[Cites 2, Cited by 0]
Karnataka High Court
Smt. Sudha @ Saroja W/O. Subray Shetty vs The Divisional Controller Nwkrtc on 17 February, 2026
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MFA No.101091 of 2018 c/w
MFA Crob No.100100 of 2018
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 17TH DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE DR. JUSTICE K.MANMADHA RAO
MISCELLANEOUS FIRST APPEAL NO.101091 OF 2018
C/W
MFA CROB NO.100100 OF 2018
IN MFA NO.101091/2018:
BETWEEN:
THE DIVISIONAL CONTROLLER, NWKRTC,
SIRSI, UTTAR KANNADA DIVISION, SIRSI,
REPRESENTED BY THE CHIEF LAW OFFICER,
CENTRAL OFFICE, N.W.K.R.T.C., HUBBALLI-580030.
...APPELLANT
(BY SRI. I.C. PATIL, ADVOCATE)
AND:
1. SMT. SUDHA @ SAROJA W/O. SUBRAY SHETTY
AGE: 36 YEARS, OCC: HOUSEHOLD WORK,
R/O. MATHA DHARESHWAR, TQ: KUMTA-581343.
2. RANJEETHA D/O. SUBRAY SHETTY
AGE: 16 YEARS, OCC: STUDENT,
MINOR, R/BY RESPONDENT NO.1,
R/O. MATHA DHARESHWAR,
Digitally signed
TQ: KUMTA-581343.
by
MOHANKUMAR
B SHELAR
Location: High
Court of 3. JAYANTHA S/O. SUBRAY SHETTY
Karnataka,
Dharwad Bench AGE: 14 YEARS, OCC: STUDENT,
MINOR, R/BY RESPONDENT NO.1,
R/O. MATHA DHARESHWAR,
TQ: KUMTA-581343.
4. SMT. SUSHEELA W/O. GANAPATI SHETTY
AGE: 61 YEARS,
R/O. MATHA DHARESHWAR, TQ: KUMTA-581343.
...RESPONDENTS
(BY SRI. ANKIT DESAI, ADVOCATE FOR R1 TO R4)
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MFA No.101091 of 2018 c/w
MFA Crob No.100100 of 2018
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION
173(1) OF THE MOTOR VEHICLE ACT 1988, PRAYING TO SET ASIDE
THE JUDGMENT AND AWARD DATED 14.09.2017 PASSED IN MVC
NO.236/2016 ON THE FILE OF ADDL. MACT, KUMTA, AS
COMPENSATION AWARDED IS EXCESSIVE AND EXORBITANT BY
ALLOWING THIS APPEAL & ETC.
IN MFA CROB NO.100100/2018:
BETWEEN:
1. SMT. SUDHA @ SAROJA W/O LATE SUBRAY SHETTY
AGE: 37 YEARS, OCC: HOUSEHOLD,
2. KUMARI RANJEETHA D/O LATE SUBRAY SHETTY
AGE: 17 YEARS,
3. KUMAR JAYANTHA S/O LATE SUBRAY SHETTY
AGE: 15 YEARS,
CROSS OBJECTORS NO.2 & 3 SINCE MINORS
R/BY THEIR NATURAL MOTHER, CROSS OBJECTOR NO.1
SMT. SUDHA @ SAROJA.
4. SMT. SUSHEELA W/O. GANAPATI SHETTY
AGE: 62 YEARS, OCC. HOUSEHOLD,
ALL ARE R/O. MATHA, DHARESHWAR,
TQ: KUMTA, DIST. UTTARA KANNADA.
...CROSS OBJECTORS
(BY SRI. A.R. NAIK, ADVOCATE)
AND:
THE DIVISIONAL CONTROLLER, NWKRTC,
SIRSI, UTTAR KANNADA DIVISION, SIRSI,
REPRESENTED BY THE CHIEF LAW OFFICER,
CENTRAL OFFICE, NWKRTC, HUBBALLI-580030.
...RESPONDENT
THIS MFA CROSS OBJECTION IS FILED UNDER ORDER XLI RULE
22 OF THE CODE OF CIVIL PROCEDURE, PRAYING TO MODIFY THE
COMPENSATION AWARDED DATED 14.09.2017 PASSED BY THE
ADDL.M.A.C.T., AT KUMTA, IN M.V.C. NO.236/2016 AND ENHANCE
THE COMPENSATION BY ALLOWING THIS CROSS OBJECTION AND
ETC.
