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2026 Supreme(Kar) 65

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
C.M.Joshi, J.
Smt. Meher Banu W/O Late Syed Altaf Hassan - Appellants
Versus
Sri. Muzamil Pasha S/O Late Dastagi And Ors. – Respondents
Miscellaneous First Appeal No. 8563 of 2017 (Mv-D)
Decided On : 05-01-2026

Advocates Appeared:
For the Appellant :Smt. Suma Kedilaya, Advocate For Sri. Padmanabha Kedilaya V, Advocate
For the Respondent:Sri. O. Mahesh, Advocate

Compensation in motor accident cases must adhere to applicable guidelines ensuring just and fair assessments of loss, considering minimum wages, personal expenses deductions, and future prospects.

Headnote:(A) Motor Vehicles Act, 1988 - Claim for compensation - Death in a motor accident caused by negligent driving - Minimum wages and guidelines for determining income considered - The compensation initially awarded was deemed inadequate considering the guidelines and need for just compensation. (Paras 6, 7, 9, 12)

(B) Legal Principles - The court established that the Guidelines issued by the KSLSA for income calculation are to be followed, and adjustments for personal expenses and future prospects should be made - Reliance on age as per voter ID card was appropriate. (Para 8)

(C) Issues - The court addressed the adequacy of compensation awarded by the Tribunal, the applicable notional income, and the validity of deductions made by the Tribunal. (Paras 6, 10)

Findings of Court:
The appeal was partly allowed, resulting in an additional compensation amount to be awarded based on the recalculated loss of dependency, loss of affection, funeral expenses, and loss of estate. (Paras 11, 12)

Ratio Decidendi: The court underscored the need to adhere to guidelines for compensation to ensure fairness and protection of rights of dependants suffering loss. The adjustment of personal expenses, future prospects, and proper assessment of dependency was emphasized. (Paras 8, 11)

Result: Appeal allowed-in-part, with a modified total compensation amounting to Rs.12,85,000/- awarded. Total enhancement of Rs.2,36,400/- was granted along with a 6% interest. (Para 12) Parties: Appellants: Claimants (wife and son of deceased); Respondents: Driver, owner, and insurer of the Tata ACE.

Table of Content
1. overview of case and accident details. (Para 2 , 3 , 4)
2. tribunal award and appeal for enhanced compensation. (Para 5 , 6)
3. arguments regarding incorrect income and multiplier. (Para 7 , 8)
4. calculation of compensation based on legal precedents. (Para 9 , 10 , 11)
5. final order confirming enhanced compensation. (Para 12)

JUDGMENT :

C M JOSHI, J.

Heard learned counsel appearing for the appellants. None appears for the respondents.

2. Being aggrieved by the judgment and award in MVC.No.820/2013, dated 16.01.2016 passed by the Additional Court of Small Causes and MACT, Mysuru, petitioner Nos.1 and 2 are before this Court in appeal seeking enhancement of the compensation.

3. The factual matrix of the case is that on 05.07.2013 at about 01.15 p.m., the deceased was proceeding on the motor bike bearing Reg.No.KA-09-R- 6781, the driver of the Tata ACE bearing Reg.No.KA-13-A- 5515 drove the same in a high speed and rash and negligent manner from the opposite direction and collided with the motor bike of the deceased resulting in his death. A case was registered against the driver of the Tata ACE by the Jurisdictional Police and it resulted in filing of a charge-sheet against him. The petitioners claiming that the negligence was on the part of the driver of the Tata ACE, filed a claim petition before the Tribunal, seeking compensation of Rs.45,55,000/-. Petitioner No.1 is the wife of the deceased and petitioner No.2 is the minor son of the deceased and petitioner No.3 is the father of the deceased. During the interregnum of the disposal of MVC No.820/2013 and filing of the present appeal, petitioner No.3 also died. Respondent Nos.1 to 3 are the driver, owner and insurer of the Tata ACE vehicle respectively. In their defense, respondent Nos.1 and 2 contended that the negligence was on the part of the deceased and there was no such negligence on the part of respondent No.1. They contended that the liability if any, has to be fastened upon respondent No.3.

4. Respondent No.3 - Insurance Company contended that the compensation claimed is highly exorbitant and imaginary and it denied the age, income and occupation of the deceased. Inter alia, it is also contented that the terms and conditions of the policy were violated by respondent Nos.1 and 2 and therefore, it is not liable to pay any compensation.

5. On the basis of the above contentions, appropriate issues were framed by the Tribunal. Petitioner No.1 was examined as PW1 and Exhibits P1 to 14 were marked in evidence. No evidence was led on behalf of the respondents. After hearing the arguments, the Tribunal held that the income of the deceased was Rs.6,000/- per month and deducted 1/3rd towards the ‘personal expenses’ of the deceased and awarded a total compensation of Rs.10,48,600/- under the following heads:

SL. NO.PARTICULARSAMOUNT (IN RS.)
1Loss of dependency8,73,600/-
2Loss of Consortium50,000/-
3Funeral expenses25,000/-
4Love and affection and care and protection (Petitioner No.2)1,00,000/-
TOTAL10,48,600/-

6. Being aggrieved by the quantum of the compensation, petitioner Nos.1 and 2 are before this Court in appeal.

7. Learned counsel appearing for the appellants would submit that the Tribunal erred in holding the income of the deceased at Rs.6,000/- p.m., when the minimum wages fixed under the Minimum Wages Act are on the higher side. She also submits that the Guidelines issued by the KSLSA for the purpose of settlement of the disputes before the Lok-adalat should have been adhered to by the Tribunal. It is also submitted that the formula as laid down by the Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi and others , 2017 (16) SCC 680 has not been followed.

8. A perusal of the records would reveal that the deceased was aged 45 years and the Tribunal had placed reliance on the available records i.e., the voter ID card. In the absence of any other material on record to show the age of the deceased, the same has to be accepted and therefo




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