- 1 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.101947 OF 2018 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.103933 OF 2018 IN M.F.A. NO.101947 OF 2018 BETWEEN: THE BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD., MOKTALI BUILDING, NEAR BUS STAND, PB ROAD, HAVERI-581110, REPRESENTED BY ITS DEPUTY MANAGER. …APPELLANT (BY SRI N.R. KUPPELUR, ADVOCATE) AND: 1. SURESH S/O. BASAVANTAPPA BANGARI, AGE: 38 YEARS, OCC: COOLIE, R/O: GANGA NAGAR, NEAR GAS GODOWN, HANGAL, DIST: HAVERI-581110. 2. KUMARI KUSUMA D/O. SURESH BANGARI, AGE: 9 YEARS, OCC: STUDENT, R/O. GANGA NAGAR, NEAR GAS GODOWN, HANGAL, DIST: HAVERI-581110. 3. KUMAR DEEPAK S/O. SURESH BANGARI, AGE: 7 YEARS, OCC: STUDENT, R/O. GANGA NAGAR, NEAR GAS GODOWN, HANGAL, DIST: HAVERI-581110. (SINCE RESPONDENTS NO.2 AND 3 ARE MINORS REPRESENTED BY THEIR NATURAL FATHER AS NEXT FRIEND MINOR GUARDIAN I.E. RESPONDENT NO.1 SURESH S/O. BASAVANTAPPA BANGARI) Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 4. SMT. CHANNAVVA W/O. GUDDAPPA KALLIMANI, AGE: 58 YEARS, OCC: NIL, R/O: BYATNAL, SHIBAR ONI, TQ: HANGAL, DIST: HAVERI-581110. 5. ARUN S.K. S/O. KRISHNE GOWDA, AGE: 41 YEARS, OCC: BUSINESS, R/O: SARAGODU VILLAGE, KATTAMANE, PO: KUNDUR, CHIKKAMANGALURU, TQ. AND DIST-561021. …RESPONDENTS (BY SRI HARISH S.MAIGUR, ADVOCATE FOR R1 TO R4; (R2 AND R3 ARE MINORS REPRESENTED BY R1); NOTICE TO R5 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO JUDGMENT AND AWARD MADE IN MVC NO.102/2015 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. MACT HANGAL, AND SET ASIDE THE AWARD DATED 01.01.2018 IN THE INTEREST OF JUSTICE. IN M.F.A. NO.103933 OF 2018 BETWEEN 1. SURESH S/O. BASAVANTAPPA BANGARI, AGE: 38 YEARS, OCC: COOLIE, 2. KUMARI KUSUMA D/O. SURESH BANGARI, AGE: 9 YEARS, OCC: STUDENT, 3. KUMAR DEEPAK S/O. SURESH BANGARI, AGE: 07 YEARS, OCC: STUDENT, ALL ARE R/O: GANGA NAGAR, NEAR GAS GODOWN, HANAGAL-581104, TQ: HANGAL, DIST: HAVERI. SINCE APPELLANTS NO.2 AND 3 ARE MINORS, REP. BY THEIR NATURAL FATHER AS NEXT FRIEND AND M/G I.E., APPELLANT NO.1 - 3 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 SURESH S/O. BASAVANTAPPA BANGARI. 4. SMT. CHINNAVVA W/O. GUDDAPPA KALLIMANI, AGE: 58 YEARS, OCC: NIL, R/O: BYATANAL, SHIBAR ONI, TAL: HANGAL-581120, DIST: HAVERI. ...APPELLANTS (BY SRI HARISH S.MAIGUR, ADVOCATE) AND 1. SRI. ARUN S.K. S/O. KRISHNE GOWDA, AGE: 41 YEARS, OCC: BUSINESS, R/O: SARAGODU VILLAGE, KATTAMANE, PO KUNDUR-577132, CHIKKAMAGALURU, TAL. AND DIST. 2. THE BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD., MOKTALI BUILDING, P.B. ROAD, NEAR BUS STAND, HAVERI-581110. RESPONDENTS (BY SRI N.R. KUPPELUR, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS MISCELLANEOUS FIRST APPEALS IS FILED UNDER SECTION 173 (1) OF MV ACT, PRAYING TO ENHANCE THE COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD PASSED IN MVC NO.102/2015 ON THE FILE OF THE SENIOR CIVIL JUDGE AND AMACT, HANGAL, AT: HANGAL, DATED 01.01.2018, IN THE INTEREST OF JUSTICE AND EQUITY. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: - 4 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) MFA No.101947/2018 is filed by the Insurance Company challenging the judgment and award dated 01.01.2018 passed in MVC No.102/2015 by the Senior Civil Judge and AMACT, Hangal (hereinafter referred to as ‘the Tribunal’ for short) on the ground that the tribunal has wrongly fastened liability on it to pay the compensation amount. Whereas, MFA No.103933/2018 filed by the claimants seeking enhancement of compensation. 2. For the sake of convenience and easy reference, the parties are referred to as per their rankings before the Tribunal. 3. Heard the arguments of learned counsels appearing for both sides and perused the material placed on record. 