- 1 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 4460 OF 2018 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 4593 OF 2017 (MV-D) IN MFA No. 4460/2018 BETWEEN: 1. SATHYAVATHI @ SWATHI NAYAK, W/O. LATE. SUBHAS CHANDRA NAYAK, AGED ABOUT 46 YEARS, R/AT NO. 4-267 (B) 6, DIMOND COMPLEX, OPP: INDUSTRIAL ESTATE, ALAVOOR ROAD, SHIVALLI, 80 BADAGUBETTU, MANIPAL, UDUPI TALUK, UDUPI DISTRICT. 2. SHWETHA NAYAK D/O. LATE. SUBHAS CHANDRA NAYAK, AGED ABOUT 12 YEARS, R/AT NO. 4-267 (B) 6, DIMOND COMPLEX, OPP: INDUSRIAL ESTATE, ALAVOOR ROAD, SHIVALLI, 80 BADAGUBETTU, MANIPAL, UDUPI TALUK, UDUPI DISTRICT. 3. LAKSHMIDEVI NAYAK W/O. LATE. SUBRAYA NAYAK, Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 AGED ABOUT 86 YEARS, R/AT NO. 4-267 (B) 6, DIMOND COMPLEX, OPP: INDUSRIAL ESTATE, ALAVOOR ROAD, SHIVALLI, 80 BADAGUBETTU, MANIPAL, UDUPI TALUK, UDUPI DISTRICT …APPELLANTS (BY SRI. RAJENDRA V.G, ADVOCATE) AND: 1. NITHYANANDA NAYAK S/O. DAYANANDA NAYAK, AGED ABOUT 31 YEARS, R/AT 02-102, KODIBETTU, KUDI VILLAGE, UDUPI TALUK UDUPI DISTRICT. 2. THE CHOLAMANDALAM MS GENERAL INSURANCE CO. LTD., CHENNAI, REPRESENTED BY DIVISIONAL MANAGER, DIVISIONAL OFFICE, BENDOOR WELL ROAD, 1ST FLOOR, 16-1-44, SR COMPLEX, MANGALURU - 575 002. …RESPONDENTS (BY SRI. B. PRADEEP, ADVOCATE FOR R2; R1 IS SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 09.12.2016 PASSED IN MVC NO.409/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE & ADDITIONAL MACT, UDUPI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. - 3 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 IN MFA NO. 4593/2017 BETWEEN: THE DIVISIONAL MANAGER, DIVISIONAL OFFICE, CHOLAMANDALAM GIC LTD., BENDOOR WELL ROAD, 1ST FLOOR, 16-1-44, S.R. COMPLEX MANGALORE, KARNATAKA - 575 002, NOW REP. BY ITS LEGAL MANAGER, SR. MANAGER-CLAIMS, CHOLAMANDALAM M.S. GIC LTD., NO.1/2, GOLDEN HEIGHTS, 6TH FLOOR, 59TH C CROSS, 4TH M BLOCK, RAJAJINAGAR, BANGALORE - 10. ...APPELLANT (BY SRI. PRADEEP B, ADVOCATE) AND: 1. SATHYAVATHI @ SWATHI NAYAK W/O LATE SUBHAS CHANDRA NAYAK, NOW AGED ABOUT 45 YEARS, 2. SHWETHA NAYAK D/O LATE SUBHAS CHANDRA NAYAK, NOW AGED ABOUT 11 YEARS, SINCE 2ND PETITIONER IS MINOR REPRESENTED BY N/F MOTHER SATHYAVATHI @ SWATHI NAYAK/1ST RESPONDENT. - 4 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 3. LAKSHMI DEVI NAYAK W/O LATE SUBRAYA NAYAK, NOW AGED ABOUT 85 YEARS, ALL ARE R/AT NO. 4/267 (B) 6, DIMOND COMPLEX, OPPOSITE INDUSTRIAL ESTATE, ALEVOOR ROAD, SHIVALLI, 80 BADAGUBETTU, MANIPAL, UDUPI TALUK AND DISTRICT - 576 225. 4. NITHYANANDA NAYAK S/O DAYANANDA NAYAK NOW AGED ABOUT 30 YEARS, R/O 2-102, KODIBETTU, KUDI VILLAGE, UDUPI TALUK AND DISTRICT - 576 225. ...RESPONDENTS (R1, R3 AND R4 ARE SERVED; R2 IS MINOR REPRESENTED BY R1) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 09.12.2016 PASSED IN MVC NO.409/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE, & ADDITIONAL MACT, UDUPI, AWARDING COMPENSATION OF Rs.13,81,830/- WITH INTEREST @ 6% P.A. FROM THE DATE OF PETITION TILL DEPOSIT. THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 CORAM: HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT The present appeals are filed calling in question the judgment and award dated 09.12.2016 passed in MVC No.409/2015 by the Prl. Senior Civil Judge & Addl. MACT1, Udupi, questioning the quantum of compensation. 2. Heard the submissions of learned counsel Sri Rajendra, for the claimants and Sri B.Pradeep, learned counsel for the insurer. 3. The claimants who were the appellants in MFA No.4460/2018, contends that the quantum of compensation awarded by the Tribunal is on the lower side. The insurer who is the appellant in MFA No. 4593/2017 contends that the quantum of compensation awarded by the Tribunal is on the higher side. 4. The findings of the Tribunal on negligence and liability are not under challenge and have attained finality. Hence, the only aspect that is to be considered in the present 1 Hereinafter referred as to ‘Tribunal’ - 6 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 appeals is with regard to the adequacy of the quantum of compensation awarded by the Tribunal. 