- 1 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO.8320 OF 2016 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.8321 OF 2016 (MV-I) MISCELLANEOUS FIRST APPEAL NO.4572 OF 2017 (MV-D) IN MFA No.8320/2016 BETWEEN: THE BRANCH MANAGER UNITED INDIA INSURANCE CO. LTD., M.C. ROAD, MANDYA-5 NOW BY ITS REGIONAL OFFICE, KRISHI BHAVAN, NRUPATHUNGA ROAD, BANGLAORE - 560 001 BY ITS DEPUTY MANAGER. …APPELLANT (BY SRI. B A RAMAKRISHNA.,ADVOCATE) AND: 1. N. K. GIRISH AGED ABOUT 28 YEARS, S/O KRISHNASHETTY, 2. KISHAN N. G AGED ABOUT 4 YEARS S/O N. K. GIRISH, MINOR REPRESENTED BY FATHER N. K. GIRISH, Digitally signed by MADHUSHREE H Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 BOTH RESIDING AT NARAGONANAHALLI VILLAGE, BINDIGANAVILE HOBLI, NAGAMANGALA TALUK, MANDYA DISTRICT - 571 432 3. SHAHEDA BEGUM MAJOR BY AGE, W/O MOHAMMED DASTAGIR, R/O KOTE BEEDI, KUNIGAL TOWN TUMKUR DISTRICT, PIN: 572 130 …RESPONDENTS (BY SMT. SUKANYA H D, ADVOCATE FOR R3; R1 IS SERVED; R2 IS MINOR REPRESENTED BY R1) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988 PRAYING TO ALLOW THE APPEAL BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 06.08.2016 PASSED IN MVC NO.742/15 ON THE FILE OF THE SENIOR CIVIL JUDGE & MOTOR ACCIDENT CLAIMS TRIBUNAL, NAGAMANGALA AND MODIFY THE SAME TO MEET THE ENDS OF JUSTICE AND EQUITY. IN MFA NO. 8321/2016 BETWEEN: THE BRANCH MANAGER UNITED INDIA INSURANCE CO. LTD., M.C. ROAD, MANDYA-5 NOW BY ITS REGIONAL OFFICE, KRISHI BHAVAN, NRUPATHUNGA ROAD, BANGLAORE - 560 001 BY ITS DEPUTY MANAGER. ...APPELLANT (BY SRI. B A RAMAKRISHNA.,ADVOCATE) - 3 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 AND: 1. N. K. GIRISH AGED ABOUT 28 YEARS, S/O KRISHNASHETTY, RESIDING AT NARAGONANAHALLI VILLAGE, BINDIGANAVILE HOBLI, NAGAMANGALA TALUK, MANDYA DISTRICT - 571 432 2. SHAHEDA BEGUM MAJOR BY AGE, W/O MOHAMMED DASTAGIR, R/O KOTE BEEDI, KUNIGAL TOWN TUMKUR DISTRICT, PIN: 572 130 ...RESPONDENTS (R1 & R2 ARE SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988 PRAYING TO ALLOW THE APPEAL BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 06.08.2016 PASSED IN MVC NO.743/15 ON THE FILE OF THE SENIOR CIVIL JUDGE & MOTOR ACCIDENT CLAIMS TRIBUNAL, NAGAMANGALA AND MODIFY THE SAME TO MEET THE ENDS OF JUSTICE AND EQUITY. IN MFA NO.4572/2017 BETWEEN: 1. N. K. GIRISH AGED ABOUT 29 YEARS, 2. KISHAN N. G., S/O N. K. GIRISH., AGED ABOUT 5 YEARS MINOR, REP. BY NEXT FRIEND GUARDIAN FATHER-APPELLANT NO.1 N. K. GIRISH., - 4 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 BOTH ARE R/AT NARAGONAHALLI VILLAGE, BINDIGANAVILE HOBLI, NAGAMANGALA TALUK, MANDYA DISTRICT - 571 432 ...APPELLANTS (BY SRI. SREENIVASAN M Y, ADVOCATE) AND: 1. SHAHEDA BEGUM MAJOR, W/O MOHAMMED DASTAGIR, R/AT KOTE BEEDI, KUNIGAL TOWN TUMKUR DISTRICT, PIN: 572 130 2. THE BRANCH MANAGER UNITED INDIA INSURANCE CO. LTD., M.C. ROAD, MANDYA-5 MANDYA - 571 401 ...RESPONDENTS (BY SRI. B.A.RAMAKRISHNA, ADVOCATE FOR R2; VIDE ORDER DATED 07.06.2024, NOTICE TO R1 IS DISPENSED WITH) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988 PRAYING TO ALLOW THIS APPEAL AND MODIFY THE JUDGMENT PASSED BY THE SENIOR CIVIL JUDGE & MACT, NAGAMANGALA IN MVC NO.742/15 ON 06.08.2016 THEREBY ENHANCING THE COMPENSATION SUITABLY WITH INTEREST AND GRANT SUCH OTHER RELIEFS IN FAVOUR OF THE APPELLANT IN THE CIRCUMSTANCE OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY. THESE APPEALS COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA ORAL JUDGMENT In MFA No.8320/2016 & MFA No.4572/2017:- MFA No.8320 of 2016 is filed by the Insurance Company challenging the common judgment and award dated 06.08.2016 passed in MVC No.742 of 2015 by the Senior Civil Judge and MACT, Nagamangala (for short 'the Tribunal') whereas MFA No.4572 of 2017 is filed by the claimants seeking enhancement of compensation. 2. For the sake of convenience, the parties shall be referred to as per their rank and status before the Tribunal. 3. Heard learned counsel for both the parties and perused the materials on record. 4. Smt. Shruthi met with an accident on 28.05.2015 and her husband and minor son aged three years filed claim petition claiming compensation of Rs.40,00,000/-. - 6 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 The Tribunal considering entire evidence on record, granted compensation of Rs.13,33,050/- with interest at the rate of 6% per annum from the date of petition till deposit fastening the liability on the Insurance Company. Aggrieved by the said judgment and award, this appeal is preferred. 