The High Court
Case Details
- 1 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 10013 OF 2018 (MV-D) BETWEEN: 1. SMT. NOORJAHAN, W/O LATE K AMEER HAMZA @ AMEER, AGED ABOUT 41 YEARS, 2. AHAMAD SHAKIR, S/O LATE K AMEER HAMZA @ AMEER, AGED ABOUT 18 YEARS, 3. MOHAMMED SHAMSHEER, S/O LATE K AMEER HAMZA @ AMEER AGED ABOUT 16 YEARS, 4. MOHAMMED SHASHIR, S/O LATE K AMEER HAMZA @ AMEER, AGED ABOUT 14 YEARS, 5. AYISHA SHAFA, D/O LATE K AMEER HAMZA @ AMEER AGED ABOUT 9 YEARS, 6. SMT AISAMMA, W/O BP AHAMMAD, AGED ABOUT 71 YEARS, APPELLANT NO.3 TO 5 ARE MINORS REPRESENTED BY THEIR NATURAL GUARDIAN MOTHER WHO IS APPELLANT NO.1. ALL ARE RESIDING AT NO.4-124, SITE NO.109, KRISHNPUR, KATIPALLA MANGALURU, DK DISTRICT - PIN-575007.
Legal Reasoning
Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA
Legal Reasoning
(BY SRI. RAVISHANKAR SHASTRY G.,ADVOCATE) …APPELLANTS - 2 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR AND: 1. MR. HASANABHA, S/O SAYYED BEARY, AGED 56 YEARS, R/AT D NO.2-36/7, RAYIKATTE HOUSE, KULOOR POST, PUDUKODI VILLAGE, MANGALURU, DK DISTRICT - PIN-575018. 2. THE NEW IDNIA ASSURANCE CO. LTD, CITY BRANCH II, RAM BHAVAN COMPLEX, III FLOOR, MANGALURU, DK DISTRICT. REPRESENTED BY ITS MANAGER PIN-575001. (BY SRI. K NAGARAJAIAH.,ADVOCATE FOR R2; R1 IS SERVED AND UNREPRESENTED) …RESPONDENTS THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 10/07/2018, PASSED IN MVC NO.1256/2016, ON THE FILE OF THE III ADDITIONAL DISTRICT AND SESSIONS JUDGE MEMBER, MACT-IV, D.K., MANGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION AND ETC,. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE C.M. POONACHA - 3 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR ORAL JUDGMENT The present appeal is filed by the claimants under Section 173(1) of the Motor Vehicle Act, 19881 challenging the judgment and award dated 10.07.2018 passed in MVC.No.1256/2016 by the III Additional District and Sessions Judge and Motor Accidents Claims Tribunal-IV, D.K., Mangaluru2, seeking for enhancement of compensation. 2. The Tribunal vide its judgment and award dated 10.07.2018 has partly allowed the claim petition and awarded a compensation of `17,03,500/- together with interest at 6% per annum. Being aggrieved, seeking for enhancement of compensation the present appeal is filed. 3. The findings of the Tribunal on negligence and liability are not under challenge and have attained finality. Hence, the only aspect to be adjudicated upon in the present appeal is with regard to the adequacy of compensation awarded. 1 Hereinafter referred as to ‘Act’ 2 Hereinafter referred as to ‘Tribunal’ - 4 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR 4. Heard submissions of learned counsel Sri Ravishankar Shastry G appearing for the appellants - claimants and learned counsel Sri K Nagarajaiah appearing for respondent No.2 – insurer. 5. The deceased was aged 51 years on the date of the accident i.e., 16.07.2016. The Tribunal has applied the appropriate multiplier ‘11’ which is just and proper. 6. It was averred that the deceased was buying raw fish, transporting and distributing the same in and around Mangaluru and Moodabidre cities. It was averred that the deceased was earning profit of `5,000/- per day. Exs.P10 and 11 have been produced to demonstrate that the raw fish was being purchased by the deceased. The bank account statements (Exs.P12 and 13) are produced to show the financial transactions of the deceased. It is forthcoming from Ex.P13 that the deceased was paying an Equated Monthly Installment3 of `13,300/- per month to Sundaram Finance Limited. The extract of the registration certificate of a Bolero 3 Hereinafter referred as to “EMI” - 5 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR maxi truck (Ex.P.14) was produced to demonstrate that the deceased was owning the said vehicle. 