- 1 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 101627 OF 2015 (MV-D) BETWEEN: THE BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD., DIVISIONAL OFFICE, MODI COMPLEX, HOSPET ROAD, SIRSI, REP. BY ITS DEPUTY MANAGER. … APPELLANT (BY SRI. SHARANAPPA S. KOLIWAD, ADVOCATE) AND: 1. SMT. TASLEEM TAJ W/O MOHAMMAD IMRAN SHAIKH, AGE: 24 YEARS, OCC: HOUSEHOLD WORK, R/O: BANAVASI, TQ: SIRSI, DIST: KARWAR. 2. KUM. MOHAMMAD IYAN S/O MOHAMMAD IMRAN SHAIKH, AGE: 05 YEARS, OCC: NIL, R/O: BANAVASI, TQ: SIRSI, DIST: KARWAR. 3. KUM. MOHAMMAD ZIAYAN S/O MOHAMMAD IMRAN SHAIKH, AGE: 03 YEARS, OCC: NIL, Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 R/O: BANAVASI, TQ: SIRSI, DIST: KARWAR. SINCE RESPONDENT NO.2 AND 3 ARE MINORS, REPRESENTED BY RESPONDENT NO.1 THEIR NATURAL MOTHER AND MINOR GUARDIAN. 4. ABDUL RAHEMAN S/O ABDUL GAFAR SHEIKH, AGE: 66 YEARS, OCC: NIL, R/O: BANAVASI, TQ: SIRSI, DIST: KARWAR. 5. SMT. SALIMABI W/O ABDUL RAHEMAN SHEIKH, AGE: 59 YEARS, OCC: HOUSEHOLD, R/O: BANAVASI, TQ: SIRSI, DIST: KARWAR. 6. SRI. SAMIULLA S/O MAHAMMADALI, AGE: 41 YEARS, OCC: BUSINESS, R/O: RAMANBAIL, TQ: SIRSI, DIST: KARWAR, (OWNER OF THE VEHICLE KA-31/3212). … RESPONDENTS (BY SRI. HARISH S. MAIGUR, ADVOCATE FOR R1-R5; SRI. S.G. KADADAKATTI, ADVOCATE FOR R6) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED: 28.02.2015 PASSED IN MVC NO.128/2014 ON THE FILE OF THE FAST TRACK COURT, SIRSI AT SIRSI. THIS APPEAL, COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) This appeal is filed under Section-173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘MV Act’ for brevity) by the appellant - Insurance Company, challenging the judgment and award dated 28.02.2015 passed in MVC No.128/2014, on the file of Fast Track Court, Sirsi (hereinafter referred to as ‘the Tribunal’ for brevity), questioning the quantum of compensation on the ground that it is excessive one. 2. For the sake of convenience and easy reference, the parties are referred to as per their rankings before the Tribunal. 3. Brief facts leading to filing of this appeal are that on 20.12.2014 at about 05.30 a.m., the deceased was moving in a Mahindra Maxi Pick-up vehicle bearing Reg.No.KA/31-3212 (for short, ‘Mahindra vehicle’) as driver and the deceased was driving his vehicle in normal speed by observing traffic rules and regulations by left side of the road and when came on Murdeshwar-Honnavar Road, near Manki Ramanagar, tried to - 4 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 over take ongoing vehicle, suddenly one lorry bearing registration No.MH-16/Q-4600 came on opposite side and unable to control his vehicle, dashed to the said Mahindra vehicle, and thereby caused the accident in question. As a result of it, the deceased sustained fatal injuries all over the body and died on the spot and this accident took place due to the rash and negligent driving of the driver of the lorry bearing Reg.No.MH-16/Q-4600. Therefore, the claim petition is filed under Section 163-A of the M.V Act for seeking compensation. 4. The Tribunal has allowed the petition in part and granted compensation of Rs.6,21,500/- along with interest at the rate of 6% per annum from the date of petition till its realization by fastening liability on the Insurance Company. 5. Section 163-A of the MV Act reads as under: 163-A. Special provisions as to payment of compensation on structured formula basis.— (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle of the authorised insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor - 5 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. Explanation.—For the purposes of this sub-section, “permanent disability” shall have the same meaning and extent as in the Workmen’s Compensation Act, 1923 (8 of 1923). (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person. 6. While awarding the compensation, the Tribunal assessed the income of the deceased at Rs.4,500/- p.m., which is on the higher side and contrary to the provisions of II Schedule appended to the MV Act. In the instant case, the deceased was aged 30 years at the time of accident and as per II Schedule of the MV Act, Rs.40,000/- per annum is to be taken into account as the income of the deceased. Appropriate multiplier of ‘17’ is to be adopted and 1/3rd amount to be deducted towards personal expenses. Applying the same, the loss of dependency is reckoned as under: Rs.40,000 x 2/3 x 17 = Rs.4,53,333/- - 6 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 7. Under the II-Schedule of the MV Act, the claimants would be entitled to Rs.5,000/- towards loss of consortium, Rs.2,500/- towards loss of estate and Rs.2,000/- towards funeral expenses. 8. 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 4,53,333/- 2. Towards loss of consortium 5,000/- 3. Towards loss of estate 2,500/- 4. Towards loss of funeral expenses and transportation of dead body 2,000/- Total: 4,62,833/- 9. Therefore, the claimants are entitled for total compensation of Rs.4,62,833/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment. 10. In the result, I proceed to pass the following: - 7 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 ORDER i. The appeal is allowed in part. ii. The judgment and award dated 28.02.2015, passed in MVC No.128/2014 by the Fast Track Court, Sirsi, is modified to the extent that the claimants are entitled for total compensation of Rs.4,62,833/- as against Rs.6,21,500/- along with interest at the rate of 6% p.a. from the date of petition till its realization. iii. The insurance company shall deposit the aforesaid amount within a period of eight weeks from the date of receipt of a copy of this judgment. iv. The amount in deposit, if any, shall be transmitted to the Tribunal along with TCR. - 8 - HC-KAR NC: 2025:KHC-D:7844 MFA No. 101627 of 2015 v. The excessive deposited amount shall be refunded to the appellant/insurer. vi. Send a copy of this judgment to the Tribunal. vii. No order as to costs. viii. Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE RKM CT:BCK LIST NO.: 1 SL NO.: 78