- 1 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 7TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.21886 OF 2012 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.21887 OF 2012 IN M.F.A. NO.21886 OF 2012 BETWEEN: THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE COMPANY LIMITED, ENKAY COMPLEX, KESHWAPUR HUBLI, REPRESENTED BY ITS ASST MANAGER, REGIONAL OFFICE, SUMANGALA COMPLEX, LAMINGTON ROAD, HUBLI-29. …APPELLANT (BY SRI G.N. RAICHUR, ADVOCATE (V/C)) AND: 1. SMT. ANANDAVANI W/O. VEERAPPA KARAJAGI, AGE: 61 YEARS, OCC: HOUSEHOLD WORK, 2. SMT. LATA W/O. SURESH KARAJAGI, AGE: 33 YEARS, OCC: HOUSEHOLD WORK, 3. KUMAR SARTHAK S/O. SURESH KARAJAGI, AGE: 14 YEARS, OCC: STUDENT, (SINCE THE RESPONDENT NO.3 IS MINOR REPRESENTED BY HIS NEXT FRIEND M/G SMT. LATA W/O. SURESH KARAJAGI) ALL ARE R/O: VAGISH NAGAR, RANEBENNUR CITY, DIST: HAVERI. 4. SRI RAJESH S/O. DAYALAL PATEL, AGE: MAJOR, OCC: TRANSPORT BUSINESS, Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 OWNER OF THE VEHICLE I.E., TRUCK BEARING REG. NO.GJ-10/V-4412, R/O: PALIA, TQ: AND DIST: JAMANAGAR, (GUJARATH). 5. SRI GANESHAGAR S/O. RAMAGAR GOSHI, AGE: MAJOR, OCC: DRIVER, R/O: BALAMBA, TQ: JODIA, DIST: JAMANAGAR, GUJARATH STATE. …RESPONDENTS (BY SRI LOKESH MALAVALLI, ADV. FOR R1 AND R2; R3 IS MINOR REPRESENTED BY R2; R4 AND R5-SERVICE OF NOTICE DISPENSED WITH) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF M.V. ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 06-02-2012 IN MVC.NO.123/2011 AND ORDER PASSED ON IA NO.VI DATED 24-03-2012 PASSED BY THE ADDL. SENIOR CIVIL JUDGE AND MEMBER, ADDL. MACT, RANEBENNUR, BY ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND EQUITY. IN M.F.A. NO.21887 OF 2012 BETWEEN: THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE COMPANY LIMITED, ENKAY COMPLEX, KESHWAPUR HUBLI, REPRESENTED BY ITS ASST MANAGER, REGIONAL OFFICE, SUMANGALA COMPLEX, LAMINGTION ROAD, HUBLI-29. …APPELLANT (BY SRI G.N. RAICHUR, ADVOCATE (V/C)) AND: 1. SMT. SHASHIREKHA S/O. S.P. SHIVAKUMAR, AGE: 38 YEARS, OCC: HOUSEHOLD WORK, - 3 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 2. KUMARI SUCHETA D/O. S.P. SHIVAKUMAR, AGE: 20 YEARS, OCC: STUDENT, 3. KUMARI. SAHANA D/O. S.P. SHIVAKUMAR, AGE: 17 YEARS, OCC: STUDENT, (SINCE THE RESPONDENT NO.3 IS MINOR REPRESENTED BY HER NEXT FRIEND M/G IS I.E., RESPONDENT NO.1) ALL ARE R/O: VAGISH NAGAR, RANEBENNUR CITY, DIST: HAVERI. 4. SRI RAJESH S/O. DAYALAL PATEL, AGE: MAJOR, OCC: TRANSPORT BUSINESS, OWNER OF THE VEHICLE I.E., TRUCK BEARING REG NO. GJ-10/V-4412, R/O: PALIA, TQ: AND DIST: JAMANAGAR, (GUJARATH). 5. SRI GANESHAGAR S/O. RAMAGARA GOSHI, AGE: MAJOR, OCC: DRIVER, R/O: BALAMBA, TQ: JODIA, DIST: JAMANAGAR, GUJARATH STATE. …RESPONDENTS (BY SRI CHANDRASHEKAR M.HOSAMANI, ADV. FOR R1 AND R2; (R3 MINOR REPRESENTED BY R1); R4 AND R5-SERVICE OF NOTICE DISPENSED WITH) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MV ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 06.02.2012 PASSED IN MVC.NO.124/2011 AND ORDER PASSED ON IA NO.VI DATED 24.03.2012 PASSED BY ADDL. SENIOR CIVIL JUDGE MEMBER AMACT, RANEBENNUR, BY ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND EQUITY. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: - 4 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) These two appeals are filed by the Insurance Company challenging the judgment and award dated 06.02.2012 passed in MVC.Nos.123 and 124 of 2011 and order passed on IA No.6 in both cases dated 24.03.2012 passed by the Additional Senior Civil Judge & Additional MACT, Ranebennur, on the following grounds: 1. There is no negligence on part of the driver of the lorry bearing Reg.No.GJ-10/4412. 2. The income of Rs.12,000/- and Rs.15,000/- per month taken respectively in both the cases is without any evidence therefore, for reduction of quantum of compensation, these two appeals are filed. 