Citation : 2025 Latest Caselaw 8809 Kant
Judgement Date : 25 September, 2025
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MFA No. 100634 of 2020
C/W MFA No. 100833 of 2020
MFA.CROB No. 100055 of 2020
HC-KAR
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 25TH DAY OF SEPTEMBER, 2025
PRESENT
THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV
AND
THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL
MISCELLANEOUS FIRST APPEAL NO. 100634 OF 2020 (MV-D)
C/W
MISCELLANEOUS FIRST APPEAL NO. 100833 OF 2020 (MV-D),
MFA CROSS OBJ NO. 100055 OF 2020 (MV-D)
IN MFA NO. 100634/2020:
BETWEEN:
1. SRI. MAHADEVAYYA MATAPATI S/O SIDDAYYA
AGE: 64 YEARS,
2. SMT. JAYASHREE W/O MAHADEVAYYA MATAPATI
AGE: 54 YEARS,
BOTH ARE R/O: NO.168 B,
KALPARUKSHA, AVANI SRINGERI NAGAR,
1ST CROSS, BEHIND EVERFINE, SUPER MARKET,
BEGURU POST, BENGALURU-560068.
...APPELLANTS
Digitally (BY SRI. V.S. KALASURMATH, ADVOCATE)
signed by
VINAYAKA B V
Location: High
Court of
Karnataka,
Dharwad
AND:
Bench
1. MR. SHUBERA SINGH S/O GOPAL SINGH,
AGE: 54 YEARS, DRIVER,
R/O: KATRALA, CHITRADURGA-577501.
2. MR. BYRAHANUMAIAH S/O LATE BYRE GOWDA
AGE: MAJOR, OWNER OF TATA SUMO BEARING
REG.NO. KA-01 B-7748, R/O: THOPPAGANAHALLI,
RAYSANDRA HOBLI, KANAKAPURA, BENGALURU-562117.
3. REGIONAL MANAGER, UNITED INDIA INS. CO. LTD.,
CBI MAIN ROAD, GANGANAGAR,
R.T. NAGAR POST, BENGALURU-560032.
(INSURER OF VEHICLE BEARING NO.KA-01-B-7748)
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MFA No. 100634 of 2020
C/W MFA No. 100833 of 2020
MFA.CROB No. 100055 of 2020
HC-KAR
4. SMT. CHAITRA R.G.
W/O LATE SWAROOP MAHADEVAYYA,
D/O RACHAYYA GUTTARGIMATH,
AGE: 32 YEARS, R/O: SHASTRI NAGAR, 1ST CROSS,
WARD NO.35, TGB COLONY, BALLARI-583101.
...RESPONDENTS
(BY SMT. PREETI SHASHANK, ADVOCATE FOR R3;
SRI. PRAVEEN TARIKAR, ADVOCATE FOR R4;
NOTICE TO R1 & R2-SERVED)
THIS MFA IS FILED U/S.173 (1) OF MOTOR VEHICLES ACT,
AGAINST THE JUDGMENT AND AWARD DATED 04.10.2019 PASSED
IN MVC NO.203/2017 ON THE FILE OF THE III MOTOR ACCIDENT
CLAIMS TRIBUNAL, BALLARI, PARTLY ALLOWING THE CLAIM
PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION & ETC.
IN MFA NO. 100833/2020:
BETWEEN:
UNITED INDIA INSURANCE CO. LTD.,
CBI MAIN ROAD, GANGANAGAR,
R.T. NAGAR POST, BANGALORE-562117.
R/BY ITS DIVISIONAL MANAGER.
...APPELLANT
(BY SMT. PREETI SHASHANK, ADVOCATE)
AND:
1. SMT. CHAITRA R.G.,
W/O LATE SWAROOP MAHADEVAYYA,
D/O RACHAYYA GUTTARGIMATH,
AGE. 32 YEARS, SOFTWARE ENGINEER,
R/O SHASTRI NAGAR, I CROSS, WARD NO. 35,
TGB COLONY, BALLARI-580024.
2. SHUBERA SINGH S/O GOPAL SINGH,
AGE: 53 YEARS, OCC: DRIVER,
R/O: KATRALA, CHITRADURGA-577501.
3. BYRAHANUMAIAH S/O LATE BYRE GOWDA,
MAJOR, OWNER OF TATA SUMO
BEARING NO.KA-01/B-7748,
R/O: THOPPGANAHALLI, RYSANDRA HOBLI,
KANAKAPURA, RAMANAGARA - 562117.
