- 1 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 8670 OF 2024 (MV-D) BETWEEN: 1. SMT. MARY PUSHPA W/O. LATE. CHELUVARAJU SWAMY @, SELVARAJ @ ARULAPPA AGED ABOUT 54 YEARS, 2. SRI. SHASHIKIRAN, S/O. LATE. CHELUVARAJU SWAMY @ SELVARAJ @ ARULAPPA AGED ABOUT 34 YEARS, 3. SRI. ANTHONY RAJESH, S/O. LATE. CHELUVARAJU SWAMY @ SELVARAJ @ ARULUPPA AGED ABOUT 33 YEARS, ALL ARE R/AT NO. 139, VENKATESHWARA LAYOUT, MUNESHWARA TEMPLE, NEAR SHANUBOGANAHALLI, BANNERGHATTA, BANGALORE. …APPELLANTS (BY SRI. KAILAS SHANKAR P.S., ADVOCATE) Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 AND: 1. SRI. GEORGE PRASAD G MAJOR, NO. E-43, 2ND NORTH, LANE, ITI COLONY, DOORAVANINAGAR, BENGALURU - 560 022. 2. THE MANAGER, UNITED INDIA INSURANCE CO. LTD., 5TH AND 6TH FLOOR, KRISHIBHAVAN, HUDSON CIRCLE, NEAR CMM COURT, NRUPATHUNGA ROAD, BANGALORE - 560 001 …RESPONDENTS (BY SRI. A.N. KRISHNA SWAMY, ADVOCATE FOR R2; NOTICE TO R1 IS DISPENSED WITH VIDE ORDER DATED 12.11.2025) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THEJUDGMENT AND AWARD DATED 18.01.2022 PASSED IN MVC NO. 7096/2019 ON THE FILE OF THE VIII ADDITIONAL SCJ AND ACMM, MEMBER, MACT, BENGALURU SCCH-5 PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 ORAL JUDGMENT Aggrieved by the award passed in MVC No.7096/2019 dated 18.01.2022 by VIII Additional Small Causes Judge and the Motor Accident Claims Tribunal (SCCH-5), Bengaluru, the claimants are before this Court questioning the liability fixed on the owner of the vehicle as well as seeking enhancement of the compensation. 2. The Tribunal has granted the compensation as per the table given below: Sl. No. Heads Compensation awarded 1. Loss of Dependency (after deducting 1/2 of the income towards personal living expenses) 9,75,000-00 2. Loss of Consortium 40,000-00 + 4,000-00 3. Loss of love and affection 80,000-00 4. Loss of Estate 15,000-00 + 1,500-00 5. Funeral expenses and transportation of dead body 15,000-00 + 1,500-00 Total 11,32,000-00 3. The Tribunal has held that owner of the vehicle is alone liable to pay the compensation on the ground that there was no valid driving license to the driver of the offending - 4 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 vehicle as on the date of the accident and the burden lies on the owner of the offending vehicle to pay the compensation. The owner of the vehicle has remained absent and no efforts were made by the insured to prove that there was no breach of terms and conditions of the policy and the insurance company is liable to pay the compensation. Hence, the Tribunal has held that RC owner and the driver of the offending vehicle shall pay the compensation. When it comes to the compensation, the Tribunal has taken the income at Rs.12,500/- per month, but deducted 50% and granted the compensation. 4. Learned counsel appearing for the claimants submits that when there are 3 dependants, the Tribunal ought to have taken 1/3rd. It is submitted that in the judgment of the Hon’ble Apex Court in case of Seema Rani and Others Vs. Oriental Insurance Company Limited and Others1, the Court has considered the major son’s as the dependants. 5. Learned counsel appearing for the respondent/Insurance Company submits that in the light of the law laid by the Hon’ble Apex Court in National Insurance 1 2025 INSC 192 - 5 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 Company Limited Vs. Swaran Singh and Others2 case, having no valid driving license amounts to fundamental breach of the contract, as such, the question of pay and recover will not arise. It is submitted that the Tribunal had considered 25% of the future prospectus, when the age of the claimant is 50 years. It is submitted that no enhancement is called for. It is further submitted that in fact the amount has to be reduced and no enhancement is called for. 6. Learned counsel appearing for the respondent/Insurance Company submits that the children who are aged above 30 years cannot be considered as dependants and Tribunal has rightly deducted 50%. It is further submitted that the interest is awarded at 9%, which is on the higher side and the same needs to be reduced. 