- 1 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE C M JOSHI MISCELLANEOUS FIRST APPEAL NO. 5187 OF 2019 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 5188 OF 2019 (MV-I) MISCELLANEOUS FIRST APPEAL NO. 5567 OF 2019 (MV-I) IN MFA No. 5187/2019 BETWEEN: SRI L. MADHU, S/O LINGARAJ M, AGED ABOUT 23 YEARS, R/AT NO. 560 B, I MAIN ROAD, NEW BINNY LAYOUT, BANGALORE. …APPELLANT (BY SRI SHRIPAD V SHASTRI, ADVOCATE) AND: 1. ASHOK P, S/O PUTTASWAMY GOWDA, R/AT NO.54, 4TH CROSS, VALLABHANAGAR, UTTARAHALLI, SUBRAMANYAPURA, BANGALORE - 61. 2. RELIANCE GENERAL INSURANCE CO., LTD., NO.28, EAST WING, CENTENARY BUILDING, M.G.ROAD, BENGALURU-560 001. …RESPONDENTS (BY SRI RAVI S SAMPRATI, ADVOCATE FOR R-2; NOTICE TO R-1 IS DISPENSED WITH V/O DATED 12.01.2024) Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 01/03/2019, PASSED IN MVC NO.1643/2017, ON THE FILE OF THE XXI ACMM., & XXIII ADDITIONAL SMALL CAUSES JUDGE AND MACT, BENGALURU (SCCH-25), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 5188/2019 BETWEEN: LINGARAJ M, S/O MADHEGOWDA, AGED ABOUT 56 YEARS, R/A 560 B, 1ST MAIN ROAD, NEW BINNY LAYOUT, BANGALORE. ...APPELLANT (BY SRI SHRIPAD V SHASTRI, ADVOCATE) AND: 1. ASHOK P, S/O PUTTASWAMY GOWDA, R/A NO.54, 4TH CROSS, VALLABHANAGAR, UTTARAHALLI, SUBRAMANYAPURA, BANGALORE-61. 2. RELIANCE GENERAL INSURANCE CO., LTD., NO.28, EAST WING, CENTENARY BUILDING M G ROAD, BENGALURU-560 001. ...RESPONDENTS (BY SRI RAVI S SAMPRATHI, ADVOCATE FOR R-2; NOTICE TO R-1 IS DISPENSED WITH V/O DATED 16.02.2024) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 01/03/2019, PASSED IN MVC NO.1644/2017, ON THE FILE OF THE XXI ACMM., & XXIII - 3 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 ADDITIONAL SMALL CAUSES JUDGE AND MACT, BENGALURU (SCCH-25), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 5567/2019 BETWEEN: M/S RELIANCE GENERAL INSURANCE COMPANY LTD., NO.28, EAST WING, CENTENARY BUILDING, M G ROAD, BANGALORE-560 001. REP. BY MANAGER. ...APPELLANT (BY SRI RAVI S SAMPRATHI, ADVOCATE) AND: 1. SRI L MADHU, S/O LINGARAJ M, AGED ABOUT 23 YEARS, NO.560B, 1ST MAIN ROAD, NEW BINNY LAYOUT, BANGALORE. 2. SRI ASHOK P, S/O PUTTASWAMY GOWDA, MAJOR IN AGE, R/AT NO.54, 4TH CROSS, VALLABHANAGAR UTTARAHALLI, SUBRAMANYAPURA, BANGALORE-560 061. ...RESPONDENTS (BY SRI SHRIPAD V SHASTRI, ADVOCATE FOR R-1; NOTICE TO R-2 IS DISPENSED WITH V/O DATED 06.12.2022) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 01/03/2019, PASSED IN MVC NO.1643/2017, ON THE FILE OF THE XXI ACMM., & XXIII ADDITIONAL SMALL CAUSES JUDGE AND MACT, BENGALURU (SCCH-25), AWARDING COMPENSATION OF RS.15,51,000/- WITH INTEREST @ 8% P.A., FROM THE DATE OF FILING TILL - 4 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 THE DATE OF DEPOSITING THE AWARD AMOUNT. THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE C M JOSHI ORAL JUDGMENT Heard learned counsel appearing for the appellants and the respondents. 2. Being aggrieved by the judgment and award passed in MVC.Nos.1643/2017 and 1644/2017 dated 01.03.2019 by the learned XXI ACMM, SCJ and MACT, Bengaluru, the petitioners have approached this Court in appeals in MFA.No.5187/2019 and MFA.No.5188/2019; and the Insurance Company has approached this Court in appeal in MFA.No.5567/2019. 3. The dispute in all these appeals is in respect of the quantum of the compensation awarded and there is no dispute in respect of the liability fastened upon respondent No.2 - Insurance Company. - 5 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 4. The factual matrix of the case is that on 22.01.2017, the petitioner-Sri.L.Madhu (MVC.No.1643/2017) was riding a motorcycle bearing registration No.KA-02-JH-9229 and the petitioner- Sri.Lingaraj M. (MVC.No.1644/2017) was pillion rider. While they were going near Kallugopanahalli, Bidadi Hobli, Ramanagar District, a car owned by respondent No.1 and insured by respondent No.2 bearing registration No.KA-05- AD-1512 came in a high speed and negligent manner and dashed against the said motorcycle from behind, resulting in an