- 1 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 28TH DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL MISCELLANEOUS FIRST APPEAL NO.101843 OF 2017 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO.100009 OF 2017 (MV-D) IN MFA NO.101843/2017: BETWEEN: 1. SMT. SAVITRI W/O. MALLAPPA SHINDOGI AGE: 45 YEARS, OCC: HOUSEHOLD WORK, 2. SMT. MANJULA W/O. MAHESH KARI AGE: 24 YEARS, OCC: STUDENT, 3. DEEPA D/O MALLAPPA SHINDOGI AGE: 22 YEARS, OCC: STUDENT, 4. ROOPA D/O MALLAPPA SHINDOGI AGE: 20 YEARS, OCC: STUDENT, 5. UMESH S/O MALLAPPA SHINDOGI AGE:16 YEARS, OCC: STUDENT, ALL ARE R/O RAMAPUR SITE, SAUNDATTI, TQ: SAUNDATTI, DIST: BELAGAVI. (SINCE APPELLANT NO.5 IS MINOR R/BY APPELLANT NO.1 MOTHER) …APPELLANTS (BY SRI. N.P. VIVEK MEHTA, ADVOCATE) AND: 1. MANJUNATH S/O BASAPPA GUDIHAL AGE. MAJOR, OCC. BUSINESS, R/O. HONNALLIYAVAR ONI, NEAR DYAMAVVANA GUDI, VINAYAKA B V Digitally signed by VINAYAKA B V Location: High Court of Karnataka, Dharwad Bench Date: 2025.07.31 14:48:50 +0530 - 2 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 TEMPLE, GOKUL, TQ. HUBBALLI, DIST. DHARWAD. (OWNER OF HERO HONDA SPLENDOR PRO MOTOR CYCLE BEARING REG NO.KA-25/G-5009) 2. THE DIVISIONAL MANAGER, NATIONAL INSURANCE COMPANY LTD., DIVISIONAL OFFICE, HUDDAR COMPLEX, 1ST FLOOR, OPP. HEAD POST OFFICE, RAILWAY STATION ROAD, DHARWAD, DIST: DHARWAD. (INSURER OF HERO HONDA SPLENDOR PRO MOTOR CYCLE BEARING REG NO.KA-25/G-5009) …RESPONDENTS (BY SRI. RAJASHEKHAR S. ARANI, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 31.08.2016 PASSED IN MVC NO.955/2014 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, SAUNDATTI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION & ETC. IN MFA NO.100009/2017: BETWEEN: THE DIVISIONAL MANAGER NATIONAL INSURANCE COMPANY LTD., DIVISIONAL OFFICE, HUDDAR COMPLEX, 1ST FLOOR, OPP. HEAD POST OFFICE, RAILWAY STATION ROAD, DHARWAD, DIST: DHARWAD. REPRESENTED BY REGIONAL MANAGER. …APPELLANT (BY SRI. RAJASHEKHAR S. ARANI, ADVOCATE) AND: 1. SAVITRI W/O MALLAPPA SHINDOGI AGE: 45 YEARS, OCC: HOUSEHOLD WORK, 2. SMT. MANJULA W/O MAHESH KARI AGE: 24 YEARS, OCC: STUDENT, 3. DEEPA D/O MALLAPPA SHINDOGI AGE: 22 YEARS, OCC: STUDENT, - 3 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 4. ROOPA D/O MALLAPPA SHINDOGI AGE: 20 YEARS, OCC: STUDENT, 5. UMESH S/O MALLAPPA SHINDOGI AGE: 16 YEARS, OCC: STUDENT, SINCE MINOR R/BY NATURAL MOTHER R1 6. SMT. SHIVABAYAVVA W/O KALYANAPPA SHINDOGI AGE: 79 YEARS, OCC: NIL, RESPONDENTS NO.1 TO 6 ARE R/O: RAMPUR SITE, SAUNDATTI, TQ: SAUNDATTI, DIST: BELAGAVI. 7. MANJUNATH S/O BASAPPA GUDIHAL AGE: MAJOR, OCC: BUSINESS, R/O: HONNALLIYAVAR ONI, NEAR DYAMAVVANA GUDI TEMPLE, GOKUL, TQ: HUBBALLI, DIST: DHARWAD. …RESPONDENTS (BY SRI. N.P. VIVEK MEHTA, ADVOCATE FOR R1 TO R4; R5 IS MINOR R/BY R1; NOTICE TO R6 & R7-SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 31.08.2016 PASSED IN MVC NO.955/2014 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, SAUNDATTI, AWARDING COMPENSATION OF RS.28,21,800/- WITH INTEREST AT 9% P.A. FROM THE DATE OF PETITION TILL ITS DEPOSIT & ETC. THESE APPEALS COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL - 4 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) MFA No.101843/2017 is filed by the claimants seeking enhancement of compensation, whereas MFA No.100009/2017 is filed by the insurance company challenging the judgment and award dated 31.08.2016 passed in MVC No.955/2014 on the file of learned Senior Civil Judge and Addl. MACT, Saundatti1. 2. Brief facts raising to filing of these appeals are that on 02.12.2013 at about 9.30 p.m., deceased Mallappa Kalyanappa Shindogi was proceeding towards Saundatti bus stand on his motorcycle and when he reached near Koppad Hanuman Temple, at that time, rider of Hero Honda Motorcycle bearing registration No.KA-25-EG-5009 came in in a rash and negligent manner and dashed against the motorcycle of the deceased Mallappa. As a result of which, the deceased Mallappa fell down and sustained grievous head injuries and also suffered multiple fractures. 1 For short, ‘Tribunal’ - 5 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 Immediately he was shifted to Government Hospital, Saundatti for first aid treatment. Thereafter, he was shifted to Balaji Hospital, Hubli for further treatment, where he succumbed to the injuries on 5.12.2013. It is averred that the deceased was aged 52 years at the time of the accident, working as Village Accountant and drawing a salary of Rs.25,000/- per month. The claimants, who are the wife, children and mother of the deceased have filed claim petition seeking compensation. 3. Before the Tribunal, the respondents appeared and filed written statements denying the entire averments made in the claim petition. Respondent No.2/Insurance Company contended that the averments made in the claim petition are all false and baseless, it has denied the occupation and income of the deceased. It was contended that the accident took place due to rash and negligent riding of rider i.e., deceased himself. Therefore, prayed for dismissal of the claim petition. - 6 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 4. The Tribunal on appreciation of the oral and documentary evidence on record, awarded a total compensation of Rs.28,21,800/- with interest at 9% per annum from the date of petition till the date of realization. Aggrieved by the same, the claimants as well as the insurance company are before this Court challenging the quantum of compensation. 5. Heard. 