- 1 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 11TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 101992 OF 2014 (MV-) BETWEEN: 1. THE MANAGER, ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD., HAVING ITS OFFICE AT SUNDARAM TOWERS, 45 & 46, WHITES ROAD, CHENNAI, TAMIL NADU STATE, NOW REP BY ITS AUTHORIZED SIGNATORY, ROYAL SUNDARAM GENERAL INSURANCE, CO. LTD., SUBRAMANIAN BUILDING, II FLOOR, NO.1, CLUB HOUSE ROAD, ANNASALAI, CHENNAI-600002. …APPELLANT (BY SRI. S.K. KAYAKAMATH, ADV) AND: 1. SMT. SUMITRA W/O SHANKAR RAO PADUKONE, AGE: 49 YEARS, OCC: HOUSEHOLD WORK, R/O: KABBUR, TALUK: CHIKKODI, DIST: BELGAUM. 2. USHA D/O SHANKAR RAO PADUKONE AGE: 28 YEARS, OCC: UNEMPLOYED, R/O: KABBUR, TQ: CHIKKODI, DIST: BELGAUM. 3. ASHA D/O SHANKAR RAO PADUKONE, AGE: 26 YEARS, OCC: UNEMPLOYED, R/O: KABBUR, TQ: CHIKKODI, DIST: BELGAUM. 4. ANUSHA D/O SHANKAR RAO PADUKONE AGE: 22 YEARS, OCC: HOUSEHOLD WORK, R/O: KABBUR, TQ: CHIKKODI, DIST: BELGAUM. 5. MRS. C. SHANTA W/O S.A. CHANDRASHEKARAN, AGE: MAJOR, OCC: BUSINESS, R/O: NO.19B, PODARANKADU, MANIYANUR (PO), SALEM-636010, MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 TAMIL NADU STATE. 6. SRI. SHIKANDAR MEERSAB MULTANI AGE: MAJOR, OCC: DRIVER/OWNER OF THE VEHICLE CRUISER NO.KA-23/M-6964, R/O: KABBUR VILLAGE, TQ: CHIKKODI. …RESPONDENTS (BY SRI. V.G BHAT, ADV FOR R1 TO R4, NOTICE TO R6 IS DISPENSED WITH) THIS MFA IS FILED U/S.173(1) OF MV ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 02.06.2014, PASSED IN MVC NO.2263/2010 ON THE FILE OF THE PRESIDING OFFICER, FAST TRACK COURT-III, BELAGAVI, AWARDING THE COMPENSATION OF RS.15,50,000/- ALONG WITH THE INTEREST AT THE RATE OF 9% P.A. FROM THE DATED OF PETITION TILL REALISATION. THIS APPEAL, COMING ON FOR HEARING, THIS DAY, THE JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI) 1. This appeal is filed by the Insurance Company, challenging the Judgment and award dated 02.06.2014 passed in MVC No.2263/2010 by the learned Presiding Officer FTC-III Court, Belgaum (for short ‘the Tribunal’). 2. For convenience, the parties are referred to based on their rankings before the Tribunal. - 3 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 3. Brief facts leading rise to the filing of this appeal are as follows: The deceased Shankar Rao Padukone and others had been to Hosur village on 04.11.2009 in a cruiser vehicle bearing registration No. KA-23/M-6964. On 06.11.2009 at about 6.15 am, when the said cruiser vehicle was proceeding on the Poona-Bangalore Road within the limits of Bhutramatti village, the driver of the truck bearing registratio No. TN-30/M-6999 came from the opposite direction, in a rash and negligent manner, collided with the cruiser. As a result, the Shankar-Rao sustained grievous injuries and succumbed to the injuries. It is contended that before the said accident, the deceased was carrying on business and he was having his own business establishment under the name and stile as M/S Manjunath Traders and earning more than Rs.30,000/- per month. It is contended that the deceased Shankar Rao was the sole bread earning member of the family. Due to the untimely death of the deceased Shanakr Rao, the petitioners are suffering from - 4 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 starvation. Hence, the petitioners filed a claim petition seeking compensation. 4. Notice was issued to the owner of the Truck. Despite the service of notice the owner of the Truck remained unrepresented and was placed exparte. 5. The Insurance Company filed a statement of objections denying the averments made in the claim petition and contended that the driver of the offending vehicle was not possessing a valid and effective driving license as of the date of the accident and there is a breach of policy conditions. Hence, prays to dismiss the claim petition against the Insurance Company. 6. The owner-cum-driver of the cruiser filed a statement of objections admitting the accident on 06.11.2009 and the accident occurred due the rash and negligent driving of the truck bearing registration No.TN-30/M-6999. Hence, prays to dismiss the claim petition against the owner of the cruiser. - 5 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 7. The Tribunal, based on the pleadings of the parties, framed relevant issues. 8. The petitioners, to substantiate their case, petitioner No.1 was examined as PW-1 and marked 24 document as Ex.P1 to P24. None of the respondents except the Insurance Company, have led any oral evidence and Insurance Company got marked 1 document as Ex.R1 with consent. 9. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part and awarded compensation of Rs.15,50,000/- with interest at 9% and held the owner of the offending vehicle and the insurance company joint and severally liable to pay the compensation to the petitioners and directed the Insurance Company to deposit the compensation amount. 10. The Insurance Company, being dissatisfied with the quantum of compensation awarded by the Tribunal, filed this appeal. - 6 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 11. Heard the learned counsel for the Insurance Company and the learned counsel for the petitioners. 