- 1 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 2787 OF 2017 (MV-I) BETWEEN: THE NEW INDIA ASSURANCE COMPANY LIMITED LOCAL OFFICE, 4TH FLOOR, FORTUNE BUILDING, OPP:ATHENA HOSPITAL, FALNIR, MANGALORE-575001. REPRESENTED BY THE MANAGER, THE NEW INDIA ASSURANCE COMPANY LIMITED, TP CLAIMS HUB, 2ND FLOOR, MAHALAKSHMI CHAMBERS, NO.9/2, M.G.ROAD, BANGALORE-560001. …APPELLANT (BY SRI. ASHOK N PATIL, ADVOCATE) AND: 1. SHRI JERALA CORREA SON OF LATE SHRI BAPTIST CORREA, AGED ABOUT 46 YEARS, 2. SMT LYNET LOBO WIFE OF SHRI JERALA CORREA, AGED ABOUT 40 YEARS, BOTH ARE RESIDING AT AMAR JYOTHI HOUSE, MALADI VILLAGE, MADANTHYARU POST, BELTHANGADY TALUK, MANGALORE-574233. PRESENTLY RESIDING IN D'SOUZA COMPOUND, Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 LOWER BENDOORWELL, MANGALORE-575002. 3. SHRI KUNJUMON SON OF SHRI P.S.MARKOSE, AGED ABOUT 53 YEARS, RESIDING AT PUTHUVEEDU HOUSE, MUNDAJE POST AND VILLAGE, BELTHANGADY TALUK, MANGALORE-574228. …RESPONDENTS (BY SRI. GURUPRASAD B R.,ADVOCATE FOR R1 & R2 V/O DTD 7.7.2025 NOTICE TO R3 IS DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.10.2016 PASSED IN MVC NO.724/2015 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE, MACT, MANGALURU, D.K., AWARDING COMPENSATION OF Rs.17,08,583/- WITH INTEREST @ 6% 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 C.M. POONACHA ORAL JUDGMENT The present appeal is filed by the insurer calling in question the judgment and award dated 24.10.2016 passed by the III Additional Senior Civil Judge, MACT, Mangaluru, D.K,1 in MVC No.724/2015, whereunder the Tribunal has partly allowed the claim petition and awarded a total compensation of `17,08,583/- together with interest at 6% pa. 1 hereinafter referred to as 'Tribunal' - 3 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 2. The findings of the Tribunal on the negligence and liability are not under challenge. The only question that arises for consideration in the present appeal is the adequacy of the quantum of compensation. 3. Heard the learned counsel Sri Ashok N.Patil for the appellant/insurer and Sri Guruprasad B.R, for respondent Nos.1 and 2/claimants. 4. It is contended on behalf of the appellant that the Tribunal has awarded an exorbitant sum of `9,83,583/- towards future prospects. It is submitted that there is a typographical error while noticing medical expenses of `83,583/-. It is further submitted that even while calculating the total compensation, the Tribunal has committed an error. 5. Learned counsel for the claimants submits that having regard to the judgment of the Supreme Court in the case of Kajal v. Jagdish Chand2, Baby Sakshi Greola V. Manzoor Ahmad Simon & Anr.,3 , and Karuna Parmar vs. Prakash Sinha4, the notional income of the deceased minor is in the present case is required to be re-assessed adequately. 2 (2020) 4 SCC 413 3 2024 SCC Online 3692 4 LAWS (SC)-2025-2-171 - 4 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 6. The deceased was aged 13 years as on the date of the accident i.e., as on 2.3.2015. Having regard to the judgment of the Supreme Court in the case of Karuna Parmar4 as well as the judgment of the Coordinate Bench of this Court in the case of Master Niranjan v. Sri Veeresh & Anr.,5, it is just and proper that the notional income of the deceased be reassessed as `6,000/- pm. To the said amount, 40% future prospects is required to be added in terms of the judgment of the Supreme Court in the case of National Insurance Company Ltd v. Pranay Sethi Sethi6, and 50% is required to be deducted towards personal expenses. The appropriate multiplier to be applied is 18. Accordingly, the claimants are entitled to (`6,000/- x40% - 50%x12x18) `9,07,200/- towards loss of dependency. 7. The claimants being the parents are entitled to loss of consortium at `40,000/- each together with 20% escalation in terms of the judgment of Magma General Insurance Co., Ltd., v. Nanu Ram7. Accordingly, the claimants are entitled to (`48,000/-x2) `96,000/- towards the same. 5 MFA No.9411/2017, decided on 25.07.2025 6 AIR 2017 SC 5157 7 (2018) 18 SCC 130 - 5 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 8. The claimants are also entitled to compensation towards loss of estate and funeral expenses at `15,000/- each together with 20% escalation. Hence, a sum of `18,000/- each is awarded towards the same. 9. It is forthcoming that the claimants have produced medical bills of `83,583/- as has been noticed by the Tribunal. Hence, it is just and proper to award a sum of `85,000/- towards medical expenses. 10. Accordingly, the total compensation under various heads is re-assessed as follows: Sl.No. Heads Amount awarded by this Court (Rs.) 1. Loss of dependency 907200.00 2. Loss of consortium 96000.00 3 Funeral expenses 18000.00 4. Loss of estate 18000.00 5. Medical expenses 85000.00 Total 1124200.00 Rounded off to 1125000.00 - 6 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 11. Hence, the claimants are entitled to a total compensation of `11,25,000/- as against `17,03,583/- awarded by the Tribunal. 12. The rate of interest awarded by the Tribunal at 6% p.a., is just and proper. 13. In view of the aforementioned, the following: ORDER i) The above appeal is allowed in part; ii) The judgment and award dated 24.10.2016 passed by the III Additional Senior Civil Judge, MACT, Mangaluru, D.K, in MVC No.724/2015, is modified holding that the appellant - insurer is liable to pay the compensation of `11,25,000/- together with interest at 6% pa., from the date of petition till date of realization; iii) The appellant – insurer shall deposit the balance compensation together with accrued interest within a period of four weeks from the date of receipt of a copy of this judgment; iv) The compensation awarded shall be apportioned in favour of claimant No.1(father) and claimant No.2(mother) in the ratio of 30:70 respectively; - 7 - HC-KAR NC: 2026:KHC:1391 MFA No. 2787 of 2017 v) Out of the compensation awarded to each of the claimants, 50% of the compensation together with accrued interest shall be kept in a Fixed Deposit in any nationalized bank of the choice of the claimants for a period of three years, upon expiry of which, the compensation amount together with accrued interest shall be released directly to the claimants without any further orders from this Court or the Tribunal in that regard; vi) The remaining 50% together with accrued interest in the ratio as ordered above be disbursed to the claimants; vii) The amount in deposit be transmitted to the Tribunal for disbursement by the Tribunal as ordered above; viii) The Registry to draw the modified decree accordingly; ix) Records be transmitted to the Tribunal forthwith; x) No costs. SD/- (C.M. POONACHA) JUDGE ND List No.: 1 Sl No.: 10