- 1 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 17TH DAY OF MARCH, 2025 PRESENT THE HON'BLE MR JUSTICE K NATARAJAN AND THE HON'BLE MR JUSTICE VIJAYKUMAR A. PATIL MISCL. FIRST APPEAL NO. 201581 OF 2021 (MV-I) BETWEEN: THE BRANCH MANAGER, RELIANCE GEN. INS. CO. LTD., MAHADEV PLAZA, NEAR KOLAPUR CIRCLE, NEHRU NAGAR, BELGAUM. (NOW REPRESENTED BY AUTHORIZED SIGNATORY, DESHPANDE NAGAR, HUBLI) …APPELLANT (BY SMT. PREETI PATIL MELKUNDI, ADVOCATE) AND: 1. HANUMANTHA S/O MANAPPA, AGE: 30 YEARS, OCC: AGRIL. AND MESTRI, R/O: GOLAPALLI, TQ: LINGASUGUR, DIST: RAICHUR – 584101. 2. RAGHAVENDRA S/O SHIVASANGAPPA BARKER AGE: 32 YEARS, OCC: DRIVER OF THE JEEP BEARING NO.KA-26/N-0073, R/O: HULIGOL ROAD, GOURI TEMPLE, WARD NO.4, H.NO.264, BETTEGERI, TQ: GADAG – 585101. 3. SUNIL S/O MALLIKARJUN ABBIGERI AGE: MAJOR, OCC: OWNER OF THE JEEP BEARING NO.KA-26/N-0073, OPP: ABBIGERI COMPOUND Digitally signed by RAMESH MATHAPATI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 COTTON MARKET ROAD, GADAG – 582101. …RESPONDENTS (BY SRI R.S. SIDHAPURKAR, ADV. FOR R1; R2 & R3 DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT, PRAYING TO ALLOW THE ABOVE APPEAL BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 06.05.2021 IN MVC NO. 556/2019 PASSED BY THE SENIOR CIVIL JUDGE AND JMFC AND MACT AT LINGASUGUR. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE K NATARAJAN AND HON'BLE MR JUSTICE VIJAYKUMAR A. PATIL ORAL JUDGMENT (PER: HON'BLE MR JUSTICE VIJAYKUMAR A. PATIL) This appeal is filed by the insurance company challenging the judgment and award dated 06.05.2021 passed in MVC.No.556/2019 by the Court of Motor Accident Claims Tribunal, Lingasugur (hereinafter referred to as ‘Tribunal’). 2. The brief facts leading to filing of this appeal are that on 23.11.2018, the injured-claimant was standing near cur of Golapalli village. At that time, one jeep - 3 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 bearing registration No.KA-26/N-0073 came from the Gurgunta side driven by its driver in a rash and negligent manner dashed to the claimant, as a result the claimant sustained grievous injuries. Immediately, he was shifted to the Dr.Katti Hospital, Bagalkot, where he was provided treatment. It is averred that due to the accidental injury, the claimant sustained 80% physical disability and hence, he sought for compensation. 3. The respondent-corporation entered appearance and filed objections opposing the averments made in the claim petition by denying the accident, income and disability of the injured and sought for dismissal of the claim petition. 4. The Tribunal framed issues and recorded the evidence of the parties. The claimant examined himself as PW-1 and examined the doctor as PW-2 and got marked Ex.P1 to P28. The respondent examined one witness as RW-1 and no documents were produced. The Tribunal - 4 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 assessed the income of the injured at Rs.11,750/- by considering his disability at 75% and applying a multiplier of 17, awarded Rs.19,17,600/- under the head of loss of future income due to disability and also awarded a compensation under all other heads coming to a total of Rs.30,48,419/- along with interest at the rate of 9% p.a. Being aggrieved, the insurance company is in appeal. 5. Smt. Preethi Patil Melkundi, learned counsel appearing for the appellant-insurance company at the outset submits that she restricts her appeal only with regard to the award of interest by the Tribunal at 9% per annum. It is submitted that the Tribunal has not assigned any special reason to award 9% interest to the injured- claimant and generally taking note of the interest paid by the nationalized banks on the term deposits, the interest should be 6% per annum on the compensation amount and hence, she seeks to modify the judgment and award passed by the Tribunal and allow the appeal. - 5 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 6. Per contra, Sri. R. S. Sidhapurkar, learned counsel for the claimant supports the impugned judgment and award of the Tribunal and submits that the award of interest is purely on the discretion of the Tribunal and the Tribunal by taking note of the nature of injuries suffered by the claimant has awarded the interest at 9% which does not call for any modification. Hence, he seeks to dismiss the appeal filed by the insurance company. 7. We have heard the arguments of the learned counsel for the appellant - insurance company, learned counsel for the respondent – claimant, perused the material available on record and meticulously considered the contentions advanced. The only point that arises for consideration in this appeal is as under: i) Whether the Tribunal was justified in awarding the interest at the rate of 9% p.a. on the compensation amount? - 6 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 8. The parties to the proceeding do not dispute that in a road accident dated 23.11.2018, the respondent- claimant suffered grievous injuries and he was admitted in Dr.Katti Hospital, Bagalkot and was provided treatment. The claimant in support of his case, examined himself and also examined the treated doctor. Based on disability certificate and the testimony of PW-2, the Tribunal assessed the disability at 75% and considered the income of the injured at Rs.11,750/- per month and awarded the compensation. However, while determining the compensation, the Tribunal has awarded interest at the rate of 9%. On perusal of the impugned judgment, we did not find any reason assigned by the trial Court in awarding interest at 9% per annum on the compensation amount. 9. Learned counsel for the appellant-insurance company is right in contending that the rate of interest prevailing on the term deposits in the nationalized banks is 6% per annum. Keeping the said interest ratio, we are of the considered view that the interest of justice would be - 7 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 met if we modify the impugned award to the extent of awarding interest at 6% per annum. 10. For the aforementioned reasons, we proceed to pass the following: ORDER (i) The appeal is allowed in part. (ii) The impugned judgment and award dated 06.05.2021 passed in MVC.No.556/2019 insofar as compensation awarded by the Tribunal is concerned, remains unaltered. (iii) The respondent-claimant is entitled for interest at the rate of 6% p.a. on the compensation amount from the date of petition till the date of realization. (iv) The appellant – insurance company shall deposit the compensation amount - 8 - NC: 2025:KHC-K:1652-DB MFA No. 201581 of 2021 before the Tribunal within a period of eight weeks. The amount in deposit shall be transmitted to the concerned Tribunal. Sd/- (K NATARAJAN) JUDGE Sd/- (VIJAYKUMAR A. PATIL) JUDGE MCR List No.: 1 Sl No.: 40 CT: PS