- 1 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 9TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MR. JUSTICE R.DEVDAS AND THE HON'BLE MR. JUSTICE K V ARAVIND MISCELLANEOUS FIRST APPEAL NO.101336 OF 2021 (MV) C/W MFA CROSS OBJ NO.100014 OF 2022 IN M.F.A. NO.101336 OF 2021 BETWEEN: THE DIVISIONAL CONTROLLER, DIVISIONAL OFFICE, KSRTC, KALBURGI, OWNER AND CONTROLLER OF THE BUS BEARING NO.KA-32/F-1961, KALABURGI, REPRESENTED BY ITS CHIEF LAW OFFICER-585101. …APPELLANT (BY SRI. S.C. BHUTI, ADVOCATE) AND: 1. SMT. SHARADA W/O. LATE MAHANTESH, AGE. 31 YEARS, OCC. HOUSEHOLD, 2. SMT. MALLAMMA W/O. LATE HANUMATHA @ HANUMANTHAPPA VANDALI, AGE. 65 YEARS, OCC. HOUSEHOLD, SINCE DEAD R1 AND R3 TO R5 ARE LR'S OF DECEASED R2. 3. KUMARI. VIJAYALAXMI D/O. LATE MAHANTESH, AGE. 17 YEARS, OCC. STUDENT, 4. KUMARI. ROHINI D/O. LATE MAHANTESH, AGE. 15 YEARS, OCC. STUDENT, Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 5. SURESH S/O. LATE MAHANTESH, AGE. 11 YEARS, OCC. STUDENT, RESPONDENTS NO.3 TO 5 ARE MINORS UNDER GUARDIANSHIP OF THEIR NATURAL MOTHER I.E., RESPONDENT NO.1 ALL ARE R/O. NO.127, WARD NO.4, VIRUPANNA TATA CAMP, HEROOR, TQ. GANGAVATHI, DIST. KOPPAL-583227. 6. MALLIKARJUN S/O. MALLAYYA, AGED: MAJOR, OCC. DRIVER OF BUS BEARING NO.KA.32/F-1961, KALBURGI 1 DEPOT, R/O. R. HOSALLI, TQ. YADAGIRI-585324. …RESPONDENTS (BY SRI. SAJEET A.T., ADVOCATE FOR SRI. B. SHARANABASAWA, ADVOCATE FOR R1, R3 TO R5; (R3 TO R5 ARE MINORS R/BY R1) R1 AND R3 TO R5 AS LR’S OF DECEASED R2; NOTICE TO R6 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 08.04.2021 PASSED IN MVC NO.378/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND MOTOR ACCIDENT CLAIMS TRIBUNAL, GANGAVATHI, IN THE INTEREST OF JUSTICE AND EQUITY. IN M.F.A. CROB. NO.100014 OF 2022 BETWEEN: 1. SMT. SHARADA W/O. LATE MAHANTESH, AGED ABOUT. 33 YEARS, OCC. HOUSEHOLD, 2. KUMARI. VIJAYALAXMI D/O. LATE MAHANTESH, AGED ABOUT. 18 YEARS, OCC. STUDENT, 3. KUMARI. ROHINI D/O. LATE MAHANTESH, AGED ABOUT. 16 YEARS, OCC. STUDENT, - 3 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 4. SURESH S/O. LATE MAHANTESH, AGED ABOUT. 10 YEARS, OCC. STUDENT, CROSS OBJECTORS NO.2 TO 4 ARE MINORS UNDER GUARDIANSHIP OF THEIR NATURAL MOTHER I.E., CROSS OBJECTOR NO.1 ALL ARE R/O. NO.127, WARD NO.4, VIRUPANNA TATA CAMP, HEROOR, TQ. GANGAVATHI, DIST. KOPPAL-583201. …CROSS OBJECTORS (BY SRI. B SHARANABASAWA, ADVOCATE) AND: 1. MALLIKARJUN S/O. MALLAYYA, AGED ABOUT: MAJOR OCC. DRIVER OF BUS BEARING NO.KA-32/F-1961, KALBURGI 1 DEPOT, R/O. R. HOSALLI, TQ. YADAGIRI-585201. 2. THE DIVISIONAL CONTROLLER, DIVISIONAL OFFICE, KSRTC, KALBURGI, OWNER AND CONTROLLER OF BUS BEARING KA-32/F-1961, KALBURGI-585101. …RESPONDENTS (BY SRI. S.C. BHUTI, ADVOCATE FOR R2; NOTICE TO R1 IS DISPENSED WITH) THIS M.F.A. CROSS OBJECTION IN MFA NO.101336/2021 IS FILED UNDER ORDER 41 RULE 22 OF CPC.READ WITH 173(1) OF MOTOR VEHICLE ACT, PRAYING TO ALLOW THIS CROSS OBJECTION AND CONSEQUENTLY MODIFY THE JUDGMENT AND AWARD DATED 08.04.2021 PASSED IN MVC NO.378/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND MOTOR ACCIDENT CLAIMS TRIBUNAL, GANGAVATHI, BY ENHANCING THE COMPENSATION AS CLAIMED IN CLAIM PETITION, IN THE INTEREST OF JUSTICE AND EQUITY. THIS MISCELLANEOUS FIRST APPEAL AND MFA CROSS OBJECTION, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 CORAM: THE HON'BLE MR. JUSTICE R.DEVDAS AND THE HON'BLE MR. JUSTICE K V ARAVIND ORAL ORDER (PER: THE HON'BLE MR. JUSTICE K V ARAVIND) MFA No.101336/2021 and MFA Crob.No.100014/2022 arises out of the common judgment and award in M.V.C.No.378/2016 dated 08.04.2021 on the file of the Senior Civil Judge and Motor Accidents Claims Tribunal, Gangavathi (for short ‘the Tribunal’). 2. Parties are referred to as per their ranking before the Tribunal. 3. The appeal is filed by the Transport Corporation disputing its liability, while the cross-objection is filed by the claimants seeking enhancement of the compensation awarded. 4. The facts giving rise to the claim petition are that the claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988 (for short, 'the MV Act'), seeking compensation of Rs.40,50,000/- along with interest at the rate of 18% per annum. It is pleaded that on 09.04.2016, at about - 5 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 3:30 a.m., while the deceased, Mahantesh, was walking on the left side of the Gangavathi–Kanakagiri Main Road, he met with an accident near Heroor Village due to the rash and negligent driving of the driver of the KSRTC bus bearing registration No.KA-32/F-1961. It is stated that due to the said accident and the resultant grievous head injuries, Mahantesh died on the spot. It is further averred that the deceased was earning Rs.35,000/- per month as an agriculturist, a milk vendor, and also as a partner of Tirumala Traders. 