- 1 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF APRIL, 2025 PRESENT THE HON'BLE MRS JUSTICE K.S.MUDAGAL AND THE HON'BLE MR JUSTICE M.G.S. KAMAL MISCELLANEOUS FIRST APPEAL NO. 2699 OF 2017 (MV) C/W MFA CROSS OBJECTION NO. 45 OF 2018 (MV) IN MFA No. 2699/2017 BETWEEN: NATIONAL INSURANCE CO., LTD. NEAR VENKATESHWARA THEATER KUSHALNAGAR-571234 THROUGH ITS REGIONAL OFFICE #144, SUBHARAM COMPLEX M G ROAD BANGALORE-560 001 REP. BY ITS ADMINISTRATIVE OFFICER SMT REKHA S MENON …APPELLANT (BY SRI. SEETHA RAMA RAO B C ., ADVOCATE) AND: 1. SMT. H.L. SUMA AGED 46 YEARS W/O LATE H L SRINIVAS RESIDENTS OF RASALPURA BALGOODU VILLAGE Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 RANGASAMUDRA POST KUSHALNAGAR HOBLI SOMWARPET TALUK KODAGU DISTRICT-571236 2. SRI TILAK B S AGED ABOUT 25 YEARS S/O LATE H L SRINIVAS RESIDENTS OF RASALPURA BALGOODU VILLAGE RANGASAMUDRA POST KUSHALNAGAR HOBLI SOMWARPET TALUK KODAGU DISTRICT -571236 3. SRI NITHIN B S AGED ABOUT 23 YEARS S/O LATE H L SRINIVAS RESIDENTS OF RASALPURA BALGOODU VILLAGE RANGASAMUDRA POST KUSHALNAGAR HOBLI SOMWARPET TALUK KODAGU DISTRICT-571236 4. SRI LINGAIAH AGED ABOUT 85 YEARS SINCE DECEASED REPT. BY R-1 TO R-3 5. SRI RAVI KUMAR MAJOR S/O RAMAKUTTY RESIDING AT NO.182 KALLURU VILLAGE AND POST SOMWARPET TALUK KODAGU DISTRICT -571236 (OWNER OF MOTOR CYCLE NO.KA.12/K-2300) - 3 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 6. SRI P UNNI KRISHNA @ UNNI AGED ABOUT 24 YEARS S/O LATE MANOHAR RESIDENT OF 7TH CIRCLE HOSAKOTE SUNTICOPPA -561 104 (RIDER OF MOTOR CYCLE NO.KA.12/K-2300) 7. THE MANAGER UNITED INDIA INSURANCE COMPANY LTD. SHREE MAHAGANAPATHI COMPLEX 2ND FLOOR, COLLEGE ROAD MADIKERI -571201 KODAGU BABA COMPLEX MAIN ROAD (INSURER OF MOTOR CYCLE NO.KA.12/K-8295) …RESPONDENTS (BY SRI.R.L.UDAYA KUMAR, ADVOCATE FOR R-1 TO R-3 SRI.NATARAJU B HALEMANE, ADVOCATE FOR R-5 & R6 SRI.RAVISH BENNI, ADVOCATE FOR R-7) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 18.07.2016 PASSED IN MVC NO.216/2015 ON THE FILE OF THE PRINCIPAL DISTRICT JUDGE & MEMBER, MACT, KODAGU- MADIKERI, AWARDING COMPENSATION OF RS. 27,27,960/- WITH INTEREST AT 9% P.A. PENDETE-LITE AND FUTURE INTEREST TILL THE DATE OF REALIZATION OF AWARD AMOUNT. IN MFA.CROB NO. 45/2018 BETWEEN: 1. SMT. H.L. SUMA W/O LATE H.L. SRINIVAS, - 4 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 AGED ABOUT 48 YEARS, R/AT RASALPURA, BALGOODU VILLAGE, RANGASAMUDRA POST, KUSHALNAGAR HOBLI, SOMWARPET TALUK, KODAGU-571236. 2. SRI. TILAK B.S. S/O H.L. SRINIVAS, AGED ABOUT 26 YEARS R/AT RASALPURA, BALGOODU VILLAGE, RANGASAMUDRA POST, KUSHALNAGAR HOBLI, SOMWARPET TALUK, KODAGU-571236. 3. SRI. NITHIN B.S. S/O H.L. SRINIVAS, AGED ABOUT 24 YEARS, R/AT RASALPURA, BALGOODU VILLAGE, RANGASAMUDRA POST, KUSHALNGAR HOBLI, SOMWARPET TALUK, KODAGU-571236. SRI. LINGAIAH(DIED) NOTE. THE 4TH PETITIONER/4TH RESPONDENT SRI. LINGAIAH DIED ON 16.09.2019. THE L.Rs ARE ALREADY ON RECORD. ...CROSS OBJECTORS (BY SRI. R.L. UDAYA KUMAR, ADVOCATE) AND: 1. SRI. RAVI KUMAR S/O SRI. RAMAKUTTY, MAJOR, R/AT 182, KALLURU VILLAGE AND POST, SOMAWARPET TALUK, KODAGU-571236. - 5 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 2. SRI. UNNI KRISHNA @UNNI S/O LATE MANOHAR, AGE ABOUT 25 YEARS, R/AT 7TH CIRCLE, HOSAKOTE, SUNTICOPPA-561104. 3. THE MANAGER, NATIONAL INSURANCE COMPANY LIMITED NEAR VENKATESWAR THEATER, KUSHALNAGAR-5571234 THROUGH ITS REGIONAL OFFICE, NO. 144, SUBHARAM COMPLEX, M.G. ROAD, BENGALURU-560001, (REPRESENTED BY ITS ADMINISTRATIVE OFFICER) 4. THE MANAGER UNITED INDIA INSURANCE COMPANY LIMITED, SHREE MAHAGANAPATHI COMPLEX, 2ND FLOOR, COLLEGE ROAD, MADIKERI-561104, KODAGU, BABA COMPLEX MAIN ROAD. ...RESPONDENTS (BY SRI.B.C.SEETHARAMA RAO, ADVOCATE FOR R-3, SRI.RAVISH BENNI, ADVOCATE FOR R-4) THIS MFA CROB IS FILED UNDER ORDER 41 RULE 22 OF CPC READ WITH SECTION 173(1) OF M.V. ACT, 1988 PRAYING TO MODIFY THE JUDGMENT AND AWARD DATED 18.07.2016 PASSED IN MVC No.216/2016 BY THE COURT OF THE PRINCIPAL DISTRICT JUDGE AND MOTOR ACCIDENT CLAIMS