- 1 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 5TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL MISCELLANEOUS FIRST APPEAL NO.100356 OF 2021 (MV-D) BETWEEN: 1. SMT. BASAVARAJESWARI, W/O LATE HAMPA REDDY, AGE 35 YEARS, HOUSEWIFE. 2. N. SANDYA D/O. LATE HAMPA REDDY, AGE 19 YEARS, (ATTAINED MAJORITY) STUDENT. 3. MINOR N. SANJAY S/O LATE HAMPA REDDY, AGE 16 YEARS, STUDENT, R/BY. HIS MOTHER AND NATURAL GUARDIAN SMT. BASAVARAJESWARI ALL ARE R/O DHARMASAGARA VILLAGE, HOSAPETE TALUK, BALLARI DIST. NOW RESIDING AT HARIGANADONI VILLAGE, BALLARI TALUK AND DISTRICT. - APPELLANTS (BY SRI. B. CHIDANANDA, ADVOCATE) AND: 1. T. RAMESH BABU S/O. T. DARE SAWAMY, AGED ABOUT 45 YEARS, DRIVER OF THE LORRY BEARING REG. NO. A.P-03/TF-1557, R/O. R.R. PURAM VILLAGE, S.R. PURAM MANDALAM, CHITOOR, DIST. ANDHRA PRADESH AND D.L. NO.2961/TPT/1997, BADGE NO.7046. VINAYAKA B V Digitally signed by VINAYAKA B V Location: High Court of Karnataka, Dharwad Bench Date: 2025.08.07 12:20:01 +0530 - 2 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 2. J. SHANMUGAM S/O. J. HARI BABU NAIDU, AGED ABOUT 31 YEARS, OWNER OF THE LORRY BEARING REG. NO. A.P-03/TF-1557, R/O. R.R. PURAM VILLAGE, S.R. PURAM MANDALAM, CHITOOR, DIST. ANDHRA PRADESH. 3. THE DIVISIONAL MANAGER, M/S NEW INDIA ASSURANCE COMPANY LIMITED, EDIGA HOTEL COMPLEX, DOUBLE ROAD, BALLARI. BEARING POLICY NO. 61030031160150000231 VALID FROM 30.03.2017 TO 29.03.2018 - RESPONDENTS (BY SRI. R.S. ARANI, ADVOCATE FOR R3; NOTICE TO R1 AND R2 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S 173(1) OF MOTOR VEHICLES ACT, AGAINST THE JUDGMENT AND AWARD DATED 20.11.2019 PASSED IN M.V.C. NO. 764/2018 ON THE FILE OF THE MOTOR ACCIDENTS CLAIM TRIBUNAL-II, BALLARI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION & ETC. THIS MISCELLANEOUS FIRST APPEAL COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL - 3 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) This appeal is filed by the dependents of late Hampa Reddy challenging the judgment and award dated 20.11.2019 passed in M.V.C. No. 764/2018 by the MACT- II, Ballari (for short, 8the Tribunal9) being dissatisfied with the quantum of compensation awarded by the Tribunal and seeking for enhancement of compensation. 2. Brief facts of the case are that on 27.10.2017 at about 10.00 a.m. Hampa Reddy (victim) along with his daughter in law were proceeding on the motorcycle bearing No. KA-35-EB-9440 from Dharmasagara towards Hosapate. When they reached near Anika Hyundai showroom on NH-63 Ballari-Hosapete road, a lorry bearing Reg. No. AP-03-TF-1557 came in high speed and in a rash and negligent manner and dashed against the motorcycle. Due to the accident Hampa Reddy succumbed to the injuries on the spot. - 4 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 3. The respondents 1 to 3 are served and represented. The respondent No.3-insurer has contested the claim and filed statement of objections denying the averments and sought for dismissal of the claim petition. Respondent No.2 adopted the objection statement. 4. The claimants have filed claim petition seeking compensation for the death of Hampa Reddy. They have contended that the deceased was hale and healthy at the time of accident, he was aged 38 years, working as agriculturist cum LIC agent earning Rs.5,00,000/- per annum from agriculture and Rs.15,000/- per month as LIC agent. The Tribunal after evaluating the oral and documentary evidence, assessed income of the deceased at Rs.2,00,000/- p.a., applied the ratio laid down by the Hon9ble Supreme Court in the case of National India Co., Ltd., Vs. Pranay Sethi and Ors.1 and added 10% of the established income towards future prospects. Thus the Tribunal has awarded compensation of Rs.16,13,333/- 1 AIR 2017 SC 5157 - 5 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 towards loss of dependency, a sum of Rs.40,000/- towards consortium and Rs.15,000/- each towards funeral expenses and loss of estate. The claimants are in appeal seeking enhancement of compensation. 5. Sri B. Chidananda, learned counsel appearing for the appellants submits that the Tribunal has committed grave error in assessing the income of the deceased at Rs.2,00,000/- p.a. which is contrary to Ex.P.9. Further, the Tribunal has committed error in ignoring Ex.P.10 to P.12 the RTCs of the land owned by the deceased. Due to the untimely death of Hampa Reddy, his wife and children are unable to cultivate the land. Hence notional income is required to be assessed which they ought to have earned from the agricultural land. Hence he seeks to reassess income of the deceased appropriately taking note of Exs.P.9 and Exs.P.10 to P.12. It is further argued that the Tribunal has not awarded adequate compensation on conventional heads. Hence he seeks to allow the appeal. - 6 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 6. Per contra, Sri Rajashekar S. Arani, learned counsel for respondent No.2 supporting the impugned judgment and award of the Tribunal submitted that the author of Ex.P.9 has not been examined before the Tribunal and hence no credence can be given to the arguments advanced on the other side. It is further submitted that though the claimants have produced RTCs but they do not indicate that they have suffered financial loss / difficulty and unable to earn any income due to the untimely death of Hampa Reddy. The lands are very much available and the claimants continue to earn income. Hence assessment of income by the Tribunal is just and proper which does not call for interference. The counsel for the insurer therefore seeks to dismiss the appeal. 