- 1 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 13TH DAY OF OCTOBER 2025 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO. 100094 OF 2023 (MV-D) BETWEEN: THE BRANCH MANAGER, THE ORIENTAL INSURANCE CO. LTD., KUNDAPURA BRANCH, SRI SAI DEPARTMENTAL STORE BUILDING, NEAR SHASTRI CIRCLE, KUNDAPURA, KUNDAPURA TALUK, UDUPI DISTRICT-576201, REPRESENTED BY ITS AUTHORIZED SIGNATORY. …APPELLANT (BY SRI. G.N. RAICHUR, ADVOCATE) AND: 1. SUJATHA W/O. MANJUNATH NAIK, AGE: 42 YEARS, OCC: HOUSEHOLD, R/O. AT H.NO.161, JALIKODI JALI VILLAGE, BHATKAL TALUK-581320. 2. SINCHANA D/O. MANJUNATH NAIK, AGE: 16 YEARS, OCC: STUDENT, R/O. AT H.NO.161, JALIKODI JALI VILLAGE, BHATKAL TALUK-581320. 3. SRIJANI D/O. MANJUNATH NAIK, AGE: 14 YEARS, OCC: STUDENT, R/O. AT H.NO.161, JALIKODI JALI VILLAGE, BHATKAL TALUK-581320. GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH DHARWAD - 2 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 RESPONDENT NO.2 AND 3 ARE MINORS REPRESENTED BY THEIR GUARDIAN NEXT FRIEND RESPONDENT NO.1. 4. MASTAMMA W/O. DURGAPPA NAIK, AGE: 64 YEARS, OCC: HOUSEHOLD WORK, R/O. AT H.NO.161, JALIKODI JALI VILLAGE, BHATKAL TALUK-581320. 5. DURGAPPA S/O. MANJU NAIK, AGE: 70 YEARS, OCC: AGRICULTURE, R/O. AT H.NO.161, JALIKODI JALI VILLAGE, BHATKAL TALUK-581320. 6. GURUKIRAN S/O. BABU KHARVI, AGED ABOUT 20 YEARS, OCC: OWNER OF M.C. R/O. 6-16, BADKIMANE, KARKIKALLI, TARAPATI, UPPUNDA VILLAGE AND POST, BYNDOOR-576214 TALUKA, UDUPI DISTRICT. …RESPONDENTS (BY SRI. R.H. ANGADI, ADVOCATE FOR R1-R5; NOTICE TO R6 IS SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLE ACT, PRAYING TO CALL FOR THE RECORDS AND HEAR THE PARTIES AND MODIFY THE JUDGMENT AND AWARD DATED 18.06.2022 PASSED BY THE COURT OF MEMBER ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL AND SENIOR CIVIL JUDGE AND JUDICIAL MAGISTRATE FIRST CLASS, BHATKAL IN MVC NO.334/2021 BY REDUCING THE COMPENSATION BY ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND EQUITY. THIS APPEAL COMING ON FOR ORDERS THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 CORAM: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA ORAL JUDGMENT (PER: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA) Heard Sri.G.N.Raichur learned counsel for the appellant who appears through video conference as well as Sri.R.H.Angadi learned counsel for respondents No.1 to 5 who appears before this Court physically. At request of both the counsel, the matter is taken up for final hearing and disposal. 2. Challenge in this appeal is the award that is passed by the Additional Motor Accident Claims Tribunal, Bhatkal (hereinafter referred to as ‘the Tribunal’ for brevity) in M.V.C. No.334/2021 dated 18.06.2022. 3. The wife, two minor children, the mother and father of the deceased Manjunath (hereinafter referred to as ‘the deceased’ for brevity) who died in a road traffic accident that occurred in the year 2021 filed a petition claiming compensation of Rs.50,35,000/- in total. The Tribunal through the impugned award granted a sum of - 4 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 Rs.49,16,250/- as compensation. The insurance company against which the liability is fixed has presented the present appeal raising a contention that the amount that is granted as compensation by the Tribunal is exorbitant. 4. Sri.G.N.Raichur learned counsel for the appellant submits that the Tribunal ought to have taken the average income of the deceased, ought to have deducted the income tax and thereafter ought to have come to a conclusion with regard to the average annual earnings of the deceased as on the date of accident. Learned counsel further submits that the Tribunal ought to have deducted professional tax as well out of the earnings but it did not do so. Learned counsel further submits that the deceased was aged around 44 years by the date of accident. Hence as per the decision of the Hon'ble Apex Court in Sarala Verma and others vs. Delhi Transport Corporation and another1, the appropriate multiplier to be applied is ‘14’ but not ‘15’ as applied by the Tribunal. Learned counsel thereby seeks the Court to allow 1 (2009) 6 SCC 121 - 5 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 the appeal and to reduce the sum that is awarded as compensation. 5. The submission that is made by Sri.R.H.Angadi learned counsel for respondents No.1 to 5 on the other hand is that the Tribunal having considered the totality of evidence produced, awarded justifiable sum as compensation and thus the award of the Tribunal needs no interference. 6. At paragraphs 44 and 45 of the impugned order, the Tribunal discussing the earnings of the deceased, came to a conclusion that the monthly earnings of the deceased can be taken as Rs.28,000/- per month. The Tribunal taking the average of the income as per the income tax returns produced for the years 2013-14, 2016-17, 2018-19 and 2020-21 has rightly come to a conclusion that the income has to be taken as Rs.28,000/- per month. Therefore the said conclusion drawn regarding the monthly income of the deceased requires no modification. Also the Tribunal deducted Rs.3,250/- per year towards professional tax and - 6 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 income tax by exempting first Rs.2,50,000/- and ultimately came to a conclusion that the annual income of the deceased can be taken as Rs.3,11,750/-. Therefore, the assessment of the Tribunal in this regard also needs no interference. 7. The Tribunal, discussing on the age of the deceased came to a conclusion that the deceased was aged around 44 years by the date of accident. That being the case, as rightly contented by the learned counsel for the appellant, the appropriate multiplier to be applied as per the decision of the Hon'ble Apex Court in Sarala Verma (supra) is ‘14’ but not ‘15’. Thus on applying appropriate multiplier ‘14’, the loss of dependency comes to Rs.43,64,500/- (Rs.3,11,750 X 14). However the Tribunal awarded a sum of Rs.46,76,250/- by applying multiplier ‘15’. Thus the sum paid in excess is Rs.3,11,750/-. Therefore this Court considers desirable to allow the appeal to that extent reducing the compensation that is granted by the Tribunal to an extent of Rs.3,11,750/-. Therefore the following: - 7 - HC-KAR NC: 2025:KHC-D:13750 MFA No. 100094 of 2023 ORDER (i) The appeal is allowed in part. (ii) The compensation that is granted by the Additional Motor Accident Claims Tribunal, Bhatkal through orders in M.V.C. No.334/2021 dated 18.06.2022 is reduced by Rs.3,11,750/-. (iii) The award of the Tribunal on all other aspects holds good including the apportionment. (iv) Amount if any paid in excess can be recovered by the appellant by instituting appropriate proceedings as established under law. Sd/- (CHILLAKUR SUMALATHA) JUDGE RH/List No.: 1 Sl No.: 30