7. The Tribunal noticing the testimony of PW.1 as well as the exhibits referred to above assessed the income of the deceased at `500/- per day equivalent to `15,000/- per month. It is forthcoming that the deceased was paying EMI of `13,300/- per month. Although, the learned counsel for respondent No.2 – insurer is justified in contending that the income tax returns of the deceased was not produced and PW.1 in her cross-examination has deposed that the deceased was submitting his income tax returns, which was not produced, having regard to the material available on record it is just and proper that the income of the deceased is re-assessed as `20,000/- per month. 8. Having regard to the age of the deceased 10% is required to be added towards future prospects in terms of the judgment of Hon’ble Supreme Court in the case of NATIONAL INSURANCE COMPANY LTD V/S PRANAY SETHI AND - 6 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR ORS4. The claimants are six in number being wife, four children and mother of the deceased. Hence, 1/4th is required to be deducted towards personal expenses. The loss of dependency is re-assessed as (20,000/- + 10% - ¼ X 12 X 11) = `21,78,000/- as against `16,33,500/- awarded by the Tribunal. 9. Loss of consortium is required to be assessed in terms of the judgment of the Hon’ble Supreme Court in the case of MAGMA GENERAL INSURANCE COMPANY V/S NANU RAM ALIAS CHUBRU RAM AND ORS5, at `40,000/- for each of the claimants together with increment at 20%. Hence, loss of consortium is re-assessed at (48,000 X 6) = `2,88,000/- as against `40,000/- awarded by the Tribunal. 10. The compensation towards funeral expenses and loss of estate is to be awarded at `15,000/- each together with increment at 20%. Hence, compensation of `18,000/- each is 4 “(2017)16 SCC 680” 5 “(2018)18 SCC 130” - 7 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR required to be awarded for the same as against `15,000/- awarded by the Tribunal. 11. In view of the aforementioned, the compensation re-assessed is as follows: Sl.No Compensation Head Amount Awarded by the Tribunal (`) Amount awarded by this Court (`) 1 2 3 4 Loss of dependency 1633500.00 2178000.00 Loss of estate 15000.00 18000.00 Loss of consortium 40000.00 288000.00 Funeral expenses 15000.00 18000.00 Total 1703500.00 2502000.00 12. Accordingly, the claimants are entitled to enhanced compensation of (`25,02,000/- - `17,03,500/-) = `7,98,500/-. 13. Taking judicial notice of the rate of interest awarded towards fixed deposits, interest on the enhanced compensation is awarded as 7% per annum. 14. In view of the aforementioned, the following:
Decision
ORDER i) The appeal is allowed in part; - 8 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR ii) The judgment and award dated 10.07.2018 passed in MVC.No.1256/2016 by the III Additional District and Sessions Judge and Motor Accidents Claims Tribunal-IV, D.K., Mangaluru, is hereby modified to the extent stated herein. In all other respects, the judgment and award of the Tribunal remains unaltered; iii) The appellants/claimants are entitled to an enhanced compensation of `7,98,500/- together with interest at 7% per annum from the date of the petition till its realization in addition to the compensation awarded by the Tribunal; iv) Respondent No.2 – insurer shall deposit the said compensation together with accrued interest within a period of six weeks; v) Upon such deposit, the entire enhanced compensation together with interest accrued thereupon is to be disbursed to the claimants in terms of the judgment and award of the Tribunal; - 9 - NC: 2025:KHC:23069 MFA No. 10013 of 2018 HC-KAR vi) The Registry to draw the modified award accordingly; vii) Records of the Tribunal be transmitted to the Tribunal forthwith. No costs. SD/- (C.M. POONACHA) JUDGE PNV List No.: 1 Sl No.: 76