- 1 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF APRIL, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND MISCELLANEOUS FIRST APPEAL No. 2056 OF 2026 (MV-D) C/W MISCELLANEOUS FIRST APPEAL No. 2392 OF 2026 (MV-D) IN MFA No. 2056/2026 BETWEEN: 1. UNITED INDIA INSURANCE CO. LTD., T.P. HUB, 6TH FLOOR, HUDSON CIRCLE, NRUPATHUNGA ROAD, BANGALORE- 560 001, NOW REPRESENTED BY ITS REGIONAL OFFICE, SITUATED AT ABOVE ADDRESS BY ITS DEPUTY MANAGER, LEGAL SMT. KUSUMA K., &APPELLANT (BY SRI VRUSHABHENDRIAH H.C., ADVOCATE) AND: 1. SMT. BABY, W/O NAGARAJU M.R., AGED ABOUT 44 YEARS Digitally signed by VINUTHA B S Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 2. NAGARAJU M.R., S/O RUDRAPPA, AGED ABOUT 50 YEARS, 3. BHAVANA N., D/O NAGARAJU, AGED ABOUT 19 YEARS ALL ARE R/AT No.75/12, 1ST MAIN, 4TH CROSS, VENUGOPALA NAGAR, SHIVAGANGA LAYOUT, DODDABIDARAKALLU, BANGALORE-560 073. 4. MR. MOHD REHAN, S/O IFRAN, R/AT ROOL PUR, HAMIR FATECH PUR KHASSA, BILARI MORADABAD, UTTAR PRADESH - 244 001. &RESPONDENTS (BY SRI H.S. PAVAN, ADVOCATE FOR SRI ASHOK KUMAR SHETTY K., ADVOCATE FOR R1 TO R3; NOTICE TO R4 IS DISPENSED WITH) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 03.11.2025 PASSED IN MVC No.869/2025 ON THE FILE OF THE MOTOR ACCIDENT CLAIMS TRIBUNAL COURT OF SMALL CAUSES, AT BENGALURU, PARTLY ALLOWING COMPENSATION OF RS. 21,18,118/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL DEPOSIT. - 3 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 IN MFA No. 2392/2026 BETWEEN: 1. SMT. BABY, AGED ABOUT 43 YEARS, W/O NAGARAJU M.R., R/AT No.75/12, 1ST MAIN, 4TH CROSS, VENUGOPALA NAGAR, SHIVAGANGA LAYOUT, DODDABIDARAKALLU, BENGALURU 560 073. 2. SRI.NAGARAJU M.R., AGED ABOUT 49 YEARS, S/O RUDRAPPA, R/AT No.75/12, 1ST MAIN, 4TH CROSS, VENUGOPALA NAGAR, SHIVAGANGA LAYOUT, DODDABIDARAKALLU, BENGALURU 560 073. 3. BHAVANA N., AGED ABOUT 18 YEARS, D/O NAGARAJU M.R., R/AT No.75/12, 1ST MAIN, 4TH CROSS, VENUGOPALA NAGAR, SHIVAGANGA LAYOUT, DODDABIDARAKALLU, BENGALURU 560 073. ...APPELLANTS (BY SRI H.S. PAVAN, ADVOCATE FOR SRI ASHOK KUMAR SHETTY K., ADVOCATE) AND: 1. MR. MOHD REHAN, S/O IRFAN, AGED ABOUT MAJOR, (OWNER OF LORRY BEARING REG No.UP-21-CN-0735) - 4 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 R/O ROSOOLPUR, HAMIR FATEH PUR KHASS, BILARI, MORADABAD, UTTAR PRADESH 244001. 2. THE MANAGER, UNITED INDIA INSURANCE CO.LTD., TP HUB, 6TH FLOOR, KRISHI BHAVANA, HUDSON CIRCLE, NRUPATHUNGA ROAD, BENGALURU 560 001. ...RESPONDENTS (BY SRI VRUSHABHENDRIAH H.C., ADVOCATE FOR R2) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 03.11.2025 PASSED IN MVC No.869/2025 ON THE FILE OF THE XXII ADDITIONAL SCJ AND ACJM, MEMBER, MACT, BENGALURU SCCH-24 PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and HON'BLE MR. JUSTICE K. V. ARAVIND - 5 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT) Both claimants and insurer are in appeal aggrieved by judgment and award dated 03.11.2025 in MVC No.869/2025 on the file of Motor Accident Claims Tribunal, Court of Small Causes at Bengaluru (for short, 'the Tribunal'). 2. The claimants being parents and sister of the deceased Hari Prasad B.N., filed claim petition under Section 166 of Motor Vehicles Act, 1988 (for short, 'the Act') claiming compensation for the accidental death of Hari Prasad B.N., in a road traffic accident that occurred on 08.01.2025 involving Motorcycle bearing Reg. No.KA-02-KK-1688 and lorry bearing Reg.No.UP-21-CN-0735 (offending vehicle). It is stated that the deceased was aged 15 years and he was a student at High School. It is also stated that while he was studying, he was doing milk and paper supply work and was earning a sum of Rs.18,000/- per month. Before the Tribunal, on issuance of notice, Insurance company appeared and filed its objection admitting the policy and further stated that liability, if any, would be subject to the terms and conditions of the policy. It was also - 6 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 contended that the driver of the offending vehicle had no valid and effective Driving License as on the date of the accident and also had no valid permit. It was further contended that the alleged accident took place solely due to the negligence on the part of the driver of the offending vehicle. 