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MFA No. 100634 of 2020
C/W MFA No. 100833 of 2020
MFA.CROB No. 100055 of 2020
HC-KAR
4. MAHADEVAYYA MATPATI S/O SIDDAYYA,
AGE: MAJOR,
R/O: D.NO.168 B, KALPARUKSHA,
VANI SRINGERI NAGAR, I CROSS,
BEHIND EVERFINE, SUPER MARKET,
BEGURU POST, BENGALURU-560068.
5. SMT. JAYASHREE W/O MAHADEVAPPA MATPATI,
AGE: MAJOR,
R/O: D.NO.168B, KALPARUKSHA,
VANI SRINGERI NAGAR, I CROSS,
BEHIND EVERFINE, SUPER MARKET,
BEGURU POST, BENGALURU-560068.
...RESPONDENTS
(BY SRI. PRAVEEN TARIKAR, ADVOCATE FOR R1;
SRI. V.S. KALASURMATH, ADVOCATE FOR R4 & R5;
NOTICE TO R2 & R3-DISPENSED WITH)
THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES ACT,
1988, AGAINST THE JUDGMENT AND AWARD DATED 04.10.2019
PASSED IN MVC NO.203/2017 ON THE FILE OF THE III MOTOR
ACCIDENT CLAIMS TRIBUNAL, BALLARI, AWARDING
COMPENSATION OF RS.1,12,01,360/- WITH INTEREST AT 9%
P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION &
ETC.
IN MFA.CROB NO. 100055/2020:
BETWEEN:
SMT. CHITHRA R.G.,
W/O LATE SWAROOP MAHADEVAYYA
D/O RACHAYYA GUTTARGIMATH
AGE: 30 YEARS, OCC: SOFTWARE ENGINEER,
R/O: SHASTRI NAGAR, 1ST CROSS,
WARD NO.35, TGB COLONY, BALLARI.
...CROSS OBJECTOR
(BY SRI. PRAVEEN TARIKAR, ADVOCATE)
AND:
1. SHUBERA G SINGH S/O GOPAL SINGH
AGE: 52 YEARS, OCC: DRIVER,
R/O: KATRALA, CHITRADURGA DISTRICT-577501.
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MFA No. 100634 of 2020
C/W MFA No. 100833 of 2020
MFA.CROB No. 100055 of 2020
HC-KAR
2. SHRI BYRAHANUMAIAH B GOWDA
S/O LATE BYRE GOWDA
AGE: MAJOR, OWNER OF TATA SUMO
R/O: THOPAGANAHALLI RAYSANDRA HOBLI,
KANAKAPURA, RAMANAGARA-562117.
3. THE UNITED INDIA INSURANCE COMPANY LTD.,
CBI MAIN ROAD, GANGANGAR,
R.T. NAGAR POST, BENGALURU-32.
4. MAHADEVAYYA S MATPATI S/O SIDDAYYA
AGE: MAJOR,
R/O: D.NO.168 B, KALPARUKSHA, AVANI SRINGERI NAGAR,
1ST CROSS, BEHIND EVERFINE SUPER MARKET,
BEGURU POST, BENGALURU-68.
5. SMT. JAYASHREE M MATAPTI
W/O MAHADEVAYYA S MATPATI
AGE. MAJOR,
R/O: D.NO. 168 B, KALPARUKSHA,
AVANI SRINGERI NAGAR,
1ST CROSS, BEHIND EVERFINE SUPER MARKET,
BEGURU POST, BENGALURU-68.
...RESPONDENTS
(BY SMT. PREETI SHASHANK, ADVOCATE FOR R3;
SRI. V.S. KALASURMATH, ADVOCATE FOR R4 & R5)
THIS MFA.CROB IN MFA NO.100833/2020 FILED UNDER
ORDER 41 RULE 22 OF CPC., AGAINST THE JUDGMENT AND
AWARD DATED 04.10.2019 PASSED IN MVC NO. 203/2017 ON
THE FILE OF THE III MOTOR ACCIDENT CLAIMS TRIBUNAL,
BALLARI, PARTLY ALLOWING THE CLAIM PETITION FOR
COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION & ETC.
THESE APPEALS AND THE CROSS OBJECTION, COMING ON
FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS
UNDER:
CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV
AND
THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL
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MFA No. 100634 of 2020
C/W MFA No. 100833 of 2020
MFA.CROB No. 100055 of 2020
HC-KAR
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL)
MFA No.100634/2020 is filed by the parents of the
deceased, MFA Crob No.100055/2020 is filed by the wife of
the deceased and MFA No.100833/2020 is filed by the
insurance company challenging the quantum of
compensation awarded under judgment and award dated
4.10.2019 passed in MVC No.203/2017 on the file of learned
MACT-III, Ballari1.
