- 1 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 10TH DAY OF OCTOBER 2025 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO. 101802 OF 2017 (MV-D) BETWEEN: THE RELIANCE GENERAL INSURANCE COMPANY, ISSUING OFFICE AT MAHADEV PLAZA, CTS NO.10719, SY. NO.1357/A, NEAR KOLHAPUR CIRCLE NEHRU NAGAR, BELAGAVI-590001, INSURER OF TATA WINGER BEARING REG NO.KA-26-M-9299 VIDE POLICY NO. 1402532311000050 VALID FROM 21.01.2013 TO 20.01.2014 REPRESENTED BY ITS AUTHORIZED SIGNATORY. …APPELLANT (BY SRI. G.N. RAICHUR, ADVOCATE) AND: 1. SMT. SHANTAWWA W/O. DANAPPA RAMDURG, AGE: 28 YEARS, OCCUPATION: HOUSEHOLD WORK, R/O: LINGADAL VILLAGE, TQ: RAMDURG, DIST: BELAGAVI-590001. 2. MASTER MANJUNATH S/O. DANAPPA RAMDURG, AGE: 10 YEARS, OCCUPATION: STUDENT, (SINCE BEING MINOR REPRESENTED BY NEXT FRIEND MINOR GUARDIAN MOTHER PETITIONER NO.1 SMT. SHANTAWWA W/O. DANAPPA RAMDURG) GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH DHARWAD - 2 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 3. SMT. LAXMAWWA W/O. HANUMANTHAPPA RAMDURG, AGE: 58 YEARS, OCCUPATION: NIL, R/O: LINGADAL VILLAGE, TQ: RAMDURG, DIST: BELAGAVI-590001. 4. SMT. DEVAKKA D/O. HANUMANTHAPPA RAMDURG, AGE: 58 YEARS, OCCUPATION: HOUSEHOLD WORK, R/O: LINGADAL VILLAGE, TQ: RAMDURG, DIST: BELAGAVI-590001. 5. MR. ASHFAQ S/O. KHADARSAB MAKANDAR, AGE: 38 YEARS, OCC: BUSINESS, R/O: PLOT NO.12, AZAM NAGAR, BELAGAVI-590001, (OWNER OF TATA WINGER BEARING REG. NO. KA-26/M-9299) …RESPONDENTS (NOTICE TO R1, R3 & R4 SERVED; R2-IS MINOR REPRESENTED BY R1; R5-NOTICE DISPENSED WITH) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, PRAYING TO CALL FOR THE RECORDS AND HEAR THE PARTIES AND MODIFY THE JUDGMENT AND AWARD DATED 02.11.2016 PASSED BY IN THE COURT OF THE V-ADDITIONAL DISTRICT AND SESSIONS JUDGE AND MOTOR ACCIDENT CLAIMS TRIBUNAL-VI, BELAGAVI IN M.V.C. NO.1897/2014 BY ALLOWING THIS APPEAL WITH COST BY REDUCING THE COMPENSATION 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:13698 MFA No. 101802 of 2017 CORAM: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA ORAL JUDGMENT (PER: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA) 1. Heard Sri. G. N. Raichur, learned counsel for the appellant, who appears through Video Conference. Though notice was served upon respondents 1 to 4, they failed to represent. Notice to respondent No.5 stood dispensed with. 2. The award that is passed by the Motor Accident Claims Tribunal-VI, Belagavi (hereinafter referred to as ‘the Tribunal’, for brevity) in MVC No.1897/2014, dated 02.11.2016 is under challenge in this appeal. The Insurance Company, upon whom the liability is fastened, preferred the present appeal. 3. Arguing the matter, Sri.G.N.Raichur, learned counsel for the appellant, submits that the Tribunal awarded exorbitant sum as compensation under all heads and - 4 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 therefore, the present appeal is filed. Learned counsel submits that the first claimant is the wife, the second claimant is the minor son, the third claimant is the mother, and the fourth claimant is the sister of the deceased Danappa Hanumanthappa Ramdurg (hereinafter referred to as ‘the deceased’, for brevity), who died in a road traffic accident that occurred in the year 2013. The Tribunal, while assessing the compensation which is payable under the head ‘loss of dependency’, added 50% of the total income towards future prospects. Learned counsel submits that the Tribunal observed that the claimants failed to produce any positive evidence with regard to the income. Having said that, adding 50% of the earnings towards future prospects is unjustifiable. Learned counsel submits that, as per the decision of the Hon'ble Apex Court in National Insurance Co. Vs Pranay Sethi & ors.1, only 40% of the earnings are required to be 1 (2017) 16 SCC 680 - 5 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 added towards future prospects. Learned counsel also submits that the amount granted as compensation towards loss of consortium and funeral expenses is also on higher side. Learned counsel thereby seeks to pass necessary orders reducing the sum that is awarded as compensation to the claimants. 