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2025 Supreme(Kar) 1518

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
RAMACHANDRA D. HUDDAR, J. 
Sri. Puttaswamy, S/o. Late Boraiah and Ors. – Appellants
Versus
Reliance Gen. Ins. Co. Ltd., REP. By Its Manager and Anr. – Respondents
Miscellaneous First Appeal No.3965 of 2020(MV-D)
Decided On : 11-08-2025

Advocates Appeared:
For the Appellants :Smt. Nitya V., Advocate For Sri. Prakash M.H., Advocate
For the Respondents:Sri. D. Vijayakumar, Advocate.

The court re-evaluated the notional income in a compensation claim, leading to an enhanced award based on statutory guidelines and principles established in prior judgments.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Claim for compensation due to fatal accident - The Tribunal awarded Rs. 13,95,200/-; appeal for enhancement filed - Evidence substantiates accident due to negligent driving - Claimants assert deceased earned Rs. 30,000/- p.m., Tribunal assesses notional income at Rs. 11,900/- - Court re-evaluates monthly income to Rs. 17,500/- considering future prospects and applies multiplier of 18 - Total compensation recalculated to Rs. 20,55,000/- with interest. (Paras 7, 12, 19, 20)

(B) Award of Compensation - Assessment of notional income and deductions for personal expenses critical in determining loss of dependency - Legal heirs entitled to consortium, loss of estate and funeral expenses under Pranay Sethi principles. (Paras 16, 17)

(C) Legal Principle - The principle of indemnity holds the insurer liable for the awarded compensation based on established negligence. (Paras 20)

Facts of the case:
Claimants are the legal heirs of deceased Gangadhara, who died in a road accident caused by negligent driving of a car; claim petition filed under the Motor Vehicles Act requesting Rs. 10,00,000/-.

Findings of Court:
The accident was due to rash driving; compensatory award initially given by the Tribunal deemed inadequate and modified.

Issues: Whether claimants are entitled to enhanced compensation; assessment of deceased's actual income.

Ratio Decidendi: The court found grounds to enhance compensation based on reevaluation of income and applicable statutory guidelines.

Result: Appeal allowed-in-part; total compensation modified to Rs. 20,55,000/-.

Table of Content
1. appeal for enhancement of compensation due to dissatisfaction with tribunal's award. (Para 1 , 2)
2. claimants seek compensation for death of deceased gangadhara from motorcycle accident. (Para 3 , 4)
3. respondent disputes claim of negligence and compensation amount. (Para 5 , 10)
4. tribunal's evaluation of evidence and computation of compensation. (Para 6 , 7 , 8 , 9 , 12)
5. court affirms tribunal's findings on negligence. (Para 11 , 15)
6. calculation and justification for enhancement of compensation figures. (Para 16 , 17 , 18)
7. final compensation awarded and order for payment. (Para 19 , 20)

JUDGMENT :

RAMACHANDRA D. HUDDAR, J.

The appellants/claimants being dissatisfied by the common judgment and award dated 03.02.2020 passed in MVC No.6795/2018 by the III Additional Judge and Member, MACT, Court of Small Causes, Bengaluru, have preferred this appeal seeking enhancement of compensation awarded by the Tribunal.

2. The parties to this appeal are referred to as per their rank before the Trial Court for convenience.

3. The brief facts leading to this appeal are as follows -

The claimants being the legal heirs of deceased Gangadhara filed a claim petition under Section 166 of the MOTOR VEHICLES ACT , claiming compensation of Rs.10,00,000/- (Rupees Ten Lakh only) on the ground that, on 08.11.2018 at 8.00 p.m. the deceased Gangadhara was riding his motorcycle bearing registration No.KA 09 HS 5556 with his friend Harish, who is the petitioner in MVC No.6796/2018 as a pillion rider slowly and cautiously. When they reached near Nettigere Gate, Kanakapura - Bengaluru Main Road, Uttarahalli Hobli, Bengaluru, at that time, the driver of a car bearing registration No.KA 51 MA 4082 drove the same in a rash and negligent manner in high speed and dashed against the motorcycle. Because of the impact, both the rider and pillion rider fell down and sustained grievous injuries. The deceased Gangadhara was shifted to Aastra hospital, Bengaluru for treatment and thereafter, after first aid treatment, he was taken to St. Johns Hospital, Bengaluru. Despite giving better treatment, he succumbed to the accidental injuries.

4. It is the case of the claimants that, they are the legal heirs of deceased Gangadhara and deceased was the only earning member in their family. Prior to the accident, deceased was hale and healthy and was aged 22 years. He was working as an electrician at the time of accident and also a class I contractor and in addition to that, he was an agriculturist. Thus, from his profession, he was earning Rs.30,000/- p.m. Because of the unexpected death of the deceased, the claimants have lost their bread earner in their family. Hence, it is prayed by the claimants to award the compensation as prayed for in their petition.

5. Before the Tribunal, respondent No.2 appeared and resisted the petition by filing detailed objection statement. It is contended that, the accident was not because of any rash and negligent driving of the alleged car in the manner alleged. It was the deceased who was rash and negligent in causing the accident. It is contended that, the liability of respondent No.2 is subject to the terms and conditions of the policy. Hence, it is prayed by respondent No.2 to dismiss the petition.

6. Based upon the rival pleadings of both the parties, the learned Tribunal framed five issues.

7. To substantiate the case of the claimants, claimant No.1 entered the witness box as PW.1 and got marked 22 documents as EXs.P1 to P22 and also examined one Muniraju as PW.3. Respondent No.2 has led evidence of one D S Pradeep as RW.1 and got marked a copy of the policy. The learned Tribunal, on hearing the arguments of both sides and on evaluation of the evidence, held that, the said accident has taken place because of the rash and negligent driving of the car by its driver and in that accident, the deceased Gangadhara succumbed to the injuries. With regard to the award of compensation, learned Tribunal held that though it is submit

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