- 1 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 9TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. MISCELLANEOUS FIRST APPEAL NO. 103698 OF 2017 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 101221 OF 2017 IN MFA NO.103698/2017 BETWEEN: 1. SMT. PRABHAVATHI W/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND, AGE: 47 YEARS, OCC: HOUSEWIFE, 2. SHITHAL JAIN D/O. LATE S. PRAKASH JAIN, @ PRAKASH CHAND, AGE: 32 YEARS, OCC: NIL, 3. RUPALI JAIN D/O. LATE S. PRAKASH JAIN, @ PRAKASH CHAND, AGE: 30 YEARS, OCC: NIL, 4. SRI. SHANKEY JAIN S/O. LATE S. PRAKASH JAIN, @ PRAKASH CHAND, AGE: 29 YEARS, OCC: NIL, 5. SRI. SAGAR JAIN S/O. LATE S. PRAKASH JAIN, @ PRAKASH CHAND, AGE: 27 YEARS, OCC: NIL, Digitally signed by BHARATHI H M Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.10.28 11:28:35 +0530 - 2 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 ALL ARE R/O: NO.8/11, FLOWER STREET, BALLARI. …APPELLANTS (BY SRI. HANUMANTHREDDY SAHUKAR, ADVOCATE) AND: 1. SRI. BASAVARAJ M. S/O. MARISWAMY AGE: 39 YEARS, OCC: DRIVER OF THE BUS KA-34/A-8368, R/O: D.NO.74, WARD NO.18, KANNADA NAGAR, TALUR ROAD, BALLARI. 2. M/S. SKOHETHOOR LOGISTICS OWNER OF THE BUS KA-34/A-8368, RIYAZUDDIN H.S. NO.1 HOUSING BOARD COLONY, BEHIND OLD CANTONMENT, MASJID TILAK NAGAR, BALLARI. 3. THE MANAGER BHARATI AXA M/S. BHARATI AXA GENERAL INSURANCE CO. LTD., NO.28, DODDANEKUNDI OFFI OUTER RIND ROAD, MARATAHALLI, BENGALURU-560037. …RESPONDENTS (BY SRI. S.K. KAYAKAMATH ADVOCATE FOR R3; NOTICE TO R2 SERVED; NOTICE TO R3 DISPENSED WITH) THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING THAT, THE JUDGMENT AND AWARD DATED 27.10.2016 PASSED IN MVC NO.7/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE CUM MEMBER, MOTOR ACCIDENT CLAIMS TRIBUNAL NO.III, BALLARI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. - 3 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 IN MFA NO.101221/2017 BETWEEN: THE MANAGER, M/S. BHARTI AXA GENERAL INSURANCE COMPANY LIMITED, NO. 28, 1ST FLOOR, FERNS ICON, DODDANEKUNDI OFFI OUTER RING ROAD, MARATHAHALLI. BENGALURU-560037. NOW REPRESENTED BY ITS AUTHORIZED SIGNATORY …APPELLANT (BY SRI. S.K. KAYAKAMATH, ADVOCATE) AND: 1. SMT. PRABHAVATHI W/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND AGE: MAJOR, 2. SHITAL JAIN D/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND AGED 32 YEARS, 3. RUPALI JAIN D/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND AGED 30 YEARS, 4. SRI. SHANKEY JAIN S/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND AGED 29 YEARS, 5. SAGAR JAIN S/O. LATE S. PRAKASH JAIN @ PRAKASH CHAND AGED 27 YEARS, ALL ARE R/O. 8/11, FLOWER STREET, BALLARI-583101. - 4 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 6. BASAVARAJ M. S/O. MARISWAMY AGED ABOUT 39 YEARS, DRIVER OF THE BUS BEARING REGISTRATION NO.KA 34/A 8368 R/O. D.NO. 74, W.NO.18, KANNADA NAGAR, TALUR ROAD, BALLARI-583101. 7. M/S. KOTHETHOOR LOGISTICS OWNER OF THE BUS BEARING REGISTRATION NO. KA 34/A 8368, RIYAZUDDIN H.S NO.1, HOUSING BOARD COLONY, BEHIND OLD CANTT., MASJID, TILAK NAGR, BALLARI-583104. …RESPONDENTS (BY SRI. HANUMATHREDDY SAHUKAR, ADVOCATE FOR R1 TO R5; NOTICE TO R6 AND R7 SERVED) THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING THAT, THE JUDGMENT AND AWARD DATED 27.10.2016 PASSED IN MVC NO.7/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE CUM MEMBER, MOTOR ACCIDENT CLAIMS TRIBUNAL NO.III, BALLARI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. - 5 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE S G PANDIT) These two appeals are by the insurance company as well as the claimants against the judgment and award dated 27.10.2016 passed in MVC No.7/2015 on the file of the Prl. Senior Civil Judge cum Motor Accident Claims Tribunal-III at Ballari (hereinafter for short ‘Tribunal’). 2. In MFA No.101221/2017, the insurer is before this Court questioning the quantum of compensation awarded by the Tribunal. Whereas in MFA No.103698/2017, the claimants are before this Court praying for enhancement of compensation not being satisfied with the compensation awarded by the Tribunal. 3. Brief facts of the case are as under: The claimants filed claim petition under Section 166 of the Motor Vehicle Act seeking compensation for the accidental death of one S. Prakash Jain, husband of the first claimant in a road traffic accident that took place on 13.12.2014 involving motorcycle bearing No.KA-34 X-8820 - 6 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 and bus bearing No.KA-34/A-8368. It is stated that the deceased was aged 54 years and was doing business and earning more than Rs.5,00,000/- per annum. On issuance of notice, the respondent-insurance company appeared and filed its objection. In its objection, the Insurance company contended that the driver of the offending vehicle had no valid and effective driving license to drive the vehicle and it is also contended that the second respondent-owner had no valid and effective permit to the bus to ply over the public road. Hence, it is contended that there is breach of conditions of the policy. Before the Tribunal, first claimant- wife of the deceased herself examined as PW1 apart from marking Exs.P.1 to P.26. No documents or witnesses are examined on behalf of the respondents. 