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2025 DAILYLAW 85220 (KAR)

THE ORIENTAL INSURANCE CO. LTD., v. CHANDRASHEKHARYA @ SHEKHARAYYA

MFA/103801/2017 · 2025-11-27

Chillakur Sumalatha

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 27TH DAY OF NOVEMBER 2025 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO. 103801 OF 2017 (MV-I) BETWEEN: THE ORIENTAL INSURANCE CO. LTD., THE BRANCH MANAGER, BRANCH OFFICE, II FLOOR, DR. B.R. AMBEDKAR ROAD, BELAGAVI, REPRESENTED BY AUTHORISED SIGNATORY. …APPELLANT (BY SRI. M.Y. KATAGI, ADVOCATE) AND: 1. CHANDRASHEKHARYA @ SHEKHARAYYA S/O. SHIVABASAYYA CHULAKIMATH, AGE: 52 YEARS, OCC: ASTROLOGY & AGRICULTURE, R/O: CHULAKI, TAL: SAUNDATTI, DIST: BELAGAVI-591236. 2. BABU S/O. GIRIYAPPA NIROLI, AGE: 61, OCC: DRIVER, R/O: GIRIYAL, K.E. TAL: BAILHONGAL, DIST: BELAGAVI-590215, (OWNER OF VEHICLE 407, BEARING NO.KA-24/0962.) …RESPONDENTS (BY SMT. SHAILA BELLIKATTI, ADVOCATE FOR R1; SRI. J.S. SHETTY, ADVOCATE FOR R2) GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH DHARWAD - 2 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 THIS MFA IS FILED UNDER SECTION 173 (1) OF MOTOR VEHICLES ACT, 1988 PRAYING TO CALL THE RECORDS FROM THE LOWER COURT AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 03.04.2017 PASSED BY THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, SAUNDATTI IN MVC NO.513/2015, WITH COSTS IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA ORAL JUDGMENT (PER: THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA) 1. Heard Mr. M. Y. Katagi, learned counsel for the appellant as well as Ms.Shaila Bellikatti, learned counsel for respondent No.1. Though Sri. J. S. Shetty is on record representing respondent No.2, learned counsel failed to make his appearance. 2. This appeal is the outcome of the award that is passed by the Additional Motor Accident Claims Tribunal, Saundatti in MVC No.513/2015 dated 03.04.2017. - 3 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 3. This appeal is filed by the insurer of the offending vehicle against whom liability is fastened by the Tribunal with a contention that the compensation that is granted by the Tribunal is exorbitant. 4. Mr. Katagi, learned counsel for the appellant submits that the Tribunal awarded exorbitant sum as compensation under all heads except medical expenses and therefore the present appeal is filed. Learned counsel submits that the accident occurred in the year 2014 and for the relevant period, the High Court Legal Services Committee, Dharwad is taking the notional income as Rs.7,500/- per month. However, the Tribunal took the notional income as Rs.15,000/- per month, which is unjustifiable. Learned counsel states that, as per the version of respondent No.1/claimant, he was an agriculturist and astrologer as on the date of the accident. Learned counsel states that, respondent No.1, who gave evidence as PW1, during the course of cross-examination clearly stated - 4 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 that he is continuing his profession as an astrologer even after the accident. Learned counsel submits that the Tribunal without observing the said fact, took the notional income as Rs.15,000/- per month and awarded Rs.1,94,400/- towards ‘loss of future earnings’. Learned counsel further submits that the compensation granted under the heads ‘pain and suffering’, ‘loss of income during laid-up period’ and ‘loss of amenities’ is also on the higher side. 5. Ms. Shaila Bellikatti, learned counsel for respondent No.1 states that, respondent No.1 produced sufficient proof to show that he was holding agricultural lands and was doing cultivation as on the date of accident. Learned counsel however fairly submits that the compensation granted is on slight higher side and therefore there may be marginal reduction. 6. It is not in dispute that the appellant sustained fracture of distal end of right radius and inferior radio- - 5 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 ulnar disruption. There is no denial of the fact that respondent No.1/claimant by producing Exhibits P10 and P11 - Record of Rights, established that he was holding agricultural land as on the date of accident. However, respondent No.1 failed to produce any proof with regard to his actual earnings either as an agriculturist or as an astrologer as on the date of accident. Though not Rs.7,500/- which is considered to be the notional income for the relevant period by the High Court Legal Services Committee, Dharwad the Tribunal might have considered taking the notional income at Rs.10,000/- to Rs.12,000/- per month as on the date of accident. Also, the compensation granted towards ‘pain and suffering’, ‘loss of income during laid-up period’ and ‘loss of amenities’, as rightly submitted by learned counsel for the appellant, is on higher side. 7. Hence, considering all these aspects, this Court is of the view that the compensation granted by the - 6 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 Tribunal if reduced by Rs.1,00,000/-, the remaining amount which respondent No.1 receives will be highly justifiable. Therefore, this Court considers desirable to dispose of the appeal accordingly. 8. Learned counsel for the appellant also exhibited his grievance regarding the rate of interest. The Tribunal held that the sum awarded as compensation shall carry interest at the rate of 9% per annum. However, as it is submitted by learned counsel for the appellant that, for the relevant period the banking rate of interest for commercial transactions is 6% per annum which is not denied by learned counsel for respondent No.1, this Court is of the view that the compensation which respondent No.1 shall receive, which is payable by appellant, should carry interest at the rate of 6% per annum only. 9. Thus, the appeal is disposed of with the following order: - 7 - HC-KAR NC: 2025:KHC-D:16570 MFA No. 103801 of 2017 ORDER i. The appeal is allowed in part. ii. The compensation that is granted by the Additional Motor Accident Claims Tribunal, Saundatti through orders in MVC No.513/2015 dated 03.04.2017 is reduced by Rs.1,00,000/-. iii. The compensation payable by the appellant to respondent No.1 shall carry interest at the rate of 6% per annum from the date of petition till the date of deposit. iv. Amount, if any in deposit be transmitted to the concerned Tribunal forthwith. Sd/- (CHILLAKUR SUMALATHA) JUDGE gab CT-MCK List No.: 1 Sl No.: 26