NEW INDIA ASSURANCE CO LTD Vs. VENKATAPPA

JUDGEMENT

(1.) THIS appeal by the Insurance Company is directed against the judgment and award dated 15th April, 2005, passed in M.V.C. No.2652/1999, by the AddI. Judge, Court of Small Causes, Member, Motor Accident Claims Tribunal V.Bangalore, SCCH-5, (for short, 'Tribunal') for reduction of compensation on the ground that, the compensation of Rs.3,28,000/- awarded in favour of the claimants as against their claim for Rs. 10.00 Lakhs, is excessive and exorbitant.

(2.) THE facts in brief are that the claimants being the father, brother and sisters of the deceased, had filed a claim petition under Section 166 of the Motor Vehicles Act, against the appellant-Insurer and others, on account of the death of the deceased V. Manjunatha, in the road traffic accident that occurred at about 1:30 p.m. on 22-06-1999. It was their case that on the said date and time, the deceased V. Manjunath was in the Eicher Lorry bearing No.CNZ-5828 as a cleaner and moving towards Kolar from Bangalore. At that time, a Tata Tempo bearing Registration No.KA-05/ A-5648 being driven by its driver, in a rash and negligent manner, came and dashed against the Eicher Lorry. On account of the same, the deceased fell down and died on the spot. It is their case that the deceased was aged about 22 years, working as cleaner in the Lorry and was earning Rs.3,000/- per month and in view of the untimely death of the deceased, they have lost the breadwinner of the family and are in great financial distress and have to be compensated adequately.

(3.) THE principal submission canvassed by learned counsel appearing for Insurance Company is that, the Tribunal has committed grave error in deducting 1/3rd of the income towards the personal expenses of the deceased while arriving at loss of dependency, when in fact, it ought to have deducted 50%, as per the decision of the Apex Court in Sarla Verma's case (2009 ACJ 1298): (AIR 2009 SC 3104), since he was a bachelor. THErefore, he submitted that, 50% may be deducted from out of the income of the deceased towards his personal expenses and the impugned judgment and award passed by Tribunal may be modified accordingly.