- 1 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 16TH DAY OF APRIL, 2025 PRESENT THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO.101610 OF 2021 (MV) C/W MISCELLANEOUS FIRST APPEAL NO.100010 OF 2021 IN M.F.A. NO.101610 OF 2021 BETWEEN: THE REGIONAL MANAGER, NATIONAL INSURANCE COMPANY, LIMITED, HARIHANTA COMPLEX, OPP. SBI ZONAL OFFICE, KESHVAPUR, HUBBALLI, DIST. DHARWAD, NOW REPRESENTED BY ITS AUTHORIZED SIGNATORY. …APPELLANT (BY SRI S.K. KAYAKAMATH, ADVOCATE.) AND: 1. KANIGOLLA SINDHUSHA D/O. KANIGOLLA SRINIVASGUPTA, AGE. 22 YEARS, OCC. STUDENT, R/O. H.NO.9, MAIN ROAD, BHAGYANAGAR, TQ. AND DIST. KOPPAL-582114. 2. KANIGOLLA ANUSHA D/O. KANIGOLLA SRINIVASGUPTA, AGE. 24 YEARS, OCC. STUDENT, R/O. H.NO.9, MAIN ROAD, BHAGYANAGAR, TQ. AND DIST. KOPPAL-582114. 3. KANIGOLLA SRINIVASGUPTA S/O. SUBBARAO, AGE. 57 YEARS, OCC. BUSINESS, R/O. H.NO.9, MAIN ROAD, BHAGYANAGAR, TQ. AND DIST. KOPPAL-582114. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 4. A. SUDHAKAR S/O. PADMAYYA NAIK, AGE. 41 YEARS, OCC. DRIVER OF LORRY BEARING REGISTRATION NO.KA-51/C-0739, R/O. ADDAI HOUSE, KOKKADA VILLAGE, TQ. BELTHANGADI, DIST. DAKSHINA KANNADA-574214. 5. YUSUF ASHFAK M. S/O. MAHAMMED Y., AGE. 26 YEARS, OCC. BUSINESS AND OWNER LORRY BEARING REGISTRATION NO.KA-51/C-0739, R/O. H.NO.35/1, 1ST MAIN ROAD, GANDHINAGAR, HOTEL THREELOK, BEHIND SAGAR TALKIES, BENGALURU-560001. …RESPONDENTS (BY SRI Y. LAKSHMIKANT REDDY, ADVOCATE FOR R1-R3; R4 AND R5 – NOTICE SERVED.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 25.08.2020 PASSED IN MVC NO.134/2018, ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, KOPPAL, WITH COST IN THE INTEREST OF JUSTICE AND EQUITY. IN M.F.A. NO.100010 OF 2021 BETWEEN: 1. KANIGOLLA SINDHUSHA D/O. KANIGOLLA SRINIVASGUPTTA, AGED ABOUT 22 YEARS, OCC. STUDENT, R/O. HOUSE NO.9, MAIN ROAD, BHAGYANAGAR, KOPPAL, TALUK AND DISTRICT KOPPAL-583231. 2. KANIGOLLA ANUSHA D/O. KANIGOLLA SRINIVASGUPTTA, AGED ABOUT 24 YEARS, OCC. STUDENT, R/O. HOUSE NO.9, MAIN ROAD, BHAGYANAGAR, KOPPAL, TALUK AND DISTRICT KOPPAL-583231. - 3 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 3. KANIGOLLA SRINIVASGUPTTA S/O. SUBBARAO, AGED ABOUT 57 YEARS, OCC. BUSINESS, R/O. HOUSE NO.9 MAIN ROAD, BHAGYANAGAR, KOPPAL, TALUK AND DISTRICT KOPPAL-583231. …APPELLANTS (BY SRI Y.LAKSHMIKANT REDDY, ADVOCATE.) AND: 1. A. SUDHAKAR S/O. PADMAYYA NAIK, AGED ABOUT 41 YEARS, OCC. DRIVER OF LORRY BEARING NO.KA-51/C-0739, R/O. ADDAL HOUSE, KOKKADA VILLAGE, TALUK BELTHANGADI, DISTRICT DAKSHINAKANNADA-574214. 2. YUSUF ASHFAK M. S/O. MAHAMMED Y., AGED ABOUT 26 YEARS, OCC. BUSINESS OWNER OF LORRY NO.KA-51/C-0739, R/O. HOUSE NO.35/1, 1ST MAIN ROAD, GANDHINAGAR, HOTEL THREELOK BEHIND SAGAR TALKIES, BENGALURU-560007. 3. THE REGIONAL MANAGER, NATIONAL INSURANCE COMPANY LIMITED, HARIHANTA COMPLEX, OPP. SBI ZONAL OFFICE, KESHAVAPUR, HUBBALLI, DISTRICT. DHARWAD-580008. …RESPONDENTS (BY SRI S.K.KAYAKAMATH, ADVOCATE FOR R3; R2 – SERVICE OF NOTICE DISPENSED WITH; R1 – NOTICE SERVED.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO ALLOW THE APPEAL BY MODIFYING THE JUDGMENT AND AWARD DATED 25.08.2020 PASSED BY THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, KOPPAL, IN MVC NO.134/2018 BY ENHANCING THE COMPENSATION FROM RS.1,30,78,512/- TO RS.22,64,00,000/- AND ETC.,. - 4 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 THESE MISCELLANEOUS FIRST APPEALS COMING ON FOR ADMISSION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE C.M. POONACHA) MFA No.101610/2021 is filed by the insurer and MFA No.100010/2021 is filed by the claimants. 2. The above appeals are filed under Section 173(1) of the Motor Vehicles Act, 19881, calling in question the judgment and award dated 25.08.2020, passed in MVC No.134/2018, by the Senior Civil Judge and MACT, Koppal2. 3. The parties will be referred to as per their ranking before the Tribunal, for the sake of convenience. 4. The relevant facts in a nutshell leading to the present appeals are that one Smt.KVN Madhavi3 was travelling in a car on Bengaluru-Chennai Highway when a lorry going in front of the car suddenly stopped in the middle 1 Hereinafter referred to as ‘the Act’. 2 Hereinafter referred to as ‘Tribunal’. 3 Hereinafter referred to as ‘deceased’. - 5 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 of the road, resulting in the car hitting the lorry causing the accident in question, wherein the deceased sustained grievous injuries and succumbed to the same in the hospital. Claiming compensation for the death of the deceased, her daughters and husband filed claim petition arraying the driver, owner and insurer of the offending lorry as respondents No.1 to 3 before the Tribunal. The owner and driver of the lorry did not contest the proceedings before the Tribunal and were placed ex-parte. The insurer of the lorry filed its statement of objections and contested the claim proceedings. The claimant No.2 was examined as PW.1 and Chartered Accountant was examined as PW.2. Exs.P.1 to P.28 were marked. The representative of the insurer was examined as RW.1. Exs.R.1 to R.5 were marked. 