- 1 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF MARCH, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND M.F.A. NO. 68 OF 2023 (MV-D) BETWEEN: RELIANCE GENERAL INSURANCE CO. LTD., MOTOR CLIAMS HUB NO.28, 5TH FLOOR CENTENARY BUILDING EAST WING NEAR CITY BANK M G ROAD, BENGALURU-560001 REP. BY ITS MANAGER LEGAL. …APPELLANT (BY SRI. D VIJAYAKUMAR, ADV.) AND: 1. SMT. KAVITHA W/O LATE LOKESH M AGED ABOUT 39 YEARS 2. MASTER. RAJSHEKAR S/O LATE LOKESH M AGED ABOUT 15 YEARS 3. MASTER PRAMOD G L S/O LATE LOKESH M AGED ABOUT 13 YEARS SINCE THE RESPONDENT NO.2 & 3 ARE MINORS Digitally signed by NANJUNDACHARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 REP. BY THEIR MOTHER AND NATURAL GUARDIAN SMT. KAVITHA ALL ARE R/AT: GUNDUR VILLAGE BIDARAHALLI POST AND HOBLI BANGALORE EAST TALUK -560049. 4. M/S. H M BRILLIANT NATIONAL SCHOOL NO.29/1, BAIYAPPANAHALLI MAIN ROAD BEHIND NARAYANA MUTT BIDARAHALLI HOBLI BANGALORE - 560049 (OWNER OF THE SCHOOL BUS NO.KA-53-C-4369). …RESPONDENTS (BY SRI. K T GURUDEV PRASAD, ADV. FOR R1 TO R3 (R2 & R3 ARE MINORS REP. BY R1) R4 SERVED & UNREPRESENTED) THIS MFA IS FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 02.11.2022 PASSED IN MVC NO.6051/2021 ON THE FILE OF THE XV ADDITIONAL JUDGE, MACT, MAYO HALL UNIT, BENGALURU, (SCCH-19), AWARDING COMPENSATION OF RS.27,42,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION. THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE K. V. ARAVIND - 3 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT) This appeal is by the Insurance Company under Section 173(1) of the Motor Vehicles Act, 1988 (for short, ‘the Act’) against the judgment and award dated 02.11.2022 in MVC No. 6051/2021 on the file of MACT and XV Additional Judge, Mayo Hall Unit, Bengaluru aggrieved by the saddling of 100% liability upon the Insurance Company as well the compensation awarded by the Tribunal. 2. The brief facts of the case are that the claimants who are the wife and minor sons of the deceased, filed a petition under Section 166 of the Act seeking compensation for the accidental death of one Sri.Lokesh.M in a motor vehicle accident involving motor cycle bearing registration No.KA-04-JW-0269 and School bus bearing registration No.KA-53-C-4369 on Bidarahalli Baiyappanahalli Village Road, Bidarahalli Hobli, Bangalore East Taluk at about 08.15 p.m., on 06.12.2021. It was - 4 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 submitted before the Tribunal that at the time of the accident, the deceased was hale and healthy, aged 45 years, was working as a driver at Narayana School and earning Rs.22,000/- p.m. 3. Before the Tribunal, upon issuance of notice, the Insurance Company appeared and filed its objections to the claim petition, denying the petition averments in toto, whereas, Respondent No. 4 herein was placed ex- parte. On behalf of the claimants, the claimant No.1 examined herself as PW1 and got marked Exs.P1 to P14. On behalf of the Insurance Company, one Sri.Dodda Lingayya was examined as RW1 and one Sri.Ibrahim Muzawar was examined as RW2, apart from marking Exs.R1 to R5. The tribunal upon examination of the material on record, saddled the entire liability upon the insurance company of the school bus with liberty to recover the same from the owner of the School Bus and awarded the total compensation of Rs.27,42,000/- along with interest @ 6% pa under the following heads: - 5 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 Sl No. Compensation under the Head Amount 1. Loss of dependency Rs. 25,91,736/- 2. Loss of estate Rs. 15,000/- 3. Funeral expenses Rs. 15,000/- 4. Loss of Consortium Rs. 1,20,000/- TOTAL Rs. 27,41,736/- 4. While coming to the afore-stated conclusion, the Tribunal assessed the monthly income of the deceased at Rs. 17,800/- p.m., added 30% towards future prospects, deducted 1/3rd towards personal and living expenses of the deceased and adopted the multiplier of ‘14’. 5. Heard Sri.D.Vijayakumar, learned counsel for the insurance company and Sri.K.T.Gurudeva Prasad, learned counsel for the claimants. Perused the entire appeal papers including the Trial Court records. 