- 1 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 10TH DAY OF JANUARY, 2025 PRESENT THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO.103403 OF 2017 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO.100518 OF 2018 (MV-I) IN MFA NO.103403/2017 BETWEEN: ARAVIND SHANTILAL MEHTA AGE: 44 YEARS, OCC: BUSINESS, R/O: KAMANAKATTI, SHILVANTAR ONI, DHARWAD-580008. …APPELLANT (BY SRI. Y. LAKSHMIKANT REDDY, ADVOCATE) AND: 1. NORTH WEST ROAD TRANSPORT CORPORATION, HUBBALLI DIVISION, HUBBALLI-580023, BY ITS DIVISIONAL MANAGER. 2. THE ORIENTAL INSURANCE COMPANY LIMITED, BY ITS THE SENIOR DIVISIONAL MANAGER, DIVISIONAL OFFICE, II FLOOR, ENKEY COMPLEX, KESHWAPUR, HUBBALLI-580023. 3. M/S. RAJ MURGAN TRANSPORT NO.153, C7 SALEM ROAD, NAMAKKAL, DIST: NAMAKKAL, Digitally signed by VINAYAKA B V Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 STATE: TAMILNADU-610820. 4. THE DIVISIONAL MANAGER UNITED INDIA INSURANCE COMPANY LIMITED, HAVING ITS OFFICE AT MARUTI GALLI, BELAGAVI. …RESPONDENTS (BY SMT. P.R. BENTUR, ADVOCATE FOR R1; SRI. G.N. RAICHUR, ADVOCATE FOR R2; NOTICE TO R3 & R4-DISPENSED WITH) THIS MFA IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, PRAYING TO, ALLOW THE APPEAL BY MODIFYING THE JUDGMENT AND AWARD DATED 31.05.2017 PASSED BY THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM DHARWAD IN MVC NO.77/2013 BY ENHANCING THE COMPENSATION AND PASS SUCH OTHER ORDER OR ORDERS AS THIS HON’BLE COURT DEEMS FIT IN THE CIRCUMSTANCES IN THE INTEREST OF JUSTICE AND EQUITY & ETC., IN MFA NO.100518/2018 BETWEEN: THE ORIENTAL INSURANCE COMPANY LTD., BY ITS SENIOR DIVISIONAL MANAGER, DIVISIONAL OFFICE, II FLOOR ENKEY COMPLEX, KESHWAPUR, HUBLI-580022, REPRESENTED BY THE AUTHORIZED SIGNATORY. …APPELLANT (BY SRI. G.N. RAICHUR, ADVOCATE) AND: 1. ARAVIND SHANTILAL MEHTA AGE: 45 YEARS, OCC: BUSINESS, R/O: KAMANAKATTI, SHILVANTAR ONI, DHARWAD-580001. - 3 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 2. NORTH WEST ROAD TRANSPORT CORPORATION, HUBLI DIVISION, HUBLI-580030, BY IT’S DIVISIONAL MANAGER. 3. M/S. RAJ MURGAN TRANSPORT NO.153, C7 SALEM ROAD, NAMAKKAL DIST, NAMAKKAL, STATE: TAMILNADU-600001. 4. THE DIVISIONAL MANAGER UNITED INDIA INSURANCE COMPANY LIMITED, HAVING ITS OFFICE AT MARUTI GALLI, BELAGAVI-590001. …RESPONDENTS (BY SRI. Y. LAKSHMIKANTH REDDY, ADVOCATE FOR R1; SMT. P.R. BENTUR, ADVOCATE FOR R2; SRI. N.R. KUPPELUR, ADVOCATE FOR R4; NOTICE TO R3 IS SERVED) THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 31.05.2017 PASSED IN MVC NO.77/2013 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CHIEF JUDICIAL MAGISTRATE, DHARWAD, AWARDING COMPENSATION OF RS.39,88,156/- WITH INTEREST AT 8% P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION. THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR - 4 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD) These appeals are as against the judgment and award dated 31.05.2017 in M.V.C. No.77/2013 on the file of the Principal Senior Civil Judge and CJM, Dharwad [for short, ‘the Tribunal’]. The claimant’s appeal for enhancement is in M.F.A. No.103403/2017 and the appeal by the insurer is in M.F.A. No.100518/2018. At the outset, this Court must observe that there is no dispute about the claimant being injured in an accident on 22.04.2011 and the Insurer’s liability to pay just and reasonable compensation to the claimant to indemnify the Insured. 2. The claimant, according to the Tribunal’s finding on facts based on appreciation of medical evidence [including the evidence of Doctors who are examined as witnesses], is rendered quadriplegic by the accident and he is entitled to compensation not just towards pain and suffering, medical expenses incurred but also for loss of future income and towards future attendant charges. The - 5 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 Tribunal has awarded a total sum of Rs.39,88,156/- along with interest at 8% per annum. The Tribunal has computed compensation in Rs.39,88,156/- under the afore heads and the other heads as follows: Sl. No. Heads Amount 1. Pain and Sufferings Rs.3,00,000/- 2. Medical expenses Rs.8,84,156/- 3. Loss of future income Rs.7,50,000/- 4. Physiotherapy expenses already incurred Rs.2,02,000/- 5. Loss of future amenities and future unhappiness Rs.2,00,000/- 6. Earlier Attendants charges Rs.4,32,000/- 7. Future attendants’ charges Rs.4,08,000/- 8. Conveyance, nourishment and diet etc. Rs.2,00,000/- 9. Future medication Rs.6,12,000/- TOTAL Rs.39,88,156/- The Insurer, in compliance with the interim orders of this Court in these