2. Brief facts giving rise to filing of these appeals are
that wife of the deceased Swaroop Mahadevayya filed a
claim petition under Section 166 of the Motor Vehicles Act,
1988 claiming compensation on the ground that her husband
Swaroop met with road accident on 3.3.2017 due to rash and
negligent driving of the Tata Sumo Vehicle Bearing
registration No.KA-01-AB-7748 by its driver. It is averred
that the deceased was aged 31 years at the time of the
accident, was a Software Engineer working in Bristlecone
For short, 'Tribunal'
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HC-KAR
India Limited and drawing a salary of Rs.18,33,348/- per
annum.
3. The respondents appeared and filed a detailed
written statement denying the entire averments made in the
claim petition, including the age, avocation and income of
the deceased and sought for dismissal of the claim petition.
4. The Tribunal recorded the evidence of the parties.
On appreciation of the oral and documentary evidence on
record, the Tribunal awarded a total compensation of
Rs.1,12,01,360/- with interest at 9% per annum from the
date of petition till the date of realization, directing the
insurance company to make good the compensation.
Aggrieved by the same, the parents, wife and the insurance
company are before this Court challenging the quantum of
compensation.
5. Learned counsel Sri.V.S. Kalasurmath appearing
for the appellants-parents of the deceased and Sri. Praveen
Tarikar, learned counsel appearing for the cross-
objector/wife of the deceased would support the impugned
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judgment and award of the Tribunal insofar as finding with
regard to the negligence and liability is concerned. It is
submitted that the Tribunal has failed to appreciate Ex.P9-
Salary Slip of the deceased in its proper perspective and
wrongly assessed the income of the deceased at Rs.72,627/-
per month, which they seek to re-assess based on Ex.P9. It
is further submitted that to corroborate Ex.P9, bank
statement of the deceased along with memo dated
22.09.2025 has been produced to establish that the
deceased was earning more than Rs.12,00,000/- per annum.
It is further submitted that the award of compensation under
the conventional heads is not inconsonance with the law laid
down by the Apex Court in the case of National Insurance
Company Limited Vs. Pranay Sethi & Others2 and
Magma General Insurance Company Limited Vs. Nanu
Ram & Others3. Sri. V.S. Kalasurmath submits that the
Tribunal has erred in apportioning the compensation at the
rate of 80% to the wife and 20% to the parents, which he
2017 (16) SCC 680
(2018) 18 SCC 130
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seeks to modify the same by considering the fact that the
claimant-wife is a single lady and she can move on in her life
and the parents are age old persons suffering from different
ailments. Hence, they seek to modify the apportionment
appropriately by allowing the appeals filed by the parents
and wife of the deceased.
6. Per contra, Smt. Preeti Shashank, learned counsel
for the appellant/Insurance Company vehemently opposes
the appeal and cross-objection filed by the parents and the
wife and submits that the Tribunal has failed to take note of
the income tax return filed by the deceased, which is part of
the record and as per income tax return, the deceased was
having income from salary at Rs.6,05,095/- per annum.
Hence, he seeks to re-assess the income based on income
tax returns marked along with Ex.P9-Pay Slip. It is
submitted that the income tax returns filed by the deceased
clearly indicates the actual income and Ex.P9-Pay Slip of the
deceased is not corroborated with any evidence. It is further
submitted that nothing has prevented the claimants from
examining the employer of the deceased, who would have
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spoken with regard to Ex.P9. In the absence of such
evidence, he seeks to consider the income tax returns and
re-assess the income of the deceased by allowing the appeal
filed by the insurance company. He further submits that rate
of interest awarded by the Tribunal on the compensation
amount at 9% per annum is on the higher side and it has to
be reduced to 6% per annum. Hence, he seeks to dismiss
the appeals filed by the claimants.
7. We have heard the learned counsel for the
respective parties and meticulously perused the material
available on record, including original records. We have given
our anxious consideration to the rival submissions advanced.
8. The point that would arise for our consideration in
the present appeals is:
Whether the impugned judgment and award of the Tribunal calls for interference at the hands of this Court?
9. Answer to the above point would be in the
"affirmative" for the following reasons:
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10. The parties to the proceedings do not dispute the
accident and the liability of the Insurance Company. The
Tribunal considering oral and documentary evidence
assessed the income of the deceased at Rs.72,627/- per
month and awarded compensation. We have perused the
income tax returns for the Assessment Year 2016-17 marked
along with Ex.P9-Salary Slip. It is to be noticed that the
accident took place on 3.3.2017. Considering the same, we
are of the considered view that the income tax returns
cannot be considered for the simple reason that the said
income tax returns is for the Assessment Year 2016-17,
wherein the deceased has declared his income at
Rs.6,05,095/- and the said income was for the Financial Year
2015-16. However, the accident had occurred on 3.3.2017.