6. Learned counsel for the Insurance Company Sri.D.Vijayakumar has contended that the accident has occurred solely due to rash and negligent driving of the motor cycle by the deceased. It is contended on behalf of - 6 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 the Insurance Company that the deceased did not have a valid driving licence and drove the motorcycle without wearing a helmet. It is contended on behalf of the insurance company that the claimants have colluded with the Police Authorities and falsely implicated the driver of the bus by creating false and fabricated documents. With regard to compensation, it is submitted that the pay slips produced by the claimants is more than a year old and hence, the claimants have failed to prove the monthly income of the deceased. It is also submitted that the Tribunal erred in awarding future prospects to the extent of 30%. Thus, it is prayed that the appeal filed by the Insurance Company be allowed to the above extent. 7. Per contra, learned counsel Sri.K.T.Gurudeva Prasad for the claimants would submit that the Tribunal is justified in attributing the negligence upon the driver of the school bus as the accident occurred due to the rash and negligent driving of the school bus. It is further submitted that the Tribunal has rightly assessed the - 7 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 compensation to be awarded to the claimants. Hence, it is submitted that the appeal filed by the Insurance Company be dismissed. 8. Having heard the learned counsel appearing for the parties and on perusal of the entire appeal papers including the Trial Court Records, the following points would arise for our consideration: i. Whether the Tribunal is justified in attributing the entire negligence for the accident upon the driver of the School Bus with a direction to the Insurer to pay and recover? ii. Whether the quantum of compensation granted by the Tribunal is just and proper? 9. Answer to the point No.1 would be in the Affirmative and Point No.2 would be in the Negative for the following reasons: The accident that occurred on 06.12.2021 at about 08.15 p.m., at Bidarahalli Baiyappanahalli Village Road, Bidarahalli Hobli, Bangalore East Taluk involving motor cycle bearing registration No.KA-04-JW-0269 (driven by - 8 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 the deceased) and School bus bearing registration No.KA- 53-C-4369 (Insured by Appellant herein) is not in dispute. However, learned counsel for the Insurance Company would submit that the accident has occurred solely due to rash and negligent driving of the deceased. Whereas, the learned counsel for the claimants has submitted that the accident has occurred due to the rash and negligent driving of the school bus. 10. Subsequent to the accident, an FIR came to be registered by the claimant No.1, alleging that the driver of the school bus drove the bus in a rash and negligent manner and dashed head-on against the motor cycle of the deceased which led to the deceased falling on the ground and sustaining severe head injuries which led to his death. The said FIR has culminated in a charge sheet being filed against the driver of the school bus. A perusal of the Ex. P5 Spot Sketch would indicate that the deceased was driving the motor cycle on the left side of the road and the driver of the school bus coming from the opposite - 9 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 side suddenly steered right into the lane of the deceased’s motor cycle which led to a head-on collusion, which caused severe injuries to the deceased and the consequent death. Moreover, the Ex.P6 IMV Report would also indicate that there is damage to the right side indicator and bumper of the school bus. Nothing to the contrary has been elicited in the Oral evidence that has been let in by the parties. Thus, such being the facts averred and the evidence brought on record, we are of the considered view that the Tribunal was justified in attributing the entire negligence upon the driver of the school bus. With regard to the liability, we are in complete agreement with the findings of the Tribunal that the Insurance Company shall pay the compensation and later recover the same from the owner of the school bus. 11. With regard to the compensation to be paid, the Tribunal has assessed