- 1 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO. 102564 OF 2018 (MV-D) BETWEEN: 1. RENUKA @ RENAVVA W/O HANAMAPPA @ HANAMANTAPPA GANIGER, AGE: 39 YEARS, OCC: HOUSEHOLD, 2. LAXMI D/O HANAMAPPA @ HANAMANTAPPA GANIGER, AGE: 16 YEARS, OCC: STUDENT, 3. SARSWATI D/O HANAMAPPA @ HANAMANTAPPA GANIGER, AGE: 12 YEARS, OCC: STUDENT, 4. PRATHIBA D/O HANAMAPPA @ HANAMANTAPPA GANIGER, AGE: 09 YEARS, OCC: NIL, (SINCE APPELLANT NO.2 TO 4 ARE MINORS REP. BY M/G. APPELLANT. NO.1) 5. MAHANTAVVA W/O BHUMANNA @ BOOMANNA GANIGER, AGE: 65 YEARS, OCC: NIL, ALL ARE R/O: HANGARGI, TQ: BADAMI, DIST: BAGALKOT-587301. …APPELLANTS (BY SRI. SIDDAPPA SAJJAN, ADVOCATE) Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 AND: 1. NIRANJAN S/O SUDHAKAR KAMAT AGE: 47 YEARS, OCC: BUSINESS AND OWNER OF THE VEHICLE, R/O: KAMAT CHAMBERS P.B. NO.25, HUBLI ROAD, SIRSI-581401, DIST: UTTARA KANNADA. 2. THE DIVISIONAL MANAGER ORIENTAL INSURANCE COMPANY LTD., CLUB ROAD, MADIVAL ARCHADE, BELAGAVI-590016. …RESPONDENTS (BY SRI. M.K. SOUDAGAR, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS MFA FILED U/S.173(1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 18.07.2017 PASSED IN MVC NO.40/2014 ON THE FILE OF THE MEMBER, MOTOR ACCIDENT CLAIMS TRIBUNAL NO.IV, BAGALKOT, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR - 3 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD) This appeal is by the Claimants in M.V.C. No.40/2014 on the file of the IV Additional M.A.C.T., Bagalkote [for short, ‘the Tribunal’]. The Claimants, who are the wife, minor children and mother of the deceased Hanamappa, have been awarded a total sum of Rs.49,56,304/- as compensation under the following heads. Sl. No. Heads of compensation Amount 1. Loss of dependency Rs.48,26,304 2. Loss of consortium Rs.50,000 3. Loss of love and affection Rs.50,000 4. Loss of estate Rs.10,000 5. Funeral expenses Rs.20,000 TOTAL Rs.49,56,304 2. Sri. Siddappa S. Sajjan and Sri. M.K. Soudagar, the learned counsels for the Claimants and the concerned Insurer, state that there is no dispute that the Claimants are the dependants of Hanamappa who has died in a road accident on 26.12.2013 when he was on his two- wheeler along with the first Claimant on his pillion when a truck, insured with the Insurer, dashed against the two- - 4 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 wheeler coming from the opposite direction. The learned counsels also submit that it is not disputed that the deceased Hanamappa was working as a Head Constable with BSF and that his monthly income was Rs.32,738/-. The learned counsels are categorical that the controversy in this appeal is because of the computation of loss of dependency and the amounts awarded towards conventional heads including the loss of consortium. 3. On the computation of loss of dependency by the Tribunal, Sri. Siddappa S. Sajjan submits that the Tribunal could not have been deducted a flat 10% of the annual income towards income tax when it is indisputable that for the relevant assessment year, subject to standard deduction of Rs.50,000/-, the income tax payable for the income above Rs.3,00,000/- will only be 10% for the income up to Rs.5,00,000/-. This canvass is not contested by Sri. M.K. Soudagar. In the light of the afore, the computation of loss of dependency must be as follows: Annual Income and Deduction towards Income Tax: - 5 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 Annual Income with the monthly Income at Rs.32,738/- Rs.3,92,856/- Deduction at 10% of the amount in excess of Rs.50,000/- [Standard Deduction] and Rs.2,50,000/- [For which there is no Income Tax] Rs.9,285.60/- Annual Income for the purposes of Loss of Dependency Rs.3,83,570.40/- The Computation of Loss of Dependency will be: Computation of Loss of Dependency Annual Income for Loss of Dependency Rs.3,83,570.40/- Addition towards future Prospects at 30% Rs.1,15,071.12/- Annual Income with Future prospects Rs.4,98,641.52/- Deduction at 1/4th towards personal expenses Rs.1,24,660.38/- Annual Income after deduction towards personal expenses Rs.3,73,981.14/- Loss of dependency with multiplier of '14' Rs.52,35,735.96/- 4. It is now settled that each of the dependants would be entitled for consortium with a sum of Rs.40,000/- with addition at the rate of 10% for every block of three years after the first block of three years. Consequentially, the Claimants would be entitled for escalation at 20% under - 6 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 this the conventional head. In which event, the Claimants, who are five in number, will be entitled to Rs.40,000 x 5 + Rs.40,000/- [20% of Rs.2,00,000/-] = Rs.2,40,000/- towards loss of consortium. They will also be entitled to Rs.30,000/- with escalation at 20% towards other conventional head in a sum of Rs.36,000/-. If the compensation is recomputed with the following parameters, the Claimants would be entitled for a total sum of Rs.55,11,736/- as against Rs.49,56,304/- awarded by the Tribunal. The computation showing the difference is as follows:- By the Tribunal By this Court Loss of dependency Rs.48,26,304/- Rs.52,35,736/- Loss of consortium Rs.50,000/- Rs.2,40,000/- Loss of love and affection Rs.50,000/- Loss of estate Rs.10,000/- Funeral expenses Rs.20,000/- 36,000/- Rs.49,56,304/- Rs.55,11,736/- 5. As such, there must be an enhancement in a sum of Rs.5,55,432/- [Rounded off to Rs.5,55,430/-]. Sri. M.K. Soudagar contends that the Tribunal has granted 9% interest when it is settled that interest must be at 6% per annum when there are no special circumstances and in the - 7 - NC: 2025:KHC-D:3186-DB MFA No. 102564 of 2018 present case, there are no special circumstances to justify a higher rate of interest. Sri. Siddappa S. Sajjan cannot controvert this submission, and therefore, the interest must be confined to 6% per annum from the day the petition is filed till deposit. 6. In the light of the afore, the appeal is allowed in part modifying the Tribunal’s judgment and award granting compensation to the Claimants to a total sum of Rs.55,11,736/- with an enhancement of Rs.5,55,430/-along with interest 6%. Per annum. The Insurer is called upon to deposit the compensation with interest as aforesaid and remit the balance amount within a period of [8] eight weeks from the date of receipt of copy of this order. The office is directed to transmit the Trial Court Records expeditiously. Sd/- (B.M.SHYAM PRASAD) JUDGE Sd/- (RAMACHANDRA D. HUDDAR) JUDGE RSH, CT:VP