- 1 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 8TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE H.P.SANDESH AND THE HON'BLE MR. JUSTICE T.M.NADAF MISCL. FIRST APPEAL NO.200103 OF 2025 (MV-D) C/W MISCL. FIRST APPEAL NO.201598 OF 2024 (MV-D) IN MFA No.200103/2025: BETWEEN: BASAWWA W/O BALAPPA GURIKAR, AGE: 54 YEARS, OCC: HOUSEHOLD WORK, R/O. ISLAMPUR, NOW RESIDING IN MUDDEBHIAL, TQ. MUDDEBIHAL. …APPELLANT (BY SRI. SANGANAGOUDA V. BIRADAR, ADVOCATE) AND: 1. MR. VINODRAY GANADEVRAY TIWARI, AGE: 50 YEARS, 245 UNITED INDIA SUNDERPURI, GIMB-370 201, KACHCHH, GUJARAT-416 416, TATA GOODS VEHICLE BEARING REG NO.GJ-12/Z-3911. Digitally signed by REKHA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 2. UNITED INDIA INSURANCE CO. LTD., S.S. FRONT ROAD, VIJAYAPURA-586 101. …RESPONDENTS (BY SRI. MANVENDRA REDDY, ADV. FOR R2; V/O DTD. 05.08.2025, NOTICE TO R1 IS DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF THE MOTOR VEHICLES ACT, PRAYING TO ALLOW THE CLAIM PETITION THE JUDGEMENT AND AWARD DATED 29.11.2023 PASSED BY SENIOR CIVIL JUDGE AND MACT VIII, MUDDEBIHAL IN MVC NO.1084/2018 AND ENHANCE THE COMPENSATION. IN MFA No.201598/2024: BETWEEN: UNITED INDIA INSURANCE CO. LTD., S.S. FRONT ROAD, VIJAYAPURA-586 101, REPRESENTED BY IT’S THE DIVISIONAL MANAGER. …APPELLANT (BY SRI. MANVENDRA REDDY, ADVOCATE) AND: 1. BASAWWA W/O BALAPPA GURIKAR, AGE: 54 YEARS, OCC: H.H WORK, R/O. ISLAMPUR, NOW RESIDING IN MUDDEBHIAL, TQ. MUDDEBIHAL, DIST. VIJAYAPURA - 586 101. 2. MR. VINODRAY GANADEVRAY TIWARI, 245 UNITED INDIA SUNDERPURI, GIMB-370 201, KACHCHH, GUJARAT-382 220, - 3 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 TATA GOODS VEHICLE BEARING NO.GJ-12/Z-3911. …RESPONDENTS (BY SRI. SANGANAGOUDA V. BIRADAR, ADV. FOR R1; V/O DTD. 04.09.2025, NOTICE TO R2 IS DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF THE MOTOR VEHICLES ACT, PRAYING TO CALL FOR THE RECORDS AND SET ASIDE THE JUDGMENT AND AWARD DATED 29.11.2023 PASSED BY THE SENIOR CIVIL Judge AND MACT-VIII, MUDDEBIHAL IN MVC No.1084/2018 BY ALLOWING THE APPEAL AS PRAYED FOR. THESE APPEALS COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE H.P.SANDESH AND HON'BLE MR. JUSTICE T.M.NADAF ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE T.M.NADAF) These two appeals by claimant as well as Insurance Company, directed against the judgment and award dated 29.11.2023 in MVC No.1084/2018, passed by the Senior Civil Judge and MACT- VIII, at Muddebihal (for short, ‘the Tribunal’) on the ground of liability as well as quantum of compensation. - 4 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 2. The date of accident, involvement of vehicle and death of Shivappa S/o Balappa Gurikar are not in dispute. The only dispute with regard to payment of compensation on the ground of liability by the appellant - Insurance Company contending that the truck lacks permit and on the ground of inadequate compensation by the appellant/claimant. 3. Heard Sri.Sanganagouda.V.Biradar, learned counsel appearing for the appellant/claimant in MFA No.200103/2025 and Sri.Manvendra Reddy, learned counsel appearing for the appellant- Insurance Company in MFA No.201598/2024. 4. Sri.Sanganagouda.V.Biradar with all vehemence submitted that the Tribunal has committed a serious error in taking into consideration the income of the deceased. The deceased was working as a part time lecturer and was earning at Rs.25,000/- per month as salary. Before the Tribunal the service certificate in respect of deceased and - 5 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 B.Ed and M.A. passing certificates and eligibility certificate produced as per Ex.P21 to Ex.P25 to show the qualification of the deceased. The Tribunal has failed to consider the same and awarded the meager compensation under the head loss of dependency, taking into consideration the income at the rate of Rs.10,250/- as fixed by the Karnataka State Legal Services Authority for the year, 2017. 5. To buttress his arguments he relied on the judgment of this Court in MFA.No.104894/2019 connected with MFA.No.103864/2018 dated 28.02.2020, wherein this Court has considered the income at Rs.25,000/- p.m, in respect of a B.Ed. third year student and added appropriate ‘Future Prospects’ towards the said sum and awarded compensation. The Co-ordinate Bench in paragraph Nos.12 and 13 has stated reasons for considering the income supra. In the case on hand, the deceased was a B.Ed, M.A. graduate and working as a part time lecturer, considering his qualification the same - 6 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 amount of Rs.25,000/- per month be taken applying appropriate multiplier corresponding to the age as between 25 to 30 years (as deceased was 28 years) and 40% towards the ‘Future Prospects’, to be added. In these circumstances the loss of dependency requires reconsideration. Accordingly, sought to allow the appeal and enhance the compensation. 