- 1 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 20TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.102895 OF 2017 (MV) BETWEEN: THE BRANCH MANAGER, THE NEW INDIA ASSURANCE CO. LTD., H.NO.1-129, HUZARNAGAR ROAD, KODAD, ANDRA PRADESH, REP. BY: DULY CONSTITUTED AUTHORITY. …APPELLANT (BY SRI M.K. SOUDAGAR, ADVOCATE) AND: 1. SMT. GANGAMMA @ GANGAVVA W/O. SHARANAPPA MUDGAL, AGE: 41 YEARS, OCC: HOUSEHOLD WORK, R/O: POCHAPUR, TAL: HUNGUND, DIST: BAGALKOT-587154. 2. SMT. PARVATHEVVA W/O. CHANDAPPA MUDGAL, AGE: 83 YEARS, OCC: HOUSEHOLD WORK, R/O: POCHAPUR, TAL: HUNGUND, DIST: BAGALKOT-587154. 3. JONNALA SRINIVAS REDDY S/O. SUBBA REDDY, AGE: 39 YEARS, OCC: BUSINESS AND OWNER OF THE LORRY, R/O: D. NO.12, 143/5/8, KODAD, DIST: NALAGONDA, ANDRA PRADESH-508001. …RESPONDENTS (BY SRI PRAKASH N.HOSAMANE, ADVOCATE FOR R1 AND R2; R3-SERVICE OF NOTICE DISPENSED WITH) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF THE MOTOR VEHICLES ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 10.07.2017 PASSED BY THE SENIOR CIVIL JUDGE AND MACT NO.X, HUNGUND IN MVC NO.305/2016 BY ALLOWING THIS APPEAL WITH COST AND ETC., Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR ADMISSION, THIS DAY, THE COURT DELIVERED THE FOLLOWING: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) Though this appeal is listed for admission, with the consent of learned counsel for the parties, it is taken up for final disposal. 2. This appeal is filed by the Insurance Company challenging the judgment and award dated 10.07.2017, passed in MVC No.305/2016, by the Court of Senior Civil Judge and MACT No.X, Hungund (for short, ‘Tribunal’), for modification and determination of compensation awarded by the Tribunal. 3. Heard the arguments and perused the material placed on record. 4. In this case, the factum of accident, death of deceased in the said accident and coverage of insurance are not in dispute. 5. In the present case, the Tribunal awarded compensation under various heads as follows: - 3 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 Sl.No. Heads. Amount in (Rs.) 1. Loss of dependency 11,64,912/- 2. Conveyance 10,000/- 3. Funeral Expenses 25,000/- 4. Loss of estate 10,000/- 5. Loss of consortium 50,000/- 6. Loss of love & affection 20,000/- Total 12,79,912/- 6. The Tribunal has not applied correct parameters while determining the compensation. Therefore, the compensation awarded by the Tribunal is to be re-determined as per the correct parameters. 7. The deceased was aged 45 years as on the date of accident and was doing agriculture. The accident is of the year 2015. The Tribunal has taken notional income of the deceased at Rs.8,000/- per month, is just and proper. The Tribunal has committed error in taking percentage of income towards loss of future prospects. Therefore, 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, 25% of the income is to be added towards loss of future prospects. There are totally two legal heirs i.e., wife and mother of the deceased. The Tribunal has rightly considered 1/3rd of the income towards personal and - 4 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 living expenses. Therefore, 1/3rd of the income is to be deducted towards personal and living expenses. Considering the age of the deceased, the Trial Court has considered appropriate multiplier as 14, which is just and proper. Therefore, loss of dependency is re-assessed and quantified at Rs.11,20,000/- (8,000 + 25% minus 1/3rd x 12 x 14). 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 to Rs.40,000/- each under the head ‘loss of consortium’, along with 10% escalation. Accordingly, Rs.88,000/- (Rs.40,000 x 2 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 9. 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. Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded. - 5 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 10. Thus, the claimants would be entitled for compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency 11,20,000/- 2. Towards loss of consortium (40,000 x 2+10%) 88,000/- 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000/- Total: 12,41,000/- 11. Therefore, the claimants are entitled for compensation of Rs.12,41,000/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.12,79,912/- awarded by the Tribunal. The Tribunal has awarded interest on the compensation at 8% per annum, which is scaled down to 6% per annum, since this Court is consistently awarding interest at the rate of 6% per annum. 12. 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: - 6 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 ORDER i) The appeal is allowed in part. ii) The judgment and award dated 10.07.2017, passed in MVC No.305/2016, by the Court of Senior Civil Judge and MACT No.X, Hungund, stands modified. iii) The claimants are entitled for total compensation of Rs.12,41,000/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the compensation of Rs.12,79,912/- awarded by the Tribunal. iv) The insurance company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. v) Send a copy of this judgment to the Tribunal. vi) The amount in deposit made by the appellant/Insurance Company shall be transmitted to the Tribunal. - 7 - NC: 2025:KHC-D:3531 MFA No. 102895 of 2017 vii) No order as to costs. viii) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE PMP List No.: 1 Sl No.: 61