- 1 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 16TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. MISCELLANEOUS FIRST APPEAL NO. 102350 OF 2024 (MV-D) BETWEEN: 1. SMT. KASTURI W/O ULAVANAGOWDA GEERAPPAGOWDRA AGE. 25 YEARS, OCC. HOUSEHOLD WORK, R/O. BASAVANAKOPPA, TQ. SAVANUR, DT. HAVERI, NOW AT ALADAKATTI, TQ. & DT. HAVERI 581110. 2. KUMARI. POOJA D/O BASAYYA SHIRAKOLAMATH AGE. 24 YEARS, OCC. STUDENT, R/O. TAVARAMELLALLI, TQ. SAVANUR, DT. HAVERI. NOW AT ALADAKATTI, TQ. & DT. HAVERI 581110. 3. KUMARI. VIDYA D/O BASAYYA SHIRAKOLAMATH AGE. 18 YEARS, OCC. STUDENT, R/O. TAVARAMELLALLI, TQ. SAVANUR, DT. HAVERI. NOW AT ALADAKATTI, TQ. & DT. HAVERI 581110. 4. KUMAR. CHETANA KUMAR S/O BASAYYA SHIRAKOLAMATH AGE. 17 YEARS, OCC. STUDENT, R/O. TAVARAMELLALLI, TQ. SAVANUR, DT. HAVERI. NOW AT ALADAKATTI, TQ. & DT. HAVERI 581110. (APPELLANT NO.4 IS MINOR R/BY NATURAL GUARDIAN APPELLANT NO.2) …APPELLANT (BY SRI. B.M. PATIL, ADVOCATE) AND: 1. SHRI. BASAVANTAPPA S/O NARAYANAPPA SHIDLAPURA AGE. 32 YEARS, OCC. OWNER OF VEHICLE KA-27/E-4389, R/O. HARANAGIRI, TQ. HANGAL, DT. HAVERI 581102. 2. THE MANAGER, TATA AIG GENERAL INSURANCE CO. LTD., DESHPANDE NAGAR, HUBBALLI, DT. DHARWAD-580029. …RESPONDENTS (BY SRI. SUBHASH J. BADDI, ADVOCATE FOR R2) VISHAL NINGAPPA PATTIHAL Digitally signed by VISHAL NINGAPPA PATTIHAL Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 THIS MFA IS FILED UNDER SECTION 173 (1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 14.02.2024 PASSED IN MVC NO.219/2022 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND MEMBER MOTOR ACCIDENT CLAIMS TRIBUNAL, HAVERI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION & ETC. THIS MFA COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE S G PANDIT) The claimants are before this Court praying for enhancement of compensation, not being satisfied with the quantum of compensation awarded under judgment and award dated 14.02.2024 passed in MVC No.219/2022 on the file of learned Principal Senior Civil Judge and Member, MACT, Haveri (for short, ‘Tribunal’). 2. The claimants, who are the children of the deceased Basamma, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation for the accidental death of Basamma that took place on 9.4.2021 involving motorcycle bearing registration No.KA-27/EN-4389. - 3 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 It is stated that the deceased was aged about 45 years as on the date of accident and earning Rs.30,000/- per month by doing vegetable business and also doing household work. 3. On issuance of notice, respondents appeared through their counsels, but did not file objections. Before the Tribunal, 1st claimant examined herself as PW1 apart from marking the documents as Exs.P1 to P10. On behalf of the respondents, two witnesses were examined as RW1 and RW2 and marked five documents as Exs.R1 to R5. The Tribunal based on entire material evidence on record awarded total compensation of Rs.24,03,000/- with interest at 6% per annum on the following heads: Loss of Dependency Rs.23,62,416/- Transport & Funeral expenses Rs. 25,000/- Loss of love and affection & estate Rs. 15,000/- Total Rs.24,02,416/- Rounded off to Rs.24,03,000/- 4. While awarding the above compensation, the Tribunal assessed notional income of the deceased at Rs.15,000/- per month, added 25% of the assessed income towards future prospects, deducted 1/4th towards personal - 4 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 and living expenses of the deceased and applied multiplier of 14. The claimants not being satisfied with quantum of compensation awarded by the Tribunal are before this Court praying for enhancement of compensation. 5. Heard Sri.B.M. Patil, learned counsel for the appellants-claimants as well as Sri.Subhas J Baddi, learned counsel for the respondent-Insurance Company and perused the appeal papers along with original records of the Tribunal. 6. Sri. B.M. Patil, learned counsel for the appellants- claimants would submit that the Tribunal committed an error in not awarding compensation under the head of loss of consortium to the claimants, who are children of the deceased. It is submitted that the claimants would be entitled to Rs.44,000/- each towards loss of consortium including 10% escalation in terms of decision of the Apex Court in the case of National Insurance Company Limited vs. Pranay Sethi & Others1 and Magma General Insurance Company Ltd., 1 (2017) 16 SCC 680 - 5 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 Vs. Nanu Ram and Others2. Thus, he would pray for enhancement of compensation accordingly. Learned counsel would further submit that the Tribunal has saddled the liability on respondent No.1/owner of the motorcycle on the ground that rider of the motorcycle was not having valid and effective driving license as on the date of the accident. It is submitted that in terms of decision of Full Bench of this Court in New India Assurance Co. Ltd. Vs. Yallavva & Another3, wherever it is case of no driving license, it would be “pay and recover”. As such, he submits that insurer be directed to pay compensation at the first instance with liberty to recover the same from the owner of the offending vehicle. Thus, he prays for allowing the appeal. 7. Per contra, Sri.Subhas J Baddi, learned counsel appearing for the respondent-Insurance Company would contend that the compensation awarded by the Tribunal is on higher side. He submits that since the claimants have not placed any cogent evidence on record to establish the income 2 2018 ACJ 2782 3 2020 (2) KCCR 1405 - 6 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 of the deceased, the Tribunal could not have assessed the income of the deceased at Rs.15,000/-. He further submits the Tribunal could have taken notional income of the deceased at Rs.14,250/- placing reliance on income chart prepared by KSLSA. Further, learned counsel would submit that claimant No.1 is a married daughter and she would not be entitled to any compensation. Hence, deduction ought to have been 1/3rd instead of 1/4th. Thus, he prays for passing appropriate order. 