- 1 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.102320 OF 2014 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.100184 OF 2015 IN M.F.A. NO. 102320 OF 2014 BETWEEN: THE DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. LTD., JANARDHAN ARCHADE, JUBILEE CIRCLE, P.B. ROAD, DHARWAD, REPRESENTED THROUGH ITS, REGIONAL OFFICE, SUMANGALA COMPLEX, 2ND FLOOR, LAMINGTON ROAD, HUBLI, REP. BY ITS DEPUTY MANAGER. …APPELLANT (BY SRI SHARANAPPA S.KOLIWAD, ADV.) AND: 1. SMT. NANDA W/O. ARJUN KANAKANNAVAR, AGE: 33 YEARS, OCC: HOUSE HOLD WORK, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. 2. KUMAR. SANDEEP S/O. ARJUN KANAKANNAVAR, AGE: 13 YEARS, OCC: STUDENT, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. 3. KUMARI. SAVITA D/O. ARJUN KANAKANNAVAR, AGE: 13 YEARS, OCC: STUDENT, R/O. 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 4. MISS SARASWATI D/O. DASAPPA KANAKANNAVAR, AGE: 35 YEARS, OCC: STUDENT, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. 5. MADHAV S/O. RAMANNA NAIK, AGE: MAJOR, OCC: BUSINESS, R/O: UGFS, DAMANAGI PLAZA, OPPOSITE TO OLD BUS STAND, HUBLI. (BUS BEARING NO.KA-25/C-9472) …RESPONDENTS (BY SRI CHANDRASHEKHAR M.HOSAMANI, ADV. FOR R1 AND R4; (R2 AND R3 ARE MINORS REPTD. BY R1); SRI SANTOSH S.MANE, ADV. FOR R5) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE AWARD DATED 19.04.2014 PASSED IN MVC NO.877/2011 ON THE FILE OF THE III ADDL. SENIOR CIVIL JUDGE AND ADDL. MOTOR ACCIDENT CLAIMS TRIBUNAL, DHARWAD, EXAMINE THE SAME, IN THE INTEREST OF JUSTICE. IN M.F.A. NO. 100184 OF 2015 BETWEEN: 1. SMT. NANDA W/O. ARJUN KANAKANNAVAR, AGED ABOUT 32 YEARS, OCC: HOUSE HOLD WORK, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. 2. KUMAR. SANDEEP S/O. ARJUN KANAKANNAVAR, AGED ABOUT 12 YEARS, OCC: STUDENT, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. 3. KUMARI. SAVITA D/O. ARJUN KANAKANNAVAR, AGED ABOUT 12 YEARS, OCC: STUDENT, R/O. 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. - 3 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 4. MISS SARASWATI D/O. DASAPPA KANAKANNAVAR, AGED ABOUT 34 YEARS, OCC: STUDENT, R/O: 3RD CROSS, RAMANAGAR, HOSAYELLAPUR, DHARWAD. (SINCE APPELLANTS NO.2 AND 3 ARE MINORS R/BY THEIR NATURAL MOTHER, MINOR GUARDIAN I.E. APPELLANT NO.1) …APPELLANTS (BY SRI CHANDRASHEKHAR M.HOSAMANI, ADV.) AND: 1. MADHAV S/O. RAMANNA NAIK, AGE: MAJOR, OCC: BUSINESS, R/O: UGFS, DAMANAGI PLAZA, OPPOSITE TO OLD BUS STAND, HUBBALLI. (OWNER OF BENDER BUS BEARING NO.KA-25/C-9472) 2. THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE CO. LTD., JANARDHAN ARCHADE, JUBILEE CIRCLE, P.B. ROAD, DHARWAD. (POLICY NO.422203/31/2012/1147 VALID FROM 7.6.2011 TO 6.6.2012) …RESPONDENTS (BY SRI S.S. KOLIWAD, ADV. FOR R2; NOTICE TO R1 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO ALLOW THIS APPEAL BY ENHANCING THE COMPENSATION FROM RS.9,85,000/- TO RS.10,25,000/- BY MODIFYING THE JUDGMENT AND AWARD DATED 19.04.2014 IN MVC NO.877/2012 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE AND MEMBER, ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, DHARWAD, IN THE INTEREST OF JUSTICE AND EQUITY. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: - 4 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) MFA No.102320/2014 is filed by the Insurance Company, on the ground that the offending vehicle i.e., bus bearing registration No.KA-25-C-9472 is not involved in the accident, whereas MFA No.100184/2015 is filed by the claimant, seeking enhancement of compensation by challenging the judgment and award dated 19.04.2014, passed in MVC No.877/2012, by the Court of III Additional Senior Civil Judge and Additional MACT, Dharwad (for short, ‘Tribunal’). 2. Heard the arguments and perused the material placed before the Court. 3. The brief facts leading to filing of these appeals are that on 17.08.2011, at about 5-45 a.m., when the deceased Arjun Kanakannavar (for short, ‘deceased’) while crossing road towards Axis Bank from Pinky Granite, on P.B. road, at Dharwad, the driver of bus bearing registration No.KA-25-C- 9472 came from Hubli towards Dharwad and dashed to the deceased. As a result, he sustained fatal injuries and died at - 5 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 the spot. Thus, the legal heirs of deceased filed the claim petition seeking compensation. 4. The learned counsel for the Insurance Company submitted that at the time of lodging complaint dated 17.08.2011, the colour of bus was stated as blue and white colour. But in the restatement dated 26.08.2011, the colour of bus is stated as red colour. Therefore, on these two discrepancies, suspected involvement of bus bearing registration No.KA-25-C-9472 in the road traffic accident as stated in the claim petition. 