- 1 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 27TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO. 103800 OF 2017 (MV-I) BETWEEN: THE ORIENTAL INSURANCE CO. LTD., THE BRANCH MANAGER, BRANCH OFFICE, IIND FLOOR, DR. B.R. AMBEDKAR ROAD, BELAGAVI, REPRESENTED BY AUTHORISED SIGNATORY DEPUTY MANAGER. …APPELLANT (BY SRI. M.Y. KATAGI, ADVOCATE) AND: 1. SHRISHAIL S/O. NAGAYYAQ CHULAKIMATH, AGE: 28 YEARS, OCC: AGRICULTURE, R/O: CHULAKI, TAL: SAUNDATTI, DIST: BELAGAVI-591236. 2. BABU S/O. GIRIYAPPA NIROLI, AGE: 61, OCC: DRIVER, R/O: GIRIYAL, K.E., TAL: BAILHONGAL, DIST: BELAGAVI-590215. (OWNER OF VEHICLE 407, BEARING NO.KA-24/0962.) …RESPONDENTS (BY SMT. SHAILA BELLIKATTI, ADVOCATE FOR R1; SRI. J.S. SHETTY, ADVOCATE FOR R2) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988 PRAYING TO LLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 01.04.2017 PASSED BY THE SENIOR CIVIL JUDGE AND ADDL. MACT, SAUNDATTI IN MVC NO.514/2015 WITH COSTS IN THE INTEREST OF JUSTICE AND EQUITY. GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH DHARWAD - 2 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA ORAL JUDGMENT (PER: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA) 1. Heard Sri. M. Y. Katagi, learned counsel for the appellant as well as Ms.Shaila Bellikatti, learned counsel for respondent No.1. Though Sri. J. S. Shetty is on record representing respondent No.2, learned counsel failed to make his appearance. 2. This appeal is the outcome of the award that is passed by the Additional Motor Accident Claims Tribunal, Saundatti in MVC No.514/2015 dated 01.04.2017. 3. This appeal is filed by the insurer of the offending vehicle against whom liability is fastened by the Tribunal, with a contention that the compensation that is granted by the Tribunal is exorbitant. - 3 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 4. Making his submission with regard to the merits of the matter, Sri. M. Y. Katagi, learned counsel for the appellant states that the Tribunal, without any basis took the notional income as Rs.15,000/- per month and awarded exorbitant sum as compensation under the heads ‘loss of future earnings’ and ‘loss of income during treatment period’. Learned counsel submits that for the relevant period, for settlement of claims, the High Court Legal Services Committee, Dharwad, is taking the notional income as Rs.7,500/- only and hence the Tribunal ought to have taken the notional income as Rs.7,500/- per month. 5. Per contra, Ms. Shaila Bellikatti, learned counsel for respondent No.1, states that respondent No.1 produced sufficient proof that he was an agriculturist as on the date of accident and therefore the Tribunal took the notional income as Rs.15,000/- per month. - 4 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 6. Respondent No.1 produced Exhibit P9 - Record of Rights, to establish his occupation and that he was an agriculturist as on the date of accident. The Tribunal made a clear mention that, as per the contents of Exhibit P9, the property therein stands in the name of the father of respondent No.1. Thus the contents of Exhibit P9 should not be held to be sufficient to hold that respondent No.1 was an agriculturist as on the date of accident. Therefore, the Tribunal ought not to have considered the income of respondent No.1 as Rs.15,000/- per month. Therefore, it has to be held that the compensation granted towards ‘loss of future earnings’ i.e., Rs.2,59,200/-, is on higher side. 7. As per the evidence produced, respondent No.1 sustained comminuted fracture of 4th and 5th fingers of the right side. The Tribunal granted a sum of Rs.40,000/- under the head ‘pain and suffering’, , Rs.15,414.45 towards ‘Medical expenses’, Rs.16,000/- towards ‘Attendant charges etc.,’, Rs.2,59,200/- - 5 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 towards ‘loss of future earnings’, Rs.30,000/- towards ‘loss of income during laid-up period’ and Rs.40,000/- towards ‘loss of amenities in life’. 8. Learned counsel for respondent No.1, Ms.Shaila Bellikatti fairly states that the compensation thus granted is slightly on higher side and therefore there may be marginal reduction. 9. Considering the totality of the evidence produced, this Court is of the view that the compensation that is granted by the Tribunal, if reduced by Rs.90,000/-, the remaining amount which respondent No.1 receives will be highly justifiable. 10. Learned counsel for the appellant also exhibited his grievance regarding the rate of interest. The Tribunal held that the sum awarded as compensation shall carry interest at the rate of 9% per annum. However, as it is submitted by learned counsel for the appellant that, for the relevant period the banking rate of - 6 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 interest for commercial transactions is 6% per annum, which is not denied by learned counsel for respondent No.1, this Court is of the view that the compensation which respondent No.1 shall receive, which is payable by the appellant, should carry interest at the rate of 6% per annum only. 11. Thus, the appeal is disposed of with the following order: ORDER i. The appeal is allowed in part. ii. The compensation that is granted by the Additional Motor Accident Claims Tribunal, Saundatti through orders in MVC No.514/2015 dated 01.04.2017 is reduced by Rs.90,000/-. iii. The compensation payable by the appellant to respondent No.1 shall carry interest at the rate of 6% per annum from the date of petition till the date of deposit. - 7 - HC-KAR NC: 2025:KHC-D:16569 MFA No. 103800 of 2017 iv. Amount, if any in deposit be transmitted to the concerned Tribunal forthwith. Sd/- (CHILLAKUR SUMALATHA) JUDGE gab CT-MCK List No.: 1 Sl No.: 0