accident, where the petitioners sustained injuries. They were immediately shifted to hospital and underwent surgeries and treatment. The petitioner - Sri.L.Madhu had sustained fracture of the right leg and later, he took treatment at Tanmay Hospital, Vijayanagar and thereafter, at Sparsh Hospital, Bengaluru. The petitioner had to suffer amputation of the right lower limb below knee and contending that he was earning a sum of Rs.20,000/- per month by working as a Sales Executive, he had suffered - 6 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 permanent disability and as such, he is entitled for adequate compensation. 5. The petitioner - Sri. Lingaraj M. contended that he had suffered a fracture of tibia and fibula of the right leg and due to such injuries, he has suffered permanent disability. He contended that he was earning Rs.15,000/- per month and aged about 55 years and as such, he is entitled for adequate compensation from the owner and insurer of the offending vehicle. 6. On service of notice, the respondent-Insurance Company appeared before the Tribunal and contended that the driver of the car bearing No.KA-05-AD-1512 had no valid and effective driving licence and there were violations of the terms and conditions of the policy and therefore, the Insurance Company is not liable to pay the compensation. Inter alia, it also denied the compensation claimed as highly exorbitant, imaginary and untenable in law. - 7 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 7. In MVC.No.1643/2017, the petitioner- Sri.L.Madhu got examined himself before the Tribunal as PW.1. He has also examined Record Keeper at Sparsh Hospital as PW.2 and Record Keeper at Tanmay Hospital as PW.3 and the Doctor who assessed his disability was examined as PW.4. Exs.P1 to P23 were marked. In MVC.No.1644/2017, the petitioner-Sri.Lingaraj M. got examined himself before the Tribunal as PW.1. He has also examined Record Keeper at Tanmay Hospital as PW.2 and the Doctor who assessed his disability was examined as PW.3. Exs.P1 to P18 were marked. The official of the Insurance Company was examined as RW.1 and the insurance policy was marked as Ex.R1. 8. After hearing the argument of both the sides, the Tribunal has awarded a compensation of Rs.15,50,955/- to the petitioner in MVC.No.1643/2017 and a sum of Rs.3,72,282/- to the petitioner in MVC.No.1644/2017 under different heads as below: - 8 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 In MVC.No.1643/2017: In MVC.No.1644/2017: 1 Pain and suffering Rs.60,000/- 2 Medical Expenses Rs.4,19,155/- 3 Age, Loss of future income Rs.8,74,800/- 4 Loss of income during laid up period Rs.27,000/- 5 Loss of future amenities and happiness Rs.30,000/- 6 Attendant, conveyance, food and nourishment charges Rs.20,000/- 7 Future Medical Expenses Rs.1,20,000/- TOTAL Rs.15,50,955/- /- 1 Pain and suffering Rs.50,000/- 2 Medical Expenses Rs.1,06,482/- 3 Age, Loss of future income Rs.1,18,800/- 4 Loss of income during laid up period Rs.27,000/- 5 Loss of future amenities and happiness Rs.20,000/- 6 Attendant, conveyance, food and nourishment charges Rs.20,000/- 7 Future Medical Expenses Rs.30,000/- TOTAL Rs.3,72,282/- /- - 9 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 9. Being aggrieved by the quantum of compensation amount, the petitioners in both the petitions as well as the Insurance Company are before this Court. 10. Learned counsel appearing for the petitioners- Sri.Shripad V. Shastri would submit that the Tribunal has erred in considering the disability of the petitioners as well as their income while assessing the compensation. It is contended that the amputation of the right lower limb of the petitioner-Sri.L.Madhu is considered by the Medical Officer/PW.4 and he has stated that there is a disability of 60%. Such disability spoken by the PW.4 has not been properly assessed by the Tribunal and the functional disability of the petitioner could not have been less than 60% as spoken by PW.4. The amputation of the right lower limb definitely results in functional disability as the petitioner was a Sales Executive. Hence, he seeks reassessment of the compensation awarded to the petitioner. - 10 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 11. So far as the petitioner-Sri.Lingaraj M. in MVC.No.1644/2017 is concerned, it is his grievance that the Tribunal has not considered the notional income in a proper way and there is a need for enhancement of the compensation in respect of 'loss of income during laid up period' as well as the compensation under the head of 'loss of amenities in life'. 