TRIBUNAL, KODAGU, MADIKERI, INSOFAR AS ASSESSING THE COMPENSATION. THIS APPEAL AND MFA CROB, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 6 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 CORAM: HON'BLE MRS JUSTICE K.S.MUDAGAL and HON'BLE MR JUSTICE M.G.S. KAMAL ORAL JUDGMENT (PER: HON'BLE MR JUSTICE M.G.S.KAMAL) The Miscellaneous First Appeal is by the National Insurance Company who was the respondent No.3 before the Tribunal and the Cross Objection is by the claimants before the Tribunal aggrieved by the Judgment and award dated 18.07.2016 passed in MVC No.216/2015 on the file of Principal District Judge and Member MACT, Kodagu, Madikeri. 2. Brief facts of the case are that: On 19.02.2015 at about 7.30 P.M. when the deceased- Srinivas was riding his motorcycle bearing registration No.KA- 12-K-8295 at Guddehosuru near a turn of Sunnadakeri, respondent No.2 riding motorcycle bearing registration No.KA- 12-K-2300 belonging to respondent No.1 in a rash and negligent manner hit deceased-Srinivas from behind resulting in deceased falling down, sustaining injuries and he succumbed to the same at the spot. - 7 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 3. Thereupon claimants being wife, children and father of the deceased respectively filed the claim petition under Section 166 of the Motor Vehicles Act seeking compensation in a sum of Rs.48,72,000/- on the premise that deceased aged about 48 years was working as driver in the Education Department drawing a salary of Rs.25,365/- per month and was contributing the same to the family. That the untimely death of the deceased on account of the accident that was caused due to rash and negligent riding of the motorcycle by respondent No.2 has caused financial and emotional distress to the claimants. 4. On service of notice respondent No.1, the owner and respondent No.2, the rider of the offending motorcycle filed common written statement denying the averments made in the claim petition. It is contended that the respondent No.2 was holding valid driving licence and that the offending motorcycle was insured with the respondent No.3-insurance company and liability if any needs to be indemnified by the respondent No.3- insurance company. - 8 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 5. Respondent No.3 -insurance company in its written statement denied the mode and manner of the accident. It also denied the age and other particulars of the deceased. It is contended that liability if any is subject to the terms and conditions of the insurance policy and the applicable provisions of law. Hence, sought for dismissal of the petition. 6. Respondent No.4 the insurer of the motorcycle belonging to the deceased in the written statement contended that the deceased himself was the owner of the motorcycle and the accident did not occur due to any rash and negligent driving of the said motorcycle of the deceased. That the respondent No.4 is a formal party. Hence, sought for dismissal of the claim petition against it. 7. Trial Court framed following issues: "1. Whether the petitioners/LRs., prove that, on 19.02.2015 at about 7.30 p.m., the deceased H.L.Srinivasa was going on a Motor Cycle bearing Reg.No.KA-12-K-8295 from Guddehosur towards Kushalnagar and when he reached Sunnadakeri, a motor cycle bearing Reg.No.KA-12-K-2300 driven by respondent No.2 came in a rash and negligent manner with high speed from back side and dashed against the motor cycle of deceased and as a result, deceased Srinivasa fell on the road and died at the spot? - 9 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 2. Whether the petitioners/LRs., prove that they are entitled to compensation for the death of deceased H.L.Srinivasa as prayed in the petition, if so, to what extent and from whom? 3. What order or award?" 8. Tilak, the claimant No.2, Lingaiah, claimant No.4 being son and father respectively of the deceased were examined as PW-1 and PW2 and got exhibited 13 documents as Ex.P-1 to P- 13. No witness is examined on behalf of the respondents. However, seven documents have been marked as Ex.R-1 to R- 7. 