appeals, has deposited the entire award amount with the Registry and the Registry has invested this amount with a nationalized bank with the claimant being permitted to draw the interest accruing on such deposit. - 6 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 3. Sri. Y. Lakshmikant Reddy, the learned counsel for the claimant, and Sri. G.N. Raichur, the learned counsel for the Insurer, are categorical that the only question for consideration in these appeals is about the quantum of compensation with the claimant asserting that there must be an enhancement in the compensation awarded by the Tribunal and the Insurer asserting that the Tribunal has awarded a higher compensation than that would be just and reasonable in the facts and circumstances. Sri. Y. Lakshmikant Reddy and Sri. G.N. Raichur, to support their respective cases, contend that this Court must reconsider the evidence on record to award just compensation towards loss of future income submitting that it is not in dispute that the claimant, along with his brother is a partner in a business under the name and style ‘M/s. Kanchan Silk Sarees’. 4. Sri. Y. Lakshmikant Reddy canvasses that the claimant was drawing, apart from the profit as a partner and certain interests otherwise, salary from his own Firm as - 7 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 stipulated in the Partnership Deed; that the claimant was drawing a salary from the Firm is established not just by the Income Tax Return Acknowledgments which are for the assessment years 2009-10 and up to the assessment year 2013-14 [Exs.P10, P12, P14, P16 and P18] but also the Chartered Account’s Certificates for these relevant years [Exs.P9, P11, P13, P15 and P17]. The learned counsel emphasizes that the Tribunal, though has referred to these Certificates / Returns and the terms of the Partnership Deed which show that the claimant was being paid salary [apart from a share in the firm’s profits], has not considered the same, but has taken the claimant’s income at Rs.50,000/- per annum. 5. Sri. G.N. Raichur submits this Court cannot attach any credence to the Chartered Accountant’s Certificates because they are not corroborated. The learned counsel argues that to establish the probative value of the Certificates, the claimant should have examined the author of the Certificate or produced bank statements to show that the salary was indeed credited to his account in terms of - 8 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 these certificates. Sri. G.N. Raichur has also engaged this Court on the terms of the Partnership Deed to contend that this Court must take the claimant’s annual income at Rs.25,000/- as the agreement [as per the Partnership Deed] is that both the partners together will be paid annually Rs.50,000/-. 6. These submissions are considered on perusal of Exs.P9 to P18 and in the light of the admitted facts that the claimant was a partner of the Firm which continues to be in business and that he met with an accident while travelling on business in a bus insured with the Insurer. This Court must observe that the claimant seeks enhancement in the compensation towards loss of future income contending that he was also being paid commission by certain third-party agencies for the services rendered to them, but there is no cogent evidence in this regard. 7. The Income Tax Return Acknowledgments [Exs.P10, P12, P14, P16 and P18] are read together with the - 9 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 corresponding Certificates by the Chartered Accountants [Exs.P9, P11, P13, P15 and P17]. As seen from these Exhibits, the Acknowledgments are for the Returns filed on by the Claimant and the Certificates are inconsonance with the Returns filed. The Certificates for the assessment years prior to the accident show separate payments to the claimant from the Firm as salary, interest and share in the profits, but for the years after the accident the Certificates mention only payment of interest and share in profit by the firm to the claimant. There is no mention of salary. The details of the income declared in terms of the Acknowledgment are in tandem with the details of the income mentioned in the Certificates. This is established by the details as collated in the following tables: For the years prior to the date of accident 22.04.2011: Years Gross Income as per the Certificate [Including Salary, Interest and Share] Gross Income as per Income Tax Returns Acknowledgment [After Deductions] Salary as per the Certificate [Excluding Interest