High Court Partly Allows Appeal in Motor Accident Claim, Enhances Compensation to Rs. 28,80,000 with Modified Contributory Negligence and Higher Interest Under MV Act

Sub Category: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellants, legal heirs of deceased P. Ramesh, filed an appeal under Section 173(1) of Motor Vehicles Act, 1988 (MV Act) against the Tribunal's award of Rs. 18,12,732 with 6% interest, which attributed 40% negligence to the deceased. The accident occurred on 21.08.2022 when P. Ramesh's car dashed against a parked tractor-trailer without signals. The High Court reassessed the deceased's income at Rs. 15,000 per month with 50% future prospects, applied the correct multiplier, and modified contributory negligence to 20% for the deceased and 80% for the tractor-trailer driver. The Court enhanced the compensation to Rs. 28,80,000 and increased the interest rate to 7.5% per annum. The appeal was partly allowed with modifications.

Headnote

The High Court of Karnataka at Bengaluru heard Miscellaneous First Appeal filed under Section 173(1) of Motor Vehicles Act, 1988 (MV Act) -- The appellants challenged the judgment and award dated 06.02.2024 in MVC No. 5539 of 2022 -- The Tribunal had awarded Rs. 18,12,732 with 6% interest, attributing 40% negligence to the deceased -- The Court considered issues of income assessment, future prospects, contributory negligence, and interest rate -- Held that the deceased's income should be Rs. 15,000 per month with 50% future prospects -- Modified contributory negligence to 20% for the deceased and 80% for the tractor-trailer driver -- Enhanced compensation to Rs. 28,80,000 with 7.5% interest -- Paragraph references: Paras 3, 4, 8, 9, 10, 11, 12, 13, 14, 15

Issue of Consideration: The Issue of consideration was whether the compensation awarded by the Motor Accident Claims Tribunal was adequate and whether the apportionment of contributory negligence was correct

Final Decision

The High Court partly allowed the appeal, modified the compensation to Rs. 28,80,000, apportioned contributory negligence as 20% for deceased and 80% for tractor-trailer driver, and enhanced interest to 7.5% per annum

2026 LawText (KAR) (01) 39

MISCELLANEOUS FIRST APPEAL NO. 5150/2024 (MV-D)

2026-01-23

Hon'ble Mrs. Justice P Sree Sudha

MFA No. 5150 of 2024

Sri. Kailas Shankar, Sri. D. Vijayakumar

Smt. P. Lavanya, Kumari P. Srivani, Master P. Srihari, Smt. Chinna Nakkala Ramakka

M/s. Nagamma Transport, The Manager, The Cholamandalam MS General Insurance Company Ltd.

Nature of Litigation: Appeal against compensation award in motor accident claim case

Remedy Sought

Appellants sought enhancement of compensation awarded by the Tribunal

Filing Reason

Dissatisfaction with the Tribunal's award amount, negligence apportionment, and interest rate

Previous Decisions

Tribunal awarded Rs. 18,12,732 with 6% interest, attributing 40% negligence to deceased P. Ramesh

Issues

Whether the compensation awarded by the Tribunal was adequate under MV Act Whether the apportionment of contributory negligence was correct Whether the interest rate of 6% was appropriate

Submissions/Arguments

Appellants argued that deceased's income was Rs. 25,000 per month, Tribunal took Rs. 14,980, future prospects should be 50% Appellants contended that tractor-trailer was parked without signals, negligence should be solely on its driver Respondent argued jurisdictional issue but failed to raise it timely Respondent contended that deceased was driving at high speed, contributory negligence applicable

Ratio Decidendi

In motor accident cases, compensation must be just and reasonable considering income, future prospects, and multiplier -- Contributory negligence should be assessed based on facts like parking without signals and driving speed -- Interest rates should reflect current economic conditions

Judgment Excerpts

Held that the deceased's income should be taken as Rs. 15,000 per month with 50% future prospects Held that contributory negligence is modified to 20% for the deceased and 80% for the tractor-trailer driver Held that the interest rate is enhanced to 7.5% per annum from the date of petition till realization

Procedural History

Accident occurred on 21.08.2022 -- Claim petition filed in MVC No. 5539 of 2022 -- Tribunal awarded compensation on 06.02.2024 -- Appeal filed under Section 173(1) of MV Act on 23.01.2026 -- High Court heard arguments on 20.01.2026 and pronounced judgment on 23.01.2026

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