- 1 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.21504 OF 2013 (MV) BETWEEN: THE MANAGER, ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LTD., SUNDARAM TOWERS, 45 AND 46, WHITE ROAD, CHENNAI-600 014, REGISTERED OFFICE, PATULLOS ROAD, CHENNAI-600 002. … APPELLANT (BY SRI G.N. RAICHUR, ADVOCATE) AND: 1. SMT. LAXMAVVA W/O BASAPPA @ HAVALAPPA LINGADAL, AGE: 26 YEARS, OCC: HOUSEHOLD WORK, R/O: BUDHIHAL, TQ: NARGUND, NOW AT LAXISINGANKERI, DHARWAD. 2. KUMARI SHILPA D/O BASAPPA @ HAVALAPPA LINGADAL, AGE: 08 YEARS, OCC: STUDENT, R/O: BUDHIHAL, TQ: NARGUND, NOW AT LAXISINGANKERI, DHARWAD, SINCE MINOR REPRESENTED BY NATURAL MOTHER RESPONDENT NO.1. 3. SMT. HANUMAVVA W/O SWARAPPA LINGADAL, AGE: 56 YEARS, OCC: HOUSE WIFE, R/O: BUDHIHAL, TQ: NARGUND, NOW AT LAXISINGANKERI, DHARWAD. 4. SMT. NEELAVVA D/O SWARAPPA LINGADAL, MALLIKARJUN RUDRAYYA KALMATH Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Date: 2025.08.14 12:07:11 +0530 - 2 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 AGE: 22 YEARS, OCC: NIL, R/O: BUDHIHAL, TQ: NARGUND, NOW AT LAXISINGANKERI, DHARWAD. 5. M.R. PALANIYAPPAN, AGE: MAJOR, OCC: BUSINESS, R/O: SHIVBASAVNAGAR, BELAGAVI, (OWNER OF RANICHENNAMMA BUS BEARING REG. NO.KA-22/B-4733). … RESPONDENTS (BY SMT. SHAHAJAN BEGUM M. NADAF, ADVOCATE FOR R1-R4; R1 IS MINOR REPRESENTED BY R1; R5 – SERVICE OF NOTICE DISPENSED WITH.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 15.02.2013 PASSED IN MVC NO.112/2012 ON THE FILE OF THE III ADDITIONAL CIVIL JUDGE (SR.DN.) AND MACT DHARWAD AND ETC.,. THIS APPEAL COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) This Miscellaneous First Appeal is filed by the insurance company, challenging the judgment and award dated 15.02.2013, passed by the III Addl. Civil Judge (Sr.Dn.) and MACT, Dharwad, in MVC No.112/2012, seeking for reduction of the compensation awarded by the tribunal. 2. Heard the arguments and perused the material placed before the Court. - 3 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 3. The occurrence of accident, death of the deceased Basappa @ Havalappa S/o.Swarappa Lingadal, in a road traffic accident and coverage of insurance are not in dispute in this case. 4. In this case, the Tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency. 7,29,000 2. Loss of consortium to P-1. 1,50,000 3. 50% of loss of future prospectus. 3,64,500 4. Loss of love and affection to P-2. 1,00,000 5. Loss of love and affection P-3 and P-4 (Rs.25,000-00 each). 50,000 6. Transportation and cremation expenses. 20,000 Total: 14,13,500 5. In this case, the claimants are wife, minor daughter, mother and sister of deceased. It is argued that claimant No.4 is major sister of the deceased. Hence she cannot be considered as dependant on the deceased. Therefore, only 03 claimants are dependants on the deceased. Therefore, 1/3rd of the income ought to have been - 4 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 be deducted, but not 1/4th towards personal and living expenses of the deceased. 6. But considering claimant No.4, she is sister of the deceased but she is unmarried. Therefore, she is also considered as dependant on the deceased though she was aged 21 years as on the date of accident. Therefore, claimant No.4 is also considered as dependent on the deceased. Therefore, 1/4th of the income is to be deducted towards personal and living expenses of the deceased. 7. The accident is caused on 07.07.2011. Income proof is not produced. Therefore, notional income would be Rs.6,000/- per month for the accident year 2011, as recognized by the Karnataka State Legal Services Authority. The deceased was aged 28 years as on the date of accident. Therefore, appropriate applicable multiplier is 17. The tribunal committed error in adding 50% of the income towards loss of future prospects in life. In view of the decision of the Hon’ble Apex Court in case of National Insurance Company Limited vs. Pranay Sethi and - 5 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 others, reported in (2017) 16 Supreme Court Cases 680, considering the age of the deceased, 40% of the income is to be added towards loss of future prospects in life. Therefore, loss of dependency would be Rs.12,85,200/- (Rs.6,000 + 40% minus 1/4th x 12 x 17). 8. In view of the decision of the Hon’ble Supreme Court in the case of Magma General Insurance Co. Limited v. Nanu Ram & Others, reported in 2018 ACJ 2782 and in the case of Pranay Sethi (supra), the claimants are entitled to Rs.40,000/- each under the head ‘loss of consortium’, along with 10% escalation. There are four dependents who are wife, minor daughter, mother and sister of the deceased. Accordingly, Rs.1,76,000/- (Rs.40,000 x 4 + 10%) is to be awarded under the head ‘loss of consortium including loss of love and affection’. 9. Further, a compensation of Rs.15,000/- each is to be awarded under the head ‘loss of estate’ and ‘funeral and transportation’ respectively, along with 10% escalation. - 6 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded. 10. Thus, the claimants would be entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency 12,85,200 2. Towards loss of consortium (40,000 x 4 +10%) 1,76,000 3. Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%) 33,000 Total: 14,94,200 11. Therefore, the claimants would be entitled for total compensation of Rs.14,94,200/- as against Rs.14,13,500/- which is little bit more against the compensation awarded by the tribunal. The claimants have not preferred any appeal seeking enhancement of compensation. Therefore, whatever compensation awarded by the tribunal is to be held correct, just and reasonable. In the absence of claim of claimants for enhancement of compensation, whatever amount awarded by the tribunal is - 7 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 held as correct and reasonable. Hence, with regard to quantum of compensation awarded by the tribunal, no interference is required by this Court. 12. The tribunal has awarded interest at the rate of 8% p.a. on the compensation amount awarded. The same is scaled down to 6% p.a. To this extent only the appeal is liable to be allowed in part. Hence, I proceed to pass the following: ORDER i) The appeal is allowed in part. ii) The judgment and award dated 15.02.2013, passed by the III Addl. Civil Judge (Sr.Dn.) and MACT, Dharwad, in MVC No.112/2012, stands modified holding that the claimants are entitled for compensation amount along with interest at the rate of 6% p.a. from the date of filing of the petition till realization. iii) The insurance company shall deposit the amount within a period of eight weeks from - 8 - HC-KAR NC: 2025:KHC-D:9161 MFA No. 21504 of 2013 the date of receipt of a copy of this judgment. iv) Send a copy of this judgment and award to the tribunal. v) The amount in deposit, if any, shall be transmitted to the tribunal. vi) No order as to costs. vii) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE PMP-para 1 to 5. MRK-para 6 to end. CT:BCK LIST NO.: 1 SL NO.: 71