- 1 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 25TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.103725 OF 2017 (MV) BETWEEN: 1. SMT. KAPU THRIVENI @ THRIVENI W/O. LATE, KAPU RAMA MOHAN REDDY @ RAMA MOHAN REDDY, AGE: 33 YEARS, OCC: AGRI CUM COOLIE, 2. MINOR CHANDU @ CHANDANA D/O. LATE KAPU RAMA MOHAN REDDY, AGE: 15 YEARS STUDENT, 3. MINOR RAMI REDDY @ KAPU RAMI REDDY S/O. LATE KAPU RAMA MOHAN REDDY, AGE: 12 YEARS, STUDENT, 4. SRI KAPU GOVINDA REDDY @ GOVINDA REDDY S/O. CHINA KONDA REDDY, AGE: 66 YEARS, 5. SMT. KAPU ESHWARAMMA @ ESHWARAMMA W/O. KAPU GOVINDA REDDY @ GOVINDA REDDY, AGE: 58 YEARS, HOUSE WIFE, SINCE, APPELLANTS NO.2 AND 3 ARE MINORS, REP/BY HER MOTHER AND NATURAL GUARDIAN SMT. KAPU THRIVENI @ THRIVENI W/O. LATE KAPU RAMA MOHAN REDDY @ RAMA MOHAN REDDY ALL ARE R/O. NEAR SP CIRCLE, BALLARI-583101. …APPELLANTS (BY SRI MANJUNATHA G. PATIL, ADVOCATE) Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 AND: 1. SRI. LAKSHMI NARAYANA S/O. MOTANNA, AGE. 43 YEARS, OCC. DRIVER OF THE TRACTOR BEARING REG NO.AP-02/AV-8727, R/O. NO.14, ATMAKUR-VILLAGE, ANANTAPUR-DISTRICT A.P.-420001. 2. A. SHANKAR REDDY @ AVI REDDY GARI SHANKAR REDDY S/O. A SANJEEVA REDDY, AGE. 44 YEARS, OCC. OWNER OF THE TRACTOR BEARING REG NO:AP-02/AV-8727 R/O. NO.2/136, ANKAMPALLI-VILLAGE, BELUGUPPA MANDAL ANANTAPUR-DISTRICT, A.P.-420001. 3. M/S. ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LTD, BY ITS MANAGER, BALLARI-583101. …RESPONDENTS (BY SRI S.K. KAYAKAMATH, ADVOCATE FOR R3; R1 AND R2-SERVICE OF NOTICE DISPENSED WITH.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, PRAYING TO ENHANCE COMPENSATION FROM RS.8,10,000/- TO RS.15,00,000/- MODIFYING THE JUDGMENT AND AWARD DATED 02.02.2016 IN MVC NO.1333/2014, ON THE FILE OF THE MOTOR VEHICLE ACCIDENT CLAIMS TRIBUNAL-2ND AT BALLARI, IN THE INTEREST OF JUSTICE AND EQUITY. 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) This appeal is filed by the claimants/dependants of the deceased Kapu Rama Mohan Reddy, challenging the - 3 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 judgment and award dated 02.02.2016, passed by the Motor Accident Claims Tribunal-II, Ballari, in MVC No.1333/2014, seeking enhancement of compensation. 2. Heard the arguments and perused the material placed before the Court. 3. The occurrence of accident, death of the deceased Kapu Rama Mohan Reddy in a vehicle accident, coverage of insurance are not in dispute in this case. 4. In this case, the tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Loss of dependency. 7,20,000 2. Loss of expectancy. 30,000 3. Loss of consortium. 20,000 4. Funeral expenses. 20,000 5. Loss of love and affection. 20,000 Total: 8,10,000 5. The tribunal awarded lesser amount of compensation contrary to the principles of law decided by the Hon’ble Supreme Court. Therefore, the same is required - 4 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 to be enhanced by modifying the judgment and award of the tribunal. 6. The deceased was aged 36 years as on the date of accident and was an agriculturist by profession. The accident is caused on 26.08.2014. Hence, in the absence of proof of income, notional income is to be taken at Rs.7,500/- for the year 2014, as recognized by the Karnataka State Legal Services Authority. 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, considering the age of the deceased, 40% of the income is to be added towards loss of future prospects in life. There are five dependents. Therefore 1/4th of the income is to be deducted towards his personal and living expenses. Considering the age of the deceased, the appropriate applicable multiplier is 15. Therefore loss of dependency is re-assessed and quantified at Rs.14,17,500/- (Rs.7,500 + 40% minus 1/4th x 12 x 15). - 5 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 7. 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. There are five dependents who are father, mother, wife and two children. Accordingly, Rs.2,20,000/- (Rs.40,000 x 5 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 8. 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. 9. Thus, the claimants would be entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency 14,17,500 - 6 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 2. Towards loss of consortium (40,000 x 2 +10%) 2,20,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 16,70,500 10. Therefore, the claimants are entitled for total compensation of Rs.16,70,500/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.8,10,000/- awarded by the tribunal. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment. 11. In the result, I proceed to pass the following: ORDER i) The appeal is allowed. ii) The judgment and award dated 02.02.2016, passed by the Motor Accident Claims Tribunal-II, Ballari, in MVC No.1333/2014, stands modified. - 7 - NC: 2025:KHC-D:1470 MFA No. 103725 of 2017 iii) The claimants are entitled for total compensation of Rs.16,70,500/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the compensation of Rs.8,10,000/- 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) The order with regard to apportionment of compensation, deposit and release of amount would be as per order of tribunal. vi) Send a copy of this judgment and award to the tribunal. vii) No order as to costs. viii) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK CT: UMD/ List No.: 2 Sl No.: 22