5. The tribunal by its judgment and award dated 25.08.2020, partly allowed the claim petition and awarded a total compensation of Rs.1,30,78,512/- together with interest @ 7% p.a. and directed the 3rd respondent insurer to pay the compensation awarded. - 6 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 6. Being aggrieved, the above appeals have been filed. 7. Learned counsel Sri S.K.Kayakamath, appearing for the insurer contends that assessment of income of the deceased by the tribunal in a total sum of Rs.10,68,738/- is exorbitant. It is contended that the tribunal has also taken into consideration the agricultural income and the income earned from other sources that was shown in the income tax returns of the deceased, which is erroneous. It is further contended that reduction made towards personal and living expenses of the deceased as 1/3rd is erroneous. That addition of future prospects at 30% is erroneous and interest at 7% is excessive. Hence, learned counsel for the insurer seeks for reduction in the quantum of compensation. 8. Per contra, learned counsel Sri Y.Lakshmikant Reddy, appearing for the claimants justifies the income of the deceased assessed by the tribunal and contends that the deceased being an income tax assessee and the income tax returns having been produced, as Ex.P.11 to P.14, and the insurer having failed to cross examine the Chartered - 7 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 Accountant PW.2 with regard to various aspects contained in the income tax returns, the assessment of income by the tribunal is just and proper. However, learned counsel further submits that the compensation on other heads has been awarded on lower side and the same is required to be enhanced. 9. The submissions of both the learned counsels have been considered and the material on record including the records of the tribunal have been perused. 10. The findings of the tribunal on negligence and liability are not under challenge and have attained finality. Hence, the question that arises for consideration is as to “whether the compensation awarded by the tribunal is liable to be interfered with?” 11. In the claim petition it is averred that the deceased was doing agriculture and also conducting business. The Chartered Accountant of the deceased was examined as PW.2. PW.1 in her examination-in-chief has deposed that Sri K.K.Gupta is her father’s brother and he - 8 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 was running a business of human hair in the name and style as ‘Srinivas Hair Industries’ at Yelluru of Andhra Pradesh and its branch is at Bhagya Nagar village in Koppal taluk. That the said business is being run along with her father and that her father would go to Yelluru for business purpose and the deceased was looking after the entire business at Bhagya Nagar village. It is further deposed that the deceased had developed agriculture in Koppal district by irrigating crops of Mango trees and she was getting considerable income. That the deceased also had adequate educational qualifications. 12. The Chartered Accountant has been examined as PW.2 who has produced the income tax returns for the Assessment Year4 2015-16 (ExP.11), AY-2016-17 (Ex.P.12) and AY-2017-18 (Ex.P.13) and AY-2018-19 (Ex.P.14). The certificate issued by the employer of the deceased (Ex.P.15) discloses that the deceased received an annual salary of Rs.1,98,000/- in the year 2014-15 and 2015-16 and a sum of Rs.2,23,500/- in the year 2016-17 and 2017-18. Though in the year 2017-18 she worked for three months, she was 4 Hereinafter referred to as ‘AY’. - 9 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 paid salary of Rs.77,884/-. Ex.P.14, income tax returns for the AY-2018-19 discloses that income from salary of the deceased for three months is Rs.77,884/-. Hence, monthly salary as on the date of accident of the deceased is assessed as Rs.25,961.3 (Rs.77,884/3) rounded of to Rs.26,000/-. 