4. The ground urged by the insurance company is that offending vehicle is the auto rickshaw bearing Reg.No.KA-18/B-5758, which is having permit to ply on the - 5 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 road within Chikkamagalur taluka. The accident is caused beyond the limits of Chikkamagalur taluka. Admittedly, the auto rickshaw was having permit but there is only deviation as it is inevitable and accident is caused. Therefore, it is a case of deviation of route of permit. The accident is clearly covered by judgment of this Court in MFA No.2526/2018 C/w MFA No.5720/2018 dated 22.07.2022. Therefore, there is no fundamental infraction so as to avoid liability on the insurance company. The auto rickshaw was having permit and there is slight deviation. Hence, there is no fundamental breach of insurance policy. Hence, insurance company is liable to pay compensation. The Tribunal is correct in fastening liability on the insurance company. Therefore, the appeal filed by the insurance company is liable to be dismissed. 5. In this case, occurrence of accident, death of Smt.Veena in the said accident are not in dispute. 6. The Tribunal has awarded compensation under various heads as follows: - 6 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 Sl. No. Heads Amount in Rs. 1. Towards loss of dependency Rs.9,18,000/- 2. Towards loss of love and affection Rs.40,000/- 3. Towards funeral expenses Rs.15,000/- 4. Towards transportation of dead body Rs.10,000/- 5. Towards loss of consortium/Estate Rs.15,000/- Total Rs.9,98,000/- 7. The tribunal awarded lesser amount of compensation contrary to the principles of law decided by the Hon’ble Supreme Court. Therefore, the same is required to be enhanced by modifying the judgment and award of the tribunal. 8. The deceased was aged 26 years as on the date of accident and was doing tailoring work. The accident is caused on 30.03.2015. Hence, in the absence of proof of income, notional income is to be taken at Rs.8,000/- for the year 2015, 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 - 7 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 towards loss of future prospects in life. There are four claimants/dependants. Therefore 1/4th of the income is to be deducted towards his personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is 17. Therefore loss of dependency is re-assessed and quantified at Rs.17,13,600/- (Rs.8,000 + 40% minus 1/4th x 12 x 17). 9. 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 to Rs.40,000/- each under the head ‘loss of consortium’, along with 10% escalation. There are four dependents who are her husband, mother and two children. Accordingly, Rs.1,76,000/- (Rs.40,000 x 4 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 10. Further, a compensation of Rs.15,000/- each is awarded under the head ‘loss of estate’ and ‘funeral and transportation’ respectively, along with 10% escalation. - 8 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded. 11. 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 17,13,600 2. Towards loss of consortium (40,000 x 4 +10%) 1,76,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 19,22,600 12. Therefore, the claimants are entitled for total compensation of Rs.19,22,600/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.9,88,000/- awarded by the tribunal. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment. 13. In the result, I proceed to pass the following: - 9 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 ORDER i) The appeal in MFA No.101947/2018 filed by the insurance company is dismissed. ii) The appeal in MFA No.103933/2018 filed by the claimants is allowed in part. iii) The judgment and award dated 01.01.2018 passed in MVC No.102/2015 by the Senior Civil Judge and AMACT, Hangal, is modified. iv) The claimants are entitled for total compensation of Rs.19,22,600/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the compensation of Rs.9,88,000/- awarded by the tribunal. v) The claimants are not entitled for interest for the delayed period of 189 days in preferring the appeal. - 10 - NC: 2025:KHC-D:1908 MFA No. 101947 of 2018 C/W MFA No. 103933 of 2018 vi) The insurance company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. vii) The order with regard to apportionment of compensation, deposit and release of amount would be as per order of tribunal. viii) Send back the trial Court records along with a copy of this judgment and award to the tribunal. ix) No order as to costs. x) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE SRA List No.: 1 Sl No.: 72