2. It is borne out that the accident is caused on 26.05.2000 at about 11.00 p.m. near Chikkali Railway Gate, on the Tumkuru-Bengaluru road between Maruti Car bearing Reg.No.KA-27/M-6276 and lorry bearing Reg.No.GJ-10/4412. Exs.P-1 and P-2 are the complaint and FIR given by driver of lorry bearing Reg.No.GJ-10/4412 that the accident is caused - 5 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 due to entire rash and negligent driving of the driver of Maruti Car. Ex.P-6 is the complaint in P.C.179/2000 that by accusing the driver of the lorry bearing Reg.No.GJ-10/4412 a private complaint is filed. Accordingly, FIR was registered against the driver of lorry as per Ex.P-5. Ex.P-11 is the charge sheet holding that driver of lorry was rash and negligent in driving the lorry and caused accident. Therefore, there are two complaints and FIRs making accusation each other against the drivers of Maruti Car bearing Reg.No.KA-27/M-2676 and lorry bearing Reg.No.GJ-10/4412 respectively. 3. Ex.P-3 is the spot panchanama and Ex.P-7 is the hand sketch map. In Ex.P-3/spot panchanama, the rash and negligence is shown against the driver of Maruti Car. Ex.P-7 hand sketch map, in which it is shown as head on collision on the middle of the road between Maruti Car and lorry. Therefore, the Tribunal has held that both the drivers of Maruti Car and lorry were equally responsible to the accident. Accordingly, rashness and negligence is attributed at 50% each respectively. 4. There are four inmates, who were travelling in Maruti car. The legal heirs of other two deceased have filed MVC - 6 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 Nos.31/2001 and 32/2001, in which, the judgment and decree passed by the Tribunal is in effect to both drivers of Maruti car and lorry, who have equally contributed to accident in question due to rash and negligent driving of Maruti car and lorry and accordingly, 50:50 ratio of rash and negligence was fastened on the part of drivers of both said vehicles. 5. In the judgment and award passed by the Tribunal in MVC Nos.31/2001 and 32/2001, it is held that drivers of both Maruti car and lorry have contributed rashness and negligence at 50% each, to the accident. Upon considering all the documentary evidence as above discussed, there are two FIR- Ex.P1 and Ex.P5, complaint-Ex.P2 and two different inquest panchanama-Ex.P8 and Ex.P15 and spot panchanama-Ex.P3. But upon considering place of accident and the manner in which accident was taken place and headon collision, where both vehicles caused accident in opposite direction, this Court is of the considered view that both the drivers of Maruti car and lorry have contributed to accident in question to an extent of 50% each. To this effect, the findings given by the Tribunal is confirmed. Therefore, I do not find any error in the findings recorded by the Tribunal insofar as fastening of liability is - 7 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 concerned to an extent of 50% each on the drivers of Maruti car and lorry. 6. But the Tribunal has committed error in determining compensation and also in the operative portion of the order, wherein it was held that the insurer of lorry is liable to pay 75% of the compensation. On these two counts, the Tribunal has committed error that is to be modified in these appeals. IN MFA No.21886/2012 (MVC No.123/2011) 7. The deceased Suresh Karajagi was aged 36 years old as on the date of accident and was doing agriculture management and other business. The accident is of the year 2000. Hence, in the absence of proof of income, the notional income is to be taken at Rs.3,000/- per month, as recognized by the Karnataka State Legal Services Authority. 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 three dependents i.e., mother, wife and son. Therefore, 1/3rd of - 8 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 the income is to be deducted towards his 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.5,04,000/- (Rs.3,000 + 40% minus 1/3rd x 12 x 15). 