- 1 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 1582 OF 2020 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 8815 OF 2019 (MV-D) IN MFA No. 1582/2020 BETWEEN: 1. D MANJULA W/O LATE RAMACHANDRA RAJU AGED ABOUT 38 YEARS 2. D LAKSHMIKAR RAJU S/O LATE RAMACHANDRA RAJU AGED ABOUT 21 YEARS, 3. D CHARITHA D/O LATE RAMACHANDRA RAJU AGED ABOUT 13 YEARS SINCE MINOR REPRESENTED BY HER MOTHER 1ST APPELLANT AS NATURAL GUARDIAN ALL ARE RESIDING AT NO.3/1, 3RD CROSS, RAMACHANDRAPURAM BANGALORE - 560 031 NATIVE PLACE DEVALAVARIPALLI PILERU KONDREDDIGARIPALLE Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 CHITTOOR - 517 214 …APPELLANTS (BY SRI. SREENIVASAIAH A.,ADVOCATE) AND: 1. 1A. G SIVA KUMAR DEAD PROPOSED LRS G VIJAYA KUMARI W/O LATE G SIVA KUMAR AGED ABOUT 26 YEARS, 1B. SMT RAJAMMA W/O LATE SIDDAIAH AGED ABOUT 55 YEARS BOTH ARE RESIDING AT PULLAGUNTTAGARIPALLI VILLAGE CHATTEVARIPALEM POST CHINNAGOTTIGALLU MANDAL CHITTOOR DISTRICT ANDHRA PRADESH - 517 193 3. THE MANAGER THE NEW INDIA ASSURANCE COMPANY LTD., D.O.3, NO.9/2, 2ND FLOOR MAHALAKSHMI CHAMBERS M G ROAD, BANGALORE - 560 001 …RESPONDENTS R1(A) AND R1(B) ARE SERVED VIDE ORDER DATED 17.02.2021 RAVISHANKAR ADVOCATE FOR R2 THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 02.07.2019 PASSED IN MVC NO. 477/2017 ON THE FILE OF THE VIII ADDITIONAL SMALL CAUSES JUDGE AND XXXIII ACMM, MEMBER-MACT, BENGALURU (SCCH-5), - 3 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 8815/2019 BETWEEN: THE NEW INDIA ASSURANCE COMPANY LTD., DIVISIONAL OFFICE 3, NO.9/2, 2ND FLOOR, MAHALAKSHMI CHAMBERS, M.G. ROAD, BANGALORE - 560 001 REPRESENTED BY ITS MANAGER ...APPELLANT (BY SRI. RAVISHANKAR C.R., ADVOCATE) AND: 1. SMT D MANJULA AGED ABOUT 38 YEARS, W/O LATE RAMACHANDRA RAJU 2. MASTER D LAKSHMIKAR RAJU AGED ABOUT 21 YEARS S/O LATE RAMACHANDRA RAJU 3. KUM. D. CHARITHA AGED ABOUT 13 YEARS D/O LATE RAMACHANDRA RAJU SINCE MINOR REPRESENTED BY MOTHER AND NATURAL GUARDIAN SMT. D. MANJULA ALL ARE R/AT NO.3/1, 3RD CROSS, RAMACHANDRAPURAM BANGALORE - 560 021 NATIVE PLACE DEVALAVARIPALLI, PILERU KONDAREDDIGARIPALLE, - 4 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 CHITTOOR - 517 214. 4A. SRI. G. SIVA KUMAR S/O SRI. SIDDAIAH SINCE DEAD BY LRS SRI. G. VIJAYA KUMAR S/O LATE G. SIVA KUMAR SINCE DEAD BY LR 4B. SMT. RAJAMMA AGED ABOUT 57 YEARS W/OI LATE SIDDAIAH R/AT PULLAGUNTTAGARIPALLI (V), CHATTEVARIPALEM (P) CHINNAGOTTIGALLU (M) ANDHRA PRADESH - 517 193. ...RESPONDENTS (BY SRI. A. SREENIVASIAH, ADVOCATE FOR R1 AND R2 R3 IS MINOR REPRESENTED BY R1 R4B SERVED VIDE ORDER DATED 10.01.2024, R-4B IS TREATED AS LR OF DECEASED R4A) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 02.07.2019 PASSED IN MVC NO.477/2017 ON THE FILE OF THE VIII ADDITIONAL SCJ AND XXXIII ACMM, MEMBER, MACT, BENGALURU (SCCH-5), AWARDING COMPENSATION OF RS.11,30,000/- WITH INTEREST AT 9 PERCENT P.A. FROM THE DATE OF PETITION TILL REALIZATION. THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL JUDGMENT Aggrieved by the award passed in MVC.No.477/2017 dated 02.07.2019 by the VIII Additional Small Causes Judge and the Motor Accident Claims Tribunal (SCCH-5), Bengaluru whereby the Tribunal had granted an amount of Rs.11,30,000/- as compensation. The insurance company as well as the claimants are before this Court. 2. The Insurance Company's appeal is MFA.No.8815/2019 and the claimant's appeal is MFA.No.1582/2020. 3. The claim petition is filed seeking compensation of an amount of Rs.40,00,000/- for the death of the deceased. It is the case of the claimants that on 17.11.2016 at about 04.00 p.m. when the deceased was proceeding by riding the motorcycle and when he reached in front of Poultry Farrm of Mundy Sahadeva Naik near Kollafarm village, on Chittor Main Road, at that point of time, one auto driven by its driver in the rash and negligent manner endangering human life came on - 6 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 the wrong side with high speed and due to excessive speed the driver of the auto lost control over his vehicle and dashed against the motorcycle which resulted in the accident and the deceased had sustained injuries and succumbed to the same. 4. The Insurance Company before the Tribunal as well before this Court has raised two grounds. Firstly, the driver of the offending auto is not having a LMV non transport. Secondly, the policy is issued in the name of the dead person and that is obtained by playing fraud which they came to know after receiving the summons and as such they are not liable to pay the compensation. 