the monthly income of the deceased at Rs.17,800/- by relying upon the Ex.P10 wage slips produced by the claimants. A perusal of the Ex.P10 wage - 10 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 slips would indicate that they pertain to the period November-2019 to February-2020. The accident has occurred on 06.12.2021, which is close to 2 years after the period for which the wage slips have been produced. It is trite that, in assessing the income of the deceased, the income that the deceased was earning at the time of accident/death ought to be taken for the purpose of awarding compensation. Thus, the wage slips produced by the claimants which are for the periods that are about 2 years before the accident took place, cannot be taken into consideration for the purpose of assessing the monthly income of the deceased. The claimants have failed to produce any documentary evidence to prove the income of the deceased as on the date of accident and hence, as per the chart of the Karnataka State Legal Services Authority, the notional income of the deceased is to be assessed at Rs. 15,000/- for the accident of the year 2021. 12. As per the Aadhar Card produced by the claimants as Ex.P11, the deceased was born in the year - 11 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 ‘1977’ and hence, as on the date of accident the deceased was aged around ‘44’ years of age. Thus, the Tribunal was justified in adopting the multiplier of ‘14’. Since the deceased has 3 dependents, the Tribunal was justified in deducting 1/3rd towards personal and living expenses of the deceased. As the income of the deceased has been assessed notionally and as the deceased was aged ‘44’ at the time of death, future prospects is to be added at 25% since the deceased was not having established permanent income. On re-computation of the monthly income and future prospects to be added, the claimants shall be entitled to compensation under the head ‘loss of dependency’ as under: (15,000-1/3)+25%X12X14= Rs. 21,00,000/-. 13. With regard to the compensation awarded by the Tribunal under the conventional heads, we do not find any infirmities with the same. However, in terms of the decision of the Hon’ble Apex Court in NATIONAL INSURANCE COMPANY LIMITED VS. PRANAY SETHI - 12 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 & OTHERS reported in AIR 2017 SC 5157, the compensation under the conventional heads is to be enhanced at 10% on lapse of every three years. Thus, the claimants shall be entitled for the following modified compensation: Sl. No. PARTICULARS AMOUNT 1. Loss of Dependency Rs. 21,00,000/- 2. Loss of Consortium Rs. 1,32,000/- 3. Loss of Estate Rs. 16,500/- 4. Funeral Expenses and Transportation Charges Rs. 16,500/- TOTAL Rs.22,65,000/- 14. Thus, the claimants would be entitled to the compensation of Rs.22,65,000/- as against Rs.27,42,000/- awarded by the Tribunal, at the rate of 6% per annum from the date of petition till the date of realization. 15. In the result, we proceed to pass the following: ORDER a) MFA No.68/2023 filed by the Insurance Company is partly allowed. - 13 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 b) The impugned judgment and award of the Tribunal is modified holding that the claimants would be entitled to the compensation of Rs.22,65,000/- as against Rs.27,42,000/- awarded by the Tribunal. c) The entire compensation amount shall carry interest at the rate of 6% per annum from the date of petition till date of realization. d) The Insurance Company shall deposit the entire compensation amount with accrued interest before the Tribunal within four weeks from the date of receipt of certified copy of this judgment. e) The Insurance Company is at liberty to recover the compensation amount paid to the claimants from the owner of the Vehicle, i.e. Respondent No. 4 along with interest. f) Apportionment, deposit and disbursement shall be made as per the award of the Tribunal. - 14 - HC-KAR NC: 2026:KHC:17098-DB MFA No. 68 of 2023 g) The amount in deposit, if any, be transmitted to the concerned Tribunal forthwith along with Trial Court Records. h) Draw modified award accordingly. Sd/- (S.G.PANDIT) JUDGE Sd/- (K. V. ARAVIND) JUDGE NC CT:bms List No.: 1 Sl No.: 11