6. Refuting the submission of learned counsel for the appellant, Sri.Manvendra Reddy, learned counsel appearing for the appellant – Insurance Company in MFA No.201598/2024 with all vehemence submitted that the truck involved in the accident lacking permit to ply in the Karnataka State. The truck belongs to Gujarat State as per Ex.R4 and R6, the permit is granted only to ply the truck within the state of Gujarat. There is no permit for ply the said vehicle in Karnataka State and the accident occurred in Karnataka state. So also contended that the interest awarded at a rate of 9% in the absence of extraordinary circumstances made out as such the same requires - 7 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 reduction to maintain at 6% as generally considered by this Court as well as Hon’ble Apex Court. Accordingly, sought to allow the appeal. 7. Having heard the learned counsel appearing for the parties, perused the entire appeal papers as well as trial Court record. The points that would arise for our consideration are; “1. Whether the Tribunal is right in fastening liability absolutely on the insurer, in the teeth of violation of permit Conditions? 2. Whether the compensation awarded by the Tribunal is just and proper within the meaning of just compensation or requires any interference at the hands of this Court? 3. Whether the Tribunal justified in awarding interest at the rate of 9%, if so whether it requires any reduction? 8. Our answer to the above point for consideration is: - 8 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 Point No.1 : Partly in affirmative. Point No.2: Partly in affirmative requires reconsideration, Point No.3 : In Negative, requires Reconsideration at 6% p.a, for the Following: R E A S O N 9. So far as quantum as well as interest is concerned, both are taken i.e., point Nos.2 and 3 taken for disposal to avoid the repetition of facts. 10. It is not in dispute that the deceased was B.Ed as well as MA post graduate and as per the service certificate he was working as a part time lecturer. This aspect of the matter is not denied by the learned counsel appearing for the appellant – Insurance Company. In view of the judgment of the Co-ordinate bench, in the case of Shri.Mallikarjun vs. Shri.Umesh.M. s/o. Murthy.K., dated 28.02.2020, wherein this Court had an occasion to consider monthly income in respect of a 3rd year student. - 9 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 This Court has considered the income at the rate of Rs.25,000/- per month. The reasons especially stated in paragraph Nos.9 to 13. In the case on hand, the deceased was a part time lecturer and holder of double degree i.e., B.Ed as well as M.A i.e., post graduation. In view of the service certificate and other certificate and eligible certificates to produced at Exs.P1 to P25, the appellant/claimant has made out a case to consider the income at the rate of Rs.25,000/- per month as against Rs.10,250/- per month considered by the Tribunal, which is fixed under the chart for an unskilled labor. The deceased having an academic qualification as well as service certificate made out a case for consideration of his income at Rs.25,000/- p.m. as bare minimum. The deceased was aged 28 years as on the date of death. In these circumstances, 40% to be added to the income that is Rs.25,000/- and multiplier applicable as per the law laid down by the Sarla Verma and Others vs. Delhi - 10 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 Transport Corporation and Another1 is ‘17’. In these circumstances, the loss of dependency awarded by the Tribunal requires reconsideration. Accordingly, the same is reconsidered as follows. 11. The appellant is entitled for under the head of ‘loss of dependency’ by considering the income at the rate of Rs.25,000/- per month and adding 40% which comes to Rs.35,70,000/-(25,000 + 40 % x 12 x 17 x 50/100). 