- 1 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF AUGUST, 2026 PRESENT THE HON'BLE MR. JUSTICE R DEVDAS AND THE HON'BLE DR. JUSTICE K.MANMADHA RAO MISCELLANEOUS FIRST APPEAL NO. 5123 OF 2024 (MV-D) C/W MFA CROSS OBJECTION NO. 62 OF 2024 (MV-D) IN MFA No. 5123/2024 BETWEEN: ROYAL SUNDARAM GENERAL INSURANCE CO. LTD. REGIONAL OFFICE, NO.30 3RD FLOOR, JNR CITY CENTRE RAJARAM MOHAN ROY ROAD OPPOSITE TO KANTEERAVA STADIUM SAMPANGIRAMA NAGAR BANGALORE - 560 027 REPRESENTED BY ITS MANAGER-LEGAL. …APPELLANT (BY SRI RAVI SHANKAR S. SAMPRATHI, ADVOCATE) AND: 1. SRI N. RAMACHANDRAPPA S/O. LATE NARAYANAPPA AGED ABOUT 57 YEARS 2. SMT. ANUSUYAMMA W/O. RAMACHANDRAPPA Digitally signed by G SHREERAKSHA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 AGED ABOUT 45 YEARS BOTH ARE RESIDING AT WARD NO.9, NARASIMHA NILAYAM 3RD CROSS, MUNIVENKATAPPA LAYOUT ANEKAL TOWN BENGALURU DISTRICT – 562 106. 3. SRI B. NAGENDRA S/O BORALINGAIAH MAJOR IN AGE, NO.152 5TH CROSS, 29TH MAIN 1ST SECTOR, HSR LAYOUT BENGALURU – 560 102. …RESPONDENTS (BY SRI MADHU K.T., ADVOCATE FOR R1 & R2; SRI SHIVASHANKAR S.K., ADVOCATE FOR R3) THIS MFA IS FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 12.06.2024 PASSED IN MVC NO.2815/2021 ON THE FILE OF THE VII ADDITIONAL SMALL CAUSE JUDGE AND ACMM, MEMBER, MACT-3, BENGALURU, AWARDING COMPENSATION OF RS.61,72,000/- WITH INTEREST AT 9 PERCENT P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION. IN MFA.CROB NO. 62/2024 BETWEEN: 1. SRI N. RAMACHANDRAPPA S/O LATE NARAYANAPPA AGED ABOUT 57 YEARS. 2. SMT. ANUSUYAMMA W/O RAMACHANDRAPPA AGED ABOUT 45 YEARS BOTH ARE RESIDING AT WARD NO.9, 3RD CROSS ROAD - 3 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 NARASIMHA NILAYA ANEKAL TOWN MUNIVENKATAPPA LAYOUT BANGALORE RURAL DISTRICT - 562 106. ...CROSS OBJECTORS (BY SRI MADHU K.T., ADVOCATE) AND: 1. MR. B. NAGENDRA S/O BORELINGAIAH NO.152, 5TH CROSS ROAD 29TH MAIN ROAD, 1ST SECTOR HSR LAYOUT, BANGALORE - 560 102. 2. ROYAL SUNDARAM GENERAL INSURANCE CO. LTD. REGIONAL OFFICE NO.30 3RD FLOOR, JNR CITY CENTRE RAJARAM-MOHANROY ROAD OFF RICHMOND ROAD OPP., TO KANTEERVA STADIUM SAMPANGIRAMANAGAR BANGALORE - 27 (REPRESENTED BY ITS MANAGER) ...RESPONDENTS (BY SRI RAVISHANKAR S. SAMPRATHI, ADVOCATE FOR R2; V/O DATED 18.08.2026 NOTICE TO R1 D/W) THIS MFA CROB IS FILED U/O.41 RULE 22 R/W SEC.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DT.12.06.2024 PASSED IN MVC NO.2815/2021 ON THE FILE OF THE VII ADDITIONAL SMALL CAUSE JUDGE AND ACMM, MEMBER, MACT-3, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE MFA AND MFA.CROB, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 CORAM: HON'BLE MR. JUSTICE R DEVDAS and HON'BLE DR. JUSTICE K.MANMADHA RAO ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE R DEVDAS) MFA No.5123/2024 is filed by the Royal Sundaram General Insurance Company Limited assailing the impugned judgment and award in MVC No.2815/2021 passed by the Motor Accident Claims Tribunal - 3, Bengaluru dated 12.06.2024. Cross appeal have been filed by the claimants in MFA cross objection No.62/2024 seeking enhancement of compensation. 2. The Insurance company is aggrieved of the fact that the Tribunal has arrived at a conclusion that since the deceased was a second year medical student, notional income at the rate of Rs.40,000/- per month should be taken for consideration. This, according to the appellant - Insurance Company is unjust and unreasonable, since admittedly the deceased was only a student and it cannot - 5 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 be concluded that the deceased was earning Rs.40,000/- per month as a student. Further, it is contented that the Tribunal has granted interest at the rate of 9% per annum, although the claim petition was filed in the year 2021 and a decision was made by the Tribunal by June 2024. 3. Per contra, the claimants, in their cross appeal have contended that even before a decision was rendered by the Tribunal in the month of June 2024, the Hon'ble Supreme Court had decided a similar case of a medical student on 04.08.2023 in the case of Bishnupriya Panda Vs. Basanti Manjari Mohanty and Another reported in 2023 ACJ 2393. Learned counsel submitted that in the said case, the accident occurred during July 2013 and the Tribunal took note of the fact that the deceased was a 4th year MBBS student aged about 21 years at the time of the accident and accordingly, took the notional income at Rs.50,000/- per month and therefore this Court is required to enhance the notional income, which was taken at - 6 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 Rs.50,000/- in the year 2013 and justly arrive at the notional income of the deceased medical student who died in the year 2021. Learned counsel would submit that the notional income as per the chart prepared by this Court for the year 2013 is Rs.8,000/- and in the year 2021, it is Rs.15,000/-. Therefore, the notional income is almost doubled between the year 2013 and 2021. 