4. The fact that the deceased died in a road traffic accident that occurred in the year 2013 is not in dispute. As per the version of the claimants, deceased was working as a Mason under Class-I Contractor and was earning Rs.400/- per day. Their version is also that the deceased was engaged in cultivating lands and was earning Rs.84,000/- per annum from agriculture. However, as rightly observed by the Tribunal, no positive evidence whatsoever was produced by the claimants to establish the occupation and earnings of the deceased as on the date of the accident. - 6 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 5. The Tribunal took the notional income of the deceased as Rs.6,000/- per month. However, for the relevant period, for settlement of claims, the Karnataka State Legal Services Authority is taking the notional income as Rs.7,000/- per month. Therefore, this Court considers it desirable to take the notional income as Rs.7,000/- per month. The fact that the deceased died at the age of 35 years is not in dispute. Therefore, as per the decision of the Hon'ble Apex Court in Pranay Sethi's case (supra), as rightly contended by learned counsel for the appellant, 40% of the earnings are required to be added towards future prospects. 6. There is no evidence on record to show that the fourth claimant, i.e., the sister of the deceased, was depending upon the earnings of the deceased on the date of the accident. Therefore, the wife, the minor son, and the mother alone should be considered to be the dependents of the deceased. - 7 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 7. Thus, as the dependents are three in number, one- third of the earnings of the deceased are required to be deducted towards the personal and living expenses which the deceased would have incurred for himself had he been alive, as per the decision of the Hon'ble Apex Court in Sarla Verma v. Delhi Transport Corporation2. The appropriate multiplier to be applied as per the aforementioned decision is 16. Thus, with these parameters, the compensation which the claimants are entitled to receive under the head ‘loss of dependency’ is as under: Notional income per month Rs.7,000.00 Annual income Rs.84,000.00 On adding 40% towards future prospects Rs.1,17,600.00 On deducting one-third towards personal and living expenses Rs.78,400.00 Loss of dependency on applying appropriate multiplier 16 Rs.12,54,400 2 (2009) 6 SCC 121 - 8 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 8. Thus, the claimants 1 to 3 are entitled to a sum of Rs.12,54,400/- towards ‘loss of dependency’. 9. Together with the said amount, the claimants are entitled to Rs.15,000/- towards ‘funeral expenses’ and Rs.15,000/- towards ‘loss of estate’. The first claimant, being the wife of the deceased, is entitled to Rs.40,000/- towards ‘loss of spousal consortium’. The second claimant, being the son of the deceased, is entitled to Rs.40,000/- towards ‘loss of parental consortium’. The third claimant, being the mother of the deceased, is entitled to Rs.40,000/- towards ‘loss of filial consortium’. Further, the appellants are entitled to Rs.36,000/- towards the medical expenditure incurred. 10. Hence, the compensation which the claimants are entitled to receive under each head is as under: Head Amount (Rs.) Loss of dependency 12,54,400.00 - 9 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 Funeral expenses 15,000.00 Loss of estate 15,000.00 Loss of spousal consortium 40,000.00 Loss of parental consortium 40,000.00 Loss of filial consortium 40,000.00 Medical expenditure 36,000.00 Total 14,40,400.00 11. The Tribunal awarded a sum of Rs.17,07,000/- as compensation. However, the amount which the claimants are entitled to as compensation in the light of the aforementioned discussion is Rs.14,40,400/-. 12. Also, the amount awarded by the Tribunal shall carry interest at the rate of 6% per annum from the date of petition till the date of deposit and not 9% per annum. 13. Therefore, the appeal is disposed of with the following order: - 10 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 ORDER i. The appeal is allowed. ii. The compensation that is granted by the Motor Accident Claims Tribunal-VI, Belagavi, through orders in MVC No.1897/2014 dated 02.11.2016 is reduced from Rs.17,07,000/- to Rs.14,40,400/-. iii. The amount awarded as compensation shall carry interest at the rate of 6% per annum from the date of petition till the date of deposit. iv. Claimants 1 to 4 are entitled to receive the compensation in the ratio of 40:30:20:10. v. On deposit, appellants/claimants 1, 3, and 5 are permitted to withdraw their respective shares along with interest. vi. The amount that falls to the share of claimant No.2 shall be kept in any interest yielding fixed deposit scheme of any nationalised bank until - 11 - HC-KAR NC: 2025:KHC-D:13698 MFA No. 101802 of 2017 he attains the age of majority. On his attaining the age of majority, he is permitted to withdraw his share along with accrued interest. vii. Amount if any in deposit be transmitted to the concerned Tribunal immediately. Sd/- (CHILLAKUR SUMALATHA) JUDGE gab CT-MCK List No.: 1 Sl No.: 3