- 1 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA MISCELLANEOUS FIRST APPEAL NO.5619 OF 2021(MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.483 OF 2021(MV-D) IN MFA No. 5619/2021: BETWEEN: 1. SRI. ANAND ACHAR, S/O LATE NARAYANA ACHAR, AGED ABOUT 61 YEARS, 2. KUMARI RAMYA, D/O ANAND ACHAR, AGED ABOUT 23 YEARS, 3. SRI SUNIL, S/O ANAND ACHAR, AGED ABOUT 25 YEARS, 4. SRI SHUBAKARA, S/O ANAND ACHAR, AGED ABOUT 27 YEARS, 5. SRI ANIL, S/O ANAND ACHAR, AGED ABOUT 29 YEARS, 6. SMT JAYASHRI, D/O ANAND ACHAR, Digitally signed by SOWMYA DODDAMARAIAH Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 AGED ABOUT 31 YEARS, (SINCE APPELLANT NO.3 IS MENTALLY DISABLED HE IS REP BY HIS FATHER/GUARDIAN 1ST APPELLANT) ALL ARE RESIDING AT: V. B. PURA, VAKWADY VILLAGE AND POST, KUNDAPURA TALUK, UDUPI DISTRICT-571 201. …APPELLANTS (BY SRI. NAGARAJA HEGDE, ADVOCATE) AND: 1. SRI SHARATH N SUVARNA S/O LATE NAGANNA POOJARY AGED ABOUT 44 YEARS R/O MOODUMARNADU VILLAGE AND POST MANGALURU TALUK-575001. 2. IFFCO TOKIO GENERAL INSURANCE CO LTD BRANCH OFFICE: KUNDAPURA N. H. 66, ST. PHILIP BUILDING VADERAHOBLI, KUNDAPURA-576 201. REP. BY ITS BRANCH MANAGER. …RESPONDENTS (BY SRI. B. PRADEEP, ADVOCATE FOR R2; R1- SERVED- UNREPRESENTED) THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 29.02.2020 PASSED IN MVC NO.200/2017 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MACT, KUNDAPURA, PARTLY ALLOWING THE - 3 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 483/2021 BETWEEN: THE BRANCH MANAGER, IFFCO TOKIO GIC LTD., KUNDAPURA BRANCH, N. H. 66, ST. PHILIP BUILDING, VADERAHOBLI, KUNDAPURA - 576201. NOW REP BY ITS, LEGAL OFFICER, IFFCO TOKIO GIC LTD., CUSTOMER SERVICE CENTER, SRI SHANTHI TOWERS, 5TH FLOOR NGEF LAYOUT, KASTURBANAGAR, BENGALURU - 560 043. ...APPELLANT (BY SRI. PRADEEP B.,ADVOCATE) AND: 1. ANAND ACHAR, S/O LATE NARAYANA ACHAR, AGED 61 YEARS, 2. KUM. RAMYA, D/O ANANDA ACHAR, AGED 23 YEARS, 3. SUNIL, S/O ANANDA ACHAR, AGED 25 YEARS, - 4 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 4. SHUBAKARA S/O ANANDA ACHAR, AGED 27 YEARS, 5. ANIL, S/O ANANDA ACHAR, AGED 29 YEARS, 6. JAYASHRI, D/O ANANDA ACHAR, AGED 31 YEARS, SINCE 3RD RESPONDENT IS MENTALLY DISABLED, WILL BE REP. BY HIS FATHER/GUARDIAN- 1ST RESPONDENT. ALL ARE R/AT V B PURA, VAKWADY VILLAGE AND POST, KUNDAPURA TALUK, UDUPI DISTRICT. 7. SHARATH N, SUVARNA, AGED ABOUT 44 YEARS, S/O. LATE NAGANNA POOJARY R/O. MOODUMARNADU VILLAGE AND POST MANGALORE TALUK. ...RESPONDENTS (BY SRI. NAGARAJA HEGDE, ADVOCATE FOR R1- R6; R7-SERVED-UNREPRESENTED) THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED. 29.02.2020, PASSED IN MVC NO.200/2017, ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MACT, KUNDAPURA, AWARDING COMPENSATION OF RS.15,71,433/- WITH INTEREST AT THE RATE OF 6 PERCENT P.A., FROM THE DATE OF PETITION, TILL THE DATE OF DEPOSIT. - 5 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 THESE APPEALS ARE COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA ORAL JUDGMENT These two appeals are the outcome of the award that is passed by the Additional Motor Accident Claims Tribunal, Kundapura in MVC No.200/2017 dated 29.02.2020. 2. While MFA No.483/2021 is filed by the Insurance Company against whom the liability is fastened, MFA No.5619/2021 is filed by the claimants therein. 3. For the sake of convenience of discussion, the contesting parties to the appeals will hereinafter be referred to as the claimants and Insurance Company. 4. Heard Sri.Nagraja Hegde, who represents the claimants as well as Sri.B.Pradeep, who represents the Insurance Company in both the appeals. - 6 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 5. Sri.Pradeep.B learned counsel who represents the Insurance Company states that the Insurance Company filed the appeal as the compensation that is granted by the Tribunal is exorbitant. Learned counsel states that claimant Nos.4 and 5 are the earning sons of the deceased Varija Acharya (hereinafter be referred to as the 'deceased' for brevity) and likewise, claimant No.6 got married much earlier to the death of the deceased. Therefore, claimant Nos.4 to 6 cannot be termed to be the dependants of the deceased. The Tribunal taking them also to be the dependants, deducted 1/4th of the earnings of the deceased towards the personal and living expenses but as claimant Nos.1 to 3 were the only dependants of the deceased, 1/3rd of the earnings should have been deducted towards personal and living expenses of the deceased, which she would have incurred for herself had she been alive. Learned counsel also states that the Tribunal apart from granting huge amount towards loss of dependency, granted a sum of Rs.50,000/- in favour of - 7 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 claimant No.1 towards loss of love and affection and likewise, Rs.1,25,000/- in favour of claimant Nos.2 to 6 towards loss of love and affection, which is improper. 