6. Learned counsel Sri.N.P. Vivekmehta appearing for the appellants-claimants submits that the Tribunal has committed an error in adding 15% of the income of the deceased towards future prospects, as the deceased was 52 years and on a permanent job, it ought to have considered 25% of the assessed towards future prospects. It is further submitted that the award of compensation under the head of loss of consortium and conventional heads is not inconsonance with the law laid down by the Apex Court in the case of National Insurance Company Limited Vs. - 7 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 Pranay Sethi & Others2 and Magma General Insurance Company Limited Vs. Nanu Ram & Others3. Thus, he seeks to allow the appeal by enhancing the compensation. 7. Per contra, Sri.Rajashekhar S Aarani, learned counsel for the appellant/Insurance Company in support of his appeal contends that the Tribunal has erred in applying 11 multiplier, as the deceased was aged 52 years and he was due to retirement within a period of 8 years, hence, split multipliers require to be adopted. He further submits that rate of interest awarded by the Tribunal on the compensation amount at 9% per annum is on the higher side and it has to be reduced to 6% per annum. It is further submitted that the deceased was aged about 52 years and on a fixed salary, hence, the Tribunal has rightly considered future prospects at 15%, which does not warrant interference at the hands of this Court. Hence, he seeks to dismiss the appeal. 2 2017 (16) SCC 680 3 (2018) 18 SCC 130 - 8 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 8. We have heard the learned counsel for the respective parties and perused the appeal papers along with original records. 9. Having heard the learned counsel for the parties and on perusal of the material available on record, the following point would arise for our consideration in the present appeals: Whether the quantum of compensation awarded by the Tribunal is just and proper in the facts and circumstances of the case? 10. Answer to the above point would be in the “partly affirmative” for the following reasons: (a) The parties to the proceedings do not dispute the accident and the liability of the Insurance Company. The material on record indicates that the deceased was aged about 52 years at the time of the accident. The Tribunal considering the nature of avocation and documentary evidence assessed the income of the deceased at Rs.24,775/- per month. The Tribunal added 15% of the - 9 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 assessed income towards future prospects of the deceased. Taking note of the age of the deceased as 52 years, applied multiplier of 11 and deducted 1/4th towards personal expenses of the deceased, since there are five dependents. In our considered view, the Tribunal is rightly justified in awarding a sum of Rs.27,06,792/- towards loss of dependency, which does not call for interference. (b) It is the contention of the insurer that the deceased was aged 52 years and he was due to retirement in the next 8 years, therefore, split multiplier requires to be adopted. The said contention has no merit consideration in view of law laid down by the Hon’ble Apex Court in the case of R. Valli Vs. Tamilnadu State Transport Corporation Limited4. (c) Admittedly, there are six claimants and hence, each of the claimants are entitled to Rs.40,000/- towards loss of consortium. Under the conventional heads, the claimants are entitled to Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses. 4 (2022) 5 SCC 107 - 10 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 (c) The Tribunal has committed an error in awarding rate of interest at 9% per annum, which appears to be on the higher side. Normally, this Court and the Hon’ble Apex Court taking note of prevailing rate of interest paid on the fixed deposit by the nationalized banks, would award interest at 6% per annum. Therefore, in the present case also, the claimants are entitled to interest on the compensation amount at the rate of 6% per annum from the date of petition till realization. (d) The claimants are entitled for the following modified compensation: 1 Loss of dependency Rs.27,06,792/- 2 Loss of consortium (Rs.40,000/- each to appellants No.1 to 6) Rs.2,40,000/- 3 Transportation of dead body and Funeral expenses Rs.15,000/- 4 Loss of estate Rs.15,000/- Total Rs.29,76,792/- Rounded off to Rs.29,76,800/- 11. Thus, the claimants would be entitled to total compensation of Rs.29,76,800/- as against Rs.28,21,800/- awarded by the Tribunal. 12. Hence, we proceed to pass the following: - 11 - HC-KAR NC: 2025:KHC-D:9260-DB MFA No. 101843 of 2017 C/W MFA No. 100009 of 2017 ORDER i. Both the appeals are allowed in part. ii. The impugned judgment and award of the Tribunal is modified holding that the claimants are entitled to total compensation of Rs.29,76,800/- as against Rs.28,21,800/- awarded by the Tribunal. iii. The entire compensation amount shall carry interest at the rate of 6% per annum from the date of petition till date of payment. iv. The insurance company shall deposit the aforesaid compensation amount along with accrued interest before the Tribunal within a period of six weeks from the date of receipt of certified copy of this judgment. v. The amount in deposit be transmitted to the Tribunal along with TCR forthwith. vi. Draw modified award accordingly. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE JTR CT:VP LIST NO.: 1 SL NO.: 37