- 1 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO. 472 OF 2024 (MV-D) BETWEEN: 1. SRI. PERUMAL T., S/O. THANGAVEL, AGED ABOUT 33 YEARS, 2. P. YAZHINIYAN, S/O. PERUMAL T., AGED ABOUT 3 YEARS, BOTH ARE R/AT: NO.50/1, AGARA HOSPALYA VILLAGE, THATAGUNI POST, KENGERI HOBLI, KANAKAPURA MAIN ROAD, BENGALURU-560 062. ALSO AT: NO.2/108 E, VENKATACHALAPATHI NAGAR, CHUDANUR, DHARMAPURI, TAMIL NADU-635 116. SINCE APPELLANT NO.2 IS MINOR REPRESENTED BY FATHER AND NATURAL GUARDIAN SRI. PERUMAL …APPELLANTS (BY SRI. A. S. GIRISH, ADVOCATE) AND: 1. SRI. THAGAVELU M., S/O. MUTHUSWAMY, MAJOR IN AGE, Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 R/AT NO.328, DOMMASANDRA V AND P, CHANDAPURA HOBLI, ANEKAL TALUK, BENGALURU-560 081. (RC OWNER OF THE LORRY BEARING REGISTRATION NO.KA-51-A-2390) 2. HDFC ERGO GENERAL INSURANCE CO. LTD., NO.25/1, 2ND FLOOR, BUILDING NO.2, SHANKARANARAYANA BUILDING, M. G. ROAD, BENGALURU-01. NEW ADDRESS: HDFC ERGO GENERAL INSURANCE COMPANY LTD., GROUND FLOOR, ACR TOWER, NO.32, RESIDENCY ROAD, OPPOSITE TO SBI BANK, ASHOK NAGAR, BANGALORE-560 025. BY ITS MANAGER, (RC OWNER OF LORRY BEARING REGISTRATION NO.KA-51-A-2390) …RESPONDENTS (BY SRI. D. VIJAYAKUMAR, ADVOCATE FOR R2; NOTICE TO R-1 IS HELD SUFFICIENT, V/O. DATED 27.02.2025) THIS MFA FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 07.11.2023 PASSED IN MVC NO.2068/2022 ON THE FILE OF THE XIV ADDITIONAL SMALL CAUSE JUDGE ACMM, MEMBER, MACT, BENGALURU, (SCCH-10), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA - 3 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 ORAL JUDGMENT Heard Sri.A.S.Girish, learned counsel for the appellants who appears physically before this Court as well as Sri.D.Vijaya Kumar, learned counsel for respondent No.2 who appears through video conference. 2. On the ground that the sum that is awarded as compensation by the Motor Accident Claims Tribunal, Bengaluru through orders in MVC No.2068/2022 dated 07.11.2023 is on lower side and that the Tribunal went wrong in exonerating respondent No.2 from paying compensation, the present appeal is filed by the claimants therein. 3. The matrix of the case as projected by the appellants before the Tribunal is that on 17.03.2022 at about 7.00 a.m. appellant No.1 was proceeding along with his wife i.e., deceased Sandhiya (herein after be referred to as 'deceased' for brevity) and son on his motor cycle towards Electronic City and when they reached near - 4 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 Vagramuneshwara Temple Bridge, a lorry bearing registration No.KA-51-A-2390 driven by its driver in a rash and negligent manner came from behind and dashed against the motor cycle, due to which all of them fell down and the lorry ran over the stomach and chest of the deceased, due to which she died at the spot. 4. Learned counsel for the appellant submits that the Tribunal exonerated the liability of the insurance company only on the ground that the driver of the offending vehicle i.e., lorry was not possessing valid and effective driving license as on the date of accident. Learned counsel states that the appellants have nothing to do with the violation of terms and conditions of the policy by the insured. Learned counsel also states that catena of decision of the Hon'ble Apex Court envisages that the insurance company is liable to pay compensation to the claimants and thereafter to recover the same from the owner of the offending vehicle and therefore, the Tribunal - 5 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 ought to have fastened liability upon the insurance company. 5. Sri.D.Vijaya Kumar, learned counsel for respondent No.2 contends that there was violation of terms and conditions of the policy. However, learned counsel also submits that in case, the insurance company is ordered to deposit the amount, liberty has to be granted to the insurance company to recover the same from the insured of the offending vehicle. Having considered justification in the submission that is made by learned counsel for the appellants that the case requires an order of pay and recovery, this Court is of the view that the appeal is required to be allowed directing the insurance company to pay the awarded amount to the appellants and thereafter to recover the same from the insured. 6. Coming to the quantum of amount that is awarded as compensation, the version of the appellants is that the deceased by preparing eatables and condiments - 6 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 at home and selling the same was earning more than Rs.20,000/- p.m. The Tribunal took the notional income of the deceased as Rs.12,500/- p.m. Learned counsel for the appellants submits that the accident occurred in the year 2022 and for the relevant period the Karnataka State Legal Services Authority is taking the notional income of Rs.15,500/- p.m. for settlement of claims and atleast the said figure should have been considered by the Tribunal. Learned counsel for respondent No.2 though stated that the appellants failed to file sufficient proof with regard to the occupation and earnings of the deceased by the date of accident, however, did not raise any objection for taking the notional income as Rs.15,500/- p.m. Also the request made in that regard is justifiable. Therefore, the notional income of the deceased is taken as Rs.15,500/- p.m. 7. Without disturbing other parameters i.e., adding 40% of the earnings towards future prospects, deducting 1/3rd of the earnings towards personal and living expenses which the deceased would have incurred for - 7 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 herself had she been alive and applying appropriate multiplier '18', the compensation which the appellants are entitled to under the head loss of dependency is as under: Notional monthly income Rs.15,500/- Add:40% towards future prospects Rs.21,700/- Annual income Rs.2,60,400/- On deducting 1/3rd of the earnings Rs.1,73,600/- Loss of dependency on applying appropriate multiplier '18' Rs.31,24,800/- 8. The Tribunal through the impugned order awarded a sum of Rs.25,20,072/- only. Thus the appellants are entitled to an additional sum of Rs.6,04,728/- (Rs.31,24,800-Rs.25,20,072) under the head loss of dependency. 9. Thus the appeal is disposed of with the following: - 8 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 ORDER (i) The appeal is allowed in part. (ii) The compensation that is granted by the Motor Accident Claims Tribunal, Bengaluru through orders in MVC No.2068/2022 dated 07.11.2023 is enhanced by Rs.6,04,728/-. (iii) The enhanced sum shall carry interest at the rate of 6% p.a. from the date of petition till the date of deposit. (iv) Respondent No.2 is directed to deposit the entire compensation amount along with accrued interest within a period of 8(eight) weeks from the date of receipt of certified copy of this order. (v) On such deposit, respondent No.2 is granted permission to recover the same from respondent No.1. (vi) The apportionment made by the Tribunal applies to enhanced sum as well. (vii) On deposit, appellant No.1 is permitted to withdraw his entire share. - 9 - HC-KAR NC: 2025:KHC:28064 MFA No. 472 of 2024 (viii) The amount that falls to the share of appellant No.2 shall be kept in fixed deposit of any nationalized bank till he attains the age of majority. On his attaining the age of majority, he is permitted to withdraw entire amount along with accrued interest. Sd/- (DR.CHILLAKUR SUMALATHA) JUDGE NS CT:TSM List No.: 1 Sl No.: 28