- 1 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MRS JUSTICE K.S.MUDAGAL AND THE HON'BLE MR JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 6141/2014 (MV-D) BETWEEN: THE UNITED INDIA INSURANCE CO LTD., VARANASI TOWERS MISSION STREET BUNDER, MANGALORE NOW REPRESENTED BY ITS MANAGER REGIONAL OFFICE 5TH & 6TH FLOOR,KRISHI BHAVAN NRUPATHUNGA ROAD BANGALORE 560001. …APPELLANT (BY SMT. HARINI SHIVANANDA, ADVOCATE) AND: 1. MR VALERIAN RAJESH LOBO S/O LATE EMMANUAL LOBO AGED ABOUT 43 YEARS 2. MISS RELWEENA RISHAL LOBO AGED ABOUT 11 YEARS D/O VALERIAN RAJESH LOBO 3. MISS ROSHNI REYOLA LOBO AGED ABOUT 9 YEARS D/O VALERIAN RAJESH LOBO PETITIONERS 2 & 3 ARE MINORS REPRESENTED BY 1ST RESPONDENT AS FATHER & NATURAL GUARDIAN Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 ALL ARE RESIDING AT LOBO VILLA BEHIND GURUDEV TOWERS KAVOOR KATTE KAVOOR, MANGALORE 575015. 4. MR ABBUBAKKAR , MAJOR S/O MOHAMMED NO.5/86, NEERMARGA POST MANGALORE 575001. …RESPONDENTS (BY SMT. PUSHPAVENI AJITH, ADVOCATE FOR R1 TO R3 (ABSENT) NOTICE TO R4 IS DISPENSED WITH V/O DTD 06.04.2018) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 4.6.2014 PASSED IN MVC NO.1563/2012 ON THE FILE OF THE 4TH ADDITIONAL DISTRICT & SESSIONS JUDGE, MEMBER, MACT, D.K., MANGALORE, AWARDING A COMPENSATION OF RS.19,46,500/- WITH CURRENT AND FUTURE INTEREST @ 6% P.A AS COMPENSATION TO PETITIONERS AND ETC. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS JUSTICE K.S.MUDAGAL and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE C.M. POONACHA) The above appeal is filed by the insurer challenging the quantum of compensation awarded by the Tribunal vide judgment and award dated 4.6.2014 passed in MVC No.1563/2012 on the file of the IV Additional District and - 3 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 Sessions Judge & Member, MACT, D.K., Mangaluru1. The Tribunal by its judgment and award allowed the claim petition filed by the claimants and awarded compensation of `19,46,500/- together with interest at 6% p.a. 2. The parties are referred to henceforth as per their ranks before the Tribunal for the sake convenience. 3. It is the case of the claimants that one Smt.Asha Laveena Shera nee Lobo2 was riding on her Honda Dio Scooter bearing registration No.KA-01-EH-4669 on 15.9.2012 when the offending tempo bearing registration No.KA-20-6265 came in a rash and negligent manner and hit the scooter of the deceased from hind side causing the accident in question. As a result of the accident, the victim suffered grievous injuries and died. Claiming compensation for her death, the husband and children of the deceased filed the claim petition arraying the owner and insurer of the tempo as respondent Nos.1 and 2 respectively. 4. The first respondent remained ex parte before the Tribunal. The claim petition was contested by the second respondent/insurer. Claimant No.1 examined himself as PW.1 and the employer of the deceased was examined as PW.2. 1 Hereinafter referred to as the ‘Tribunal’ 2 Hereinafter referred to as the ‘deceased’ - 4 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 Exs.P1 to P15 were marked in evidence. The insurer did not adduce any oral evidence. However, the policy of insurance was marked as Ex.R1. 5. The Tribunal by its judgment and award has awarded compensation of `19,46,500/- together with interest at 6% p.a., from the date of petition till realization and fastened the liability to pay compensation to the second respondent/insurer. Being aggrieved by the quantum of compensation, the insurer has filed the above appeal. 6. Learned counsel Smt.Harini Shivananda appearing for the appellant/insurer assailing the quantum of compensation awarded contended that the income of the deceased has been assessed on the higher side and the quantum of compensation awarded on conventional heads is also on the higher side. It is further contended that future prospects ought not to have been awarded having regard to the judgment of the Hon'ble Supreme Court in the case of Sarala Verma (Smt) And Others vs. Delhi Transport Corporation and Another3. 