4. The Tribunal based on the material on record, awarded compensation of Rs.42,10,400/- on the following heads: - 7 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 1. Loss of dependency (5,66,000x2/3x9) Rs.33,96,000/- 2. 15% Future Prospectus Rs. 5,09,400/- 3. Loss of Consortium to P-1 Rs. 75,000/- 4. Loss of Love and affection (P-2 to P-5, Rs.20,000/-each) Rs. 80,000/- 5. Loss of Estate (P-1 to P-5, Rs.25,000/- each) Rs. 1,25,000/- 6. Transport of Dead Body and Funeral expenses Rs. 25,000/- Total Rs.42,10,400/- 5. While awarding the above compensation, the Tribunal assessed the income of the deceased at Rs.5,66,000/- per annum and adopted multiplier of 9 and deducted 1/3rd towards personal expenses of the deceased. Insurer is before this Court questioning the quantum of compensation, whereas claimants are before this Court praying for enhancement of compensation. 6. Heard learned Counsel Sri.S.K.Kayakamath for respondent-Insurance company and Sri. Hanumanthareddy Sahukar, advocate for claimants and perused the entire appeal papers as well as the trial Court records. - 8 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 7. Learned counsel Sri.S.K.Kayakamath for respondents would submit that the tribunal committed an error in assessing the income of the deceased. Learned counsel would refer to Ex.P.24 and would submit that the tribunal placing reliance on Ex.P.24 has determined the income of the deceased as Rs.5,66,000/- per annum. It is submitted that Ex.P.24 relates to Hindu Undivided Family and it is not individual income tax return of the deceased. Learned counsel Sri.S.K.Kayakmath would refer to Ex.P.25 and submits that Ex.P.25 is the income tax returns of the deceased for the assessment year 2014-15 and submits that the deceased has total income of Rs.3,26,000/- and from the said income he submits that the rent income of Rs.66,000/- as well as income tax of Rs.12,690/-is to be deducted. According to learned counsel Sri.S.K.Kayakmath, the net income of the deceased in terms of Ex.P.25 would be Rs.2,45,988/-. Thus, he submits that the compensation awarded on the head of loss of dependency is liable to be reduced. - 9 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 8. Further, Sri.S.K.Kayakmath would submit that the tribunal committed grave error in awarding 15% future prospectus. It is submitted that the deceased was aged 54 years and the claimants would be entitled for future prospectus at 10% in terms of the decision of the Hon’ble Apex Court in the case of National Insurance Company Limited vs. Pranay Sethi & Others1. It is also submitted that the tribunal awarded exorbitant compensation on the head of consortium. Thus, he would pray for reducing compensation awarded on the head of consortium as well as on the compensation awarded on the loss of estate and transportation of dead body in terms of the decision in Pranay Sethi & Others. 9. Learned counsel for the insurer would also submit that the tribunal awarded interest at 9% per annum, which is on the higher side. He would pray for reduction of interest from 9% to 6% per annum. Thus he prays for allowing the appeal filed by the insurance company. 1 (2017) 16 SCC 680 - 10 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 10. On the other hand, learned counsel Sri.Hanumantha reddy sahukar would submit that the deceased apart from filing his individual income tax returns in terms of Ex.P.25 was also having income from Hindu Undivided Family in terms of Ex.P.24. It is his submission that the tribunal has rightly taken note of Ex.P.24 and had determined the income of the deceased at Rs.5,66,000/- per annum. Learned counsel would also submit that the claimants who are wife and children of the deceased would be entitled for consortium in terms of the decision of the Hon’ble Apex Court in the case of Pranay Sethi & Others supra and Magma General Insurance Company Ltd., Vs. Nanu Ram and Others2. Learned counsel would also submit that the tribunal committed grave error in taking 9 as multiplier. He submit that taking age of the deceased at 54 years, the multiplier would be 11. Thus he would pray for passing appropriate orders. 2 2018 ACJ 2782 - 11 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 11. Having heard the learned counsel for the parties and on perusal of the entire records, the following points would arise for consideration:- 1) Whether the income determined at Rs.5,66,000/- of the deceased requires interference:? 2) Whether the claimants would be entitled for enhanced compensation. 