8. Having heard the learned counsel for the parties and on perusal of the appeal papers including the original records, the only point that would fall for consideration in this appeal is as to, whether the claimants would be entitled for enhanced compensation? 9. Our answer to the above point would be in the “affirmative” for the following reasons. 10. The occurrence of the accident on 9.4.2021 involving Motorcycle bearing registration No.KA-27/EN-4389, resultant death of Basamma is not in dispute in this appeal. The claimants are before this Court praying for enhancement of compensation. The insurance company has not filed any - 7 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 appeal against impugned judgment and award and it has accepted the judgment and award. 11. Admittedly, the claimants though stated that the deceased was earning a sum of Rs.30,000/- per month by doing vegetable business as well as household work, but they have not established the said factum of income by placing on record cogent evidence. In the absence of any material evidence on record to establish the avocation and income of the deceased, this Court and Lok Adalath while settling the accidental claims of the year 2021, would normally assess notional income at Rs.14,250/- per month, taking note of the income chart prepared by KSLSA based on various factors including the minimum wage fixed. Therefore, in the instant case also, in the absence of any corroborative document to establish the income of the deceased, we are of the opinion that it would be just and appropriate for us to determine notional income of the deceased at Rs.14,250/- p.m., taking note of the income chart prepared by KSLSA and also the minimum wage fixed. There is no dispute with regard to age of the deceased as 45 years, applicable multiplier of 14 and - 8 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 addition of 25% of the assessed income of the deceased towards future prospects. It is the contention of the insurer that the claimant No.1 is a married daughter and she would not be entitled to any compensation, hence, deduction would be 1/3rd instead of 1/4th towards personal and living expenses of the deceased. It is seen that the respondent/insurer has neither filed any objection to the claim petition nor taken any contention before the Tribunal. For the first time, in this appeal, the said contention is taken by the insurer. Hence, we decline to accept the said contention. Thus, the claimants would be entitled for modified compensation on the head of loss of dependency as under: Rs.22,44,375/- (Rs.14,250 + 25% x 12 x 14 x 3/4). 12. It is well settled law that claimants No.1 to 4 would be entitled to Rs.44,000/- each towards loss of consortium as held by the Hon’ble Apex Court in the case of Magma General Insurance Co. Ltd. (supra) including 10% escalation for three years. In terms of decision of the Hon’ble Apex Court in the case of Pranay Sethi supra, the claimants - 9 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 would be entitled to Rs.16,500/- towards loss of estate, besides Rs.16,500/- towards transportation of dead body and funeral expenses including 10% escalation for three years. Thus, the claimants would be entitled for modified compensation on the following heads: Sl. No. Particulars Amount 1. Loss of dependency Rs.22,44,375/- 2. Loss of estate & Funeral expenses Rs. 33,000/- 3. Loss of consortium (Rs.44,000/- each) Rs. 1,76,000/- Total Rs.24,53,375/- 13. Thus, the claimants would be entitled to total compensation of Rs.24,53,375/- as against Rs.24,03,000/- awarded by the Tribunal. REGARDING LIABILITY: The Tribunal saddled liability on the owner/respondent No.1 on the ground that rider of the offending motorcycle was not in possession of valid and effective driving license as on the date of accident. In such circumstance, the Full Bench of this Court in the case of Yallavva supra has held that, in an accidental claim for compensation, where the driver/rider of - 10 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 the offending vehicle was not holding a valid and effective driving licence as on the date of the accident, it is a case of "Pay and Recover", i.e., the insurance company shall pay the compensation to the claimants, at the first instance, with liberty to recover the same from the owner of the vehicle. In the instant case also, in terms of the aforesaid decision of the Full Bench of this Court, it is for the insurance company to satisfy the claim at the first instance and thereafter it would be at liberty to recover the same from the owner of the offending motorcycle i.e., the first respondent herein. 14. In the result, we proceed to pass the following: ORDER a) The above appeal is allowed in part. b) The impugned judgment and award of the Tribunal is modified to an extent that the claimants are entitled to total compensation Rs.24,53,375/- as against Rs.24,03,000/- awarded by the Tribunal. c) The enhanced compensation amount will bear interest at the rate of 6% per annum from the date of claim petition till date of realization. - 11 - HC-KAR NC: 2025:KHC-D:14022-DB MFA No. 102350 of 2024 d) The respondent/insurer is directed to pay compensation to the claimants at the first instance and thereafter recover the same from the owner of the offending motorcycle i.e., the first respondent herein. e) The respondent-Insurance Company shall deposit the entire compensation amount with accrued interest before the Tribunal within four weeks from the date of receipt of certified copy of this judgment. f) Apportionment, deposit & disbursement shall be made as per the award of the Tribunal. g) Draw modified award accordingly. h) No order as to costs. Sd/- (S G PANDIT) JUDGE Sd/- (GEETHA K.B.) JUDGE JTR CT:VP LIST NO.: 1 SL NO.: 54