- 1 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND THE HON'BLE MR. JUSTICE T.M.NADAF MISCELLANEOUS FIRST APPEAL NO. 2741 OF 2023 (MV-D) BETWEEN: 1. NAGARAJA SRINIVASA RAO S/O RAMARAO NAGARAJA RAO, AGED ABOUT 60 YEARS, 2. PUSHPA SRINIVAS RAO W/O NAGARAJA SRINIVASA RAO, AGED ABOUT 53 YEARS, BOTH ARE RESIDING AT ANUGRAHA, NO 1093, 12TH A MAIN ROAD, HAL 2ND STAGE, INDIRANAGARA, BENGALURU 560038 …APPELLANTS (BY SRI. SHANTHARAJ K.,ADVOCATE) AND: 1. RELIANCE GEN. INS. CO. LTD BY ITS MANAGER, Digitally signed by MADHUSHREE H Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 EAST WING, 5TH FLOOR, NO 28, CENTENARY BUILDING, M G ROAD, BENGALURU 560001 2. CHANDAN GOWDA S/O NOT KNOWN, AGED MAJOR, RESIDING AT NO 450, 1ST MAIN, 1ST CROSS , ACS LAYOUT, BENGALURU 560050 …RESPONDENTS (BY SRI. ASHOK N PATIL, ADVOCATE FOR R1; V/O DATED 09.08.2023 NOTICE TO R2 D/W) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DT.11.03.2022 PASSED IN MVC NO.3657/2019 ON THE FILE OF THE III ADDITIONAL JUDGE AND MACT, COURT OF SMALL CAUSES, BENGALURU, (SCCH-18), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION BARRED BY TIME. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD) The appellants are the parents of the deceased, Mr. Sanath Rao, who has died in a road accident on 27.06.2018 when he was on his motorcycle. The accident involves a lorry bearing No.KA-05-AC-6218. The appellants have filed their claim petition under Section 166 of the Motor Vehicles Act, 1988 claiming compensation of Rs.1 Crore in M.V.C. No.3657/2019 on the file of the III Additional Judge and Motor Accident Claims Tribunal, Court of Small Causes, Bengaluru [for short, 'the Tribunal']. 2. The Tribunal has granted compensation of Rs.17,50,200/- along with interest at the rate of 6% per annum apportioning this between the appellants - 4 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 in the ratio of 40:60. The Tribunal has awarded the aforesaid amount under the following heads: Compensation Heads Compensation Amount Towards loss of dependency Rs.16,63,200-00 Towards loss of consortium Rs.44,000-00 Towards loss of estate Rs.16,500-00 Towards funeral & obsequies ceremony expenses Rs.16,500-00 Towards transportation of dead body Rs.10,000-00 Total Rs.17,50,200-00 3. Mr. K. Shantharaj, the learned counsel for the appellants, and Mr. Ashok N. Patil, the learned counsel who is on record for the first respondent [the Insurer of the lorry in question], are categorical that there is no dispute [a] that the lorry driver was negligent and responsible for the accident, [b] that the first respondent is liable to pay just and reasonable compensation to the appellants, and [c] that the deceased, who was aged 21 years as of the date of the accident, was studying for Engineering Graduation in - 5 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 Electronics and Communication with M/s. National Institute of Engineering, Mysuru. 4. Mr. K. Shantharaj submits that this Court must enhance compensation towards loss of dependency and towards loss of consortium, and in this regard, the learned counsel submits that the Tribunal has computed the loss of dependency taking the deceased’s income at Rs.11,000/- per month with addition of 40% towards future prospects and deduction of 50% towards personal expenditure. The learned counsel emphasises that the deceased had completed three semesters in distinction and was pursuing the fourth semester and that he had a bright future. On the compensation towards loss of consortium, the Tribunal has only awarded a sum of Rs.44,000/- when it is undisputed that each of the appellants would be entitled for such amount with an addition of 10% for every three years. - 6 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 5. Mr. Ashok N. Patil submits that he will not contest that both the appellants are entitled for the loss of consortium in a sum of Rs.40,000/- and that there must be an enhancement in the loss of dependency taking a higher notional income of the deceased. However, the learned counsel submits that the notional income cannot be taken at more than Rs.20,000/- per month; and in this regard, the learned counsel relies upon a recent decision of the Apex Court in Special Leave Petition (Civil) No(s).28062-63/2023 underscoring that the Apex Court has taken the income of a deceased Engineering student at Rs.20,000/- per month. 