- 1 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 5TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 21893 OF 2012 (MV) C/W MFA CROSS OBJ NO. 100162 OF 2015 IN MFA NO. 21893 OF 2012: BETWEEN: THE NEW INDIA ASSURANCE COMPANY LTD., BHAVANI CHAMBERS, II FLOOR, NEAR NUCLEAR MALL, RAMLINGKHIND GALLI, BELGAUM, BY ITS MOTOR THIRD PARTY CLAIMS HUB, 2ND FLOOR, SRINATH COMPLEX, NEW COTTON MARKET, HUBLI-580 029, REPRESENTED BY ITS REGIONAL MANAGER. … APPELLANT (BY SRI. RAVINDRA R. MANE, ADVOCATE) AND: 1. SRI. RAMKEVAL S/O BADARIPRASAD PRAJAPATE, AGE: 46 YEARS, OCC: AGRICULTURE, 2. SMT. KUSUMAVATIDEVI W/O RAMKEVAL PRAJAPATE, AGE: 41 YEARS, OCC: HOUSEHOLD WORK, BOTH ARE R/O: RADHANE VILLAGE, POST: THAN JANGHA, DIST: GORAKHPUR, STATE: UTTARA PRADESH. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 3. SMT. QAISARJAHAN W/O SHAMSHUDIN KHOJA, AGE: MAJOR, OCC: BUSINESS, R/O: CCB NO.993, 4TH CROSS, AZAM NAGAR, BELGAUM. 4. HUSSAIN SAB KHADIRSAB NAIKWADI, AGE: MAJOR, OCC: BUSINESS, R/O: A/P ARALIKATTI, TQ: HUKKERI, DIST: BELGAUM. … RESPONDENTS (BY SRI. RAGHUVEER R. SATTIGERI, ADVOCATE FOR R1 AND R2; R3 AND R4-SERVED AND UNREPRESENTED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MV ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 23.02.2012 PASSED IN MVC NO.1924/2011 ON THE FILE OF THE FAST TRACK COURT-II AND ADDL. MACT, BELGAUM. MFA CROB NO. 100162 OF 2015: BETWEEN: 1. SRI. RAMKEVAL S/O BADARIPRASAD PRAJAPATE, AGE: 50 YEARS, OCC: AGRICULTURE, 2. SMT. KUSUMAVATIDEVI W/O RAMKEVAL PRAJAPATE, AGE: 45 YEARS, OCC: HOUSEHOLD WORK, BOTH ARE R/O: RAJDHANE VILLAGE, POST: THAN JANGHA, DIST: GORAKHPUR, STATE: UTTARA PRADESH. … *CROSS-OBJECTORS (BY SRI. RAGHUVEER R. SATTIGERI, ADVOCATE) *Corrected by Chamber Order dated 25.6.2025. Sd/- (HSJ) - 3 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 AND: 1. THE NEW INDIA ASSURANCE COMPANY LTD., BHAVANI CHAMBERS, II FLOOR, NEAR NUCLEAR MALL, RAMLINGKHIND GALLI, BELAGAVI, BY ITS MOTOR THIRD PARTY CLAIMS HUB, 2ND FLOOR, SRINATH COMPLEX, NEW COTTON MARKET, HUBBALLI-580 029, REPRESENTED BY ITS REGIONAL MANAGER. 2. SMT. QAISARJAHAN W/O SHAMSHUDIN KHOJA, AGE: MAJOR, OCC: BUSINESS, R/O: CCB NO.993, 4TH CROSS, AZAM NAGAR, BELAGAVI. 3. HUSSAIN SAB KHADIRSAB NAIKWADI, AGE: MAJOR, OCC: BUSINESS, R/O: A/P ARALIKATTI, TQ: HUKKERI, DIST: BELAGAVI. … RESPONDENTS (BY SRI. RAVINDRA R. MANE, ADVOCATE FOR R1; R2 AND R3-DISPENSED WITH) THIS *MFA CROB. IN MFA NO.21893/2012 IS FILED UNDER ORDER 41 RULE 22 (1) R/W.* SECTION 173(1) OF MV ACT, PRAYING TO MODIFY THE JUDGMENT AND AWARD DATED 23.02.2012 PASSED IN MVC NO.1924/2011 ON THE FILE OF THE FAST TRACK COURT-II AND ADDL. MACT, BELGAUM. *THIS APPEAL AND CROSS OBJECTION* ARE COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: *Replaced, by Chamber order dated 25.06.2025. Sd/- (HSJ) - 4 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 ORAL JUDGMENT (PER: THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR) MFA No.21893/2012 is filed by the Insurance Company seeking reduction of compensation awarded on the ground that the same is exorbitant, whereas MFA CROB No.100162/2015 is filed by the claimants/cross objectors seeking enhancement of compensation. 2. Both these appeals are filed being aggrieved by the common judgment and award dated 23.02.2012 passed in MVC No.1924/2011 by the Fast Tract Court-II and Additional MACT, Belgaum (for short, ‘Tribunal’). 3. Brief facts giving rise to filing of these appeals are that on 12.02.2011, the deceased Sonu S/o Ramkeval Prajapati (for short, ‘deceased’) was going from Shahunagar to Nanwadi by riding his bicycle and also his friend Indresh Prajapati was going along with him on separate bicycle and when they were going near the spot i.e., AMPC road, opposite to laxmi complex Sadashiv Nagar, Belgaum, at that time, a tipper bearing registration - 5 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 No.KA-25/A-7931 came from behind and dashed to deceased bicycle from hind side. As a result of which, the deceased fell down and the said tipper ran over the body of deceased. Later, the deceased was succumbed to the injuries sustained in the road traffic accident. Thus, the claimants being legal heirs of the deceased have filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as the ‘Act’), seeking compensation. 