4. Having regard to the narrow compass within which the issue brought before this Court falls and having regard to the decision of the Hon'ble Supreme Court in the case of Bishnupriya Panda, this Court is required to consider the contention of the claimants/appellants in cross-objection. There is substance in the submission made by the learned counsel for the claimants that the notional income as per the chart prepared by this Court almost doubles the income when compared to 2013 and 2021. In addition, we also take note of the fact that the appellants herein being the parents of the deceased - 7 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 medical student, had borrowed a sum of Rs.25,00,000/- and Rs.19,56,000/- for the medical education of the deceased. In that regard, Ex.P.16 to Ex.P.45 have been marked before the Tribunal and it was contended by the claimants that the claimants have borrowed more than Rs.40,00,000/- from the Bank of Baroda for the medical education of the deceased and the same has to be repaid by the claimants to the bank. We also take note of the fact that the Tribunal has given due consideration to this aspect of the matter in paragraph No.26 of the impugned judgment and has held that under the provisions of the Motor Vehicles Act, compensation cannot be awarded for the purpose of repaying the educational loan borrowed by the claimants. Nevertheless, these aspects of the matter have to be given weightage while considering the claim or the appeal filed by the claimants seeking enhancement of the compensation. Escalation of the notional income would also depend on these aspects of the matter, although no compensation can be awarded on a different heading for - 8 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 the purpose of repaying the loan. In that view of the matter, we are of the considered opinion that the notional income in the present facts and circumstances of the case where the deceased was a second year medical student aged about 22 years during the year 2021 when the accident occurred, the notional income should be Rs.80,000/- per month in respect of the deceased medical student. All other things be equal, we proceed to work out the 'loss of future income', as follows: (Rs.80,000/- + Rs.32,000/- (40%) towards 'future prospects' = Rs.1,12,000/-) 5. Since the deceased was a bachelor, the Tribunal has rightly deducted 50% of the income towards the personal expenses of the deceased. Applying the same principle and deducting 50% from Rs.1,12,000/-, the monthly income of the deceased would be Rs.56,000/-. The calculation therefore would be Rs.56,000/- X 12 X '18' = Rs.1,20,96,000/-. - 9 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 6. The decision of the Tribunal insofar as 'loss of consortium' is Rs.88,000; 'loss of estate' of Rs.18,000/- and 'funeral expenses and transportation expenses' Rs.18,000/- is just and proper. However, awarding interest at the rate of 9% per annum cannot be appropriate, having regard to the time spent by the claimants before the Tribunal and before this Court. We therefore reduce the rate of interest to 6% per annum. 7. The claimants are therefore, entitled to the compensation under the following heads: SL. No. Heads Compensation Awarded by Tribunal Compensation Awarded by this Court 1. Loss of Dependency : Rs. 60,48,000/- 1,20,96,000/- 2. Loss of consortium : Rs. 88,000/- 88,000/- 3. Loss of estate : Rs. 18,000/- 18,000/- 4. Funeral expenses and transportation of dead body : Rs. 18,000/- 18,000/- TOTAL Rs. 61,72,000/- Rs.1,22,20,000/- Enhancement Rs. 60,48,000/- - 10 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 8. For the aforementioned reasons, this Court proceeds to pass the following: i) Both the appeals are allowed partly. The appeal filed by the Insurance Company succeeds in the matter of payment of interest. ii) The cross-appeal filed by the claimants succeeds partly insofar as the calculation of loss of income and dependency. The compensation awarded by the Tribunal at the rate of Rs.61,72,000/- stands enhanced to Rs.1,22,20,000/-. iii) Other directions/orders issued by the Tribunal insofar as apportionment and the release of amount is concerned, shall remain as ordered by the Tribunal. - 11 - HC-KAR CNR: KAHC010432172024 NC: 2026:KHC:44484-DB MFA No. 5123 of 2024 C/W MFA.CROB No. 62 of 2024 iv) The amount deposited by the Insurance Company before this Court is directed to be transferred to the Tribunal forthwith along with Trial Court records. Ordered accordingly. Sd/- (R DEVDAS) JUDGE Sd/- (DR.K.MANMADHA RAO) JUDGE GSR List No.: 1 Sl No.: 44