- 1 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 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. 1364 OF 2023 (MV-D) BETWEEN: UNITED INDIA INSURANCE CO. LTD., T.P. HUB 5TH AND 6TH FLOOR NO.18, KRISHI BHAVAN OPP: HUDSON CIRCLE BENGALURU-560 001 REP. BY ITS MANAGER. &APPELLANT (BY SRI. MOHAN KUMAR T., ADVOCATE) AND: 1. SMT. DEBDATTA DHAR DEY W/O LATE SOMENATH DEY AGED ABOUT 32 YEARS 2. MASTER SAMRIDDHO DEY S/O LATE SOMENATH DEY AGED ABOUT 7 YEARS SINCE MINOR REP. BY HIS NATURAL GUARDIAN-MOTHER 1ST RESPONDENT. 3. SMT. SAGARIKA DEY W/O DILIP KUMAR DE AGED ABOUT 58 YEARS Digitally signed by VINUTHA B S Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 4. SRI DILIP KUMAR DE S/O LATE SHIBSHANKAR DE AGED ABOUT 70 YEARS RESPONDENT Nos.1 TO 4 ARE R/AT PASCHIM KARIDHYA, KARIDHYA, BIRBHUM, WEST BENGAL-731 126. 5. SRI SOLAYAPPAN S/O VEDIYAPPAN, MAJOR R/AT No.72, 14TH CROSS G.M.PALYA, BYRASANDRA MAIN ROAD, NEW THIPPASANDRA, BENGALURU-560 075. &RESPONDENTS (BY SRI. GURUDEV PRASAD K.T., ADVOCATE FOR R1 TO R4; (R2 IS MINOR REP. BY R1); NOTICE TO R5 IS DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 27.07.2022 PASSED IN MVC NO.1268/2020 ON THE FILE OF THE XVII ADDITIONAL JUDGE, COURT OF SMALL CAUSES AND MEMBER, MACT, BENGALURU SCCH-21, AWARDING COMPENSATION OF RS.2,90,27,680/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL REALIZATION. THIS APPEAL, 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 - 3 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE K.V. ARAVIND) Heard Sri.Mohan Kumar T., learned counsel for the appellant and Sri.K.T. Gurudev Prasad, learned counsel for the respondent Nos.1 to 4. 2. This appeal by the insurer is directed against the judgment and award dated 27.07.2022 passed in MVC No.1268/2020 by the XVII Addl. Judge, Court of Small Causes, & Member, MACT, Mayo Hall Unit, Bengaluru (hereinafter referred to as <the Tribunal=). 3. The parties are referred to as they stand before the Tribunal for convenience. 4. The petitioners filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 (for short, <the Act=), seeking compensation on account of the death of Somenath Dey in a road traffic accident that occurred on 21.01.2020, involving a motorcycle bearing Reg.No.KL-21-B-5615 and a tractor and trailer bearing Reg.Nos.KA-51-T-6381 and KA-51-T-6382 (hereinafter referred to as the <offending vehicle=). It is pleaded that the accident occurred due to the rash and - 4 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 negligent driving of the driver of the offending vehicle. It is further pleaded that the deceased succumbed to the grievous injuries sustained in the accident. The petitioners have also stated that they incurred expenses of Rs.2,00,000/- towards medical, funeral and other incidental charges. It is further pleaded that the deceased was working as Deputy Manager, Grade-III, at HAL, Bengaluru, and was earning a salary of Rs.1,70,000/- per month. 4.1 Upon service of notice, both respondents entered appearance through their respective counsel. Respondent No.1, in his statement of objections, denied the averments made in the petition and contended that there was no negligence on the part of the driver of the offending tractor. It was further contended that the insurance policy was in force and that the driver of the offending tractor possessed a valid and effective driving licence as on the date of the accident, and therefore, in the event of any compensation being awarded, the liability is to be fastened on respondent No.2. 4.2 Respondent No.2, in its statement of objections, while denying the averments made in the petition, also disputed the - 5 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 age, occupation and income of the deceased, as well as the expenses claimed to have been incurred. It was further contended that the accident occurred due to the negligence of the deceased. Additionally, it was contended that the driver of the offending tractor did not possess a valid driving licence as on the date of the accident, and therefore, respondent No.2 is not liable to indemnify. 4.3 In support of their case, petitioner No.1 examined herself as PW.1 and another witness was examined as PW.2. The petitioners marked 32 documents at Exs.P1 to P32. The respondents neither adduced any oral evidence nor produced any documentary evidence. 4.4 Upon consideration of the material on record, the Tribunal held that the accident occurred due to the rash and negligent driving of the driver of the offending tractor. The Tribunal, relying upon the pay slip for the month of December 2019 and the pay slips for the period from July 2019 to December 2019, marked at Exs.P20 to P25, assessed the monthly income of the deceased at Rs.1,33,230/-, after deducting income tax of Rs.15,311/- and professional tax of Rs.200/-, the Tribunal - 6 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 considered the age of the deceased as 35 years, applied the multiplier of 8169, added 50% towards future prospects, and deducted one-fourth towards personal and living expenses. 4.5 In addition, the Tribunal awarded compensation under conventional heads. In total, the Tribunal awarded compensation of Rs.2,90,27,680/- with interest at the rate of 6% per annum. 