8. 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 three dependents, who are mother, wife and son. Accordingly, Rs.1,32,000/- (Rs.40,000 x 3 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 9. 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. - 9 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 10. 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 5,04,000 2. Towards loss of consortium (40,000 x 3 +10%) 1,32,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 6,69,000 11. Therefore, the claimants are entitled for total compensation of Rs.6,69,000/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.17,50,000/- awarded by the Tribunal. IN MFA No.21887/2012 (MVC No.124/2011) 12. The deceased was aged 42 years old as on the date of accident and was engineer and industrialist by profession. The accident is of the year 2000. Hence, in the absence of proof of income, notional income is to be taken at Rs.3,000/- per month, as recognized by the Karnataka State Legal Services Authority. In view of the decision of the Hon’ble Apex Court in - 10 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 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, 25% of the income is to be added towards loss of future prospects in life. There are three dependents i.e., wife and two children. Therefore, 1/3rd of income is to be deducted towards his personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is 14. Therefore loss of dependency is re-assessed and quantified at Rs.4,20,000/- (Rs.3,000 + 25% minus 1/3rd x 12 x 14). 13. 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 three dependents, who are wife and children. Accordingly, Rs.1,32,000/- (Rs.40,000 x 3 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. - 11 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 14. 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. 15. 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 4,20,000 2. Towards loss of consortium (40,000 x 3 +10%) 1,32,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 5,85,000 16. Therefore, the claimants are entitled for total compensation of Rs.5,85,000/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.19,95,000/- awarded by the Tribunal. 17. In the result, I proceed to pass the following: - 12 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 ORDER a) These appeals are allowed in part. b) The judgment and award dated 06.02.2012, passed by the Additional Senior Civil Judge & Additional MACT, Ranebennur, in MVC Nos.123/2011 and 124/2011, stands modified. c) The claimants in MFA No.21886/2012 (MVC No.123/2011) are entitled for total compensation of Rs.6,69,000/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the compensation of Rs.17,50,000/- awarded by the Tribunal. d) The claimants in MFA No.21887/2012 (MVC No.124/2011) are entitled for total compensation of Rs.5,85,000/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the - 13 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 compensation of Rs.19,95,000/- awarded by the Tribunal. e) The appellant/Insurance Company shall deposit the redetermined compensation amount in both the appeals within a period of six weeks from today. f) Apportionment of compensation, deposits and disbursement of compensation between the claimants shall be made as per the award of the Tribunal. g) The Insurance Company shall pay 50% of compensation as determined above to the claimants. h) Send back the Trial Court records along with a copy of this judgment to the Tribunal. i) No order as to costs. j) Draw modified award accordingly. - 14 - NC: 2025:KHC-D:2530 MFA No. 21886 of 2012 C/W MFA No. 21887 of 2012 k) Pending applications, if any, in the above appeals are disposed off, as they do not survive for consideration. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE SRA para 1 to 4 PMP para 4 to end List No.: 1 Sl No.: 79