5. Upon service of notice, respondent Nos.1 and 2 appeared before the Tribunal and respondent No.2 filed written statement. 6. The claimants examined four witnesses and marked 22 exhibits, whereas respondents examined two witnesses and marked 09 documents as exhibits. 7. The Tribunal, upon consideration of the oral and documentary evidence, determined the compensation at Rs.21,02,000/- by taking the monthly income of the deceased at Rs.10,000/-, deducting 1/4th towards personal and living expenses, and applying a multiplier of 16, considering the age - 6 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 of the deceased as 33 years. In addition, the Tribunal awarded compensation under the heads of ‘loss of love and affection’, ‘loss of estate’, ‘funeral expenses’, and ‘loss of consortium’. The Tribunal awarded interest @6% p.a. from the date of petition till realization. 8. Sri S.C. Bhuti, learned counsel for the Transport Corporation submits that the monthly income of the deceased, assessed at Rs.10,000/- by the Tribunal, is without any evidentiary basis. It is further submitted that in the absence of proof of income, the compensation ought to have been computed by taking the notional income as suggested by the Karnataka State Legal Services Authority, which is Rs.8,750/- per month. Learned counsel also contends that the compensation awarded under the head ‘loss of love and affection’ is impermissible in law and the Tribunal committed an error in awarding compensation under a head that is not legally sustainable. 9. Sri B. Sharanabasawa, learned counsel for the claimants submits that the deceased was earning Rs.35,000/- per month and the Tribunal erred in assessing the income at - 7 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 Rs.10,000/- per month without taking into consideration the quantity of milk supplied by the deceased to the Co-operative Society and the agricultural income derived from cultivating 3 acres of irrigated land. Learned counsel further submits that the addition of 30% towards future prospects is incorrect, considering the age of the deceased as 33 years. It is submitted that, in terms of the judgment of the Hon’ble Supreme Court in National Insurance Co. Ltd. v. Pranay Sethi and Others, [(2017) 16 SCC 680], 40% ought to have been added towards future prospects. 9.1 Learned counsel further submits that, in view of Pranay Sethi (supra), and in light of the judgment of the Hon’ble Supreme Court in Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram and Others, [(2018) 18 SCC 130], the compensation awarded under the heads of funeral expenses, loss of estate and loss of consortium is incorrect and requires re-assessment. 10. Considered the submissions of learned counsels for the parties and perused the record. - 8 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 11. The fact that the deceased, Mahantesh, died on 09.04.2016 in an accident involving the KSRTC bus bearing registration No.KA-32/F-1961 is not in dispute. The Tribunal has attributed the entire negligence and fastened liability upon the Transport Corporation. There is no dispute with regard to the finding on negligence. The submissions of the learned counsel for both parties were confined to the correctness of the compensation assessed by the Tribunal. 12. The claimants have pleaded that the deceased was earning Rs.35,000/- per month from agricultural activities and dairy farming. However, upon examination of the evidence adduced by the claimants, the Tribunal held that no documentary evidence was produced to establish the income of the deceased as on the date of the accident. Mere ownership of 3 acres of land and supply of 55 litres of milk, in the absence of supporting records, was held to be insufficient to assess the income of the deceased. 