12. Learned counsel appearing for the respondent- Insurance Company-Sri.Ravi S. Samprati submits that the compensation awarded by the Tribunal in MVC.No.1463/2017 is on the higher side and the Tribunal could not have awarded interest at the rate of 8% per annum with settled principle of law that the rate of interest could be 6%. 13. Learned counsel appearing for the appellant- Insurance Company defends the impugned judgment sofaras it relates to the compensation awarded in MVC.No.1644/2017 is concerned. - 11 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 14. A careful perusal of the records would reveal that the petitioner-Sri.L.Madhu (MVC.No.1643/2017) had sustained the amputation of right leg below knee and he being aged 21 years working as a Sales Executive, the functional disability should have been considered by the Tribunal. PW.4-Dr.S.Ramachandra has stated that the disability of the petitioner is 60%. Obviously, the Medical Officers would be deposing about the physical disability but they cannot be competent to say about the whole body disability or functional disability. As held by the Apex Court in the case of RAJ KUMAR AND AJAY KUMAR AND ANOTHER1, the assessment of the functional disability is to be done by the Tribunal. The functional disability is an impairment which affects the petitioner in discharging his duties of his employment or otherwise. The petitioner being the Sales Executive, was involved in movement from one place to another. If such person suffers the disability by way of amputation of the right 1 (2011) 1 SCC 343 - 12 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 lower limb below knee, definitely it affects his functionality as a sales executive. In that view of the matter, the functional disability of the petitioner is assessed at 60% as spoken by the PW.4. 15. So far as the income of the petitioner is concerned, there is no acceptable evidence which would show his income. Therefore, the notional income has to be considered. The guidelines issued by the Karnataka State Legal Services Authority for settlement of the disputes before the Lok-Adalat prescribe a notional income of Rs.11,000/- for the year 2017. In umpteen number of decisions, it has been held that the guidelines issued by the KSLSA are in general conformity with the wages fixed under the Minimum Wages Act and therefore, the notional income of the deceased is considered at Rs.11,000/- per month. The petitioner has sustained the disability which is 60%. Therefore, 'future prospects' need to be added while calculating the compensation amount. By adding 40% to the notional income, the effective multiplicand would be - 13 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 Rs.15,400/- (Rs.11,000/- + 4400). Therefore, the compensation under the head of 'loss of future income due to disability' is calculated as Rs.15,400/- X 12 X 18 X 60% = Rs.19,95,840/- by adopting multiplier of '18' for the age of 21 years. 16. Due to the amputation of the right lower limb, it can safely be said that the petitioner was unable to resume his work at least for a period of six months. Hence, a sum of Rs.66,000/- (Rs.11,000/- X 6) is awarded to the petitioner under the head of 'loss of income during laid up period'. 