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MFA No.101091 of 2018 c/w
MFA Crob No.100100 of 2018
THE APPEAL AND THE CROSS OBJECTION HAVING BEEN HEARD
AND RESERVED FOR JUDGMENT ON 30.01.2026 AND COMING ON FOR
PRONOUNCEMENT THIS DAY, JUDGMENT WAS DELIVERED THEREIN
AS UNDER:
CORAM: THE HON'BLE DR. JUSTICE K.MANMADHA RAO
CAV JUDGMENT
MFA Cross Objection No.100100/2018 has been filed
by the claimants challenging the impugned judgment and
award judgment and award dated 14.09.2017, in MVC
No.236/2014 passed by the Addl. M.A.C.T at Kumta,
awarding a sum of Rs.14,50,000/- together with interest at
6% p.a on account of the death of one Subray Shetty in a
road traffic accident that occurred on 06.01.2016.
2. MFA No.101091/2018 has been filed by the
Insurance Company challenging the quantum of
compensation awarded and the liability fastened on it by
judgment and award dated 14.09.2017, in MVC
No.236/2014 passed by the Addl. M.A.C.T at Kumta.
3. Though the matters are listed for admission, with
the consent of learned counsel for the parties, the same are
taken up for final disposal.
MFA No.101091 of 2018 c/w
4. The parties will be referred to as 'claimants' and
'Insurance Company' for the purpose of reference.
The brief facts of the case are as under:
5. On 06.01.2016, when deceased Subray Shetty
who was walking by the side of the road, at NH-66, near
Dhareshwara, the driver of the bus bearing No.KA-29/F-
1223, who was driving the bus towards Dhareswara, drove
the same in a rash and negligent manner and dashed to
Subray Shetty, who died on the spot. Thus, the claimants
filed claim petition before the Tribunal.
6. Upon service of notice, the appellant appeared
before the Tribunal through their counsel and filed written
statement and denied the averments made in the claim
petition.
7. It is submitted by the learned counsel for the
appellants that the accident in question was due to rash and
negligent act of the deceased himself who was under the
influence of alcohol, tried to cross the road and accident has
been caused. Further, it is submitted that the driver drove
MFA No.101091 of 2018 c/w
the vehicle slowly following the rules and the false case has
been filed against the driver of the bus to get
compensation. The Tribunal has failed to take into
consideration contributory negligence on the part of the
deceased.
8. It is submitted that the deceased was aged 42
years old on the date of accident and he has four
dependents, viz., wife, two minor children and aged mother.
The deceased was running a Tea shop and self employed.
It is contended that the Hon'ble Apex Court in National
Insurance Company Ltd., V/s Pranay Sethi and others
reported in (2017) 16 SCC 680, has held that 25% of
escalation has to be added to the notional income for
determining future prospects for self-employed person
between 40 and 50 years. The Tribunal failed to follow the
Lok Adalat guidelines which stipulate that in respect of an
accident that took place in the year 2016, the notional
income should be taken as Rs.8,750/- per month and in
view of the law laid down by the Apex Court in Pranay
MFA No.101091 of 2018 c/w
Sethi's case, the Tribunal ought to have added 25% of
future prospects to the notional income of Rs.8,750/- per
month. It is also contended by him that the Tribunal has
failed to consider the law laid down by the Apex Court in the
case of Magma General Insurance Company Limited
vs. Nanu Ram & Others reported in (2018) 18 SCC 130
and reiterated by the Division Bench of this Court in
M.F.A.No.1100/2019 & connected matters disposed of
on 12.06.2019 in awarding compensation towards 'loss of
consortium'. He therefore requests this Court to award
Rs.1,60,000/- towards loss of future prospects as the
deceased has four dependants and enhance the
compensation by modifying the impugned judgment and
award passed by the Tribunal.
9. It is further submitted that the deceased has got
four dependants and 1/4th of income has to be deducted
towards personal expenses of deceased, whereas the
Tribunal has wrongly deducted 1/3rd of personal expenses.