12. Our answer to point No.1 in the affirmative and point No.2 in the negative for the following reasons: The accident that took place on 13.12.2014 involving motorcycle bearing No.KA-34 X-8820 and bus bearing No.KA-34/A-8368 consequently, death of Sri.S.Prakash Jain, husband of the first claimant is not in dispute in this appeal. Insurer is in appeal against the quantum of compensation, whereas claimants pray for enhancement of compensation. - 12 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 13. The tribunal, placing reliance on Ex.P.24 determined the income of the deceased at Rs.5,66,000/- after deduction of tax. However, learned counsel for the insurer has pointed out that Ex.P.24 relates to HUF whereas Ex.P.25 is relevant for determining the income of the deceased. Ex.P.25 is the income tax return filed by the deceased for the year 2014-2015. The Tribunal committed grave error in determining the income of the deceased by considering EX.P.24 income tax returns of the HUF when the income tax return of the deceased was available on record as EX.P.24. Ex.P.25 would indicate that the total income of the deceased at Rs.3,24,678/-. Out of the said income, the income tax and rental income shall have to be deducted, since the claimants continue to receive the rent. The returns would indicate that deceased was receiving rent of Rs.66,000/- and that return would also indicate that deceased has paid income tax of Rs.12,690/-. If the rental income and income tax is deducted from total income of Rs.3,24,678/-, the net income of the deceased would be - 13 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 Rs.2,45,988/-. Therefore, taking note of Ex.P.25-income tax return in respect of the deceased for 2014-15, we determine the income of the deceased at Rs.2,45,988/-. 14. Admittedly, the deceased was aged 54 years and for the age of 54 years applicable multiplier is 11. Therefore, Tribunal committed grave error in adopting multiplier of 9. 15. The tribunal has deducted 1/3rd towards personal expenses of the deceased taking note of the fact that the claimant Nos.2 and 3 are married daughters. Therefore, the same needs no interference. 16. The tribunal committed grave error in awarding 15% future prospectus. In terms of Pranay seti’s case supra, the claimants would be entitled for addition of 10% towards future prospectus, since the deceased was aged between 50 to 60 years. The tribunal has also committed grave error in awarding exorbitant compensation on the heads loss of consortium, love and affection, loss of estate - 14 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 and compensation on the head transport of dead body and future expenses. In terms of the Pranay seti’s case supra, the claimants would be entitled for Rs.16,500/- each on the head of loss of estate as well as on the head transportation of dead body and funeral expenses. In terms of the decision of the Magma General Insurance Company Ltd., the claimants should be entitled for consortium of Rs.40,000/- each on spousal as well as parental consortium. Thus, compensation on the other heads is also modified as stated above. 17. In view of the above, the claimants would be entitled for modified compensation as follows: Sl. No. Heads Amount(Rs.) 1 Loss of dependency= Rs.2,70,489X2/3X11=19,83,580/- including 10% future prospectus 19,83,580-00 2 Loss of consortium to claimant Nos.1 to 5 = Rs.40,000X5= 2,00,000-00 3 Loss of Estate 16,500-00 4 Transportation of dead body and funeral expenses 16,500-00 Total 22,16,580-00 - 15 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 18. The claimants would be entitled for total modified compensation of Rs.22,16,580/- as against Rs.42,10,400/- awarded by the tribunal. 19. The apportionment of compensation among the claimants as ordered by the tribunal is maintained. 20. The tribunal has awarded 9% interest on the compensation amount. Learned counsel for the appellants contended that the interest of 9% would be on the higher side. Taking note of the fact that the accident is of the year 2014 and as we have substantially reduced the compensation, we deem it appropriate to maintain the interest at 9% p.a. 21. In the result, we proceed to pass the following: ORDER a) The above appeals are allowed in part. b) The impugned judgment and award of the Tribunal is modified to an extent that the claimants are entitled to total compensation Rs.22,16,580/- as - 16 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 against Rs.42,10,400/- awarded by the Tribunal. c) The compensation amount would carry interest at the rate of 9% per annum from the date of claim petition till date of realization. d) The respondent-Insurance Company shall deposit the entire compensation amount with accrued interest before the Tribunal within four weeks from the date of receipt of certified copy of this judgment. e) Apportionment, deposit & disbursement shall be made as per the award of the Tribunal. f) Amount in deposit by the insurance company be transmitted to the concerned tribunal and excess amount - 17 - HC-KAR NC: 2025:KHC-D:13666-DB MFA No. 103698 of 2017 C/W MFA No. 101221 of 2017 if any in deposit be refunded to the Insurer. g) Draw modified award accordingly. h) No order as to costs. Sd/- (S G PANDIT) JUDGE Sd/- (GEETHA K.B.) JUDGE HMB CT-CMU, LIST NO.: 1 SL NO.: 28