7. Having heard the learned counsels on either side, perused the material on record. First coming to the aspect of liability consistently from the judgment of the Hon’ble Apex Court in the case of Swaran Singh (referred supra) and in judgments of the Hon’ble Apex Court, the Courts are applying 2 (2004) 3 SCC 297 - 6 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 the principle of pay and recover and this case cannot be an exception. Hence, the principle of pay and recover will apply. 8. In this case, notice to the respondent/owner of the vehicle is dispensed with. On a memo filed by the claimant, as he remained ex-parte before the Tribunal. 9. Then coming to the quantum as rightly argued by the learned counsel for the appellants in the light of the law laid down by the Hon’ble Apex Court in the case of Seema rani (referred supra), the Tribunal ought have deducted 1/3rd. Hence, taking the income at Rs.12,500/-, future prospects at 10% comes to Rs.1250/- i.e., Rs.13,750/- and if 1/3rd is deducted i.e., Rs.4,583/-, the contribution to the family will be Rs.9,167/-. Hence, towards of loss of dependency, this Court is granting an amount of Rs.14,30,052/- (Rs.9,167x12x13). Towards loss of consortium, this Court is granting an amount of (Rs.44,000x3) is Rs.1,32,000/-. Towards funeral expenses, this Court is granting an amount of Rs.36,000/-. 10. In the light of the law laid down by the Hon'ble Supreme Court in the case of V.Mekala vs. M. Malathi and - 7 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 Another3, the claimant is entitled for an amount of Rs.10,000/- towards legal expenses. 11. The claimant is therefore, entitled to the compensation under the following heads: Sl. No. Heads of Compensation Amount granted by the Tribunal Amount granted by this Court 1. Loss of Dependency (after deducting 1/2 of the income towards personal living expenses) Rs. 9,75,000/- 14,30,052/- 2. Loss of Consortium Rs. 40,000/- + 4,000/- 1,32,000/- 3. Loss of love and affection Rs. 80,000/- 00/- 4. Loss of Estate Rs. 15,000/- + 1,500/- 00/- 5. Funeral expenses Rs. 15,000/- 36,000/- 6. Transportation of dead body 1, 500/- 00/- 7. Legal expenses Rs. 00/- 10,000/- Total Rs. 11,32,000/- 16,08,052 12. Altogether, the claimants are entitled for an amount of Rs.16,08,052/-. 3 (2014) 11 SCC 178 - 8 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 13. Accordingly the appeal filed by the claimant is partly allowed by enhancing the compensation from an amount of Rs.11,32,000/- to Rs.16,08,052/-. i) The enhanced amount shall carry interest at *6% per annum from the date of petition till the date of realization. ii) The apportionment of the amount shall be as per the order passed by the Tribunal. iii) Respondent/Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of copy of the judgment. On such deposit, the claimants are entitled to withdraw as per the award. The insurance company shall recover the same from owner of the vehicle. iv) Registry is directed to return the Trial Court Records to the Tribunal, along with certified copy of the order passed by this Court forthwith without any delay. v) On 12.11.2025, the delay of 954 days is condoned by this Court, on the condition that the claimants will not be entitled for the interest, in case of enhancement. Hence, Insurance Company is not liable to pay the interest for the delayed period. vi) No costs. * Corrected vide court order dated: 30/01/2026. - 9 - HC-KAR NC: 2025:KHC:46432 MFA No. 8670 of 2024 vii) Pending miscellaneous petitions, if any, shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE SJK,NS List No.: 1 Sl No.: 22 CT: BHK