Fakeerappa and Anr. v. Karnataka Cement Pipe Factory and Ors.
ARIJIT PASAYAT, J. Leave granted.
Appellants were the parents of one Yallappa Angadi (hereinafter referred
F to as 'deceased') who died in a vehicular accident. The appellant No. I filed
a claim petition under the Motor Vehicles Act, 1988 (in short the 'Act') in
the Court ofFirst Additional District Judge and M.A. C.T., Dharwad (in short
the 'Tribunal') claiming compensation. In the Claim Petition the appellant
No. 2 herein, i.e. the mother of the deceased was added as a formal party-
G respondent No. 5. The Tribunal noticed that the deceased was aged 27 years
at the time of accident. It accepted that the deceased was getting Rs.2000
p.m. On that basis to work out loss of dependency multiplier of I 8 was
adopted after deducting 50% of the income for personal expenses. A total
sum of Rupees two lakhs with 6% interest per annum from the date of
application was awarded as compensation.
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FAKEERAPPA v. KARNATAKA CEMENT PIPE FACTORY [PASAYAT, J] 37]
An appeal was preferred by the claimants under Section 173 of the Act A
praying for an increase of the compensation: The High Court by the impugned
judgment found no merit and dismissed the same.
In support of the appeal, learned counsel for the appellants submitted
that two points fall for adjudication. Firstly, whether the deduction of half of
the monthly income for personal expenditure is justified, and secondly whether B
the award of 6% interest per annum is justified.
Though the respondents have been served notice, only counter affidavit
has been filed by respondent No.2-0riental Insurance Co. Ltd. (hereinafter
referred to as the 'insurer').
Learned counsel for respondent No.2, submitted that there cannot be
any rigid formula as to what would be the percent:ige or quantum of deduction.
The Tribunal and the High Court have taken note of the relevant aspects to
hold that 50% deduction would be appropriate. There is no scope for any
interference with the percentage of deduction as fixed. Further, before the D
High Court there was no challenge to the rate of interest awarded by the
Tribunal. Therefore, for the first time before this Court such a grievance
cannot be raised. It is also submitted that multiplier of 18 as adopted is on
the higher side.
What would be the percentage of deduction for personal expenditure E
cannot be governed by any rigid rule or formula ofuniversal application. It
would depend upon circumstances of each case .. The deceased undisputedly
was a bachelor. Stand of the insurer is that after marriage, the contribution
to the parents would have been lesser and, therefore, taking an overall view
the Tribunal and the High Court were justified in fixing the deduction.
It has to be noted that the ages of the parents as disclosed in the Claim
Petition were totally unbelievable. If the deceased was aged about 27 years
as found at the time of post mortem and about which there is no dispute, the
father and mother could not have been aged 38 years and 35 years respectively
as claimed by them in the Claim Petition. Be that as it may, taking into G
account special features of the case we feel it would be appropriate to restrict
the deduction for personal expenses to one-third of the monthly income.
Though the multiplier adopted appears to be slightly on the higher side, the
plea taken by the insurer cannot be accepted as there was no challenge by the
insurer to the fixation of the multiplier before the High Court and even in the
A appeal filed by the appellants before the High Court the plea was not taken.
Since there was no question raised about the correctness of the rate of
interest before the High Court, we do not find any scope for interference with
the rate of interest fixed by the Tribunal in the absence of any challenge to
it before the High Court. The appeal is allowed to the extent indicated above,
B with no order as to costs.
Before we part with the case we think it necessary to point out a
somewhat shocking state of affairs which came to our notice. In the Claim
Petition filed before the Tribunal, this Court and the High Court of Kamataka,
Bangalore were impleaded as respondents for no sensible reason, and in
C gross abuse of process of law, though by hindsight absurdity seems to have
been set right by ordering deletion. Though these parties were given up
during adjudication, it is clear that the Claim Petition was filed without any
application of mind by the counsel concerned as to who would be proper or
necessary party or even a formal party and great sense of responsibility is
D expected to be exhibited by those concerned. At least while impleading a
party in Claim Petition, proper attention ought to be devoted which sadly was
not done.
K.K.T. Appeals partly allowed.
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