5. Sri Mohan Kumar T., learned counsel for the appellant3 Insurance Company, submits that the payslips produced by the petitioners to establish the income of the deceased vary from month to month, and therefore, the Tribunal has erred in taking Rs.1,48,741/- as the basis for determining the monthly income. It is further submitted that the deduction towards income tax is on the lower side and ought to have been computed in accordance with the provisions of the Finance Act, 2021. 5.1 It is also contended that the Tribunal has committed an error in awarding a sum of Rs.60,000/- towards loss of love and affection. Learned counsel further submits that the incentive component reflected in the payslips ought to have - 7 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 been excluded, as the same does not form part of the regular salary. 6. Sri K. T. Gurudev Prasad, learned counsel appearing for the respondents3claimants, submits that the Tribunal, on the basis of the evidence on record, has rightly concluded that the accident occurred due to the rash and negligent driving of the driver of the offending tractor. It is further submitted that, as the accident occurred on 21.01.2020, the Tribunal was justified in taking the payslip for the month of December 2019 as the basis for assessing the monthly income of the deceased. 6.1 Learned counsel also submits that the deductions towards income tax and professional tax have been made in accordance with the prevailing rates. It is further contended that the compensation awarded under other heads is in accordance with law and does not warrant interference. 7. We have considered the submissions made by learned counsel for the parties and perused the appeal papers. 8. The date and occurrence of the accident, the age of the deceased, the applicable multiplier, and the liability of the - 8 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 insurer are not in dispute. The validity of the policy is also not in dispute. The only grievance urged is with regard to the quantum of compensation. 8.1 The Tribunal, based on Ex.P25, payslip for the month of December 2019, has assessed the monthly income at Rs.1,48,741/-. Ex.P25 also corroborates the consistency in salary reflected in Exs.P20 to P24, which pertain to the period from July 2019 to November 2019. The said payslips are not in dispute. The amounts paid under various heads, though described as allowances, form part of the overall pay package and have been paid consistently. This Court in MFA No.1567/2024 in Priti Singh and ors. vs. Reliance General Insurance Co. Ltd. and ors. decided on 29.05.2025 has held that any payment made consistently assumes the character of a permanent component of income, and such allowances cannot be excluded while computing the income of the deceased. Therefore, the Tribunal is justified in not deducting the said allowances while determining the monthly income of the deceased. - 9 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 8.2 It is next contended that the deduction towards income tax is on the lower side. The income tax is required to be deducted in accordance with the rates prescribed in the Finance Act relevant at the time of accident. As per the said Act, the income tax payable is Rs.22,747/-, and the professional tax is Rs.200/-. Accordingly, the net monthly income, after deduction of taxes, for the purpose of computation of compensation, would be Rs.1,25,794/-. The applicable multiplier, the age of the deceased, the percentage of future prospects, as well as the deduction of one-fourth towards personal and living expenses, are not in dispute. The same are accordingly maintained. Therefore, the total compensation under the head of loss of dependency would be: 1,48,741 3 (22,747 + 200) = Rs.1,25,794/- 1,25,794 + (50% of 1,25,794) = Rs.1,88,691/- 1,88,691 3 (1/4th of 1,79,616) = Rs.1,41,519/- 1,41,519 X 12 X 16 = Rs.2,71,71,648/- 8.3 The Tribunal has awarded a sum of Rs.60,000/- towards loss of love and affection. However, there is no provision for awarding compensation under the said head, particularly in - 10 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 view of the amounts awarded under other conventional heads. Accordingly, the compensation of Rs.60,000/- awarded towards loss of love and affection is liable to be deleted. Thus, the total compensation is re-computed as under: The claimants are entitled to a compensation of Rs.2,73,61,648/- as against Rs.2,90,27,680/- awarded by the Tribunal. 9. For the aforesaid reasons, the following: O R D E R (i) The appeal is allowed-in-part. Sl No. Heads Of Income Compensation by Tribunal in Rs. Enhanced Compensation in Rs. 1. Towards love and affection 60,000/- - 2. Towards funeral expenses and transportation charge 15,000/- 15,000/- 3. Towards loss of dependency 2,87,77,680/- 2,71,71,648/- 4. Towards loss of estate 15,000/- 15,000/- 5. Towards loss of consortium 1,60,000/- 1,60,000/- Total Compensation 2,90,27,680/- 2,73,61,648/- Reduced Compensation 16,66,032/- - 11 - HC-KAR NC: 2026:KHC:19414-DB MFA No. 1364 of 2023 (ii) The order in MVC No.1268/2020 dated 27.07.2022 passed by XVII Addl. Judge, Court of Small Causes & Member, MACT, Mayo Hall Unit, Bengaluru is modified by reducing the compensation to Rs.2,73,61,648/- as against Rs.2,90,27,680/- awarded by the Tribunal. (iii) The liability, rate of interest, deposit and apportionment is maintained. (iv) The amount-in-deposit shall be transferred to Tribunal. (v) Draw modified decree accordingly. (vi) No order as to costs. Sd/- (S.G.PANDIT) JUDGE Sd/- (K. V. ARAVIND) JUDGE VBS List No.: 1 Sl No.: 19