and Share] 2009-10 Rs.9,51,785/- Rs.8,09,611/- Rs.3,25,504/- - 10 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 2010-11 Rs.12,76,078/- Rs.12,69,348/- Rs.6,67,146/- 2011-12 Rs.15,22,805/- Rs.15,17,457/- Rs.7,70,940/- Rs.17,63,590/- For the years after to the date of accident 22.04.2011: Years Gross Income as per certificate [Only Interest and Share] Gross Income as per Income Tax Returns Acknowledgment After Deductions Salary as per Certificate 2012-13 Rs.8,56,336/- Rs.7,13,967/- NIL 2013-14 Rs.7,40,721 Rs.5,85,510/- NIL 8. These details establish that the Claimant, after the accident, is not being paid salary and that he is being paid only interest and share in the profit and as such has suffered loss of income. The probative value of these circumstances on the aspect of loss of income is increased when read with the agreement on the payment of salary in the Partnership Deed. This agreement reads that the partners shall be paid salary but on the condition that if the Firm does not earn profit or earns insufficient profit, the partners shall be paid not more than Rs.25,000/- each [i.e., - 11 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 together Rs.50,000/-]. This Court, in the afore circumstances, is of the considered view that the Income Tax Returns Acknowledgments cannot be ignored and the Tribunal in ignoring these Returns has committed an irregularity. Further, this Court must opine that the claimant has established loss of income after he was rendered quadriplegic in the road accident on 22.04.2011. The average of the salary for these three years proceeding for the date of accident will be in a sum of Rs.5,87,863/- [Rs.17,63,590/- ÷ 3]. 9. Sri. Y. Lakshmikant Reddy cannot contest that there must be an appropriate deduction from this amount towards the income tax liabilities and the personal expenses of the claimant while Sri. G.N. Raichur cannot contest that there must be addition to this amount at 40% towards future prospects as the claimant is bedridden resulting in complete loss of income. The deduction towards personal expenses in this case would be justified as the claimant would have even in normal circumstances incurred certain expenditure out of the salary for his own personal - 12 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 needs and insofar as the expenses that he will have to incur in future because of his condition, there must be just and reasonable award. The computation of loss of future income is as under: Computation of Loss of Dependency By the Tribunal By this Court Description Annual Income Rs.50,000/- Rs.5,87,863.00 Deduction Towards Income Tax for the relevant Assessment year 2013-14 at 10% after standard deduction of Rs.2,00,000/- [Rs.5,87,863 – Rs.2,00,000/- X10%] Rs.38,786.30 The annual Income after deduction of Income Tax Rs.5,49,076.70 Addition of such Income at the rate 40% towards future prospects Rs.2,19,630.68 Annual Income with the addition towards future prospects Rs.7,68,707.38 Deduction of 1/3rd towards personal expenses Rs.2,56,235.79 - 13 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 Annual income [With addition of future prospects] after deduction towards personal expenses Rs.5,12,471.59 Multiplier 15 Loss of Dependency Rs.7,50,000.00 Rs.76,87,073.85 Thus, the claimant will be entitled for a sum of Rs.76,87,073.85 towards loss of future income. 10. The next question for consideration is whether the Tribunal has awarded just compensation towards attendant charges. The Tribunal has awarded a sum of Rs.4,32,000/- towards attendant charges prior to the claim and in a sum of Rs.4,08,000/- towards future attendant charges. The Tribunal has opined that given the claimant’s condition, he will require the help of a trained person and given the present-day circumstances, the claimant cannot receive such help unless he pays a sum of Rs.6,000/- per month. The Tribunal has thus granted a sum of Rs.4,32,000/- for seventy-two [72] months at the rate of Rs.6,000/- per month. However, for future attendant - 14 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 charges, the Tribunal has opined that the monthly attendant charges that the claimant will have to incur will be Rs.2,000/- per month and taking the life expectancy has applied the multiplier of 17 in awarding a sum of Rs.4,08,000/- [Rs.2,000 X 12 X 17]. 