9. Tribunal on appreciation of evidence, by the impugned Judgment and award came to the conclusion that the accident in question had occurred on account of rash and negligent riding of the offending motorcycle by the respondent No.2 resulting in the death of the deceased at the spot. The Tribunal taking the age of the deceased as 48 years as mentioned in Ex.P3 the Post Mortem report and the salary at Rs.25,365/- as per the salary certificate at Ex.P5, applying the multiplier of `13' held that the claimants would be entitled to Rs.26,37,960/- towards `loss of dependency'. Tribunal has - 10 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 further awarded Rs.25,000/- each under `loss of love and affection', `loss of estate' and `loss of consortium' and has further awarded Rs.15,000/- towards `funeral expenses and transportation charges'. Thus, in aggregate the Tribunal has awarded a sum of Rs.27,27,960/- with interest at 9% p.a. from the date of claim petition till the date of payment. 10. Being aggrieved by the aforesaid Judgment and award the National insurance company/respondent No.3 before the Tribunal is before this Court in MFA No.2699/2017 while the claimants are before this Court in MFA Cross Objection No.45/2018. 11. Sri.B.C.Seetharama Rao, learned counsel appearing for the appellant-insurance company through video conferencing submitted that the respondent No.2- rider of the offending motorcycle did not have the licence which aspect of the matter has not been appreciated by the Tribunal. Therefore the appellant-insurance company could not have been fastened with the liability of paying the compensation amount. He further submits that as per the salary certificate at Ex.P5 the date of birth of the deceased is shown as - 11 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 01.06.1964. As such, as on the date of the accident deceased was aged about 50 years. However the Tribunal has wrongly taken his age as 48 years relying upon the Post Mortem report at Ex.P3. This has led to wrong application of multiplier of `13' instead of `11'. Hence, seeks for allowing the appeal. 12. Sri.R.L.Udaya Kumar, learned counsel appearing for the cross objectors/claimants submits that the Tribunal erred in deducting 1/3rd of the income of the deceased towards his personal and living expenses which ought to have been 1/4th since there are four dependents. That the award of compensation under the conventional heads is less and requires enhancement. Hence, seeks for allowing of the cross objection. 13. Heard both side and perused the records. 14. Accident in question, involving the offending motorcycle belonging to respondent No.1 ridden by respondent No.2 resulting in death of deceased Srinivas, who was the husband, father and son respectively of the claimants is not in dispute. - 12 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 15. The points that require consideration are with regard to determination of quantum of compensation and the liability of payment of the same. 16. Deceased-Srinivas was stated to have been working as a driver in the Education Department drawing monthly salary of Rs.25,365/- as evidenced by his salary certificate produced at Ex.P5. The date of birth of the deceased in the said document at Ex.P5 is shown as 01.06.1964. In the driving licence of the deceased as per Ex.P9 his date of birth is shown as 20.04.1967. The Tribunal has relied upon the post mortem report marked at Ex.P3 wherein his age is shown as 49 years. This Court in the circumstances finds it appropriate to rely upon the driving licence of the deceased wherein his date of birth is shown as 20.04.1967. As such the age of the deceased as on the date of the accident would be about 47 years. 