5. The accident occurred on 17.08.2011 and complaint is lodged on the same day i.e., on 17.08.2011. Therefore, there is no delay in lodging complaint before the police. The accident was taken place between Hubli and Dharwad on National Highway and quite naturally due to havoc of accident, the colour of offending bus might have been stated as blue and white. But the complainant has given restatement before the police that colour of bus is red. But the nature of bus is not in dispute. Further, after police investigation, it is revealed that bus bearing registration No.KA-25-C-9472 has caused the accident in question. Therefore, just because, there is - 6 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 discrepancy in mentioning colour of bus is not a ground to suspect involvement of bus in the accident. Therefore, in this way, there is no merit found in the contention taken by the Insurance Company. Accordingly, the appeal filed by the Insurance Company is liable to be dismissed. 6. In this case, the Tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Loss of Consortium. 50,000 2. Loss of love and affection. 50,000 3. Loss of estate. 50,000 4. Transportation and funeral expenses. 25,000 5. Loss of dependency 8,10,000 Total: 9,85,000 7. The Tribunal awarded lesser amount of compensation contrary to the principles of law decided by the Hon’ble Supreme Court. Therefore, the same is required to be enhanced by modifying the judgment and award of the Tribunal. 8. The deceased was aged 40 years as on the date of accident and was a mason by profession. The accident is caused on 17.08.2011. The deceased was working as a Security - 7 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 Guard in S.S.K. Security Agency, Maratha Colony, Dharwad. Therefore, income is to be taken at Rs.6,000/- for the year 2011, as recognized by the Karnataka State Legal Services Authority, which is rightly considered by the Tribunal. In view of the decision of the Hon’ble Apex Court in case of National Insurance Company Limited vs. Pranay Sethi and others, reported in (2017) 16 Supreme Court Cases 680, considering the age of the deceased, 40% of the income is to be added towards loss of future prospects in life. There are four dependents/legal heir hence 1/4th amount is deducted towards personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is 15. Therefore loss of dependency is re-assessed and quantified at Rs.11,34,000/- (Rs.6,000 + 40% minus 1/4 x 12 x 15). 9. In view of the decision of the Hon’ble Supreme Court in the case of Magma General Insurance Co. Limited v. Nanu Ram & Others, reported in 2018 ACJ 2782 and in the case of Pranay Sethi (supra), the claimants are entitled to Rs.40,000/- each under the head ‘loss of consortium’, along with 10% escalation. There are four dependents who are wife, two children and sister. Accordingly, Rs.1,76,000/- - 8 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 (Rs.40,000 x 4 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 10. Further, a compensation of Rs.15,000/- each is awarded under the head ‘loss of estate’ and ‘funeral and transportation’ respectively, along with 10% escalation. Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded. 11. Thus, the claimants would be entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency 11,34,000 2. Towards loss of consortium (40,000 x 4 +10%) 1,76,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 13,43,000 12. Therefore, the claimants are entitled for total compensation of Rs.13,43,000/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.9,85,000/- awarded by the Tribunal. The Insurance Company is directed to deposit the - 9 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 compensation within eight weeks from the date of receipt of a certified copy of this judgment. 13. In the result, I proceed to pass the following: ORDER i) MFA No.102320/2014 filed by the Insurance Company is dismissed. ii) MFA No.100184/2015 filed by the claimants is allowed in part. iii) The judgment and award dated 19.04.2014, passed in MVC No.877/2012, by the Court of III Additional Senior Civil Judge and Additional MACT, Dharwad, stands modified. iv) The claimants are entitled for total compensation of Rs.13,43,000/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the compensation of Rs.9,85,000/- awarded by the Tribunal. - 10 - NC: 2025:KHC-D:3935 MFA No. 102320 of 2014 C/W MFA No. 100184 of 2015 v) The Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. vi) The order with regard to apportionment of compensation, deposit and release of amount would be as per order of Tribunal. vii) Send a copy of this judgment and award to the Tribunal. viii) The amount in deposit made by the appellant/Insurance Company shall be transmitted to the Tribunal. ix) No order as to costs. x) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE PMP List No.: 1 Sl No.: 47