- 1 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 5441/2016 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 8076/2016 (MV-D) IN MFA No. 5441/2016: BETWEEN: THE MANAGER, RELIANCE GIC LTD., CTS-472428, V.A. KALBURGI SQUARE, DESHPANDE NAGAR, DESAI CROSS, HUBLI, NOW REP BY ITS LEGAL MANAGER, RELIANCE GENERAL INSURANCE CO. LTD., NO.28, EAST WING, 5TH FLOOR, CENTENARY BUILDING, M.G. ROAD, BANGALORE-560 001. …APPELLANT (BY SRI. PRADEEP B., ADVOCATE) AND: 1. SMT. GANGAMMA, W/O. LATE KUMARA, NOW AGED ABOUT 26 YEARS, R/AT MALLENAHALLY VILLAGE, HOSADURGA TALUK, R/AT CHICKJAJUR VILLAGE, B. DURGA HOBLI, HOLALKERE TALUK, CHITRADURGA DISTRICT-577 526. Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court Of Karnatka - 2 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 2. SHIVANNA, S/O. S.D. RAMAIAH, NOW AGED ABOUT 63 YEARS, R/AT MALLENAHALLY VILLAGE, HOSADURGA TALUK, CHITRADURGA DISTRICT-577 527. R2 IS SINCE DEAD, R1 TREATED AS LRS OF DECEASED R2 VIDE COURT ORDER DTD:23.01.2018. 3. REVANNA, S/O. LATE DEVIKARIYAPPA, NOW AGED ABOUT 42 YEARS, R/AT SUDUGANAPALYA VILLAGE, HOSADURGA TALUK, CHITRADURGA DISTRICT-577 527. …RESPONDENTS (BY SRI. N.K. SIDDESWARA, ADVOCATE FOR R1, V/O DTD:11.04.2022 SERVICE OF NOTICE TO R3 H/S, V/O DTD:23.01.2018 R1 TREATED AS LRS OF DECEASED R2) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED: 23.02.2016 PASSED IN MVC NO.389/13 ON THE FILE OF THE ITINERARY SENIOR CIVIL JUDGE & MACT, HOLALKERE, AWARDING COMPENSATION OF RS.8,75,000/- WITH INTEREST AT 7.5% P.A. FROM THE DATE OF PETITION TILL THE DATE OF DEPOSIT. IN MFA NO. 8076/2016: BETWEEN: GANGAMMA, W/O LATE KUMARA, AGED ABOUT 26 YEARS, HOUSE HOLD WORK, R/O MALLENAHALLI VILLAGE, HOSADURGA TALUK, NOW RESIDING AT CHICKJAJUR VILLAGE, B DURGA HOBLI, - 3 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 HOLALKERE TALUK, CHITRADURGA DISTRICT PIN-577 526. ...APPELLANT (BY SRI. SIDDESWARA N K., ADVOCATE) AND: 1. REVANNA, S/O DEVIKARIYAPPA, AGED ABOUT 42 YEARS, OWNER OF TRACTOR AND TRAILER BEARING, REG NO.KA-16/TA-4549 R/O SUDUGANAPALYA VILLAGE, HOSADURGA TALUK, CHITRADURGA DISTRICT, PIN-577 527. 2. RELIANCE GENERAL INSURANCE CO. LTD., C.T.S. 472428, V.A.KALBURGI SQUARE DESHPANDE NAGAR, DESAI CROSS, HUBLI CITY – 580 020, REPRESENTED BY ITS BRANCH MANAGER. ...RESPONDENTS (BY SRI. B. PRADEEP, ADVOCATE FOR R2, R1 SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED: 23.02.2016 PASSED IN MVC NO.389/13 ON THE FILE OF THE ITINERARY SENIOR CIVIL JUDGE & MACT, HOLALKERE, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA - 4 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 ORAL JUDGMENT Heard the arguments of both counsel. 2. M.F.A. No.5441/2016 is filed by the insurance company and M.F.A. No.8076/2016 is filed by the claimants for enhancement, against the judgment and award dated 23.02.2016 passed by the Court of the Senior Civil Judge and MACT, Holalkere, in M.V.C. No.389 of 2013. 3. One Kumara, son of Shivanna met with an accident on 22.10.2012 and died. His wife, aged 23 years and his father aged 60 years, filed claim application claiming compensation of Rs.10,00,000/- with interest at the rate of 18% per annum. The Tribunal, considering the entire evidence on record, granted Rs.8,75,000/- with interest at the rate of 7.5% per annum from the date of petition till the date of realisation. 4. Aggrieved by the said order, the appellant-Insurance Company has preferred M.F.A. No.5441/2016 and the claimants filed M.F.A. No.8076/2016. The learned counsel for the appellant-insurance company has mainly contended that as per the policy documents, the deceased was proceeding in a trailer, and hence, his risk was not covered under the policy - 5 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 and the trailer was not insured with the appellant. The police filed charge sheet under Section 156 read with 196 (ground No.3) Indian Motor Vehicles Act. As such, the trailer was not having valid insurance and RC as on the date of the accident. The Learned counsel has relied upon judgment of this Court in the case of Oriental Insurance Company vs. D. Laxman and Others, reported in ILR 2006 KAR 4355, to show that both tractor and trailer should be insured to indemnify the insured. It is also contended by the learned counsel for insurance company that the rate of interest awarded by the Tribunal is also to be modified to 6% per annum. 