5. It is contended that deceased was aged about 23 years and was working in a private factory at Texport Industries Pvt. Ltd., Bengaluru and earning Rs.9,000/- per month. The claimants have produced Ex.P.7 - pay slips of the deceased but not examined the employer to prove her income. As such, as per the guidelines given by Karnataka State Legal Services Authority, as she met with an accident in the year 2015, this Court is of the opinion to take her income at Rs.9,000/- per month instead of Rs.7,500/- as assessed by the Tribunal. The age of the deceased was 23 years. Hence, her future prospects is to be taken as 40% instead of 50% taken by the Tribunal as per the guidelines of the Hon’ble Apex Court in the case of - 7 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 National Insurance Company Limited Vs. Pranay Sethi1. The Tribunal has erred in deducting 50% of income towards personal expenses. As there are 2 dependents, 1/3rd is to be deducted towards her personal expenses as per the guidelines of the Hon’ble Apex Court in Sarla Verma Vs. Delhi Transport Corporation2. The multiplier applicable is '18' for the age of 23 years. Therefore, the loss of dependency would come to Rs.18,14,400/- (9,000 + 40% - 1/3 x 12 x 18). 6. As per the decision of Hon'ble Supreme Court in Magma General Insurance Company Limited vs. Nanu Ram Alias Chuhru Ram & others3, and in United India Insurance Company Limited vs. Satinder Kaur @ Satwinder Kaur and others4, claimant No.1 is entitled for Rs.40,000/- towards loss of consortium and claimant No.2 being minor son of the deceased is entitled for Rs.40,000/- towards parental consortium. The claimants 1 (2017) 16 SCC 680 2 (2009) 6 SCC 121 3 (2018) 18 SCC 130 4 (2020) 9 SCC 644 - 8 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 are also entitled for Rs.30,000/- towards conventional heads. 7. Thus, the claimants are entitled to the following compensation: Compensation under different Heads Amount in (Rs.) Loss of dependency 18,14,400/- Loss of spousal consortium 40,000/- Loss of Parental consortium 40,000/- Conventional heads 30,000/- Total 19,24,400/- The claimants are entitled to a total compensation of Rs.19,24,400/- as against Rs.13,33,050/- awarded by the Tribunal. 8. It is submitted by the Insurance Company that at the time of accident, there was no valid permit and as the same amounts to violation of terms of the policy, Insurance Company is to be exonerated from paying the compensation amount to the claimants and the owner of - 9 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 the insured vehicle is liable to pay the compensation. This Court finds that it is just and reasonable to direct the Insurance Company to deposit the amount within one month and to recover the same from respondent No.1/owner of the offending vehicle before the Tribunal by due process of law. 9. In view of the aforesaid, I pass the following:- ORDER (i) MFA No.8320 of 2016 and MFA No.4572 of 2017 are partly allowed. (ii) The judgment and award dated 06.08.2016 passed in MVC No.742 of 2015 by the Senior Civil Judge and MACT, Nagamangala, is hereby modified. (iii) The claimants are entitled for a total compensation of Rs.19,24,400/- as against the compensation of Rs.13,33,050/- awarded by the - 10 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 Tribunal, along with interest at 6% p.a. from the date of petition till the date of realisation. (iv) The appellant - Insurance Company is directed to deposit the balance compensation amount within one month from the date of this order, as already 50% of the compensation amount is deposited by the Insurance Company before the Tribunal and thereafter, shall recover the same from respondent No.1/the owner of the offending vehicle. (v) On such deposit, an amount of Rs.10,00,000/- is ordered to be kept in Fixed Deposit in the name of claimant No.2 in any Nationalised Bank, till he attains the age of majority. (vi) Claimant No.1 is permitted to withdraw the balance amount along with interest accrued on it. - 11 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 (vii) Statutory deposit made before this Court is directed to be transferred to MACT. In MFA No.8321/2016:- 10. This appeal is filed by the Insurance Company challenging the common judgment and award dated 06.08.2016 passed in MVC No.743 of 2015 by the Senior Civil Judge and MACT, Nagamangala (for short 'the Tribunal') questioning the liability fastened on it. 11. Heard the arguments of learned counsel for the appellant. Respondent Nos.1 and 2 are served but unrepresented. 12. The Tribunal has fastened liability on the Insurance Company to pay the compensation amount to the claimant. It is submitted by the Insurance Company that at the time of accident, there was no valid permit and as the same amounts to violation of terms of the policy, Insurance Company is to be exonerated from paying the - 12 - HC-KAR NC: 2025:KHC:35173 MFA No. 8320 of 2016 C/W MFA No. 8321 of 2016 MFA No. 4572 of 2017 compensation amount to the claimant and the owner of the insured vehicle is liable to pay the compensation. This Court finds that it is just and reasonable to direct the Insurance Company to deposit an amount of Rs.30,000/- as awarded by the Tribunal within one month and to recover the same from respondent No.1/owner of the offending vehicle before the Tribunal by due process of law. 13. On such deposit, the appellant is permitted to withdraw the same along with interest accrued on it and the Insurance Company is at liberty to recover the same from the owner of the vehicle by due process of law. Accordingly, the appeal is partly allowed. Sd/- (P SREE SUDHA) JUDGE MH/KVR List No.: 1 Sl No.: 26