12. Learned counsel for the insurance company submits that the petitioners have not produced any income proof of the deceased. The Tribunal assessed the monthly income at Rs.15,000/- which is without any basis. He submits that in the absence of the income proof, the Tribunal ought to have taken the notional income as per the schedule notified by the Karnataka State Legal Services Authority. He submits that the compensation awarded by the Tribunal is exorbitant. Hence, on these grounds he prays to reduce the compensation awarded by the Tribunal. 13. Per contra, learned counsel for the petitioners submits that, the petitioners have produced the license to show that the deceased Shankar Rao was running a business and getting an income of Rs.30,000/- per month. He submits that the Tribunal taking into consideration the business of the deceased Shankar Rao, has rightly assessed - 7 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 the notional income at Rs.15,000/-. To demonstrate that the deceased Shankar Rao was doing a business, the petitioners have produced the statement of Bank account, which discloses that the deceased Shankar Rao was having monthly income of Rs.30,000/-. He submits that the compensation awarded by the Tribunal is just and proper and does not call for any interference. Hence, on these grounds he prays to dismiss the appeal. 14. Perused the records and considered the submissions of learned counsel for the parties. The point that arises for consideration is about the quantum of compensation. 15. It is not disputed regarding the occurrence of accident and the death of the deceased Shankar Rao in a road traffic accident. The petitioners have produced the chargesheet, marked as Ex.P5, which discloses that the accident occurred due to the rash and negligent driving of the driver of the offending - 8 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 vehicle. The Tribunal was justified in recording the finding on issue No.2 in the affirmative. Hence, I concur with the findings recorded by the Tribunal on issue No.2. 16. The petitioners, to prove that the deceased was a businessman and he was taken a license from the concerned authorities. The petitioners also produced the Bank statement which disclose that the deceased was doing the business under the name and stile as M/S Manjunath Traders and also produced the registration certificate, which discloses that he was owning a lorry, but the petitioners has not produced income tax returns, however, the Tribunal taken the income at Rs.15,000/-. The petitioners also produced Transport Registration Certificate, marked as Ex.P21, which discloses that apart from doing the business he was also having a transport business. The monthly income assessed by the Tribunal is on a higher side. This Court reassess the monthly income at - 9 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 Rs.12,000/-. The deceased was aged about 55 years as of the date of the accident. In view of the proposition laid down by the Hon’ble Apex Court in the case of National Insurance Company Limited v. Pranay Sethi1, 10% of future prospects is to be added to the monthly income i.e Rs.12,000/- + 1200 (10% of Rs.12,000/-) = 13,200/-. This Court assess the monthly income of the deceased at Rs.13,200/-. The multiplier applied to the age group of the deceased is ‘11’. There are four petitioners and hence, 1/4th is to be deducted out of the monthly income i.e. Rs.13,200 – 3,300(1/4th of Rs.13,200/-) =9,900. The multiplier to the age group of the deceased is ‘11’ as per National Insurance Co. Ltd., vs. Pranay Sethi2, Rs.9,900 x 12 x 11 = 13,06,800/-. The petitioners are entitled for compensation under the heads of loss of dependency of Rs.13,06,800/-. There are 4 petitioners. Each 1 (2017) 16 SCC 680 2 (2017) 16 SCC 680 - 10 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 petitioners are entitled for consortium i.e. 48,000 x 4 = Rs.1,92,000/-. In addition to it the petitioners are entitled for compensation under the heads of loss of estate and funeral expenses of Rs.36,000/-. Thus, the petitioners are entitled for compensation of Rs.15,34,800/- as against Rs.15,50,000/-. The compensation amount awarded by the Tribunal needs to be reduced from Rs.15,50,000/- to Rs.15,34,800/-. 17. In view of above discussion, I proceed to pass the following: ORDER (i) The Appeal is allowed in part. (ii) The Judgment and award dated 02.06.2014 passed in MVC No.2263/2010 by the learned Presiding Officer FTC-III Court, Belgaum, stands modified. (iii) The petitioners are entitled for compensation of Rs.15,34,800/- as against Rs.15,50,000/-. - 11 - HC-KAR NC: 2025:KHC-D:11792 MFA No. 101992 of 2014 (iv) The Insurance Company is directed to deposit the compensation amount with accrued interest at the rate of 6% per annum from the date of petition till the date of realization within eight weeks from the date of receipt of copy of this Judgment. (v) Rest of the Judgment passed by the Tribunal remained kept intact. The amount in deposit, if any, along with trial Court records, be transmitted to the Tribunal forthwith. Sd/- (ASHOK S. KINAGI) JUDGE RHR/- List No.: 1 Sl No.: 6