3 (2009) 6 SCC 121. - 5 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 7. It is forthcoming that subsequent to the judgment of the Hon'ble Supreme Court in the case of Sarla Verma3, a Constitution Bench of the Hon'ble Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi4 has held that future prospects have to be awarded in both cases where the deceased has a permanent job as well as in the event of deceased being self-employed. 8. In the present case, it is averred that the deceased was working as a Staff Nurse at Father Muller Hospital, Mangaluru and the monthly income of the deceased was `13,700/- . The Establishment Superintendent of the Father Muller Hospital, Mangaluru, has been examined as PW.2, who has deposed that the deceased was a Staff Nurse and the salary certificate of the deceased (Ex.P7) discloses that the deceased was entitled to total salary of `13,762/- and a sum of `780/- was deducted monthly from her salary towards provident fund. The Tribunal, while considering the testimony of PW.2 as well as the salary certificate (Ex.P7) has recorded a finding that deduction towards income-tax and professional tax 4 AIR 2017 SC 5157 - 6 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 are not mentioned. Hence, the Tribunal assessed the income of the deceased as `10,000/- p.m. 9. Having regard to the testimony of PW.2 and the salary certificate (Ex.P7) wherein it is stated that the deceased was earning `13,762/- p.m., and having regard to the fact that the said salary certificate does not disclose the income-tax, professional tax and other deductions, which aspect has been taken into consideration by the Tribunal, it cannot be said that the income of `10,000/- p.m., assessed by the Tribunal is on the higher side. 10. Having regard to the judgment of the Hon'ble Supreme Court in the case of Pranay Sethi4, 40% is required to be taken towards future prospects and 1/3rd is required to be deducted towards personal expenses since the dependents are three in number. Hence, the loss of dependency is re-assessed as (`10,000/- + 40% - 1/3 = `9,334/- x 12 x 16) `17,92,128/-. 11. Loss of consortium is required to be reassessed in terms of the judgment of the Hon'ble Supreme Court in the case of Magma General Insurance Company Ltd. v. Nanu - 7 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 Ram5 and Pranay Sethi4, by assessing the same as `40,000/- per dependent together with escalation. Since there are three dependents, the loss of consortium is re-assessed as (`44,000/-x3) `1,32,000/-. The compensation towards loss of estate and funeral expenses is re-assessed as `15,000/- on each head together with 10% escalation. Hence, a sum of `16,500/- each is required to be awarded towards the same. Accordingly, the total compensation under various heads is re- assessed as follows: Sl.No. Heads Amount awarded by the Tribunal (`) Amount awarded by this Court (`) 1. Loss of dependency 17,06,500/- 17,92,128/- 2 Loss of love and affection 75,000/- 0/- 3 Loss of estate 75,000/- 16,500/- 4 Loss of consortium 75,000/- 1,32,000/- 5 Towards funeral and obsequies 15,000/- 16,500/- Total 19,46,500/- 19,57,128/- 12. It is forthcoming from the aforementioned that when the compensation is reassessed there is a marginal increase and hence, the appellant has not made out any ground 5 2018 (18) SCC 130 - 8 - NC: 2025:KHC:4902-DB MFA No. 6141/2014 to interfere with the quantum of compensation awarded by the Tribunal. 13. Hence, the appeal is dismissed as being devoid of merit. 14. The amount in deposit, if any, together with the TCRs be transmitted to the Tribunal forthwith. Sd/- (K.S.MUDAGAL) JUDGE Sd/- (C.M. POONACHA) JUDGE ND List No.: 1 Sl No.: 45