- 1 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE RAJESH RAI K MISCELLANEOUS FIRST APPEAL NO.7554 OF 2022(MV-D) BETWEEN: 1. MRS BABY W/O LATE CHANDRASHEKAR AGED ABOUT 38 YEARS 2. KUM. PALLAVI D/O LATE CHANDRASHEKAR AGED ABOUT 20 YEARS 3. MASTER MANVITH S/O LATE CHANDRASHEKAR AGED ABOUT 12 YEARS SINCE MINOR REP. BY NATURAL GUARDIAN AND MOTHER APPELLANT NO.1 MRS. BABY ALL ARE R/AT 4-60-7 DEVAPPA COMPOUND KOPPALAKADU HOUSE YEYYADI KONCHADY MANGALURU TALUK D.K DISTRICT-575 012. 4. MRS. MUTHAMMA W/O ALTE KUNCHANNA DASAYYA AGED ABOUT 62 YEARS R/AT 1-5, GANESH KODI HOUSE VEERAKAMBA, BANTWAL TALUK DK. DISTRICT -574 219 …APPELLANTS (BY SRI. RAVISHANKAR SHASTRY G., ADVOCATE) Digitally signed by DHANALAKSHMI MURTHY Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 AND: 1. MR HARISH SHETTY S/O SUDHARAM SHETTY ADULT R/AT YETTAGAURU POST AND VILLAGE KANDAVARA, MANGALURU TALUK D.K DISTRICT-575 001. 2. NATIONAL INSURANCE COMPANY LTD FIRST FLOOR NITYANANDA COMPLEX NEAR BUS STAND MOODABIDRI-574 227 REP BY ITS BRANCH MANAGER. 3. MR. AITHAPPA POOJARY S/O MR. KANTHAPPA POOJARY ADULT R/AT DOOR NO. 2-10-A9 AMRUTHANAGARA VAMANJOOR, MANGALURU TALUK D.K DISTRICT-575 016. 4. UNITED INIDA INSURANCE CO. LTD MICRO OFFICE, 1ST FLOOR HILL SIDE COMPLEX, HOSANGADY MANJESHWARA-671 323 REP BY ITS DIVISIONAL MANAGER UNITED INDIA INSURANCE CO., LTD. RAMBHAVAN COMPLEX NAVABHARATH CIRCLE, KODIALBAIL MANGALURU TALUK, D.K DISTRICT-575 003. 5. MR. DERAMBLA RAJESH ADULT M/S DHANALAXMI CONSTRUCTION DOOR NO. 7-99-7, MATHRU KRIPA NEAR NAGABRAMHA SANNIDI KODIKAL, MANGALURU D.K DISTRICT -575 012. - 3 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 6. THE BRNACH MANAGER UNITED INDIA INSURANCE CO. LTD., SHREE VITTAL MAIN ROAD SURATHKAL, MANGALORE D.K DISTRICT-574 158. …RESPONDENTS (BY SRI.S.I. SANMATHI., ADVOCATE FOR R2: NOTICE TO R3 TO R6 ARE DISPENSED WITH V/O DATED:13.07.2026) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED: 06-08-2022 PASSED IN MVC NO.1120/2014 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE AND CJM, MACT, MANGALURU D.K., PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAJESH RAI K ORAL JUDGMENT 1. The appeal is filed by the claimants seeking for enhancement of compensation. 2. It is not in dispute that as a result of the motor vehicle accident which occurred on 21.05.2014, one Chandrashekar, aged about 43 years old died. 3. It is not in dispute that respondent No.2-Insurance Company is liable to pay the compensation as the offending vehicle was insured. - 4 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 4. The Tribunal, on assessment of the evidence adduced before it, has come to the conclusion that the driver of the offending vehicle was responsible for the accident which has resulted in the death of the deceased-Chandrashekar. The Tribunal has thereafter proceeded to award the following sums as compensation: Sl. No. Particulars Amount in (Rs.) 1. Loss of Dependency 18,90,000 2. Loss of Consortium 160,000 3. Loss of Estate and Funeral Expenses 30,000 4. Medical expenses 20,28,334.04 Total 41,08,334.04 Rounded off to 41,08,334 5. It is submitted by the learned counsel for the appellant that the Tribunal has erred in assessing the income of the deceased at Rs.12,000/- per month. The deceased was a Civil Contractor and was earning Rs.30,000/- per month. To substantiate the same, the claimants produced the Income Tax Returns, which are marked as Ex.P21 and Ex.P22, for the - 5 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 financial years 2011-12 and 2013-14, respectively. In the said Income Tax Returns, it is clearly stated that the deceased had earned Rs.1,72,880/- during the financial year 2011-12 and Rs.2,21,193/- during the financial year 2013-14. Despite the same, the Tribunal has taken the income of the deceased at Rs.12,000/- per month. As such, he prays for enhancement of the compensation under the head of 'loss of dependency'. 6. Learned counsel for the appellants further contended that the Tribunal has erred in awarding compensation under the heads of 'loss of consortium' and 'loss of estate'. Further, he submitted that, towards the treatment of the injuries sustained by the deceased, the claimants spent Rs.20,28,334/- in the year 2014. According to him, the claimants obtained a hand loan and thereby incurred the said medical expenditure. Under such circumstances, the Tribunal has erred in awarding interest at 6% on the said amount. As such, he prays for enhancement of the rate of interest in respect of the medical expenditure incurred by the claimants. With the above submissions, he prays to allow the appeal. - 6 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 7. Per contra, the learned counsel for respondent No.2– Insurance Company, supporting the impugned judgment and award, submitted that the Tribunal, considering the evidence and the documents placed on record, has rightly fixed the income of the deceased at Rs.12,000/- per month and has also awarded just compensation under all the heads. He further contended that the Tribunal has awarded interest at 6% on the total compensation. The same cannot be bifurcated between the compensation awarded under the head of medical expenditure and the compensation awarded under the other heads. Accordingly, he prays to dismiss the appeal. 