- 1 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 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.103830 OF 2017 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.102931 OF 2017 IN M.F.A. NO.103830 OF 2017 BETWEEN: 1. SMT. MADIGA LAKSHMI @ P. LAKSHMI W/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU, AGE: 26 YEARS, OCC: HOUSE-WIFE, 2. MINOR MADIGA SATISH KUMAR @ P. SATISH KUMAR S/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU, AGE: 8 YEARS, OCC: STUDENT, 3. MINOR MADIGA CHINTU @ P. CHINTU S/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU, AGE: 3 YEARS 4. SMT. PETA THIMMAKKA @ MADIGA THIMMAKKA W/O. LATE LAKSHMANNA @ P. LAKSHMAPPA, AGED ABOUT 62 YEARS, HOUSE WIFE, SINCE APPELLANTS NO. 2 AND 3 IS MINORS REP/BY THEIR MOTHER AND NATURAL GUARDIAN SMT. MADIGA LAKSHMI @ P. LAKSHMI W/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU ALL ARE R/O. CHELIMEPALLI-VILLAGE, Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 BRAHMASAMUDRAM MANDALAM, PRESENTLY, R/O. AUTO NAGAR, NEAR BSAL FACTORY, ANANTAPURA ROAD, BALLARI-583101. …APPELLANTS (BY SRI M.G. PATIL, ADVOCATE) AND: 1. SRI YAKKATI HARISH S/O. Y. VENKATA SRINIVASA RAO, AGED ABOUT 28 YEARS, DRIVER OF THE EICHER LORRY BEARING NO.AP-16/Y-7335 R/O. KOUSURUVARI PALEM POST, MAPUDEVI MANDAL, KRISHNA-DISTRICT A.P.-420001. 2. SRI K. SRINIVASA RAO S/O. K. GOPAL RAO, AGED ABOUT 42 YEARS, OWNER OF THE EICHER LORRY BEARING REG NO.AP-16/Y-7335 R/O: H.NO.3/81, 3RD WARD BEHIND RTC DEPOT, AVANI GADDA, ANAKAPALLI, KRISHNA DISTRICT A.P.-420001. 3. M/S. NEW INDIA ASSURANCE COMPANY LTD., BY ITS DIVISIONAL MANAGER, EDIGA HOSTEL COMPLEX, BALLARI-583101. …RESPONDENTS (BY SRI M.Y. KATAGI, ADVOCATE FOR R3; R1 AND R2 – SERVICE OF NOTICE DISPENSED WITH.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF M.V.ACT, PRAYING TO ENHANCE THE COMPENSATION FROM RS.20,96,250/- TO RS.27,15,000/- IN MVC NO.1048/2015 DATED 28.02.2017 ON THE FILE OF PRINCIPAL SENIOR CIVIL JUDGE CUM MEMBER ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL NO.III, AT BALLARI, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.,. - 3 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 IN M.F.A. NO.102931 OF 2017 BETWEEN: M/S. NEW INDIA ASSURANCE CO., BY ITS DIVISIONAL MANAGER, EDIGA HOSTEL COMPLEX BALLARI, (POLICY NO.61030031140100021356 VALID FROM 17.01.2015 TO 16.01.2016 INSURED AT DIVISIONAL OFFICE, SANTHOSIMA COMPLEX, RTC X ROADS, HYDERABAD) NOW REPRESENTED BY NEW INDIA ASSURANCE COMPANY DULY CONSTITUTED ATTORNEYS). ...APPELLANT (BY SRI M.Y. KATAGI, ADVOCATE.) AND: 1. SMT. MADIGA LAKSHMI @ P. LAKSHMI, W/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU AGED ABOUT 26 YEARS, OCC. HOUSEWIFE, 2. MINOR MADIGA SATISH KUMAR @ P. SATISH KUMAR, S/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU, AGED ABOUT 8 YEARS, OCC. STUDENT, 3 MINOR MADIGA CHINTU @ P. CHINTU, S/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU, AGED ABOUT 3 YEARS, OCC. STUDENT, SINCE 2ND AND 3RD APPELLANTS ARE MINOR, REPRESENTED BY THEIR MOTHER AND NATURAL GUARDIAN SMT. MADIGA LAKSHMI @ P. LAKSMI, W/O. LATE MADIGA VENKATESHULU @ PETA VENKATESHULU. - 4 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 4. SMT. PETA TIMMAKKA @ MADIGA TIMMAKKA W/O. LATE LAKSHMANNA @ P. LAKSHMAPPA, AGED ABOUT 62 YEARS, OCC. HOUSE WIFE, ALL ARE R/O: CHELIMEPALLI VILLAGE, BRAHMASAMUDRAM MANDALAM, PRESENTLY R/O. AUTO NAGAR, NEAR BSAL, FACTORY, ANANTAPUR ROAD, BALLARI-583101. 5. SRI. YAKKATI HARISH S/O. Y. VENKATA SRINIVAS RAO, AGED ABOUT 28 YEARS, DRIVER OF THE EICHER LORRY BEARING REGISTRATION NO.AP-16 Y-7335, R/O: KOUSURUVARI PALEM POST-521150, MAPUDEVI MANDAL, KRISHNA DISTRICT, A.P. 6. SRI. K. SRINIVASA RAO, S/O. K. GOPAL RAO, AGED ABOUT 42 YEARS, OWNER OF THE LORRY BEARING REGISTRATION NO.AP-16 Y-7335, R/O: H.N. 3/81, 3RD WARD, BEHIND RTC DEPOT, AVANI GADDA, ANAKAPALLI-531001, KRISHNA DISTRICT, A.P. RESPONDENTS (BY SRI M.G. PATIL, ADVOCATE FOR R1 TO R4; R2 AND R3 ARE MINOR’S REPRESENTED BY R1; R5 – NOTICE SERVED; R6 – SERVICE OF NOTICE DISPENSED WITH.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 28.02.2017 PASSED BY THE PRINCIPAL SENIOR CIVIL JUDGE CUM MOTOR ACCIDENT CLAIMS TRIBUNAL NO.III, AT: BALLARI, IN MVC NO.1048/2015 WITH COSTS IN THE INTEREST OF JUSTICE AND EQUITY. THESE MISCELLANEOUS FIRST APPEALS COMING ON FOR ADMISSION THIS DAY, THE COURT DELIVERED THE FOLLOWING: - 5 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) In MFA No.102931/2017, learned counsel for appellant Insurance Company has filed a memo seeking dispensation of service of notice to respondent No.6. Memo and submission of the learned counsel are placed on record. In view of the same, service of notice to respondent No.6 is dispensed with at the risk of appellant and learned counsel Sri M.G.Patil, is directed to take notice for respondents No.1 to 4. 