal expenses, and the applicable multiplier, leading to enhanced compensation awards.
Summary
The Supreme Court heard two appeals (Civil Appeal Nos. 6676 and 6677 of 2022) challenging the Karnataka High Court's enhancement of motor accident compensation. The claimants argued that the deceased drivers earned Rs.15,000 per month, while the High Court had used Rs.8,500 per month to compute loss of dependency. The Court held that, given the deceased were licensed drivers, a reasonable income for loss of dependency is Rs.10,000 per month. It then added 40% for future prospects, deducted one‑third for personal expenses, and applied the appropriate multiplier (15 in one case, 13 in the other), resulting in total compensation of Rs.18,50,120 and Rs.15,76,104 respectively, with 6% interest. The High Court orders were modified, directing the insurance company to pay the enhanced amounts within eight weeks, failing which interest at 7.5% will accrue. Both appeals were partly allowed.
Issues considered
- What is the appropriate monthly income of the deceased drivers for calculating loss of dependency?
- Whether the High Court's enhancement based on Rs.8,500 per month income is justified?
- What methodology should be applied for loss of dependency (future prospects, personal expense deduction, multiplier)?
- Can the Supreme Court modify the High Court's compensation order and impose payment timelines with interest?
Subjects
Judgment
[2022] 5 S.C.R. 889 889
SMT. KALAVATI & ORS. A
v.
MIRZA KAISAR BAIG & ANR.
(Civil Appeal No. 6676 of 2022)
SEPTEMBER 23, 2022 B
[M. R. SHAH AND KRISHNA MURARI, JJ.]
Compensation – Enhancement of – Motor accident claim –
High Court enhanced the compensation awarded by the Tribunal
by enhancing the amount towards loss of dependency considering
C
the income of the deceased persons at Rs.8,500/- per month – On
appeal, held: Considering the fact that the deceased were having
driving license and were working as drivers, the claimants shall be
entitled to the loss of dependency considering the income of the
deceased as Rs.10,000/- per month – Thus, in C.A No.6676 of 2022,
considering the actual income of the deceased as Rs.10,000/- per D
month and adding 40% towards the future prospects, thereafter
deducting 1/3rd towards the personal expenses of the deceased and
applying the multiplier of 15, the claimants are entitled to
Rs.16,18,120/- under the head loss of dependency and a total sum
of Rs.18,50,120/- towards the compensation with 6% interest –
E
Further in C.A No.6677 of 2022 also, considering the actual income
of the deceased as Rs.10,000/- per month and adding 40% towards
the future prospects, thereafter deducting 1/3rd towards the personal
expenses of the deceased and applying the multiplier of 13, the
claimants are entitled to Rs.14,56,104/- under the head loss of
dependency and a total sum of Rs.15,76,104/- towards the F
compensation with 6% interest – Respective impugned orders
modified – Respondents-insurance company to deposit the balance
enhanced amount of compensation with the Tribunal within 8 weeks
from today failing which it shall carry an interest @ 7.5 % all
throughout.
G
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6676
of 2022.
From the Judgment and Order dated 19.02.2019 of the High Court
of Karnataka at Kalaburagi Bench in MFA No.200507 of 2018.
H
889
890 SUPREME COURT REPORTS [2022] 5 S.C.R.
A With
Civil Appeal No. 6677 of 2022.
Sharanagouda Patil, Ms. Supreeta Sharanagouda for M/s S-legal
Associates, Advs. for the Appellants.
B Shivam Singh, Gopal Singh, Advs. for the Respondents.
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 19.02.2019 passed by the High Court of Karnataka at
C
Kalaburagi Bench passed in respective First Appeals, the original
claimants have preferred the present appeals and have prayed to enhance
the amount of compensation.
Civil Appeal No. 6676 of 2022
D 2. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 19.02.2019 passed by the High Court in M.F.A. No.
200507 of 2018 by which the High Court has enhanced the amount of
compensation from Rs.10,70,000/- as awarded by the learned Tribunal
to Rs.15,98,120/- only, the original claimants have preferred the present
appeal.
E
2.1 The issue involved in the present appeal is in a very narrow
compass.
2.2 That the deceased at the time of accident/death was serving
as a driver and was holding a valid driving license. According to the
F original claimants he was earning Rs.15,000/- per month.