6. On the other hand, Sri.Nagaraja Hegde learned counsel for the claimants submits that the deceased by doing coolie work was earning Rs.15,000/- per month. But the Tribunal took the notional income of the deceased as Rs.8,000/- per month and thereby awarded meager sum as compensation under the head 'loss of dependency'. Learned counsel contends that the accident occurred in the year 2016 and for the relevant period, for settlement of claims, the Karnataka State Legal Services Authority is taking the notional income as Rs.9,500/- per month and at least said figure should have been considered by the Tribunal. 7. The accident occurred in the year 2016 and the claim was raised in the year 2017. The matter was disposed of in the year 2020. During the trial, claimant - 8 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 No.1 who examined himself as PW1 in his cross- examination stated that the marriage of claimant No.6 was performed about 5 years back. Therefore, it can be safely held that claimant No.6 got married while the deceased was alive. Also, it is brought on record that claimant No.5 is a priest and claimant No.4 is working as assistant to claimant No.5. When the sons have got employment, they cannot be presumed to be depending upon their mother who is a coolie. If the occupation of the mother is otherwise, the situation might have been different. However, when the sons are in a better employment compared to the mother, they cannot be held to be depending upon their mother for their livelihood. Therefore, claimant Nos.4 and 5 who have got their own source of earnings better than that of the deceased and claimant No.6 who is a married daughter cannot be held to be the dependants of the deceased. Therefore, claimant Nos.1 to 3 can only be taken to be the dependants of the deceased. Hence, as per the decision of the Hon'ble Apex - 9 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 Court in the case of Sarla Verma and Others Vs. Delhi Transport Corporation and Another reported in AIR 2009 SC 3104, 1/3rd of the earnings of the deceased are required to be deducted towards the personal and living expenses which the deceased would have incurred for herself had she been alive. 8. Taking the notional income of the deceased as Rs.9,500/- per month as sought for by learned counsel for the claimants, adding 10% towards future prospects as per the decision of the Hon'ble Apex Court in National Insurance Company Limited vs. Pranay Sethi and Others reported in (2017) 16 SCC 680 case as the deceased was aged around 51 years by the date of accident, deducting 1/3rd of the earnings towards personal and living expenses which the deceased would have incurred for herself had she been alive and applying the appropriate multiplier '11', the compensation which the claimant Nos.1 to 3 are entitled to under the head 'loss of dependency' is as follows: - 10 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 Description Amount In Rs. Notional income 9,500-00 Annual Income (9,500X12) 1,14,000-00 On adding 10% towards future prospects 1,25,400-00 On deducting 1/3rd towards personal and living expenses 83,600-00 Loss of dependency, on applying appropriate multiplier '11' 9,19,600-00 9. Therefore, it is clear that the claimants 1 to 3 are entitled to a sum of Rs.9,19,600/- towards loss of dependency. However, the Tribunal granted a sum of Rs.8,71,200/- only under the said head. However, award of compensation towards loss of love and affection in favour of the claimants apart from granting loss of consortium is improper. Thus, the compensation which the claimants are entitled to under each head is as under: - 11 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 Thus, the above discussion makes it clear that the claimants are entitled to a sum of Rs.14,84,833/-. But the Tribunal awarded a sum of Rs.15,71,433/-. Hence, both the appeals are disposed of with the following: ORDER (i) MFA No.483/2021 is allowed in part. (ii) The compensation that is granted by the Additional Motor Accident Claims Tribunal, Kundapura through orders in MVC No.200/2017 dated 29.02.2020 is reduced from Rs.15,71,433/- to Rs.14,84,833/-. Sl No. Compensation Amount in Rs. 1 Loss of dependency 9,19,600-00 2 Loss of consortium payable to claimant No.1 40,000-00 3 Loss of consortium payable to claimant Nos.2 to 6 2,00,000-00 4 Loss of estate 15,000-00 5 Funeral expenses 15,000-00 6 Medical expenses 2,95,233-00 Total 14,84,833-00 - 12 - HC-KAR NC: 2026:KHC:1629 MFA No. 5619 of 2021 C/W MFA No. 483 of 2021 (iii) The appeal in MFA No.5619/2021 stands dismissed. (iv) Amount if any in deposit be transmitted to the concerned Tribunal immediately. (v) Out of the compensation granted, claimant No.1 and claimant No.3 who is mentally challenged are entitled to 35% each, claimant No.2 to 15% and claimant Nos.4 to 6 to 5% each. Sd/- (DR.CHILLAKUR SUMALATHA) JUDGE DS CT:TSM List No.: 1 Sl No.: 40