17. The monthly income of the deceased is Rs.25,365/-, of which Rs.200/- is deducted towards professional tax. Thus monthly income of the deceased would be Rs.25,165/-. Considering the age of the deceased in terms of the law laid down by the Apex Court in the case of National Insurance - 13 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 Company Limited vs. Pranay Sethi1 30% of the monthly income needs to be added towards future prospects. Thus, monthly income of the deceased would be Rs.25,165+7549.5 = Rs.32,715/-. Therefore the annual income of the deceased would be Rs.32,715x12 = Rs.3,92,580/-. 18. As per the Finance Act, 2015 income tax of 10% of the income exceeding Rs.2,50,000/- needs to be deducted. [Rs.3,92,580-2,50,000=1,42,580]. Thus after deduction of 10% of 1,42,580/- which is Rs.14,258/- from Rs.3,92,580/- towards income tax, the annual income of the deceased would be Rs.3,78,322/-. 19. Deceased-Srinivas has left behind four dependants as such, 1/4th needs to be deducted instead of 1/3rd deducted by the Tribunal towards his personal and living expenses. Considering the age of the deceased multiplier of `13' is applied. Calculated as such, `loss of dependency' would be Rs.3,78,322x3/4x13 = Rs.36,88,640/-. 1 AIR 2017 SC 5157 - 14 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 20. As per the law laid down in the case of Magma General Insurance Company Ltd. v. Nanu Ram 2 clarified by the judgment in the case of United Insurance Company Ltd., vs. Satinder Kaur @ Satwinder Kaur and others3 claimant No.1 being the wife is entitled for Rs.40,000/- towards `loss of spousal consortium'. Claimants 2 and 3 being children are entitled for Rs.40,000/- each towards `loss of parental consortium'. Claimant No.4 being the father is entitled for Rs.40,000/- towards `loss of filial consortium'. In addition they are entitled for Rs.15,000/- towards `loss of estate' and `funeral expenses'. They are also entitled for enhancement of 10% of the aforesaid compensation under `conventional heads'. Thus, claimants are entitled for total compensation of Rs.38,97,646/- rounded off to Rs.38,97,650/- as against Rs.27,27,960/- awarded by the Tribunal as under: 2 2018 (18) SCC 130 3 AIR 2020 SC 3076 Sl.No. Head Amount 1. Towards loss of dependency Rs. 36,88,650 2. Towards loss of consortium Rs. 1,76,000 3. Towards loss of estate Rs. 16,500 4. Towards funeral expenses Rs. 16,500 Total Compensation Rs.38,97,650 - 15 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 21. As rightly pointed out by learned counsel for the appellant-insurance company neither respondent No.1 nor respondent No.2 have adduced any evidence by entering the witness box with regard to respondent No.2 possessing driving licence. The charge sheet at Ex.P4 indicate that the respondent No.2 was riding the motorcycle without holding valid driving licence. In that view of the matter, the appellant -insurance company shall in the first instance pay the aforesaid compensation to the claimants and thereafter recover the same from the respondent No.1, the owner of the offending vehicle. Accordingly, the following: ORDER Appeal and Cross objection are allowed in part. The impugned award is modified as follows: (i) The claimants are entitled to compensation of Rs.38,97,650/- with interest thereon at 6% p.a. from the date of petition till its realisation. (ii) Respondent No.3 shall deposit the aforesaid compensation before the Tribunal on adjusting the amount already deposited, if any, within four weeks from the date of receipt of copy of this order. - 16 - NC: 2025:KHC:16702-DB MFA No. 2699 of 2017 C/W MFA.CROB No. 45 of 2018 (iii) On such deposit respondent No.3 is entitled to recover the same from respondent No.1. (iv) Award with regard to apportionment and investment is maintained. (v) On deposit of the amount, Tribunal shall release the shares of claimant No.1 and 4 to claimant No.1 and the share of claimants 2 and 3 to them digitally on furnishing required documents. Amount in deposit if any and trial court records shall be transmitted to the Tribunal forthwith. Sd/- (K.S.MUDAGAL) JUDGE Sd/- (M.G.S. KAMAL) JUDGE SBN List No.: 1 Sl No.: 38