17. The Tribunal has awarded a sum of Rs.60,000/- under the head of 'pain and suffering' and the same needs to be enhanced to Rs.1,00,000/-. The Tribunal has awarded a sum of Rs.30,000/- under the head of 'loss of future amenities and happiness', which also needs to be enhanced to Rs.1,00,000/-, which would also include the compensation under the head of 'loss of marriage prospects'. The Tribunal has awarded a sum of - 14 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 Rs.20,000/- under the head of 'attendant, conveyance, food and nourishment charges' and considering the period of inpatient treatment, the same be enhanced to Rs.40,000/-. The compensation under the head of 'Medical Expenses' and 'Future Medical Expenses' do not require any indulgence by this Court. 18. Thus, the petitioner in MVC.No.1643/2017 is entitled for the modified compensation under different heads as below: PARTICULARS AMOUNT (IN RS.) Pain and suffering 1,00,000/- Medical expenses 4,19,155/- Loss of future income due to disability 19,95,840/- Loss of income during laid up period 66,000/- Loss of future amenities and happiness and marriage prospects 1,00,000/- Attendant, conveyance, food and nourishment charges 40,000/- Future Medical Expenses 1,20,000/- 28,40,995/- 15,50,955/- TOTAL Less awarded by Tribunal Enhancement 12,90,040/- - 15 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 19. Insofar as petitioner-Sri.Lingaraj M. in MVC.No.1644/2017 is concerned, he had suffered the fracture of right tibia and fibula and few other minor injuries. The Tribunal has considered the functional disability at 10% on the basis of the testimony of the medical officer. There is no reason to interfere in the said assessment since the petitioner is aged about 55 years. However, the Tribunal has considered the notional income of Rs.9,000/- which needs to be taken at Rs.11,000/- as discussed above. Thus, compensation under the head of 'loss of future income' is calculated as Rs.11,000/- X 12 X 11 X 10% = Rs.1,45,200/-. Consequently, the compensation under the head of 'loss of income during laid up period' for three months is calculated as Rs.33,000/- (Rs.11,000/- X 3). The Tribunal has awarded a sum of Rs.20,000/- under the head of 'loss of amenities' and the same is enhanced to Rs.35,000/-. The compensation awarded under the remaining heads do not require any indulgence. - 16 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 20. Thus, the petitioner in MVC.No.1644/2017 is entitled for the modified compensation under different heads as below: 21. So far as the appeal filed by the Insurance Company is concerned, in view of the above discussions, quantum of compensation cannot be interfered with as argued by learned counsel for the Insurance Company. PARTICULARS AMOUNT (IN RS.) Pain and suffering 50,000/- Medical expenses 1,06,482/- Loss of future income due to disability 1,45,200/- Loss of income during laid up period 33,000/- Loss of future amenities and happiness and marriage prospects 35,000/- Attendant, conveyance, food and nourishment charges 20,000/- Future Medical Expenses 30,000/- 4,19,682/- 3,72,282/- TOTAL Less awarded by Tribunal Enhancement 47,400/- - 17 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 However, the rate of interest awarded by the Tribunal at 8% per annum do no stand for any reasons. Therefore, the rate of interest shall be 6% per annum. Hence, the following: ORDER (i) The appeals are allowed-in-part. (ii) The impugned judgment and award passed by the Tribunal is modified by awarding a sum of Rs.12,90,040/- (in MVC.No.1643/2017) and a sum of Rs.47,400/- (in MVC.No.1644/2017) in addition to what has been awarded by the Tribunal. (iii) The rate of interest on the compensation awarded by the Tribunal and additional compensation awarded by this Court shall be 6% p.a. from the date of petition till its deposit. - 18 - HC-KAR NC: 2025:KHC:30032 MFA No. 5187 of 2019 C/W MFA No. 5188 of 2019 MFA No. 5567 of 2019 (iii) Insurance company is directed to deposit the entire compensation amount within a period of six weeks from the date of this order. (v) Amount in deposit shall be transferred to the Tribunal. (vi) Rest of the order of the Tribunal stands unaltered. Sd/- (C M JOSHI) JUDGE NR/- List No.: 1 Sl No.: 18