4. Heard arguments and perused the material placed on record. 5. In this case, the Tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards medical expenses. 34,621/- 2. Towards loss of dependency. 4,72,500/- 3. Towards funeral expenses. 15,000/- 4. Towards love and affection in respect of petitioner 1 and 2. 15,000/- 5. Towards transportation of dead body. 2,000/- Total: 5,39,121/- - 6 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 6. The Tribunal has awarded compensation of Rs.5,39,121/- along with interest at the rate of 9% per annum from the date of petitions till its realization. 7. Insofar as quantum of compensation is concerned, the Tribunal has not taken correct parameters. The accident occurred on 12.02.2011. The deceased was aged 20 years old at the time of accident and was working as a carpenter under the main contractor Shir. Hence, the notional income is to be taken at Rs.6,000/- 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. The deceased was a bachelor. Therefore, 50% of the income is to be deducted towards his personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is ‘18’. - 7 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 Therefore, loss of dependency is re-assessed and quantified at Rs.9,07,200/- (Rs.6,000 + 40% minus 50% x 12 x 18). 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 for Rs.40,000/- under the head ‘loss of consortium’, along with 10% escalation. There are two dependents i.e., his father and mother. Accordingly, Rs.88,000/- (Rs.40,000 x 2 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. Further, the claimants are entitled to Rs.16,500/- (15,000 x 2 + 10%) each towards loss of estate and funeral expenses including 10% escalation. 9. Thus, the claimants would be entitled for compensation under various heads as under: - 8 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 10. Thus, the claimants are entitled to total compensation of Rs.10,28,200/- as against Rs.5,39,121/- awarded by the Tribunal along with interest at the rate of 6% p.a. from the date of filing of the petition till realization. The Tribunal has awarded interest on the compensation at 9% per annum, which is scaled down to 6% per annum, since this Court is consistently awarding interest at the rate of 6% per annum. 11. In the result, I proceed to pass the following: ORDER i. Appeal as well as cross objection are allowed in part. ii. The common judgment and award dated 23.02.2012 passed in MVC Particulars Amount (in Rs.) Towards loss of dependency 9,07,200/- Towards loss of estate and transportation of dead body and funeral expenses 33,000/- Towards loss of consortium 88,000/- Total 10,28,200/- - 9 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 No.1924/2011 by the Fast Tract Court- II and Additional MACT, Belgaum, stands modified. iii. The claimants are entitled for total compensation of Rs.10,28,200/- as against the compensation of Rs.5,39,121/- awarded by the Tribunal. iv. The entire compensation amount shall carry interest at the rate of 6% p.a. from the date of petition till its realization. v. The insurance company shall deposit the aforesaid amount along with accrued interest within a period of eight weeks from the date of receipt of a copy of this judgment. vi. The amount in deposit be transmitted to the Tribunal forthwith. vii. Send a copy of this judgment to the Tribunal along with TCR. viii. No order as to costs. - 10 - HC-KAR NC: 2025:KHC-D:7346 MFA No. 21893 of 2012 C/W MFA.CROB No. 100162 of 2015 ix. Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE RKM CT:BCK LIST NO.: 1 SL NO.: 32