13. The RTC extracts (6 nos.) have been produced (Exs.P.18 to P.23), which disclose a total extent of 14 acres 32 cents of land. Learned counsel for claimants relying upon a co-ordinate bench judgment of this Court in the case of Sri Boyineni Narasimhulu vs. Sri P. Sidda S/o. Sri Hanumanthappa and others dated 20.06.20195, contends that loss of supervision charges with respect to agricultural property should be determined per acre. It is relevant to note that although in the income tax returns agricultural income of the deceased has been separately shown, the income from the said agricultural property will continue to accrue even after the death of the deceased. The loss that is to be assessed is only the loss of supervision charges. In order to assess the supervision charges of the 5 MFA No.102680/2018 c/w. MFA No.102093/2018. - 10 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 deceased with regard to agricultural activities carried out by her, since there is no material placed on record, it is just and proper to assess the income of the deceased with regard to the said agricultural activity notionally as per the chart followed by the Karnataka State Legal Service Authority for settlement of cases in Lok Adalath and accordingly loss of supervision charges with respect to the agricultural activities of the deceased is assessed as Rs.10,000/-. Hence, the total monthly income of the deceased is re-assessed as Rs.36,000/- (Rs.26,000/- + Rs.10,000/-). 14. The deceased was age 43 years as on the date of accident. Hence, 25% is required to be added towards future prospects in terms of the judgment of the Hon’ble Supreme Court in National Insurance Company Limited vs. Pranay Sethi and others6. The deceased being married, and the daughters and the husband being claimants, 1/3rd is to be deducted towards personal and living expenses of the deceased. Hence the income for the assessment of loss of dependency is re-assessed as Rs.30,000/- (Rs.36,000/- + 6 (2017) 16 Supreme Court Cases 680 - 11 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 25% less 1/3rd). The appropriate multiplier is 14. Hence, loss of dependency is re-assessed as Rs.50,40,000/- (Rs.30,000/- x 12 x 14). 15. The claimants are entitled for loss of consortium at Rs.40,000/- each together with 10% increment in terms of the judgment of the Hon’ble Supreme Court in Magma General Insurance Co. Ltd., vs. Nanu Ram and others7. Accordingly loss of consortium is re-assessed as Rs.1,32,000/- (Rs.40,000/- + 10% x 3), as against Rs.40,000/- awarded by the tribunal. 16. Loss of estate and funeral expenses is to be awarded in a sum of Rs.16,500/- each. The compensation awarded by the Tribunal towards loss of love and affection as well as loss of future prospects is required to be set aside as compensation has been awarded on all the legally recognizable heads of compensation. 17. In view of the same, the compensation is re-assessed as follows: 7 (2018) 18 Supreme Court Cases 130 - 12 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 Sl. No. Heads Amount awarded by the Tribunal (₹) Amount awarded by this Court (₹) 1. Loss of dependency. 99,68,112 50,40,000 2. Loss of consortium. 40,000 1,32,000 3. Loss of estate. 15,000 16,500 4. Funeral expenses. 25,000 16,500 5. Loss of love and affection. 40,000 - 6. Loss of future prospects. 29,90,400 Total: 1,30,78,512 52,05,000 18. Hence, the claimants are entitled to a total compensation of Rs.52,05,000/- as against Rs.1,30,78,512/- awarded by the tribunal. 19. The tribunal has awarded interest @ 7% p.a. Taking judicial notice of the rate of interest to be awarded towards fixed deposits, the rate of interest awarded by the tribunal is just and proper. 20. In view of the aforementioned, the question framed for consideration is answered in the affirmative. Hence, the following: - 13 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 ORDER i) MFA No.101610/2021 filed by the insurer is allowed in part. ii) MFA No.100010/2021 filed by the claimants is dismissed. iii) The judgment and award dated 25.08.2020, passed by the Senior Civil Judge and Addl. MACT, Koppal, in MVC No.134/2018, is modified to the extent of holding that the claimants are entitled to a total compensation of Rs.52,05,000/- as against Rs.1,30,78,512/- awarded by the tribunal, together with interest @ 7% p.a. from the date of petition till the date of payment. iv) The judgment and award of the tribunal in all other respects shall remain unaltered. v) The amount in deposit and the records of the tribunal shall be transmitted to the tribunal forthwith for disbursement. - 14 - NC: 2025:KHC-D:6498-DB MFA No. 101610 of 2021 C/W MFA No. 100010 of 2021 vi) The insurer shall deposit the balance compensation together with accrued interest before the Tribunal within six weeks. Sd/- (S G PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE MRK CT: UMD. List No.: 1 Sl No.: 17