5. The Tribunal had held that the driver is having a driving licence to drive the LMV non transport and relying on the judgment of Jagdish Kumar Sood Vs. United Insurance Co., Ltd and others1, the Tribunal had negatived the said contention of the Insurance Company. Coming to the next contention with regard to the fake policy that is issued in the name of a dead person, the Tribunal held that before issuing policy the Insurance Company shall verify the document 1 2018 (3) SCC 697 - 7 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 pertaining to the vehicle and also a proposal form. They have not lodged any complaint with regard to obtaining any policy by misrepresentation and those contentions cannot be taken and accordingly held that the Insurance Company is liable to pay the compensation and awarded the compensation as per the table given below: SL. No. Heads Compensation Awarded 1. Loss of dependency Rs. 9,80,000/- 2. Loss of consortium (petitioner No.1) Rs. 40,000/-/- 3. Loss of Filial consortium (petitioners No.2 & 3) Rs. 80,000/- 4. Loss of estate Rs. 15,000/- 5. Funeral expenses Rs. 15,000/- TOTAL Rs. 11,30,000/- 6. Learned counsel appearing for the claimant submits that that the Tribunal had considered Rs.7,000/- as a income. But the Tribunal ought to have taken Rs.9,500/- as the income and even under other conventional heads also, the compensation that is awarded by the tribunal is not just reasonable. - 8 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 7. Learned counsel appearing for the Insurance Company has reiterated the grounds that were taken before the Tribunal and submits that the principle of pay and recovery will apply. 8. Having heard learned counsels on either side, perused the materials on record. The two contentions that were raised by the Insurance Company with regard to the LMV license transport non-transport, that issue is no more res-integra as the Hon'ble Apex Court in the case of Mukund Dewangan Vs- Oriental Insurance Co. Ltd.,2 held that still the Insurance Company is liable to pay the compensation. Then coming to the second ground regarding fake driving license, the Tribunal had rightly considered and passed an order and this Court is not inclined to interfere. Coming to the enhancement of the compensation as the accident had occurred in the year 2016 the income has to be taken at Rs.9,500/-. The deceased is aged 41 years, future prospects at 25% would come to Rs.2,375/- which comes to Rs.11,875/- (Rs.9,500+Rs.2,375). As there are three dependents 1/3rd has to be deducted towards the personal expenses. If the same is deducted, his 2 (2017) 14 SCC 663 - 9 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 contribution to the family would be Rs.7,916/- per month. Hence, under the head of loss of dependency this court is granting an amount of Rs.13,29,888/- (Rs.7,916x12x14). As there are three claimants, towards loss of consortium an amount of Rs.1,32,000/- (Rs.44,000x3) is granted. Towards funeral expenses, this Court is granting an amount of Rs.36,000/-. 9. In the light of the law laid down by the Hon'ble Supreme Court in the case of V.Mekala vs. M. Malathi and Another3, the claimant is entitled for an amount of Rs.10,000/- towards legal expenses. 10. The claimants are therefore, entitled for the compensation under the following heads: SL. No. Heads Compensation Awarded by Tribunal Compensation Awarded by this Court 1. Loss of dependency Rs. 9,80,000/- 13,29,888/- 2. Loss of consortium (petitioner No.1) Rs. 40,000/-/- 1,32,000/- 3. Loss of Filial consortium (petitioners No.2 & 3) Rs. 80,000/- 00 3 (2014) 11 SCC 178 - 10 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 4. Loss of estate Rs. 15,000/- 00 5. Medical expenses Rs. 15,000/- 00 6. Funeral expenses Rs. 00 36,000/- 7. Legal Expenses Rs. 00 10,000/- TOTAL Rs. 11,30,000/- 15,07,888/- Enhancement Rs. 3,77,888/- 11. Accordingly, MFA.No.1582/2020 filed by the claimants is partly allowed by enhancing the compensation from an amount of Rs.11,30,000/- to Rs.15,07,888/-. 12. MFA.No.8815/2019 filed by the Insurance Company is partly allowed by reducing the interest from 9% p.a. to 6% p.a. i. The entire amount shall carry interest at 6% per annum from the date of petition till the date of realization. ii. The Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of copy of the judgment. On such deposit, the claimant is entitled to withdraw the entire amount. iii. Registry is directed to return the Trial Court Records to the Tribunal, along with certified copy of - 11 - HC-KAR NC: 2025:KHC:34821 MFA No. 1582 of 2020 C/W MFA No. 8815 of 2019 the order passed by this Court forthwith without any delay. iv. The apportionment of the amount shall be as per the order passed by the Tribunal. v. The amount in deposit shall be forthwith transferred to the Tribunal. vi. No costs. vii. Pending miscellaneous petitions, if any, shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE RJ List No.: 1 Sl No.: 12 CT-SG