- 1 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE PRADEEP SINGH YERUR MISCELLANEOUS FIRST APPEAL NO.8534 OF 2024 (MV-D) BETWEEN: M/S UNITED INDIA INSURANCE COMPANY LTD REGIONAL OFFICE, NO.18, KRISHI BHAVAN, 5TH & 6TH FLOOR, NRUPATHUNGA ROAD, NEAR CORPORATION CIRCLE, BENGALURU -560 001. REPRESENTED BY VAISAKH MOHAN, ASSISTANT MANAGER. … APPELLANT (BY SMT.GEETHA RAJ, ADVOCATE) AND: 1. MR V NARSIMHULU S/O V SIDDAPPA, AGED ABOUT 54 YEARS 2. MRS.V SUSHEELA, W/O V NARASIMHULU AGED ABOUT 53 YEARS 3. MR.V SARANRAJ, S/O V NARASIMHULU AGED ABOUT 24 YEARS, RESPONDENTS NO.1 TO 3 ARE R/AT 3-6, NAYANAVARIPALLI, JOGIVARIPALLI, CHERAKU ARIPALLE, ANDHRA PRADESH-517 123 Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 4. MR.B SURESH BABU, S/O B SUBBURAM DOOR NO.1-39 MARRIMAKULAPALLI POST TARIGONDA MARRIMAKULAPALLI POST GURRAMAKONDA, CHITTOOR ANDHRA PRADESH -517 291. …RESPONDENTS (BY SRI.N.R.RANGEGOWDA .,ADVOCATE FOR R-1 TO R-3; NOTICE TO R-4 IS DISPENSED WITH V.O.D 28.03.2025) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 5.11.2024 PASSED IN MVC NO. 972/2022 ON THE FILE OF THE IV ADDITIONAL SMALL CAUSES JUDGE AND ACJM, MEMBER, MACT, BENGALURU (SCCH-6), AWARDING COMPENSATION OF RS. 25,53,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE PRADEEP SINGH YERUR ORAL JUDGMENT This appeal is preferred by the appellant – insurance company challenging the judgment & award dated 5th November 2024 passed by the IV Addl. Small Causes Judge & ACJM, Bengaluru. This appeal is founded on the premise of exhorbitant compensation awarded by the Tribunal. - 3 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 2. Parties to the appeal shall be referred to as per their status before the Tribunal. 3. It is the vehement contention of learned counsel for the insurance company that the impugned judgment & award passed by the Tribunal is erroneous and illegal as the Tribunal committed an error in awarding excess compensation without taking into consideration the material evidence on record in the proper perspective. The Tribunal assessed the income on the higher side without there being any cogent evidence with regard to proof of income. The Tribunal failed to take into consideration that the deceased was not in the fixed income category and committed an error in adding 50% towards future prospects and the same is arbitrary and illegal and the Tribunal ought to have added 40% towards future prospects. It is also contention of learned counsel for the insurance company that the compensation awarded by the Tribunal under the other heads is on the higher side and the same requires to be reduced. On these grounds, - 4 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 learned counsel seeks to modify the impugned judgment and award passed by the Tribunal. 4. Per contra, learned counsel representing Respondent nos.1 to 3 – claimants sustains the impugned judgment and award passed by the Tribunal and contends that there is no illegality or perversity in the judgment and award passed by the Tribunal. On the basis of the material evidence, the Tribunal has rightly arrived at a just and proper compensation, which does not call for interference at the hands of this Court and seeks for dismissal of the appeal. 5. I have given my thoughtful consideration to the arguments advanced by learned counsels for the parties and perused the material on record carefully. 6. The occurrence of accident, involvement of the vehicle, injuries sustained in the road traffic accident leading to death of the deceased – V. Jagadeesh are established and proved by production of Ex.P1 to Ex.P14. - 5 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 It is also not in dispute that the claimants before the Tribunal are dependents of the deceased – V. Jagadeesh. 7. Now coming to the aspect of age, avocation and income of the deceased, no material is placed before the Court with regard to proof of income. In the absence of proof of income, the Tribunal rightly taken the income of the deceased to be Rs.15,500/- per month for the accident of the year 2022 as per the Legal Services Authority chart. The deceased was aged 27 years as on the date of accident and appropriate multiplier would be ‘17’ , which is rightly taken by the Tribunal. 8. The need for interference is in the area of addition of 50% towards future prospects. In my opinion, the addition of 50% towards future prospects is not correct and I agree with the learned counsel for the insurance company that the same requires to be reduced to 40% as the deceased was not in the category of fixed income employee. Therefore, 40% requires to be added towards future prospects rather than 50%. In view of the - 6 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 deceased being a bachelor as on the date of occurrence of the accident, the Tribunal rightly deducted 50% towards personal and living expenses, which does not call for interference. Therefore, loss of dependency would be Rs.22,13,400/- [10,850 {Rs.15,500 plus 40% minus 50%} x 12 x 17]. 9. The Tribunal awarded Rs.1,45,200/- towards loss of consortium, which does not call for interreference and the same is retained. 10. The Tribunal awarded Rs.18,150/- towards loss of estate and Rs.18,150/- towards funeral expenses, which are on the higher side. I deem it appropriate to reduce the same to Rs.15,000/- each. However, 10% escalation is required to be granted, which would come to Rs.3,000/- (Rs.30,000 x 10%). In all, Rs.33,000- is awarded towards loss of estate and funeral expenses. 11. In view of the above, the respondents - claimants would be entitled to reduced compensation of - 7 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 Rs.23,91,600/- as against Rs.25,53,000/- as mentioned in the table below: Sl. No. Head of compensation Amount of compensation awarded 1 Loss of dependency (Rs.15,500 plus 40% minus 50%) x 12 x 17 Rs.22.13.400-00 2 Loss of consortium Rs. 1,45,200-00 3 Loss of estate Rs. 16,500-00 4 Funeral expenses Rs. 16,500-00 Total Rs.23,91,600-00 O R D E R i) The appeal is allowed in part; ii) The impugned Judgment & Award dated 5th November 2024 passed by the Tribunal in MVC No.972/2022, is modified. iii) The respondents-claimants would be entitled to reduced compensation of Rs.23,91,600/- (Rupees twenty-three lakhs ninety-one thousand six hundred only) as against Rs.25,53,000/- awarded by the Tribunal - 8 - NC: 2025:KHC:13973 MFA No. 8534 of 2024 alongwith interest at 6% per annum from the date of petition till its realization. iv) The apportionment, deposit and release of the compensation amount shall be as per the terms of the Tribunal. v) The compensation amount shall be released in favour of the claimants as per the terms of the tribunal upon proper verification. vi) The amount in deposit before this Court shall be transmitted to the jurisdictional Tribunal forthwith. Sd/- (PRADEEP SINGH YERUR) JUDGE GSS List No.: 1 Sl No.: 45