- 1 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR MISCELLANEOUS FIRST APPEAL NO. 3992 OF 2023 (MV-D) BETWEEN: 1. KESHAV MESTHA S/O MANJUNATHA MESTHA AGED ABOUT 59 YEARS. 2. SMT. ASHA W/O KESHAVA MESTHA AGED ABOUT 49 YEARS BOTH ARE RESIDING AT No.47/4 MADDUGUDDE ROAD KUNDAPURA TALUK. …APPELLANTS (BY SRI NAGARAJA HEGDE, ADVOCATE) AND: 1. SMT. SHYAMALA W/O LATE KORAGAPPA NAIK AGED ABOUT 44 YEARS R/AT SHRI RAKSHA, KUTWAL COMPOUND, NEAR KUNDESHWARA TEMPLE, KUNDAPURA KASABA VILLAGE KUNDAPURA TALUK. 2. NATIONAL INSURANCE CO. LTD., BRANCH OFFICE SRI SAI COMPLEX Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 Y.M. SHETTY ROAD KUNDAPURA REP. BY ITS BRANCH MANAGER. …RESPONDENTS (BY SMT. GEETHA RAJ, ADVOCATE FOR R2 R1-SERVED-UNREPRESENTED) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 21.01.2023 PASSED IN MVC No.458/2021 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MACT, KUNDAPURA, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR ORAL JUDGMENT 1. This appeal is filed by the claimants seeking enhancement of compensation awarded in the judgment and award dated 21.01.2023 passed in MVC No. 458/2021 by Senior Civil Judge and Additional MACT, Kundapura. 2. The appellants - claimants have made a claim petition seeking award of compensation for the death of their son Kiran Mestha in a road traffic accident which occurred on 08.02.2021 contending that the accident occurred due to the rash and negligent driving by the - 3 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 driver of the car bearing registration No. KA-19-MC-4623. The Tribunal, after recording evidence, appreciating the evidence assessed the compensation and awarded compensation under different heads as under: 1 Towards loss of dependency (27,500+40%- 1/2 = 19,250*12*18) Rs.41,58,000.00 2 Loss of filial consortium to petitioner No. 2 Rs.44,000.00 3 Towards loss of estate Rs.16,500.00 4 Towards funeral, obsequies expenses and transportation of dead body Rs.16,500.00 Total Rs.42,35,000.00 3. The Tribunal has also awarded interest at the rate of 6% per annum from the date of petition till the date of realization and directed respondent No. 2 - insurer to pay the compensation amount with interest to the claimants. Claimants, seeking enhancement of the compensation awarded have filed the present appeal. - 4 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 4. Heard learned counsel for appellants and learned counsel for respondent No. 2 - insurer. 5. Learned counsel for appellants would contend that the deceased was aged about 25 years as on the date of accident. Claimants are his parents. The deceased was appointed as a Business Executive in INTAS Pharmaceuticals Limited on 02.03.2020 and he was getting salary of Rs.32,000/- per month. The amount of salary was being credited every month to the Bank account of the deceased. The Bank account statement of the deceased - Ex.P.11 indicates that his salary credited on 30.01.2021 was Rs.22,266/- + Rs.10,041/-. Considering the same, he was getting salary of Rs.32,307/- and the Tribunal has erred in taking his salary at Rs.27,500/-. The deceased was permanently employed with INTAS Pharmaceuticals Limited and therefore future prospects are to be taken at 50% and the Tribunal has erred in taking at 40%. Claimants are father and mother of the deceased and they are entitled to consortium in a - 5 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 sum of Rs.44,000/- each and the Tribunal has awarded only Rs.44,000/-. With this, he prayed to allow the petition. 6. Learned counsel for respondent No. 2 would contend that other conditions of service mentioned in Ex.P.12 - letter of appointment of the deceased indicate that he will not be given any advance for his travelling and other expenses and expenses incurred every month will be reimbursed by Bank transfer on receipt of statement of expenses on monthly basis. Therefore, the credit of Rs.10,041/- on 30.01.2021 is towards expenses incurred by the deceased in travelling and that cannot be considered as part of salary. The Tribunal has rightly considered that the income of the deceased at Rs.27,500/-. The company in which the deceased was employed is a limited company and it cannot be said that he was a permanent employee. Therefore, the Tribunal has rightly taken the future prospects at 40%. She further - 6 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 submits that the author of Ex.P.12 has not been examined. With this she prayed to dismiss the appeal. 7. Having heard learned counsel for the parties, this Court has perused the impugned judgment, award and trial Court records. 8. The deceased was working as Business Executive in INTAS Pharmaceuticals Limited and letter of appointment is at Ex.P.11 and it is dated 02.03.2020. The accident occurred on 08.02.2021. The deceased served in the said company for a period of 11 months. As per Ex.P.12 – appointment letter, yearly salary of the deceased was Rs.3,30,000/- and considering the same his monthly salary would be around Rs.27,500/-. The Bank account statement of the deceased which is at Ex.P.11 indicate credit of his salary and expenses every month. The entry pointed out by learned counsel for appellant dated 30.01.2021 contains two entries; one for credit of expenses of Rs.10,041/- and another for salary of Rs.22,266/-. On perusal of conditions of service contained - 7 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 in Ex.P.12 - letter of appointment, the deceased was entitled to reimbursement of the travelling expenses incurred by him which will be credited to his Bank account. Considering the said aspect, the amount credited in a sum of Rs.10,041/- on 30.01.2021 is towards expenses as mentioned in the Bank statement itself and it cannot be considered to be part of the salary. Said amount credited to the account of the deceased is towards reimbursement of his travel and other expenses which has been reimbursed by the Company. Considering the said aspect, the Tribunal has rightly taken that the monthly income of the deceased at Rs.27,500/-. 9. The deceased was employed as a Business Executive in INTAS Pharmaceuticals Limited and it is a limited company. It cannot be said that the deceased was a permanent employee of the said Company entitling future prospects at 50%. Considering the same, the Tribunal has rightly taken future prospects at 40%. - 8 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 10. Claimants are father and mother of the deceased. Therefore both are entitled to consortium in a sum of Rs.40,000/- with 10% escalation i.e. Rs.44,000/- each. The Tribunal has awarded consortium only in a sum of Rs.44,000/- only to claimant No. 2. Therefore, claimant No. 1 is also entitled to consortium in a sum of Rs.44,000/- which has not been awarded by the Tribunal. 11. The Tribunal has also rightly awarded loss of estate, funeral expenses and transportation of dead body. 12. Considering the above aspects, claimants are entitled to enhanced compensation of Rs.44,000/- with interest at the rate of 6% per annum from the date of petition till the date of realization. Respondent No. 2 - insurer is liable to pay the enhanced compensation with interest. 13. In view of the above, the following O R D E R i) The appeal is allowed in part. - 9 - HC-KAR NC: 2026:KHC:31832 MFA No. 3992 of 2023 ii) The appellants - claimants are entitled to enhanced compensation of Rs.44,000/- with interest at the rate of 6% per annum from the date of petition till the date of realization. iii) Respondent No. 2 - insurer shall deposit the said enhanced compensation with interest before the Tribunal within a period of six weeks from this day, failing which it is liable to pay interest at the rate of 9% per annum from this day till the date of payment. iv) Claimants are entitled to release of entire enhanced compensation amount with interest. Sd/- (SHIVASHANKAR AMARANNAVAR) JUDGE LRS List No.: 1 Sl No.: 37