8. I have given my anxious consideration on both the submissions by the respective parties and also perused the documents and evidence available on record. 9. On perusal of the impugned award, though the claimants have produced Ex.P21 and Ex.P22, i.e., the Income Tax Returns for the financial years 2011-12 and 2013-14, the Tribunal did not consider the same and took the income of the deceased at Rs.12,000/- per month. On careful perusal of Ex.P21 and Ex.P22, it is revealed that the deceased had an - 7 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 income of Rs.1,72,880/- for the financial year 2011-12 and Rs.2,21,193/- for the financial year 2013-14. Under such circumstances, as per the settled position of law laid down by this Court and in a catena of judgments of the Hon'ble Apex Court, the Tribunal ought to have taken the income shown in the Income Tax Returns. 10. Learned counsel for respondent No.2 also fairly submitted that the average income of the deceased for the financial years 2011-12 and 2013-14 may be considered. As such, in my considered view, the Tribunal has erred in considering the income of the deceased at Rs.12,000/- per month, and the same has to be considered at Rs.1,97,036/- per annum, i.e., the average annual income of the deceased for the financial years 2011-12 and 2013-14. 11. Since the deceased was aged about 43 years and was self-employed, 25% requires to be added to the annual income towards future prospects, which would result in the income to be Rs.2,46,295/-. 12. Since there are four dependants, it is appropriate to deduct 1/4th of the income of the deceased towards personal - 8 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 expenses and remaining 3/4th of the income has to be taken as his contribution to the family. As the deceased was aged 43 years, a multiplier of '14' would have to be applied. Consequently, the claimants would be entitled to a sum of Rs.25,86,098/- (Rs.2,46,295 X 14 X 3/4) towards “loss of dependency”. 13. The claimants being the children and mother of the deceased, they would each be entitled to a sum of Rs.48,400/- towards “loss of consortium” i.e., in all Rs.1,93,600/- and they would also be entitled to a sum of Rs.36,300/- under the “conventional heads”. 14. The compensation of Rs.20,28,334/- awarded by the Tribunal under head of ‘Medical Expenses’ remain unaltered as the same is proper and adequate. 15. Thus, the claimants, in modification of the impugned award, would be entitled to the following sums: Sl. No. Particulars Amount (In Rs.) 1. Loss of Dependency 25,86,098 - 9 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 2. Loss of Consortium 193,600 3. Conventional Heads 36,300 4. Medical expenses 20,28,334.04 Total 48,44,331.04 Rounded off to 48,44,331 16. As rightly contended by the learned counsel for the appellant, the accident occurred in the year 2014, and the injured underwent treatment immediately thereafter. The claimants incurred medical expenses of Rs.20,28,334/- towards such treatment. Having regard to the substantial amount spent towards medical expenses and the fact that the said expenditure was incurred in the year 2014, this Court is of the considered view that the claimants are entitled to interest at the rate of 8% per annum on the said amount, instead of 6% per annum as awarded by the Tribunal. However, insofar as the compensation awarded under the other heads is concerned, the Tribunal is justified in awarding interest at the rate of 6% per annum, and the same is left unaltered. Accordingly, the interest in respect of the ‘medical expenditure’ incurred by the - 10 - HC-KAR NC: 2026:KHC:35305 MFA No. 7554 of 2022 claimants, amounting to Rs.20,28,334/-, is modified and enhanced from 6% per annum to 8% per annum. 17. Thus, the claimant would be entitled for compensation of Rs.48,44,331/- as against Rs.41,08,334/- awarded by the Tribunal, along with interest from the date of petition till its realization. 18. The Insurance Company is directed to deposit the amount of compensation awarded, along with interest at the rate of 8% per annum on the sum of Rs.20,28,334/- awarded under the head of ‘Medical Expenses’ and interest at the rate of 6% per annum on the compensation awarded under the remaining heads, within a period of six weeks from the date of receipt of a certified copy of this judgment. 19. The apportionment of compensation amount shall be in terms of the award of the Tribunal. The appeal is accordingly allowed in part. Sd/- (RAJESH RAI K) JUDGE HA LIST NO.: 1 SL NO.: 6