Considering the said aspect, we propose to consider Ex.P9 as
the basis for reassessment of income of the deceased. We
have also perused the bank statement produced by the
claimants along with a memo, which indicates that the
deceased was working in Bristlecone India Limited and
drawing monthly salary as per Ex.P9. The said bank
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statement is corroborated with Ex.P9-salary slip. Therefore,
considering the same, we propose to re-assess the income of
the deceased on the basis of Ex.P9. As per Ex.P9, the
annual income of the deceased would be Rs.10,46,940/-
after deducting professional tax and in the aforesaid amount,
income tax is required to be deducted, which is calculated for
the Financial Year 2016-17 as under:
For the F.Y.2016-17, income tax slab is, upto
Rs.2,50,000/-, income tax is Nil; Rs.2,50,000 to Rs.5,00,000/-,
income tax is 10% and Rs.5,00,000/- to Rs.10,00,000/-,
income tax is 20% and above Rs.10,00,000/-, income tax is
30%. Applying the same, the income tax for the total income of
Rs.10,46,940/- works out as under:
Upto Rs.2,50,000/- Nil
Rs.2,50,000/- to Rs.5,00,000/- Rs.25,000
Rs.5,00,000/- to Rs.10,00,000/- Rs.1,00,000
Above Rs.10,00,000/- i.e. Rs.46,940/- Rs. 14,082
----------------
Total Income Tax Rs.1,39,082/-
----------------
11. Accordingly, out of Rs.10,46,940/-, a sum of
Rs.1,39,082/- towards income tax has to be deducted. After
deducting the same, net income would be Rs.9,07,858/-
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(Rs.10,46,940 - 1,39,082). There is no dispute with regard
to age of the deceased as 31 years, multiplier of 16 and also
deduction of 1/3rd towards personal and living expenses of
the deceased. In terms of decision of the Apex Court in the
case of Pranay Sethi supra, the claimants would be entitled
to addition of 50% of the assessed income towards loss of
future prospects, as the deceased was a Software Engineer
working in a company having permanent job. Thus, loss of
dependency is recalculated as under:
Rs.9,07,858 + 50/100 x 16 x 2/3 = Rs.1,45,25,728/-
12. Admittedly, there are three claimants and hence,
each of the claimants are entitled to Rs.44,000/- towards
loss of consortium including 10% escalation. Under the
conventional heads, the claimants are entitled to
Rs.16,500/- towards loss of estate and Rs.16,500/-
towards funeral expenses including 10% escalation.
13. The Tribunal, in our considered view, has erred in
apportioning the compensation at the ratio of 80% to the
wife and 10% each to the parents. Considering the
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submission and taking note of the fact that the claimant-wife
is a widow and no children from the said wedlock and the
parents are suffering from age old ailments, we deem it
appropriate to apportion the compensation at the rate of
60% to the wife and 20% each to the parents, which would
meet the ends of justice.
14. The Tribunal has committed an error in awarding
rate of interest at 9% per annum, which appears to be on
the higher side. Normally, this Court and the Apex Court
taking note of prevailing rate of interest paid on the term
deposit by the nationalized banks, would award interest at
6% per annum. Therefore, in the present case also, the
claimants are entitled to interest on the compensation
amount at the rate of 6% per annum from the date of
petition till realization. The claimants are entitled for the
following modified compensation:
1 Loss of dependency Rs.1,45,25,728/- 2 Loss of consortium (Rs.44,000/- each Rs.1,32,000/- 3 Transportation of dead body and Rs.16,500/- Funeral expenses 4 Loss of estate Rs.16,500/-
Total Rs.1,46,90,728/-
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15. Thus, the claimants would be entitled to total
compensation of Rs.1,46,90,728/- as against
Rs.1,12,01,360/- awarded by the Tribunal.
16. Hence, we proceed to pass the following:
ORDER i. The above appeals and the cross-objection are allowed in part.
ii. The impugned judgment and award of the Tribunal is modified holding that the claimants are entitled to total compensation of Rs.1,46,90,728/- as against Rs.1,12,01,360/- awarded by the Tribunal.
iii. The entire compensation amount shall carry interest at the rate of 6% per annum from the date of petition till date of payment.
iv. The insurance company shall deposit the aforesaid compensation amount along with accrued interest before the Tribunal within a period of six weeks from the date of receipt of certified copy of this judgment.
v. The entire compensation amount along with interest shall be apportioned at the ratio of 60% to the wife and 20% each to the
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parents. Disbursement and deposit shall be made in terms of the award of the Tribunal.
vi. The amount in deposit be transmitted to the Tribunal along with TCR forthwith.
vii. Draw modified award accordingly.
Sd/-
(S.SUNIL DUTT YADAV) JUDGE
Sd/-
(VIJAYKUMAR A.PATIL) JUDGE
JTR CT:VP
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