2.3 The learned Tribunal awarded the amount of compensation
for the death of the deceased at Rs.10,70,000/- under different heads
including the loss of dependency. The learned Tribunal considered the
loss of dependency at Rs.9,00,000/- considering the income of the
G deceased at Rs.7,500/- per month. By the impugned judgment and order
the High Court has enhanced the loss of dependency to Rs.14,28,120/-
considering the income of the deceased at Rs.8,500/- per month.
2.4 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court, the claimants have preferred the
present appeal for enhancing the amount of compensation on loss of
H
SMT. KALAVATI & ORS. v. MIRZA KAISAR BAIG & ANR. 891
[M. R. SHAH, J.]
dependency considering the income of the deceased at Rs.15,000/- per A
month.
Civil Appeal No. 6677 of 2022
3. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 19.02.2019 passed by the High Court in MFA No. 200509
of 2018 by which the High Court has enhanced the amount of B
compensation from Rs.9,00,000/- as awarded by the learned Tribunal to
Rs.12,25,104/- only, the original claimants have preferred the present
appeal.
3.1 That the learned Tribunal awarded a total sum of Rs.9,00,000/
- under different heads towards the compensation for the death of the C
deceased – husband of the appellant no.1. The learned Tribunal has
awarded the loss of dependency at Rs.7,80,000/- considering the income
of the deceased at Rs.7,500/- per month. In an appeal the High Court
has enhanced the amount of compensation to Rs.12,25,104/- by enhancing
the amount of compensation towards loss of dependency at D
Rs. 11,05,104/- considering the income of the deceased at Rs. 8,500/-
per month.
3.2 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court, the original claimants have preferred
the present appeal praying to enhance the amount of compensation under E
the head loss of dependency considering the income of the deceased at
Rs.15,000/- per month.
4. Having heard learned counsel for the respective parties and in
the facts and circumstances of the case and considering the material on
record and considering the fact that the deceased were having driving F
license and were working as drivers, the claimants shall be entitled to
the loss of dependency considering the income of the deceased at least
as Rs.10,000/- per month. Thereafter adding 40% towards future
prospects and rise in income and applying the relevant multiplier the
claimants shall be entitled to the enhanced amount of compensation.
G
4.1 In the case of Civil Appeal No.6676 of 2022 considering the
actual income of the deceased as Rs.10,000/- per month and adding
40% towards the future prospects and thereafter deducting 1/3rd towards
the personal expenses of the deceased and applying the multiplier of 15
the claimants shall be entitled to Rs.16,18,120/- (instead of
H
892 SUPREME COURT REPORTS [2022] 5 S.C.R.
A Rs. as awarded by the learned Tribunal) towards the
compensation under the head loss of dependency.
4.2 Now so far as the Civil Appeal No.6677 of 2022 is concerned,
considering the actual income of the deceased as Rs.10,000/- per month
and adding 40% towards the future prospects and thereafter deducting
B 1/3rd towards the personal expenses of the deceased and applying the
multiplier of 13 the claimants shall be entitled to Rs.14,56,104/- towards
the loss of compensation under the head loss of dependency.
To the aforesaid extent, the impugned judgment and orders passed
by the High Court are required to be modified.
C 5. In view of the above and for the reason stated above, both the
appeals succeed in part. The impugned judgment and order passed by
the High Court in MFA No.200507 of 2018 is hereby modified and it is
held that the original claimants shall be entitled to a total sum of
Rs.18,50,120/- towards the compensation with 6% interest (in place of
D Rs.15,98,120/- as awarded by the learned Tribunal).
Civil Appeal No.6676 of 2022 is partly allowed to the aforesaid
extent.
5.1 The impugned judgment and order passed by the High Court
in MFA No.200509 of 2018 is hereby modified and it is held that the
E original claimants shall be entitled to a total sum of Rs.15,76,104/- towards
the compensation with 6% interest (in place of Rs.12,25,104/- as awarded
by the learned Tribunal).
Civil Appeal No.6677 of 2022 is hereby partly allowed to the
aforesaid extent.
F
The respondents/insurance company to deposit the balance
enhanced amount of compensation with the learned Tribunal within a
period of eight weeks from today failing which it shall carry an interest
@ 7.5 % all throughout.
Both these appeals are partly allowed to the aforesaid extent. In
G the facts and circumstances of the case, there shall be no order as to
costs.
Divya Pandey Appeals partly allowed.
(Assisted by : Deepak Panwar, LCRA)
H
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