- 1 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 4261 OF 2023 (MV-D) BETWEEN: 1. POORNIMA. C W/O LATE SHANKAR NAIK. H.R., AGED ABOUT 38 YEARS, 2. PRAKASH P.S., D/O LATE SHANKAR NAIK. H.R., AGED ABOUT 14 YEARS, 3. IMPANA P.S., D/O LATE SHANKAR NAIK. H.R., AGED ABOUT 10 YEARS, APPELLANT NO.2 &3 ARE SINCE MINORS REPRESENTED BY THEIR NATURAL GUARDIAN THEIR MOTHER POORNIMA C- APPELLANT NO.1 HEREIN 4. LAKSHMI BAI, W/O. RAMA NAIK, AGED ABOUT 72 YEARS, ALL THE APPELLANTS ARE R/AT 27/1, 6TH CROSS, 4TH MAIN, AGRAHARA DASARAHALLI, BENGALURU- 560 070 …APPELLANTS (BY SRI. SATHEESH H K, ADVOCATE FOR SRI. B BOPANNA, ADVOCATE) AND: 1. P. CHANDRASEKHAR Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 S/O. P. GOPALAN, R/AT, NO.221, PICKET, SECUNDARABAD- 500 026 (OWNER OF THE VEHICLE REGN. BEARING NO. TS-10-UB-3087) 2. THE MANAGER, FUTURE GENERAL INDIA INSURANCE CO. LTD., 1ST FLOOR, D.NO.7-1-21A, APDI ESTATE, OPPOSITE TO COUNTRY CLUB, BEGUMPET, HYDERABAD, TELANGANA - 500 016 (POLICY NO. 2019V6051866FCV VALID FROM 08/01/2019 TO 07/01/2020) 3. THE MANAGER, FUTURE GENERAL INDIA INSURANCE CO. LTD., NO.31, SHARAVANI KRISHNA MANSION, 3RD TO 4TH FLOOR, 100 FT ROAD, JAYANAGARA 2ND BLOCK, BENGALURU - 560 011. …RESPONDENTS (BY SRI B C SHIVANNA GOWDA, ADVOCATE FOR R2 & R3 NOTICE TO R1 IS DISPENSED WITH V/O DTD 09.08.2023) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 05.12.2022 PASSED IN MVC NO. 5991/2019 ON THE FILE OF THE IX ADDITIONAL SMALL CAUSES JUDGE, COURT OF SMALL CAUSES, MEMBER, MACT-7, BENGALURU (SCCH-7), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND ETC. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 CORAM: HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT The above appeal is filed by the claimants challenging the judgment and award dated 05.12.2022 passed in MVC No.5991/2019 by the IX ASCJ. Small Causes and Addl. MACT, Bengaluru (SCCH – 7)1, seeking enhancement of the compensation awarded by the Tribunal. 2. For the sake of convenience, the parties herein are referred as per their rank before the Tribunal. 3. The factual matrix in a nutshell leading to the present appeal is that when one Shankar Naik H.R.2 was traveling on his two wheeler bearing registration No. KA-05-EF- 1836 from Havnur Circle towards Magadi Road, a Bolero Mahindra Vehicle bearing registration No.TS-10-UB-3087 being driven by its driver in a rash and negligent manner, hit the two wheeler in which deceased was traveling, causing the accident in question wherein, the said deceased suffered grievous injuries and succumbed to the same on the next day in the 1 Hereinafter referred to as the ‘Tribunal’ 2 Hereinafter referred to as the ‘deceased’ - 4 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 hospital. Claiming compensation for the death of the deceased, his wife, daughters and mother filed a claim petition arraying the owner of the Bolero Mahindra vehicle as respondent No.1 and the insurer of the said vehicle as respondent Nos.2 and 3. The owner of the vehicle remained ex-parte before the Tribunal. The claim proceedings were contested by the insurer. The Tribunal by its judgment and award dated 05.12.2022, partly allowed the claim petition and awarded a total compensation of `30,12,400/- together with 6% interest per annum and further directed the insurer to deposit compensation awarded and recover the same from respondent No1. – owner. Being dissatisfied with the quantum of compensation awarded by the Tribunal, the claimants have filed the present appeal seeking for enhancement of compensation. 4. Sri Satheesh H.K., learned counsel appearing on behalf of Sri B. Bopanna for the appellants contends that the deceased was an Electrical Class – I Contractor which is evidenced from Licence (Ex.P16). Further, to prove the income of the deceased, the Bank Statement (Ex.P15) of the deceased has been produced, wherein substantial financial transactions are reflected. Hence, it is contended that the Tribunal erred in - 5 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 assessing the income of the deceased as notional income @ `14,000/- per month. It is further contended that the quantum of compensation awarded on other heads is also required to be marginally enhanced. 5. Per contra, Sri B.C. Shivanne Gowda, learned counsel appearing for respondent Nos.2 and 3 - insurer justifies the compensation awarded by the Tribunal and submits that no documents have been produced by the claimants to prove the income of the deceased. It is further contended that the Licence (Ex.P16) does not disclose the income of the deceased and the Bank statement (Ex.P15) merely shows certain financial transactions, but does not disclose the income of the deceased. It is further contended that PW.1 has also not deposed regarding the income of the deceased. Hence, learned counsel seeks for dismissal of the appeal. 6. The submissions made by both the learned counsels have been considered and the material on record including the records of the Tribunal have been perused. 7. The findings of the Tribunal on negligence and liability have not been challenged and hence, the said finding - 6 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 recorded by the Tribunal have attained finality. Hence, only the aspect pertaining to quantum of compensation is being considered in the present appeal. 