13. In the absence of any evidence to establish the income of the deceased, notional income is to be considered for the purpose of assessing compensation. The notional income of - 9 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 Rs.10,000/- per month, as taken by the Tribunal, is unsustainable and without any justification. As per the guidelines issued by the Karnataka State Legal Services Authority (KSLSA), considering that the accident occurred in the year 2016, the notional income is taken at Rs.8,750/- per month. Although the Tribunal has awarded compensation towards future prospects, the addition of 30% is incorrect in view of the decision in Pranay Sethi (supra) and accordingly, it is modified to 40%. Considering that the deceased had five dependents, 1/4th deduction towards personal and living expenses is justified and is in conformity with the judgment of the Hon’ble Supreme Court in the case of Sarla Verma and Others v. Delhi Transport Corporation and Another [(2009) 6 SCC 121]. As the deceased was aged 33 years, the Tribunal has rightly applied the multiplier of 16. Hence, the loss of dependency is calculated as under: Rs.8,750/- (x) 12 = 1,05,000/- Rs.1,05,000/- (+) 40% (42,000) = Rs.1,47,000/- Rs.1,47,000 (-) 1/4th (36,750) = Rs.1,10,250/- Rs. 1,10,250/- (x) 16 = Rs.17,64,000/-. - 10 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 14. Though the Tribunal rightly noted that there were five dependents namely, the wife, parents, and children of the deceased it committed an error in awarding only ₹40,000/- towards loss of consortium. 15. In view of the decisions in Pranay Sethi and Magma General Insurance Co. Ltd. (supra), each dependent claimant is entitled to Rs.40,000/- towards loss of consortium. It is stated that, as on date, only four claimants are surviving. Accordingly, the surviving four claimants are entitled to Rs.40,000/- each under the head of loss of consortium. 16. In view of the aforesaid judgments, the amount awarded under the head of consortium is required to be increased by 10% every three years. As the accident occurred in the year 2016, a total enhancement of 20% (10% + 10%) is applicable. Accordingly, each of the surviving claimants is entitled to Rs.48,000/- (i.e., Rs.40,000/- + 20%) towards parental, spousal, and filial consortium. Rs.48,000/- x 4 = Rs.1,92,000/-. - 11 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 17. Similarly, the compensation awarded under the heads of funeral expenses and loss of estate, originally assessed at Rs.15,000/- each, is to be increased by 10% every three years. Accordingly, considering a 20% enhancement, the compensation under each of these heads is revised to Rs.18,000/- i.e., Rs.15,000/- + 20%(Rs.3,000/-) = Rs.18,000/- towards loss of funeral. Rs.15,000/- + 20%(Rs.3,000/-) = Rs.18,000/- towards loss of estate. 18. The award of compensation under the head ‘loss of love and affection’ is not supported by any statutory provision or authoritative judicial pronouncement. Hence, the said award is held to be unsustainable and is accordingly set aside. 19. The total compensation is re-computed as under: Particulars Compensation awarded by the Tribunal (amount in Rs.) Modified compensation (amount in Rs.) Loss of dependency 18,72,000/- 17,64,000/- Funeral expenses and transportation 15,000/- 18,000/- - 12 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 of dead body Loss of love and affection 1,60,000/- -- Loss of estate 15,000/- 18,000/- Loss of consortium 40,000/- 1,92,000 Total 21,02,000/- 19,92,000/- 20. The total compensation of Rs.21,02,000/- as awarded by the Tribunal is modified and reduced to Rs.19,92,000/-. The award of interest, apportionment, and any directions regarding investment, as ordered by the Tribunal, are retained. 21. In the light of the above discussions, the following, ORDER (i) MFA No.101336/2021 filed by the Transport Corporation and MFA Crob.No.100014/2022 filed by the claimants are allowed-in-part. (ii) The judgment and award dated 08.04.2021 passed in MVC No.378/2016 is modified as under, (a) The claimants are entitled to modified compensation of Rs.19,92,000/- with 6% interest p.a. from the date of petition till the date of realization. - 13 - HC-KAR NC: 2025:KHC-D:7435-DB MFA No. 101336 of 2021 C/W MFA.CROB No. 100014 of 2022 (iii) The respondent-Transport Corporation shall deposit the modified compensation before the tribunal within four weeks from the date of receipt of copy of this order. (iv) The order of the Tribunal with regard to apportionment and investment is maintained. (v) Registry shall transmit the TCR to the Tribunal forthwith. Sd/- (R.DEVDAS) JUDGE Sd/- (K V ARAVIND) JUDGE DDU CT: UMD List No.: 1 Sl No.: 15