Regional Manager, Vs Sri. Shivanna — Motor Accident Claims | Karnataka HC (2025)

Regional Manager, Vs Sri. Shivanna — Motor Accident Claims | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal allowed. Impugned judgment and award dated 10.09.2024 in M.V.C.No.1551/2021 modified, reducing compensation from Rs.32,08,500/- to Rs.28,83,700/- (reduction Rs.3,24,800/-). Insurer to deposit the entire modified compensation with interest (after deducting amounts already deposited) within four weeks. Out of the modified compensation: Rs.15,00,000/- to be deposited in a nationalized Bank in the name of the third claimant (minor son) till majority, grandparents permitted to withdraw quarterly interest for the child's welfare; Rs.75,000/- released to the fifth respondent (third respondent before the Tribunal); remaining Rs.13,08,700/- apportioned equally between claimant Nos.1 and 2, who may withdraw it. Statutory deposit and the Insurer's deposit with accrued interest to be transmitted to the Tribunal for disbursement. Pending I.A. does not survive. Modified award to be drawn accordingly.

Issue for consideration

Whether the Tribunal erred in deducting 1/4th instead of 1/3rd towards the personal and living expenses of the deceased (dependants being the parents and minor son), requiring rectification of the awards towards loss of dependency and loss of future prospects.

Court's answer

Deduction towards the deceased's personal and living expenses rectified to 1/3rd (instead of the Tribunal's 1/4th); taking the notional monthly income of the deceased at Rs.14,500/- and adopting multiplier of '16', loss of dependency recomputed at Rs.18,56,000/- (Rs.14,500 x 2/3 x 12 x 16) as against Rs.20,88,000/- awarded by the Tribunal.

Ratio / Principle

Loss of future prospects fixed at 40% of the loss of dependency, i.e. Rs.7,42,400/- (as against Rs.8,35,200/- awarded by the Tribunal); total loss of dependency and future prospects comes to Rs.25,98,400/- as against Rs.29,23,200/- awarded by the Tribunal, resulting in a reduction of compensation by Rs.3,24,800/-.

Key takeaways

After deducting the reduction of Rs.3,24,800/- from the Tribunal's award of Rs.32,08,500/-, the claimants are entitled to total compensation of Rs.28,83,700/-.ratio¶48
The compensation awarded by the Tribunal under heads other than loss of dependency and loss of future prospects requires no interference.ratio¶50
The appellant-Insurance Company is directed to deposit the entire modified compensation together with interest, after deducting the amount already deposited, within four weeks.ratio

Detailed headnote1 paragraphs

Motor Vehicles Act, 1988, S.173(1) - Insurer's appeal against Tribunal award in fatal MVC - confined to deduction towards deceased's personal and living expenses - Tribunal deducted 1/4th though dependants were the parents and minor son; High Court found it just and reasonable to rectify, substituting 1/3rd - notional monthly income Rs.14,500/- retained; multiplier '16' applied; loss of dependency recomputed at Rs.18,56,000/- (vs Rs.20,88,000/-); loss of future prospects at 40% thereof, Rs.7,42,400/- (vs Rs.8,35,200/-); total Rs.25,98,400/- (vs Rs.29,23,200/-); compensation reduced from Rs.32,08,500/- to Rs.28,83,700/- (reduction Rs.3,24,800/-) - award under other heads left undisturbed - appeal allowed - insurer to deposit modified compensation with interest within four weeks; Rs.15,00,000/- fixed deposit for minor claimant No.3 with quarterly interest withdrawals by grandparents; Rs.75,000/- to respondent No.5 (who remained ex parte before the Tribunal claiming to be the deceased's wife); balance Rs.13,08,700/- apportioned equally between claimant Nos.1 and 2; statutory and insurer deposits transmitted to Tribunal for disbursement.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2^ND DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 7764 OF 2024 (MV-D)

BETWEEN:

REGIONAL MANAGER, M/S. ROYAL SUNDARAM GENERAL INSURANCE COMPANY LTD., NO. 56/1, 2ND FLOOR, 9TH MAIN ROAD 5TH BLOCK, JAYANAGAR, BENGALURU - 560 041. PRESENTLY HAVING ITS BENGALURU OFFICE AT NO. 30, 3RD FLOOR JNR CITY CENTER, RAJA RAM MOHAN ROY ROAD, SAMPANGIRAMA NAGAR BENGALURU - 560 027.

…APPELLANT

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

(BY SRI. RAVI SHANKAR S. SAMPRATHI, ADVOCATE)

AND:

SRI. SHIVANNA, S/O NARASAPPA AGED ABOUT 69 YEARS

SMT. JAYAMMA W/O. SHIVANNA AGED 54 YEARS

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KUM. SRISHANTH H.R S/O LATE RAJASHEKAR AGED 7 YEARS

RESPONDENT NO.3 IS MINOR REPRESENTED BY HIS GRAND FATHER AS GUARDIAN 1S RESPONDENT SRI. SHIVANNA

RESPODENT NO.1 TO 3 ARE RESIDING AT HOSAHUDYA CHELUR CHIKKABALLAPURA DISTRICT CHIKKABALLAPURA - 563 124.

BHARATH CEMENT PRODUCTS

PROPRIETOR: B.T. NAGARAJ REDDY, SL. NO. 63/1, 67/1, HOSUR MAIN ROAD, BENGALURU - 560 099.