2.1 The claimant No.2, father of the deceased, examined himself as PW.1 and marked documents at Exs.P1 to P11. On behalf of the respondent, none was examined and no documents have been marked. The Tribunal on appreciation of the material on record, awarded total compensation of Rs.21,18,118/- along with interest at the rate of 6% per annum from the date of petition till the compensation amount is deposited. While awarding the above compensation, the Tribunal assessed the income of the deceased at Rs.98,350/- p.a. and failed to award any compensation on the other heads. Being aggrieved, the claimants are before this Court seeking enhancement of compensation, not being satisfied with the quantum of compensation awarded by the Tribunal. Whereas, the insurer is before this Court, questioning the quantum of compensation awarded by the Tribunal stating that the compensation awarded is exorbitant. - 7 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 3. Heard learned counsel Sri. Vrushabhendraiah H.,C., for the insurer and learned counsel Sri.H.S. Pavan for learned counsel Sri. Ashok Kumar Shetty K., for the claimants and perused the entire appeal papers. 4. Learned counsel for the insurer would submit that the compensation awarded is on the higher side and thus, he prays for reducing the same since the claimants have not placed anything on record to establish the income of the deceased- student. It is submitted that the deceased was aged 15 years and he was studying in High School. Therefore, he submits that the deceased had no income and the Tribunal committed an error in assessing the income of the deceased notionally. Thus, he would submit that the claimants in the case would be entitled for compensation in terms of the Master Mallikarjun v. Divisional Manager, The National Insurance Company Limited and Another reported in AIR 2014 SCC 736. Thus, he would pray for allowing the appeal. 5. Per contra, learned counsel Sri.H.S. Pavan for learned counsel Sri.Ashok Kumar Shetty K., appearing for claimants would support the judgment and award passed by the - 8 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 Tribunal. Further, learned counsel placing reliance on the judgment of the Hon'ble Supreme Court in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari and Another reported in 2025 INSC 1070 would submit that the income of a minor shall be assessed notionally or the minimum wage shall be taken into consideration while determining the compensation in a motor vehicle accident. Thus, he would pray for allowing the claimants appeal and to dismiss the appeal filed by the insurance company. 6. Having heard the learned counsel for the parties and on perusal of the entire appeal papers, the only point which would fall for our consideration is as follows: "Whether claimants are entitled for enhanced compensation?" 7. The answer to the above point would be in the affirmative for the following reasons: The accident that occurred on 08.01.2025 involving Motorcycle bearing Reg. No.KA-02-KK-1688 and lorry bearing Reg.No.UP-21-CN-0735 and the accidental death of the Hari Prasad B.N., son of claimant Nos.1 and 2, is not in dispute in - 9 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 these appeals. Both the insurance company and claimants are in appeal. The insurer is questioning the quantum and the claimants are dissatisfied with the quantum of compensation. 8. It is an admitted fact that the deceased was aged 15 years and was a student studying in High School. He had no income whatsoever. However, the claim of the claimants are that the deceased while studying, was doing milk vending as well as paper supply business and was earning Rs.18,000/- per month. However, no material is placed on record to establish the said income or the said avocation. In the absence of the cogent material to establish the income, the Tribunal at paragraph No.20 of the judgment, taking note of the judgment of the Hon'ble Supreme Court in National Insurance Company Limited v. Pranay Sethi and Others reported in (2017) 16 SCC 680 and also the formula prescribed by this Court in MFA No.11440/2011 c/w MFA No.206/2018 dated 12.09.2024 passed by the learned Single Judge, assessed the income of the deceased at Rs.98,350/- p.a. including inflation and awarded a sum of Rs.21,18,118/-. - 10 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 9. However, learned counsel for the claimants has placed reliance on the decision of the Hon'ble Supreme Court in Hitesh Nagajibhai Patel (supra) to contend that while determining the compensation in respect of a death of minor in a motor vehicle accident, the notional income or minimum wage shall be taken into consideration to determine the compensation. 