11. Sri. Y. Lakshmikant Reddy submits that the petitioner, who is a quadriplegic, has lost his bowel movement and he suffers from continence that a trained person will have to assist the claimant in the regular use of a catheter, that therefore the claimant will require a trained person’s assistance right through his life, and that this trained person will have to attend not just to the requirement of a catheter but also the other medical requirements. The learned counsel emphasizes that this Court must not only consider these circumstances but also the fact that the claimant will have to purchase necessities such as adult diapers. 12. Sri. G.N. Raichur submits that the Tribunal in applying the life expectancy years as against the - 15 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 multiplier of 15 has rightly granted future attendant charges at the rate of Rs.2,000/- per month and the learned counsel also emphasizes that if the expenses incurred in awarding prior attendant charges is as reimbursement, the attendant charges for the future is being paid in advance and this must be a relevant factor. 13. Indeed, these are not just relevant, but very material circumstances and must be considered. This Court must also consider that a trained nurse is not required to be with claimant 24 hours of the day, but a trained person must regularly visit to attend to the claimant’s requirements. The just and reasonable compensation given these circumstances in this Court’s considered view will be when the computation is at the rate of Rs.3,000/- per month as against Rs.2,000/-. When the future attendant charges are computed accordingly the claimant will be entitled for a sum of Rs.6,12,000/- as against Rs.4,08,000/- and hence, the claimant will be entitled for enhancement in a sum of Rs.2,04,000/- under this head. - 16 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 14. The last question that has to be considered is whether there must be any interference with the award towards physiotherapy expenses incurred. Sri. G.N. Raichur canvasses that the Tribunal has awarded a sum of Rs.2,02,000/- under this head though there is no evidence. However, it is seen from paragraph 35 of the impugned judgment that the Tribunal has opined that the claimant is entitled for Rs.2,02,000/- based on [a] the opinion of Dr. Sachin Mane, [a physiotherapist who is examined as PW2] that the claimant is undergoing physiotherapy for the last four years because of his spinal cord injury and [b] the claimant has produced Medical Bills as per Ex.P40 for a sum of Rs.2,02,000/. 15. Further, the Tribunal has opined that the claimant has not substantiated his claim for a higher amount under this head as there is no evidence to establish his case that he has availed physiotherapy treatment at other hospitals. These considerations are just and proper and do not call for any interference. - 17 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 16. Therefore, the claimant is entitled to the following as under: Sl. No. Heads By the Tribunal By this Court 1 Pain and Sufferings Rs.3,00,000.00 Rs.3,00,000.00 2 Medical expenses Rs.8,84,156.00 Rs.8,84,156.00 3 Loss of future income Rs.7,50,000.00 Rs.76,87,073.00 4 Physiotherapy expenses already incurred Rs.2,02,000.00 Rs.2,02,000.00 5 Loss of future amenities and future unhappiness Rs.2,00,000.00 Rs.2,00,000.00 6 Earlier Attendants charges Rs.4,32,000.00 Rs.4,32,000.00 7 Future attendants’ charges Rs.4,08,000.00 Rs.6,12,000.00 8 Conveyance, nourishment and diet etc. Rs.2,00,000.00 Rs.2,00,000.00 9 Future medication Rs.6,12,000.00 Rs.6,12,000.00 TOTAL Rs.39,88,156.00 Rs.1,11,29,229.00 Enhancement Rs.71,41,073.00 In the light of the afore, the following: - 18 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 ORDER [A] The appeals in M.F.A. No.103403/2017 and M.F.A. No.100518/2018 are disposed of modifying the Tribunal’s judgment dated 31.05.2017 in M.V.C. No.77/2013 granting an enhanced compensation of Rs.71,41,073/-. [B] The Insurer is called upon to deposit with the Tribunal Rs.71,41,073/- along with interest at 6% per annum. [C] The Registry is directed to re-call fixed deposit and transfer the amount to the Tribunal. [D] The Tribunal is directed to disburse 50% of the amount [including the enhanced compensation] to the claimant subject to identity and deposit the remaining 50% in fixed deposit with a nationalized bank with - 19 - NC: 2025:KHC-D:406-DB MFA No.103403 of 2017 C/W MFA No.100518 of 2018 the claimant being entitled to withdraw the accruing interest periodically. [E] The Registry is also directed to transmit the records to the Tribunal at the earliest. Sd/- (B.M.SHYAM PRASAD) JUDGE Sd/- (RAMACHANDRA D. HUDDAR) JUDGE RSH, CT:VP LIST NO.: 1 SL NO.: 11