8. The deceased was aged 34 years (Date of Birth 20.07.1985) as on the date of the accident as is forthcoming from the copy of the driving licence (Ex.P10). The claimants had averred that the deceased was an Electrical Class – I Contractor and earning `48,000/- per month. PW.1- wife of the deceased has also deposed in her testimony that the deceased was a Electrical Class – I Contractor and earning `48,000/- per month. The extract of Bank Statement (Ex.P15) discloses that the same is for the period 08.01.2015 up to 29.06.2019. Bank Statement (Ex.P15) discloses various financial transactions up to `5 lakhs. Various expenses are also forthcoming from Ex.P15. It further discloses that the deceased had availed a car loan and was paying an EMI of `6,499/- per month. The deceased had two daughters and his mother is also stated to be depending upon the income of the deceased. The fact that the deceased was a Electrical Class – I Contractor is undisputed having regard to the copy of the Licence (Ex.P16) which discloses that the licence was issued on 01.11.2013 for a - 7 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 period of one year and thereafter, the same has been periodically renewed and was valid up to 31.10.2019. The same discloses that the deceased was an Electrical Class – I Contractor for a period of six years prior to the occurrence of the accident. 9. The Tribunal considering the factual matrix and having regard to the fact that no documents have been produced to prove the income of the deceased, assessed the notional income of the deceased at `14,000/- per month. The assessment of income by the Tribunal is on the lower side having regard to the fact that the deceased cannot be construed as a non-earning person and assessing his income as notional income. The deceased having been an Electrical Class – I Contractor for six years prior to occurrence of the accident, the income of the deceased is required to be re-assessed marginally higher than the income of a non-earning person. 10. Although it is the vehement contention of the learned counsel for the respondents that the Bank Statement (Ex.P15) does not disclose that the amount transacted are only - 8 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 towards the income of the deceased, having regard to the fact that the deceased was an Electrical Class –I Contractor as is evident from Ex.P16, the fact that the deceased had availed car loan wherein he was paying a sum of `6,499/- as EMI p.m., as also keeping in mind the number of dependents, depending on the income of the deceased and having regard to the volume of financial transactions that is forthcoming from the Bank transaction (Ex.P15), it is appropriate that the income of the deceased be re-assessed at `16,000/- per month. 11. The Tribunal has applied appropriate the multiplier of ‘16’ and deducted 1/4th towards personal expenses which is just and proper. 12. Future prospects of 40% is required to be added to the income of the deceased having regard to the judgment of Hon’ble Supreme Court in the case of National Insurance Company Limited V. Pranay Sethi and others3. Hence, the income of the deceased is reassessed as [`16,000/- + `6,400/- (40%) = `22,400/- - `5600/- (1/4)] `16,800/-. The loss of 3 (2017) 16 SCC 680 - 9 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 dependency is re-assessed as (`16,800/- x12x16) `32,25,600/- as against `28,22,400/- awarded by the Tribunal. 13. The Tribunal has awarded towards loss of consortium as sum of `40,000/- as per the judgment of Hon’ble Supreme Court Magma General Insurance Company Ltd. v. Nanu Ram4. However, the Tribunal has not awarded increment of 10% for the same. Hence, loss of consortium is reassessed as `1,76,000/- (`44,000 x 4). The compensation towards conventional heads of loss of estate and funeral expenses, is also required to be re-assessed in a sum of `16,500/- each as against `15,000/- each awarded by the Tribunal. 14. Having regard to the fact that the deceased died one day after the accident and he was admitted in the hospital, a sum of `10,000/- is awarded towards medical and other expenses. 15. Accordingly, the total compensation under various heads is re-assessed as follows: 4 2018 (18) SCC 130 - 10 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 Sl. No. Heads Amount awarded by the Tribunal (`) Amount awarded by this Court (`) 1. Towards loss of dependency 28,22,400.00 32,25,600.00 2. Towards consortium 10000.00 1,76,000.00 3. Towards loss of estate 15000.00 16,500.00 4. Towards funeral expenses 15000.00 16,500.00 5. Medical expenses 00 10,000.00 Total 30,12,400.00 34,44,600.00 16. Hence, the appellants are entitled for enhanced compensation of `4,32,200/- (`34,44,600/- - `30,12,400/-) along with interest at 6% p.a. 17. In the result, the following: ORDER i) The above appeal is allowed in part; ii) The judgment and award dated 05.12.2022 passed in MVC No.5991/2019 by the IX ASCJ. Small Causes and Addl. MACT, Bengaluru (SCCH – 7) is modified to the extent stated herein. In all other respects, the judgment and award of the Tribunal remains unaltered; - 11 - NC: 2025:KHC:8141 MFA No. 4261 of 2023 iii) The appellants/claimants are entitled for an enhanced compensation of `4,32,200/- with interest at 6% p.a. from the date of petition till its realization, in addition to the compensation awarded by the Tribunal; iv) Out of the enhanced compensation, `1,32,200/- together with accrued interest shall be digitally released in favour of claimant No.1 and the balance sum of `3,00,000/- shall be awarded equally in favour of claimant Nos.2 and 3 which shall be kept in a Fixed Deposit in any Nationalised Bank/Scheduled Bank in terms of the order of the Tribunal. v) Respondent No.3 – insurer is directed to deposit the said compensation together with accrued interest within a period of eight weeks from the date of receipt of a copy of this judgment and recover the same from respondent No.1 - owner; vi) The Registry to draw the modified decree accordingly. vii) No costs. SD/- (C.M. POONACHA) JUDGE BS - List No.: 38 Sl No.: 6