12. The Tribunal has failed to award appropriate compensation under the head of loss of love and affection i.e., loss of filial consortium, ought to have been taken Rs.40,000/- which is instead of Rs.15,000/-. Further, the Tribunal failed to add 10% escalation for every three completed year from the year 2017. The accident occurred during the year 2017, in terms of law laid down by the Hon'ble Apex NATIONAL INSURANCE CO. LTD. VS. 1 2009 ACJ 1298 - 11 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 PRANAY SETHI2,, the claimant is entitled for 10% escalation on the conventional heads for two terms of completed 3 years from 2017, the same would added to 20% escalation for two terms, which comes to Rs.14,000/-. 13. In the circumstances, the appellant/claimant is entitled for modified and re-determined compensation which would be as under; Heads of compensation Amount Loss of dependency (25,000 + 40% x 12 x 17 x 50/100) : Rs. 35,70,000/- Loss of Filial Consortium : Rs. 40,000/- Loss of Estate : Rs. 15,000/- Loss of Transportation and Funeral Expenses : Rs. 15,000/- 20% escalation for three completed years of one term on conventional heads [Rs.40,000 + 15,000 + 15,000 x 20%] : Rs. 14,000/- TOTAL : Rs. 36,54,000/- 2 (2017) 16 SCC 680 - 12 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 14. The total compensation re-determined by this Court works out to Rs.36,54,000/- as against Rs.15,08,700/-. 15. So far as interest is concerned, except citing the judgments, the claimants have not placed any records to show the rate of bank interest as on the date of accident. The facts of each case assumes importance while awarding interest on the compensation. In a catena of judgments by this Court as well as Hon’ble Apex Court, maintained constantly rate of interest at 6% p.a., on compensation. Accordingly, the interest rate is reduced to 6%, in place of 9% p.a. In the circumstances, the appellant/claimant is entitled to 6% interest on the re-determined compensation from the rate petition till realization. 16. Point No.1: So far as the question of liability on the contention of violation and permit-conditions to ply the vehicle beyond the jurisdiction is concerned, in view of the law laid down by the Hon’ble Apex Court in the case of - 13 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 RANI V. NATIONAL INSURANCE COMPANY REPORTED3. The insurer is entitled for pay and recovery. The Hon'ble Apex Court, in the case supra, held that, the violation is not a fundamental breach and accordingly directed the Insurance Company to pay the compensation at the first instance with the liberty to recover the same from the owner of the vehicle. In these circumstances, applying the same ratio to the case on hand, we are of the considered opinion that there is in the submissions of the learned counsel appearing for the appellant on violation of permit-conditions, accordingly, the judgment and award modified to the extent directing the Insurance Company to primarily pay the compensation with liberty to recover the same from the owner of the offending vehicle. 17. Accordingly, we answered all the questions raised for consideration and proceeded to pass the following: 3 2018 SC 1296 - 14 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 O R D E R i) In MFA No.201598/2024 filed by the appellant-Insurance Company is allowed- in-part, reducing the interest from 9% p.a. to 6% p.a so also directly the appellant- Insurance Company to pay the compensation primarily with liberty to recover the same from the owner of the offending vehicle, in all other respects the appeal is dismissed. ii) In MFA No.200103/2025 filed by claimant-appellant is allowed-in-part, by modifying the judgment and award dated 29.11.2023 in MVC No.1084/2018 passed by Senior Civil Judge & MACT-VIII, Muddebihal, by re-determining the compensation at the rate of Rs.36,54,000/- as against Rs.15,08,700/- which shall carry at the rate of 6% per annum from the date of petition till realization. iii) In MFA No.201598/2024 amount in deposit shall be transmitted to the - 15 - HC-KAR NC: 2025:KHC-K:5736-DB MFA No. 200103 of 2025 C/W MFA No. 201598 of 2024 concerned Tribunal forthwith for disbursement. iv) The balance re-determined compensation along with the accrued interest supra shall be deposited by the appellant – Insurance Company in MFA No.201598/2024 and respondent in MFA No.200103/2025 before the concerned Tribunal within a within Six weeks from the date of receipt of a copy of this order; v) The disbursement and apportionment remained unaltered. vi) No order as to cost. Sd/- (H.P.SANDESH) JUDGE Sd/- (T.M.NADAF) JUDGE AMM List No.: 1 Sl No.: 56 CT: AK