- 1 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE B M SHYAM PRASAD MISCELLANEOUS FIRST APPEAL NO. 3702 OF 2023 (MV-D) BETWEEN: 1. SRI. SHYAMA SHANBHAG S/O SUBRAYA SHANBHAG AGED ABOUT 63 YEARS 2. SMT. SHASHIKALA HEGDE W/O SHYAMA SHANBHAG AGED ABOUT 59 YEARS 3. SHUBHA A D/O SHYAMA SHANBHAG AGED ABOUT 31 YEARS ALL THE AFOREMENTIONED APPELLANTS PRESENTLY RESIDING AT FLAT NO.606, AISHU ICON APARTMENTS, HALADI ROAD, KOTESHWARA, KUNDAPURA TALUK- 576222, UDUPI DISTRICT. Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 THE APPELLANTS PERMANENT ADDRESS IS AT 1-42, NIRMALANANDA NILAYA, KUNDAPUR BELUR, DEVASTHANABETTU, UDUPI- 576221. …APPELLANTS (BY SRI. RAKESH T.S., ADVOCATE FOR SRI. AJITH A SHETTY.,ADVOCATE) AND: 1. SRI. CHETHAN KUMAR M S/O KRISHNAPPA POOJARY, AGED ABOUT 30 YEARS PADADKA HOUSE, SULYAPADAVU, PUTTUR TALUK, DAKSHINA KANNADA. 2. MRS. POOJA D SHETTY W/O AMITH A SHETTY FLAT NO.C3, 2ND FLOOR, DAS NILAYA ODYSSEY APARTMENT KAPRIGUDA, MANGALORE- 575001. 3. ROYAL SUNDARAM GENERAL INSURANCE COMPANY LTD., D.NO.620 A-1, 12TH MAIN, 35TH CROSS, 2ND BLOCK, OPPOSITE TO HANUMAN TEMPLE, RAJAJINAGAR, BANGALORE- 560010. - 3 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 4. THE MANAGER, HDFC ERGO GENERAL INSURANCE CO.LTD., 2ND FLOOR, ESSEL CENTRE, MG ROAD, MANGALORE- 575003. …RESPONDENTS (BY SRI. B. PRADEEP., ADVOCATE FOR R4; NOTICE TO R1 TO R3 ARE DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 08.02.2023 PASSED IN MVC NO. 179/2021 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND ADDITIONAL MACT, CJM, UDUPI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE B M SHYAM PRASAD - 4 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD) The parents and an elder sister of Ms. Shreya B who has died in a road accident on 28.11.2020 are aggrieved by the compensation granted by the Principal Senior Civil Judge and Additional Motor Accident Claims Tribunal, Udupi [for short, 'the Tribunal'] in MVC No.179/2021. The Tribunal has awarded a total sum Rs.25,69,500/- to the claimants with interest at 6% per annum from the date of the petition to deposit under the following heads: Sl. No. Head of Compensation Amount [Rs.] 1 Loss of dependency 24,19,200 2 Loss of filial consortium 1,20,000 3 Loss of estate 15,000 4 Transportation of dead body and funeral expenses 15,000 Total 25,69,200 Rounded off 25,69,500 2. The facts leading to the present case are that the deceased Ms. Shreya B and her friend, Ms. Prajna C Madane, were traveling on a scooter when - 5 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 they were hit by a car that was insured with the fourth respondent. Both Ms. Shreya B. and Ms. Prajna C Madane have succumbed to the injuries. Ms. Shreya B had completed her engineering from KLS Gogte Engineering College, Belagavi and was working as Blockchain Developer with M/s.Gravitas AI at the time of the accident. The claimants have sought for compensation of Rs.1,75,00,000/- asserting that Ms. Shreya B was earning in excess of Rs.51,000/- per month at the time of accident. 3. The claimants, to establish that Ms. Shreya B was earning more than Rs.51,000/- per month as a Blockchain Developer with M/s. Gravitas AI, have produced, apart from her academic records, the passbook for her account with State Bank of India. The Tribunal has opined that the passbooks are not of any avail to the claimants to establish that Ms. Shreya B was earning Rs.51,235/- per month, and therefore, the Tribunal has taken the notional - 6 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 income at Rs.12,000/- per month with addition at 40% for future prospects. The Tribunal has capitalized the compensation towards loss of dependency applying the multiplier of '18' and deducting one-third towards personal expenses. 4. Sri Rakesh T S, the learned counsel for the appellant, argues for enhancement of compensation contending that the passbook would indicate that Ms. Shreya B was earning Rs.44,000/- in the months preceding her death but for the month of November, 2020 when she succumbed to the injuries, she was given salary in the sum of Rs.51,000/-, and as such, the Tribunal should have computed the loss of dependency taking such income as the last drawn salary. 