- Court
- High Court of Karnataka
- Decided
- 30 January 2026
- Bench
- C.M. Poonacha
- Case no.
- MFA 8293/2017
Follow Karnataka High CourtFollow C.M. Poonacha
Judgment
NC:(2026:KHC:5401( MFA(No.(8293(of(2017( ( , ,,HC-KAR( ( ( (
IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU(
THDATED(THIS(THE(30 (DAY(OF(JANUARY,(2026(
BEFORE( THE(HON'BLE(MR.(JUSTICE(C.M.(POONACHA( MISCELLANEOUS(FIRST(APPEAL(NO.(8293(OF(2017((MV-D)( ( BETWEEN:(( ( SUDHAMANI,L,P, AGED,ABOUT,57,YEARS, W/O.,LATE.,T,N,SURENDRAMURTHY,, C/O.,SURESH,BABU,, PALASANDRA,PROMOTERS,, KASTURABA,ROAD,, GANDHI,NAGAR,, TUMAKURU,572,102, , …APPELLANT, (BY,SRI.,GURUDEVA,PRASAD,K,T,,ADVOCATE), , AND:( Digitally ( signedtiby
1., M/S,SHARMA,TRANSPORT,NIRMALA DEVI REP,BY,SUNIL,KUMAR,SHARMA,, Location: NO.,27/B,,BAZAR,STREET,, HIGH0COURT ANEKAL,TOWN,, OF ANEKAL,TALUK,,KARNATAKA BENGALURU,562106, ,
2., HDFC,ERGO,GENERAL,INSURANCE,, COMPANY,LIMITED, NO.,328,,, SANGEETHA,BHAVAN,, TSP,ROAD,,, KALASIPALYAM,, BENGALURU,560002.,
REP BY ITS MANAGER
…RESPONDENTS (BY SRI. B. PRADEEP, ADVOCATE FOR R2 NOTICE TO R1 IS DISPENSED WITH V/O DTD 14.6.2024)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.12.2016 PASSED IN MVC NO. 1130/2015 ON THE FILE OF THE II ADDITIONAL DISTRICT JUDGE AND MACT ,TUMAKURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.
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 claimant calling in question the judgment and award dated 24.12.2016 passed by the II Additional District Judge & MACT, Tumakuru,1 in MVC No.1130/2015, whereunder the Tribunal has partly allowed the claim petition and awarded a total compensation of `5,16,000/- together with interest at 6% p.a.
¶2The findings of the Tribunal on negligence and liability are not under challenge. The only question that arises
1 hereinafter referred to as 'Tribunal'
for consideration in the present appeal is the adequacy of the quantum of compensation awarded by the Tribunal.
¶3It is forthcoming that the deceased was aged 19 years as on date of accident i.e., on 17.10.2014 and the Tribunal has rightly applied the multiplier of 18. As on the date of accident, the deceased was a student pursuing his 3rd semester Engineering at PESIT College of Engineering. The Tribunal has assessed the income of the deceased at `4,500/- p.m. However, having regard to the judgments of the Supreme Court in the case of Ashvinbhai Jayantilal Modi Vs. Ramkaran Ramachandra Sharma and Another Jayantilal2 and Kandasami & Others Vs. Lindabriyal & Another3, as also keeping in mind the factual matrix of the said case as well as the date of accident of the present case, the income of the deceased is re-assessed as `25,000/- p.m.
¶4Although it is the vehement contention of the learned counsel for the respondent that in the claim petition, it is averred that the deceased was earning `12,000/- per month, having regard to the fact that this Court is required to assess
2 (2015) 2SCC 180 3 Civil Appeal No.3125/2025 arising out of SLP(C)33897/2018
the just compensation, the contention put forth on behalf of the insurer is not liable to be accepted.
¶5Since the deceased was a bachelor, 50% is to be deducted towards personal expenses. 40% is to be added towards future prospects having regard to the judgment of the Supreme Court in the case of National Insurance Company Limited V. Pranay Sethi and others4.
¶6Hence, the loss of dependency is re-assessed as (`25,000-50%+40%X12X18)=`37,80,000/- as against `4,86,000/- awarded by the Tribunal.
¶7The claimant is the mother of the deceased and is entitled to loss of consortium at `40,000/- together with 20% escalation in terms of the judgment of Magma General Insurance Co., Ltd., v. Nanu Ram5. Accordingly, the claimant is entitled to compensation of `48,000/- towards the same.
¶8The claimant is also entitled to compensation towards loss of estate and funeral expenses at `15,000/- each
4 (2017) 16 SCC 680 5 (2018) 18 SCC 130
together with 20% escalation. Hence, a sum of `18,000/- each is awarded towards the same.
¶9The compensation awarded by Tribunal towards loss of love and affection is set aside.
¶10Accordingly, the total compensation under various heads is re-assessed as follows: Sl.No. Heads Amount awarded by the Tribunal (`) Amount awarded by this Court (`)
¶1Love and affection 10,000.00
¶2Loss of estate -- 18,000.00 Funeral and transportation expenses 20,000.00 18,000.00
¶4Loss of dependency 4,86,000.00 37,80,000.00
¶5Loss of consortium 48,000.00
Total 5,16,000.00 38,64,000.00
¶11Hence, the claimant is entitled to a total compensation of `38,64,000.00 as against `5,16,000.00 awarded by the Tribunal. (The claimant is entitled to enhanced compensation of `38,64,000-`5,16,000=`33,48,000)
¶12The rate of interest awarded by the Tribunal at 6% p.a., is just and proper.
¶13However, taking judicial notice of the interest awarded towards Fixed Deposits, it is just and proper to award interest on the enhanced compensation at 7% p.a.
¶14In view of the aforementioned, the following: ORDER
i) The above appeal is allowed in part;
ii) The judgment and award dated 24.12.2016 passed by the II Additional District Judge & MACT, Tumakuru, in MVC No.1130/2015, is modified holding that the claimant is entitled to enhanced compensation of `33,48,000.00 together with interest at 7% p.a., from the date of petition till date of realization except for the delay period of 222 days, in terms of the order dated 01.07.2025 passed by this Court in the present appeal, in addition to the compensation awarded by the Tribunal. In all other respects, the judgment and award of the Tribunal remains unaltered;
iii) Respondent No.2 – insurer shall deposit the balance compensation together with accrued interest within a period of six weeks;
iv) Out of the enhanced amount, 50% shall be kept in a Fixed Deposit in any Nationalized Bank of the choice of the claimant for a period of 3 years, upon expiry of which the said amount shall be released directly to the claimant without any further orders either from the Tribunal or this Court in that regard. However, the claimant shall be at liberty to withdraw the periodical interest accrued on the said deposit. The balance 50% shall be released to the claimant forthwith, on proper identification.
v) The Registry to draw the modified decree accordingly;
vi) The records, if any, received, be transmitted to the Tribunal forthwith;
vii) No costs.
Sd/- (C.M. POONACHA) JUDGE
Vmb List No.: 1 Sl No.: 13
Source: High Court of Karnataka, through the eCourts High Court services, via the Indian High Court Judgments open dataset by Dattam Labs (CC BY 4.0). Text was extracted from the official PDF and may contain conversion errors. Check the official PDF before relying on it.