6. In the light of the rival submissions, the only question for consideration is: Should the Tribunal's judgment and award be modified granting higher compensation to the appellants towards loss of dependency and the loss of consortium? - 7 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 7. The crucial evidence that remains undisputed is that the deceased, Mr. Sanath Rao, was pursuing Engineering with M/s. National Institute of Engineering, Mysuru [a prestigious Engineering Institution in the State of Karnataka], which lends for a just inference on the deceased being a meritorious student. This gains further significance in the light of the undisputed fact that the deceased had passed the first three semesters in distinction. Definitely, the Tribunal could not have taken the notional income of the deceased at Rs.11,000/- per month. In the case of unskilled labour, for computation of loss of dependency when the claim petitions arise out of the accidents in the year 2018, income is taken at Rs.12,500/- per month. 8. If the decision of the Apex Court is applied, the income of the deceased, Mr. Sanath Rao, - 8 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 must be taken at Rs.20,000/- with a just escalation of 10% because the accident in the present case is in the year 2018. However, the distinguishing features are that the deceased was pursuing Engineering in Electronics and Communication as a meritorious student in a prestigious Institution in the State. In the case on hand with the Apex Court, the deceased was pursuing a degree in Food Technology, and there is no reference to circumstances that would bear resemblance to the afore. If the notional income of the deceased is taken at Rs.25,000/- per month, there would be just compensation, and this will not cause any bonanza, which is frowned upon by the Courts. 9. As such, the loss of dependency is computed taking the notional income of the deceased, Sri Sanath Rao at Rs.25,000/- retaining all other parameters. The loss of dependency will be in a sum - 9 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 of Rs.37,80,000/- determined in the following manner. Details for Computation of Loss of Dependency Amount [in Rs.] Monthly Income 25,000 Addition towards Future Prospects 40% 10,000 Monthly Income + Future Prospects 35,000 Annual Income 12 4,20,000 Deduction towards personal expenses 50% 2,10,000 Multiplicand [after deduction towards personal Expenses] 2,10,000 Multiplier 18 Loss of Dependency 37,80,000/- 10. It is undisputed that the appellants are entitled for a higher compensation towards loss of consortium, and that is because each of them would be entitled for a sum of Rs.40,000/-. The accident is in the year 2018 and therefore, there need not be any enhancement in this amount at the rate of 10%. This addition must be after the lapse of three years from the date of judgment of the Apex Court in National - 10 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 Insurance Company Limited Vs. Pranay Sethi and Others1 which contemplates escalation. In the light of the afore, the appellants will be entitled for enhanced compensation in a sum of Rs.21,36,300/- which is brought out by the following comparative table. Compensation Heads By the Tribunal [in Rs.] By this Court [in Rs.] Towards loss of dependency 16,63,200 37,80,000 Towards loss of consortium 44,000 Towards loss of estate 16,500 80,000 [40,000 + 40,000] Towards funeral & obsequies ceremony expenses 16,500 16,500 Towards transportation of dead body 10,000 10,000 Total 17,50,200 38,86,500 Enhanced Compensation 21,36,300 ORDER The appeal is allowed granting to the claimants a total compensation of 1 2017 16 SCC 680 - 11 - HC-KAR NC: 2025:KHC:39641-DB MFA No. 2741 of 2023 Rs.38,86,500/- with an enhancement in a sum of Rs.21,36,300/- at the rate of 6% per annum from the date of the petition till the date of deposit. [b] The respondent - Insurer is called upon to deposit Rs.21,36,300/- with interest as aforesaid within eight [8] weeks from the date of receipt of a certified copy of this Judgment. Sd/- (B M SHYAM PRASAD) JUDGE Sd/- (T.M.NADAF) JUDGE RB