5. The deceased Kumara was working as a coolie/loader and earning Rs.10,000/- per month, but no income proof was adduced by the petitioners. As the deceased met with an accident on 22.10.2012, his income is to be taken as Rs.7,000/- per month as per the guidelines of Karnataka State Legal Services Authority. As he was aged 36 years at the time of accident, the multiplier is to be taken as 15. Thus, the total income comes to Rs.12,60,000/- (7,000 x 12 x 15). He was having two dependents and hence, 1/3rd is to be deducted - 6 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 towards his personal expenses as per the guidelines of the Hon’ble Apex Court in dictum of Sarla Verma Vs. Delhi Transport Corporation1, which comes to Rs.8,40,000 (12,60,000-1/3rd) and 40% is to be added towards future prospects as per judgment in the case of National Insurance Company Limited Vs. Pranay Sethi2. Thus, the loss of dependency comes to Rs.11,76,000/- (8,40,000+40%). 6. As per the dictum in the case of Magma General Insurance Company Limited vs. Nanu Ram Alias Chuhru Ram & others3, and in the authority between United India Insurance Company Limited vs. Satinder Kaur @ Satwinder Kaur and others4, the first petitioner is entitled for Rs.40,000/- and the second petitioner is entitled for Rs.40,000/- towards loss of consortium. The petitioners are also entered for conventional amounts of Rs.30,000/- as per the dictum of National Insurance Company Limited Vs. Pranay Sethi. However, this Court finds it just and reasonable 1 (2009) 6 SCC 121 2 (2017) 16 SCC 680 3 (2018) 18 SCC 130 4 (2020) 9 SCC 644 - 7 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 to modify the rate of interest from 7.5% to 6% per annum. Thus, the total compensation comes to Rs.12,86,000/-, which is tabulated as below: Heads Amount in Rs. 1. Loss of Dependency 11,76,000/- 2. Loss of consortium 80,000/- 3. Conventional heads 30,000/- Total 12,86,000/- 7. In all, the claimants are entitled for the total compensation of Rs.12,86,000/- as against the compensation of Rs.8,75,000/- awarded by the Tribunal, with interest at the rate of 6 percent per annum from the date of petition till the date of realization. 8. As per the judgment of the Hon'ble Supreme Court in the case of The Royal Sundaram Alliance Insurance Company Limited Vs. Smt. Honnamma And Others in SLP No. 2135 of 2023, dated 05.05.2025, the earlier judgment in the case of Dhondubai Vs. Hanmantappa Bandappa Gandigude, since deceased through his LRs. And Others in - 8 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 Civila Appeals Nos.5459-5460/2023, was overruled by the Apex Court and the liability of the insurance company was limited to statutory liability. In Dhondubai’s case, supra, it was held as follows: “the law is well settled that when a tractor and trailer are involved, both the tractor as well as the trailer are required to be insured. Therefore, in a normal circumstance, when the appellant/ claimant was travelling in the trailer which was not insured, the liability on the Insurance Company cannot be fastened and to that extent the High Court was justified.” Therefore, the insurance company is to be directed to deposit the amount within one month from the date of this order. 9. In view of the above observation, M.F.A. No.8076 of 2016 filed by the claimants for enhancement is also to be allowed. 10. In the result, I pass the following order: (i) M.F.A. No.5441/2016 filed by the insurance company and M.F.A. No.8076/2016 filed by the claimants are allowed in part. - 9 - HC-KAR NC: 2025:KHC:34677 MFA No. 5441 of 2016 C/W MFA No. 8076 of 2016 (ii) The claimants are entitled for the total compensation of Rs.12,86,000/- with interest at the rate of 6% per annum from the date of petition till the date of realization. (iii) The insurance company has already deposited 50% of the amount of statutory deposit and it is directed to be transferred to the Tribunal and the insurance company is directed to deposit the balance amount within one month from the date of this order. (iv) It is stated that after the disposal of the case before the Tribunal, father of the deceased (the second petitioner before the Tribunal) died. Therefore, wife of the deceased (the first petitioner before the Tribunal) is permitted to withdraw the entire amount along with the interest accrued on it. Sd/- (P SREE SUDHA) JUDGE CS List No.: 1 Sl No.: 70