7. We have anxiously considered the submissions of the parties and carefully perused the material documents placed on record. Upon hearing, the only point which would arise for consideration is: - 7 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 Whether the claimants are entitled for enhanced compensation? The aforesaid point is answered 8partly in the affirmative9 for the following reasons. 8. It is not in dispute that Hampa Reddy, husband of claimant No.1 and father of claimants No.2 and 3, died in the road traffic accident on 27.10.2017. It is also not in dispute that the liability is saddled on respondent No.3- insurer of the offending vehicle. The deceased was aged 52 years as on the date of accident, was a LIC agent earning Rs.15,000/- p.m. It is further claimed that deceased owned agricultural lands and earning Rs.5,00,000/- from agriculture activity. 9. In support of the contention with regard to the income, the claimants have produced Ex.P.9, the statement issued by LIC which indicate that the deceased was a LIC agent having code No.228068H and the points earned by him as Agent, is also indicated in the said - 8 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 statement. Ex.P.9 indicates that the deceased has earned commission from 2011-12 to 2016-17. The said document also indicates that the commission is paid on renewal of the policy and also commission paid for the first year of the payment of the premium by the customers. However the Tribunal taking note of the said document at paragraph No.20 has assessed the income of the deceased at Rs.2,00,000/- p.a. In our considered view, the Tribunal has committed error in ignoring the commission received by the deceased for the first year of the sale of policy to the customers and the commission earned by him for the respective years. Taking into account Ex.P.9 the average income of the deceased would be Rs.3,51,025/- p.a. Out of the said sum, 10% has to be deducted towards income tax, i.e., Rs.35,103/- and Rs.2,500/- to be deducted towards professional tax. Hence, total sum of Rs.37,603/- if deducted, the gross annual income would be Rs.3,13,422/-. - 9 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 10. The contention of the appellants that the deceased had owned lands and earning income from agriculture, cannot be considered for the simple reason that due to the untimely death of the deceased there is no evidence placed on record that income of the family from agriculture is reduced. Hence, the said contention cannot be considered. 11. Admittedly the deceased was aged 52 years. Hence appropriate addition towards loss of future prospects would be 10% as per Pranay Sethi (supra). There are three dependents. Hence, 1/3rd has to be deducted towards personal expenses. Thus the compensation towards loss of dependency is reassessed at Rs.25,28,269./-. 12. The claimants are the wife and children of the deceased. They are entitled for compensation of Rs.40,000/- each towards loss of consortium and a sum of Rs.15,000/- each towards transportation of dead body and - 10 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 funeral expenses and loss of estate. In view of the judgment of the Apex Court in Sarla Verma (supra) and Magma General Insurance Company Ltd. Vs. Nanu Ram alias Chuhru Ram and others2 the claimants are entitled for 10% escalation on the said amount. 13. Thus the claimants are entitled for total compensation as under: Sl. No. Particulars Amount 1. Loss of dependency (3,13,422/- + 31,342 x 11 x 2/3) 25,28,269.00 2. Loss of consortium (44,000/- x 3) 1,32,000.00 3. Transportation of dead body and funeral expenses 16,500.00 4. Loss of estate 16,500.00 Total 26,93,269.00 14. The Tribunal has awarded interest at 7% p.a. on the compensation without assigning any specific reasons. Accordingly, the claimants are entitled for interest at the rate of 6% p.a. on the enhanced amount from the date of claim petition till its realization. 2 (2018) 18 SCC 130 - 11 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 16. For the aforesaid reasons we pass the following order: ORDER (a) Appeal filed by the appellants-claimants is allowed in part. Consequently, judgment and award dated 20.11.2019 passed in M.V.C. No. 764/2018 by the MACT-II, Ballari, is modified awarding total compensation of Rs.26,93,269/- as against Rs.16,83,333/- awarded by the Tribunal. (b) The enhanced compensation amount shall carry interest at the rate of 6% p.a. from the date of petition till realization. (c) The insurer shall deposit the entire compensation amount within six weeks from the date of preparation of the award. (d) The apportionment and deposit of the award amount shall be in terms of the award of the Tribunal. (e) Office to draw award accordingly. - 12 - HC-KAR NC: 2025:KHC-D:9797-DB MFA No. 100356 of 2021 (f) Records of the Tribunal shall be transmitted forthwith. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE BVV, CT:VP LIST NO.: 1 SL NO.: 58