MFA No.101091 of 2018 c/w
10. Per contra, learned counsel for the respondent-
Insurance company submitted that the Tribunal without
considering the material on record and evidence adduced,
erroneously held that the accident occurred due the
negligence of the driver of the NWKRTC bus alone and
awarded exorbitant compensation of Rs.14,50,000/- with
interest at 6% per annum.
11. Heard the learned counsel for both the parties,
perused the impugned Judgment and material available on
record.
12. The Tribunal has awarded compensation under
various heads as under:
1. Transportation and funeral 30,000/-
expenses
2. Loss of Love and Affection 1,00,000/-
to Petitioner No.4
3. Loss of Love and Affection 1,00,000/-
to Petitioner Nos.2 to 3
(Rs.50,000/- each)
4. Loss of consortium to 1,00,000/-
Petitioner No.1
MFA No.101091 of 2018 c/w
5. Loss of dependency 11,20,000/-
TOTAL 14,50,000/-
13. As rightly contended by the learned counsel for
the appellants, the Tribunal committed an error in failing to
appreciate the Lok Adalat guidelines which stipulate that in
respect of an accident that took place in the year 2016, the
notional income should be taken as Rs.8,750/- per month.
As held by the Hon'ble Apex Court in National Insurance
Company Ltd., V/s Pranay Sethi and others reported in
(2017) 16 SCC 680, 25% of escalation has to be added to
the notional income for determining future prospects for
self-employed person between 40 and 50 years. The
multiplier applicable as per Sarla Varma and others vs.
Delhi Transport Corporation and another (Civil Appeal
No.3483/2008 - D.D.15.04.2000) for age group of 40
to 50 years is '14'. The Tribunal failed to follow the Lok
Adalat guidelines which stipulate that in respect of an
accident that took place in the year 2016, the notional
income should be taken as Rs.8,750/- per month and in
MFA No.101091 of 2018 c/w
view of the law laid down by the Apex Court in Pranay
Sethi's case, the Tribunal ought to have added 25% of
future prospects to the notional income of Rs.8,750/- per
month.Hence, the compensation under the head 'loss of
dependency' is reworked as hereunder:-
(Rs.8,750 + 25% (Rs.2,187/-) = Rs.10,937/- minus
1/4th (Rs.2,734/-) = Rs.8,203/-
Rs.8,203 x 12 x 14= Rs.13,78,104/-)
Hence, the appellants are entitled to total compensation of
Rs. 13,78,104/- under this head.
14. Further, claimants are entitled for
Rs.1,60,000/- towards 'loss of consortium' as the
deceased has got four dependants, viz., wife, two minor
children and aged mother as per the principles laid down by
the Apex Court in Magma's case. So also the claimants
are entitled to Rs.15,000/- towards loss of estate and a
sum of Rs.15,000/- towards funeral expenses.
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MFA No.101091 of 2018 c/w
15. As regards the contributory negligence, the
Tribunal has come to the conclusion that 100% negligence
has to be fixed on the driver of the KSRTC bus. The said
finding being based on correct appreciation of material on
record, the same does not warrant interference by this
Court.
16. The claimants are entitled for compensation as
under:
1. Loss of Dependency 13,78,104/-
2. Loss of consortium 1,60,000/-
3. Transportation of dead 15,000/-
body, funeral expenses
charges and miscellaneous
expenses
4. Loss of estate 15,000/-
TOTAL 15,68,104/-
17. In view of the aforesaid discussion, I pass the
following order:-
(i) MFA No.101091/2018 filed by the Insurance
Company is hereby dismissed.
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MFA No.101091 of 2018 c/w
(ii) MFA CROB. No.100100/2018 is partly allowed.
(iii) The impugned judgment and award dated
14.09.2017, in MVC No.236/2014 passed by the Addl.
M.A.C.T at Kumta, is hereby modified.
(iv) The claimants in MFA CROB.No.100100/2018 are
entitled to compensation of Rs.15,68,104/- which shall
carry interest at the rate of 6% p.a., from the date of claim
petition till realization.
(v) Insurance Company shall deposit the
compensation amount along with accrued interest, if any,
within eight weeks from today.
(vi) The apportionment and disbursement to be done
as per the impugned judgment and award passed by the
Tribunal.
(vii) Registry is directed to send back TCR along with
copy of this Judgment to the Tribunal, forthwith.
No order as to costs.
Sd/-
(DR. K.MANMADHA RAO)
JUDGE
BNV, CT:VP