5. This Court to examine the merits of this grievance has perused the passbook and this Court notices that Ms. Shreya B had received Rs.44,300/- to Rs.44,500/- in the months preceding her death - 7 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 and a sum of Rs.51,000/- is credited to her account five months after her death on 05.04.2021. The reasons for such belated credit and the details of the credit are not brought out. The claimants have not produced the Income Tax Returns filed or the details of the deductions effected towards TDS by the employer. 6. This Court, on a holistic reading of the deceased’s academic credentials, her letter of appointment and passbook, finds that the income at Rs.44,500/- per month for computation of loss of dependency would be justified, rather than the notional income at Rs.12,000/- which is a very paltry sum given the facts and circumstances of the case. There must be deductions towards income tax and professional tax. The deduction towards such income tax must be at 5% for the sum between Rs.2,50,000/-and Rs.5,00,000/- and at 20% for the income over Rs.5,00,000/-. The deduction towards - 8 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 professional tax must be Rs.2,400/-[at the rate of Rs.200/- per month]. The computation of the net monthly income with deductions will be as follows. Sl. No. Details Amount [in Rs.] [a] Monthly Income 44,500 [b] Annual Income [44,500 x 12] 5,34,000 [c] Professional Tax 2,400 [d] Annual income after deduction of professional tax 5,31,600 [e] Deduction towards Income Tax for the Slab between 2,50,000/- and Rs.5,00,000/- at 5% for FY 2020-21 12,500 [f] Deduction towards Income Tax for the Slab between 5,00,000/- and Rs.20,00,000/- at 20% [for FY 2020-21 [Rs.31,600 x 20%] 6,320 [g] Total deductions [e]+[f] 18,820 [h] Annual Income [d] - [g] 5,12,780 [i] Monthly Income 42,732 There must be addition towards future prospects at 40%. 7. The next question is about the deduction that must be towards personal expenses. Ms. Shreya B had died a spinster, and the claim for compensation is by her parents and elder sibling. The deduction cannot be at one third and it must be one - 9 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 half. The loss of dependency is thus computed taking these parameters keeping the multiplier at 18, because she was only 23 years old at the time of the accident. Details for Computation of Loss of Dependency Amount [in Rs.] Monthly Income 42,732 Addition towards Future Prospects 40% 17,093 Monthly Income + Future Prospects 59,825 Annual Income 12 7,17,900 Deduction towards personal expenses 50% 3,58,950 Multiplicand [after deduction towards personal Expenses] 3,58,950 Multiplier 18 Loss of Dependency 64,61,100 8. The Tribunal has rightly granted consortium to Rs.1,20,000/- at Rs.40,000/- each for the parents and the elder sibling and Rs.30,000/- towards loss of estate and funeral and other expenses. The claimants will thus be entitled to a total sum of Rs.66,11,100/- as against the sum of Rs.25,69,500/- as brought out by the comparative - 10 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 table of the amount awarded by the Tribunal and by this Court. By the Tribunal [in Rs.] By this Court [in Rs.] Loss of dependency 24,19,200 64,61,100 Loss of filial consortium 1,20,000 1,20,000 Loss of estate 15,000 15,000 Transportation of dead body and funeral expenses 15,000 15,000 Total 25,69,200 66,11,100 Enhancement 40,41,900 9. In the light of the afore, the following: ORDER [a] The appeal is allowed in part granting to the claimants a total compensation of Rs.66,11,100/- with an enhancement in a sum of Rs.40,41,900/- at the rate of 6% per annum from the date of the petition till the date of deposit. - 11 - HC-KAR NC: 2025:KHC:27557-DB MFA No. 3702 of 2023 [b] The fourth respondent is called upon to deposit Rs.40,41,900/- with interest as aforesaid within eight [8] weeks from the date of receipt of a certified copy of this Judgment. SD/- (D K SINGH) JUDGE SD/- (B M SHYAM PRASAD) JUDGE AN/-