10. We have gone through the above stated decision. The Hon'ble Supreme Court in Hitesh Nagajibhai Patel (supra) at paragraph Nos.9 to 11 has observed as follows: 9. On the aspect of monthly income of the minor appellant, we are inclined to interfere with the judgment and order of the Courts below. In the present case, it is evident that the Courts below have failed to take into account the monthly income of the appellant while determining the quantum of compensation. It is now a well-entrenched and consistently reiterated principle of law that a minor child who suffers death or permanent disability in a motor vehicle accident, cannot be placed in the same category as a non-earning individual for the purposes of assessing the amount of compensation because the child was not engaged in gainful employment at the time of the accident. In such a case, the computation of compensation under the head of loss of income ought to be made by adopting, at the very least, the minimum wages payable to a skilled workman as notified for the relevant period in the - 11 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 respective State where the cause of action arises. The said observation was rendered by this Court, in Kajal v. Jagdish Chand and Ors. (2020)4 SCC 413, and Baby Sakshi Greola v. Manzoor Ahmad Simon and Anr.(2024 SCC OnLine SC 3692) . 10. Adverting to the facts at hand, the appellant was an 8- year-old child at the time of the accident. In view of the above exposition of law, we must advert to the prevailing minimum wages, which for the skilled ones, as in the year of accident, i.e., 2012, in Gujarat would be Rs.227.85p. per day, therefore, in the interest of justice, we deem it appropriate to determine the income of the appellant as Rs.6,835.5p. per month, rounding off to Rs.6,836/- per month. 11. A perusal of the above decision would make it clear that for minor children, while determining the compensation, minimum wage shall be considered. In our State, the compensations are determined, where income is not established, by taking note of the income chart prepared by the Karnataka State Legal Services Authority. Therefore, we deem it appropriate to take note of the income chart of the Karnataka State Legal Services Authority to determine the compensation in the instant case in respect of a student, aged 15 years. The accident is of the year 2025. The notional income for 2025 would be Rs.17,000/- p.m. The multiplier would be '18', taking - 12 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 note of the fact that the deceased was aged 15 years. In view of the judgment of the Hon9ble Supreme Court in Pranay Sethi (supra), 40% is to be added towards future prospects. Taking note of the fact that he was a bachelor, deduction of 50% is to be made towards personal and living expenses. Thus, claimants would be entitled for loss of dependency to the tune of Rs.25,70,400/-. Rs.17,000 + (40% of 17,000) = Rs.23,800/- Rs.23,800 X 12 = Rs.2,85,600/- Rs.2,85,600 3 (50% of 2,85,600) = Rs.1,42,800/- Rs.1,42,800 X 18 = Rs.25,70,400/- 12. In view of the judgment of the Hon9ble Supreme Court in Pranay Sethi (supra), the claimants are entitled to Rs.15,000/- towards funeral expenses and Rs.15,000/- towards loss of estate. Further, each of the claimants is entitled to Rs.40,000/- towards consortium. Further, the Hon'ble Supreme Court held that the compensation under conventional heads is to be increased by 10% every three years. The total compensation is tabulated as under: - 13 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 Sl. No. Particulars Compensation awarded by this court in Rs. 1. Towards Loss of Dependency 25,70,400/- 2. Towards funeral expenses 18,000/- (15,000+3,000) 3. Towards loss of estate 18,000/- (15,000+3,000) 4. Towards consortium 1,44,000/- (48,000 X 3) TOTAL 27,50,400/- 13. In the light of the above, the following: O R D E R (a) The appeal of the claimants in MFA No.2392/2026 is allowed-in-part. (b) The appeal of the insurer in MFA No.2056/2026 is dismissed. (c) The impugned judgment and award of the Tribunal is modified holding that the claimants would be entitled to total compensation of Rs.27,50,400/- as against Rs.21,18,118/- awarded by the Tribunal. - 14 - HC-KAR NC: 2026:KHC:19411-DB MFA No. 2056 of 2026 C/W MFA No. 2392 of 2026 (d) The entire compensation amount shall carry interest at the rate of 6% per annum from the date of petition till date of realization. (e) 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. (f) Apportionment, deposit & disbursement shall be made as per the award of the Tribunal. (g) The amount in deposit, if any, be transmitted to the concerned Tribunal forthwith. (h) Draw modified award accordingly. Sd/- (S.G.PANDIT) JUDGE Sd/- (K. V. ARAVIND) JUDGE VBS/List No.: 1 Sl No.: 34