5. The deceased was stated to be cleaner/ helper and was earning `7,000/- per month. It is also stated that he was earning a bata of `50/- per day. However, no documents have been produced to demonstrate his income. The Tribunal has assessed the income of the deceased as `7,000/- p.m. Having regard to the fact that no documents have been produced to demonstrate the income of the deceased, the notional income of the deceased is re-assessed as `8,500/-. 6. The Tribunal has assessed the age of the deceased as 49 years. Hence, the appropriate multiplier of 13 assessed by the Tribunal is just and proper. 7. 25% is required to be added towards future prospects having regard to the judgment of the Hon'ble Supreme Court in the case of NATIONAL INSURANCE COMPANY LTD V/S PRANAY SETHI AND ORS2. 1/3rd is to be deducted towards personal expenses, since the claimants are the wife, daughter and mother of the deceased. Hence, the loss of dependency is re-assessed as (8500+25%-1/3X12X13) 2 “(2017)16 SCC 680” - 7 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 = `11,05,000/- as against `9,46,400/- awarded by the Tribunal. 8. Loss of consortium is required to be assessed in terms of the judgment of the Hon’ble Supreme Court in the case of MAGMA GENERAL INSURANCE COMPANY V/S NANU RAM ALIAS CHUBRU RAM AND ORS3, at Rs.40,000/- for each of the claimants together with escalation at 20%. Hence, loss of consortium is re-assessed at (48,000 X 3) = `1,44,000/- as against `50,000/- awarded by the Tribunal. 9. The compensation towards funeral expenses and loss of estate is to be awarded at `15,000/- each together with escalation at 20%. Hence, compensation of `18,000/- each is required to be awarded for the same. 10. The Tribunal has awarded medical expenses of `2,70,430/- which is as per the actual medical bills, which is just and proper. 11. In view of the compensation awarded under conventional heads as above, the compensation awarded by the Tribunal towards love and affection in a sum of `75,000/, 3 “(2018)18 SCC 130” - 8 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 loss of expectancy of life in a sum of `25,000/- and funeral/ transportation expenses in a sum of `15,000/-, are accordingly set aside / modified. 12. In view of the aforementioned, the compensation re-assessed is as follows: Sl.No Compensation Head Amount Awarded by the Tribunal (`) Amount awarded by this Court (`) 1 Loss of dependency 9,46,400.00 11,05,000.00 2. Loss of love and affection 75.000.00 00 4. Funeral and Transport expenses 15,000.00 00 2. Loss of Consortium 50,000.00 1,44,000.00 5. Loss of expectancy of life 25.000.00 00 6. Medical expenses 2,70,430.00 2,70,430.00 7 Funeral Expenses 00 18,000.00 8. Loss of Estate 00 18,000.00 Total 13,81,830.00 15,55,430.00 13. Accordingly, the claimants are entitled to enhanced compensation of (Rs15,55,430/- - Rs.13,81,830/-) = Rs.1,73,600/-. - 9 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 14. Taking judicial notice of the rate of interest awarded towards fixed deposits, interest on the enhanced compensation is awarded as 7% per annum. 15. In view of the aforementioned, the following: ORDER i) Both the appeals are allowed in part; ii) The judgment and award dated 09.12.2016 passed in MVC.No.409/2015 by the Prl. Senior Civil Judge & Addl. MACT, Udupi, is hereby modified to the extent stated herein. In all other respects, the judgment and award of the Tribunal remains unaltered; iii) The appellants/claimants are entitled to an enhanced compensation of Rs.1,73,600/- together with interest at 7% p.a. from the date of petition till the date of payment, in addition to the compensation awarded by the Tribunal; iv) The amount deposited by the appellant in MFA No.4593/2017 together with records be transmitted to the Tribunal; - 10 - HC-KAR NC: 2025:KHC:26453 MFA No. 4460 of 2018 C/W MFA No. 4593 of 2017 v) The insurer (appellant in MFA No.4593/2017) shall deposit the balance compensation together with accrued interest within a period of six weeks; vi) The apportionment and disbursement shall be in terms of the judgment and award of the Tribunal; vii) The Registry to draw the modified award accordingly; viii) Records of the Tribunal be transmitted to the Tribunal forthwith. No costs. Sd/- (C.M. POONACHA) JUDGE SRK List No.: 1 Sl No.: 7 CT: BHK