SMT. ARUNAMMA

W/O LATE MANAJUNATH AGED ABOUT 26 YEARS

RESIDING AT OBALAPURA VILLAGE YN HOSAKOTE HOBLI, PAWGADA TALUK TUMKUR DISTRICT.

…RESPONDENTS

(BY SRI. RAMESHA D.S., ADVOCATE FOR R-1 & R-2; R-3 - MINOR, REPRESENTED BY R-1; R-4 - SERVED; NOTICE TO R-5 DISPENSED WITH, VIDE ORDER DT.17.06.2025)

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THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,1988, AGAINST THE JUDGMENT AND AWARD DATED 10.09.2024 PASSED IN MVC NO.1551/2021 ON THE FILE OF THE XIX ADDITIONAL JUDGE AND MACT, COURT OF SMALL CAUSES, BENGALURU, (SCCH-17), AWARDING COMPENSATION OF RS.32,08,500/- WITH INTEREST AT 6% P.A. FROM THE DATE OF PETITION TILL REALIZATION.

THIS MFA, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA

ORAL JUDGMENT

Heard the arguments of the learned counsels from both side.

The present appeal is filed by the Insurer against the impugned judgment and award dated 10.09.2024 passed by the XIX Additional Judge and Motor Accident Claims Tribunal, Court of small Causes, Bengaluru (SCCH-17), in M.V.C.No.1551/2021.

The plaint averments in brief are that, one Rajashekar met with an accident on 01.11.2020 at about 11:45 a.m., while he was proceeding on his motor cycle,

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on Bommasandra Mahesh Service Station from Hosur NH-7, Bengaluru, on account of the rash and negligent driving of driver of the Lorry. Due to the impact, he sustained grievous injuries and succumbed to the same, inspite of the best treatment.

On account of the death of the deceased, the parents and the minor son of the deceased filed claim petition before the Tribunal, seeking compensation of a sum of 50,00,000/-. The Tribunal, after taking into consideration the oral and documentary evidence available on file, allowed the claim petition awarding compensation of a sum of 32,08,500/- with interest at the rate of 6% per annum from the date of petition till realization from respondents.

Being aggrieved by the said judgment and award passed by the Tribunal, insofar as deducting 1/4^th towards the personal and living expenses of the deceased instead of 1/3rd, the appellant Insurance Company has filed the present appeal.

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Learned counsel for the Insurance Company mainly contended that the claimants are parents and minor son of the deceased and the third respondent claiming to be the wife of the deceased had remained exparte before the Tribunal. But, the Tribunal grossly erred in deducting 1/4^th instead of 1/3^rd towards the personal and living expenses of the deceased. The same is to be rectified and the compensation towards loss of dependency and loss of future prospects is to be modified.

After hearing the learned counsel for the appellant-Insurer, this Court finds it just and reasonable to rectify the order towards loss of dependency and loss of future prospects.

Accordingly, taking the notional monthly income of the deceased at 14,500/-, deducting 1/3<sup>rd</sup> (instead of 1/4<sup>th</sup> ) towards the personal and living expenses of the deceased, adopting multiplier of '16', the loss of dependency comes to 18,56,000/- (i.e. 14,500/-x 2/3 x 12x16) as against 20,88,000/-. The loss of future

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prospects would be 40% of the loss of dependency, which works out to 7,42,400/- as against 8,35,200/- awarded by Tribunal. Thus, the total loss of dependency comes to 25,98,400/- as against 29,23,200/- awarded by Tribunal towards loss of dependency and loss of future prospects. Thus, there would be reduction of compensation by `3,24,800/-.

If the said sum is deducted from 32,08,500/awarded by Tribunal, the claimants would be entitled to total compensation of a sum of 28,83,700/-.

Insofar as the compensation awarded under the

other heads is concerned, this Court finds no reason to interfere with the same.

Accordingly, the appeal is allowed .

The impugned judgment and award passed by the XIX Additional Judge and Motor Accident Claims Tribunal, Court of Small Causes, Bengaluru (SCCH-17) dated 10.09.2024 in M.V.C.No.1551/2021 is hereby modified,

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reducing the compensation from 32,08,500/to 28,83,700/- (reduction being `3,24,800/-).

The appellant - Insurance Company is directed to deposit the entire modified compensation together with interest, after deducting the amount already deposited by them, within a period of four weeks from today.

From out of the modified compensation of 28,83,700/-, a sum of 15,00,000/- shall be deposited in any nationalized Bank, in the name of the third claimant - minor son of deceased, till he attains the age of majority; and the grand parents of the minor child are permitted to withdraw the quarterly interest accrued on it, for the dayto-day welfare of the child.

A sum of `75,000/- shall be released in favour of the fifth respondent herein (third respondent before the Tribunal);

Remaining sum of `13,08,700/- shall be apportioned equally between the claimant Nos.1 and 2 and they are

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permitted to withdraw the entire amount apportioned in their favour.

The statutory amount in deposit and also the amount deposited by the Insurer, which is ordered to be deposited in any nationalized Bank, together with accrued interest shall be transmitted to the Tribunal for disbursement, as ordered above.

Pending I.A. does not survive for consideration.

Draw the modified award accordingly.

Sd/(P SREE SUDHA) JUDGE

BMV* List No.: 2 Sl No.: 13 CT: BHK