SMT. KALAVATI & ORS. v. MIRZA KAISAR BAIG & ANR.

Case Details & Bench

Court: High Court
Hon'ble Judges: M. R. Shah
Krishna Murari
Judgment Date: 2022-09-23
Court Decision / Holding: Appeals partly allowed. The impugned High Court awards are modified: the claimants are entitled to Rs. 18,50,120 (CA 6676) and Rs. 15,76,104 (CA 6677) towards compensation, with 6% interest. The insurer/Respondents are to deposit the balance enhanced amounts with the Tribunal within eight weeks from today; failure to deposit will attract interest at 7.5% throughout. No order as to costs.
Final Disposition: Appeals partly allowed.

Parties to the Case

Appellants / Petitioners

SMT. KALAVATI & ORS.

Respondents

MIRZA KAISAR BAIG
ANR.

Legal Representation & Advocates

Counsels for Petitioners

• Sharanagouda Patil
• Ms. Supreeta Sharanagouda

Counsels for Respondents

• Shivam Singh
• Gopal Singh

Case Synopsis & Summary

These appeals arise from two motor-accident claim cases in which the claimants sought higher compensation for the death of two drivers who left dependants behind. The Tribunal awarded compensation including loss of dependency based on monthly incomes of Rs. 7,500 and Rs. 8,500 respectively. The High Court of Karnataka enhanced these amounts, treating the deceased as licensed drivers and workmen, and fixed higher monthly incomes. The appellants argued that the actual income was higher, contending for Rs. 15,000 per month, and urged loss of dependency be calculated with 40% future prospects and after deducting one-third for personal expenses, applying the appropriate multiplier. The respondents, the insurer, defended the Tribunal’s assessment and opposed excessive enhancement. The Supreme Court, after considering the evidence and noting that the deceased were licensed drivers, held that the correct actual monthly income for both deceased should be Rs. 10,000. Applying 40% future prospects, deducting one-third for personal expenses, and using multipliers 15 (CA 6676) and 13 (CA 6677), the claimants were awarded Rs. 18,50,120 and Rs. 15,76,104 respectively, with 6% interest. The insurer was directed to deposit the enhanced amounts within eight weeks, failing which interest would accrue at 7.5% throughout. The appeals were partly allowed, and there was no order as to costs.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the loss of dependency must be calculated on the actual income of the deceased drivers. They argued the drivers were licensed and actively employed, and thus justified a higher monthly income (initially suggested as Rs. 15,000 per month) with 40% future prospects and appropriate deductions for personal expenses, applying the correct multiplier to yield a higher compensation. They asserted that the High Court erred in limiting the quantum and that the Tribunal’s original assessment undervalued the claimants’ dependency loss. They pressed for larger overall compensation that reflects ongoing earnings potential and drivers’ livelihood, with timely deposit and continued interest on delayed payments.

Contentions of Respondents

The insurer and respondents maintained that the Tribunal’s award was appropriate given the evidence, and the High Court’s enhancement should not be disturbed beyond what the record supported. They argued against the proffered higher monthly incomes (such as Rs. 15,000), urged restraint on increasing future prospects beyond proved expectations, and supported applying standard deductions for personal expenses and the existing multipliers. They requested the Court to uphold the lower or modestly enhanced figures and to ensure that the restoration of any enhanced sums be aligned with evidence while protecting insurer interests and enforcing timely deposit within the prescribed period.

Extracted Judgment Text

Exact text extracted from official judgment records.

889 [2022] 5 S.C.R. 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 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 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 – 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 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._ C D E F 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. H 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 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 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 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 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 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 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. 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 1/3[rd] 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 B C D E F G 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 1/3[rd] 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 (Assisted by : Deepak Panwar, LCRA) H Appeals partly allowed.