- 1 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MS. JUSTICE TARA VITASTA GANJU MISCELLANEOUS FIRST APPEAL NO. 4295 OF 2020 (ECA) BETWEEN: 1. ZEENATH BI W/O SHAHABUDDIN SAB AGED ABOUT 56 YEARS. 2. SHAHABUDDIN SAB S/O HAYATH SAB AGED ABOUT 59 YEARS, BOTH ARE R/O: NO.71, BILLALAHALLI VILLAGE, BUKKAMBUDI POST, TARIKERE TQ, CHIKKAMAGALURU DISTRICT. …APPELLANTS (BY SRI.SREE HARSHA.A.K., ADVOCATE) AND: 1. ROYAL SUNDARAM GEN. INS CO. LTD., REP BY ITS MANAGER, 1ST FLOOR, PRATHAP ARCADE, NEAR JAIL CIRCLE, SHIVAMOGGA. 2. JAYANNA @ S JAYADEVAMURTHY S/O LATE J.M.SHIVAIAH MAJOR, OWNER OF THE TRACTOR-TRAILOR - 2 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 BEARING REG NO. KA-18/TA-2837-2838, R/O BUKKAMBUDI, SHIVANAI POST, TARIKERE TQ, CHIKAMAGALURU DISTRICT. …RESPONDENTS (BY SRI. RAVI SHANKAR S SAMPRATHI., ADVOCATE FOR R1; VIDE ORDER DATED 27.11.2023, NOTICE TO R2 IS DISPENSED WITH) THIS MFA IS FILED U/S 30(1) OF EMPLOYEES COMPENSATION ACT, 1923 AGAINST THE JUDGMENT AND AWARD DATED 17.07.2019 PASSED IN E.C.A NO.03/2017 ON THE FILE OF THE SENIOR CIVIL JUDGE AND J.M.F.C., CHANNAGIRI, ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MS. JUSTICE TARA VITASTA GANJU ORAL JUDGMENT 1. The present appeal has been filed seeking to challenge Judgment and award dated 17.07.2019 in E.C.A No.03/2017 passed by the Senior Civil Judge and JMFC, Channagiri [hereinafter referred to as the “Impugned Judgment”]. - 3 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 2. By the Impugned Judgment, the appellants have been awarded a compensation of Rs.6,68,130/- with interest at the rate of 6% p.a. The liability has been fixed on respondents 1 and 2 jointly and severally. 3. The brief facts of the case are that the deceased was working as Coolie/loader with respondent No.2. During the course of employment, Driver of the Tractor drove the same in rash and negligent manner and lost control of the vehicle and caused accident. Due to the accident, the deceased Kaleem died on the spot. 4. The learned counsel for the parties do not dispute the fact that the accident took place in the course of employment. 5. The learned counsel for the appellant raises two contentions. He submits that the notional income was wrongly taken by the learned Trial Court, since the accident occurred on 03.10.2016. 6. As per Schedule- IV of the Employees Compensation Act, 1923, monthly income was to be taken as Rs.8,000/- per month. However, the learned Trial Court has taken the same as - 4 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 Rs.6,000/- per month. Reliance in this behalf is placed on paragraph 4 of the Impugned Judgment. "4. The Respondent no.2 insurance company contending that the said driver was not at all having DL., that the said tractor was used for commercial purpose and not for agricultural purpose, that they have no employee & employer relationship between the deceased & respondent No.1 therefore the respondent no.2 insurance company has contended that they are not liable to indemnify the said petitioner, and prays for the dismissal of the petition." 7. In addition, learned counsel points out to the provisions of Section 4A(3)(a) of the Employees Compensation Act, 1923 to contend that the statute provides for statutory interest at the rate of 12%. However, the learned Trial Court has wrongly awarded interest at the rate of 6%. 8. Learned counsel for the respondent fairly submits that so far as interest is concerned, there can be no dispute as to the award interest at the rate of 12%. He further submits that as per the Notification issued, the wages for the year 2016 would be Rs.8,000/- per month. - 5 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 9. In view of the consensus of the parties, the compensation awarded is required to be enhanced in the following manner. 50% of Rs.8,000/- Rs.4,000/- Rs.4,000/- X 222.71 = Rs.8,90,840/- Less: Amount awarded - Rs.6,68,130/- Enhanced compensation Rs.2,22,710/- 10. The interest is also required to be calculated at 12% as per the statute. 11. Hence, the appellants are entitled to total compensation of Rs.8,90,840/- along with interest at the rate of 12% per annum from the date of petition till the date of realization. 12. Accordingly, the Court proceeds to pass the following directions: ORDER (i) The appeal is disposed of. (ii) The Impugned Judgment and Award dated 17.07.2019 in E.C.A.No.03/2017 passed by the Senior Civil Judge & J.M.F.C., Channagiri is modified to the - 6 - HC-KAR NC: 2026:KHC:2628 MFA No. 4295 of 2020 extent that the appellants are entitled to enhanced compensation of Rs.2,22,710/- along with interest at the rate of 12% per annum from the date of petition till the date of realization, in addition to Rs.6,68,130/- that has been awarded by the Trial Court. (iii) The remaining portion of the Impugned Judgment of the learned Trial Court remains undisturbed. (iv) The Insurance Company shall deposit the balance enhanced compensation with interest at the rate of 12% p.a. within a period of eight weeks from today. (v) The Registry is directed to draw the modified Award accordingly. (TARA VITASTA GANJU) JUDGE HR List No.: 1 Sl No.: 16 Digitally signed by TARA VITASTA GANJU Location: HIGH COURT OF KARNTAKA