2. These appeals are filed challenging the judgment and award dated 28.02.2017, passed by the Principal Senior Civil Judge cum MACT No.III, Ballari, in MVC No.1048/2015. 3. MFA No.103830/2017 is filed by the claimants seeking enhancement of compensation, whereas MFA No.102931/2017 is filed by the Insurance Company seeking to set aside the judgment and award passed by the tribunal. 4. Heard the arguments and perused the material placed before the Court. - 6 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 5. The occurrence of accident, death of the deceased Madiga Venkateshulu alias Peta Venkateshulu in a road traffic accident, coverage of insurance are not in dispute in this case. 6. In this case, the tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Loss of dependency. 11,47,500 2. 50% of future prospects. 5,73,750 3. Loss of consortium to P-1. 1,50,000 4. Loss of love and affection 1,00,000 5. Loss of estate. 1,00,000 6. Transport of dead body and funeral expenses. 25,000 Total: 20,96,250 7. The compensation awarded by the tribunal is not correct and contrary to the principles of law decided by the Hon’ble Supreme Court. Therefore, the same is required to be modified by modifying the judgment and award of the tribunal. 8. The deceased was aged 27 years old as on the date of accident and was a Mason by profession. The - 7 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 accident is caused on 06.09.2015. Hence, in the absence of proof of income, notional income is to be taken at Rs.8,000/- for the year 2015, 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 four dependents who are mother, wife and two children. 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 17. Therefore loss of dependency is re-assessed and quantified at Rs.17,13,600/- (Rs.8,000 + 40% minus 1/4th x 12 x 17). 9. 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 - 8 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 ‘loss of consortium’, along with 10% escalation. There are four dependents who are mother, wife and two children. Accordingly, Rs.1,76,000/- (Rs.40,000 x 4 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’. 10. 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. 11. 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 17,13,600 2. Towards loss of consortium (40,000 x 4 + 10%) 1,76,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 19,22,600 - 9 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 12. The tribunal awarded interest on the compensation at 9% p.a., which is on higher side. Since this Court is consistently awarding interest at the rate of 6% p.a. on the compensation amount, the claimants are entitled for interest at the rate of 6% p.a. on the compensation amount from the date of petition till its realization. 13. Therefore, the claimants are entitled for total compensation of Rs.19,22,600/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.20,96,250/- awarded by the tribunal. 14. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment. 15. In the result, the appeal filed by the claimants is liable to be dismissed and the appeal filed by the Insurance Company is liable to be allowed in part, as the compensation awarded by the tribunal is reduced. Therefore, I proceed to pass the following: - 10 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 ORDER i) The appeal in MFA No.103830/2017 filed by the claimants is dismissed. ii) The appeal in MFA No.102931/2017 filed by the Insurance Company is allowed in part. iii) The judgment and award dated 28.02.2017, passed by the Principal Senior Civil Judge cum MACT No.III, Ballari, in MVC No.1048/2015, is modified. iv) The claimants are entitled for total compensation of Rs.19,22,600/- along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.20,96,250/- awarded by the tribunal. v) The insurance company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. - 11 - NC: 2025:KHC-D:1472 MFA No. 103830 of 2017 C/W MFA No. 102931 of 2017 vi) The order with regard to apportionment of compensation, deposit and release of amount would be as per order of tribunal. vii) Send a copy of this judgment and award to the tribunal. viii) No order as to costs. ix) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK CT: UMD. List No.: 2 Sl No.: 23