- 1 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JANUARY, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO.7369 OF 2024 (MV-D) BETWEEN: 1. THE MANAGER RELIANCE GENERAL INSURANCE COMPANY LIMITED,N.R.CIRCLE, KRUTHIKA ARCADE,HASSAN - 573 201. RELIANCE GENERAL INSURANCE COMPANY LIMITED, NO.28, 5TH FLOOR, EAST WING, CENTENARY BUILDING, M.G.ROAD, BENGALURU - 560001. REPRESENTED BY MANAGER LEGAL …APPELLANT (BY SRI. ASHOK N PATIL, ADVOCATE) AND: 1. REETHA W/O DEVARAJA, AGED ABOUT 42 YEARS 2. DEVARAJA S/O KEMPEGOWDA, AGED ABOUT 47 YEARS 3. SAHANA D D/O DEVARAJA, AGED ABOUT 21 YEARS ALL ARE RESIDENT OF ALADAHALLI VILLAGE, BAGIVALU POST, GANDASI HOBLI, ARASIKERE TALUK HASSAN DISTRICT-573 164. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 PRESENTLY RESIDENT AT PUTTEGOWDA, S/O. LATE RAMEGOWDA, SATHAMANGALA VILLAGE,KASABA HOBLI, HASSAN DISTRICT-573 115. 4. THE HEAD MISTRESS, H.K.S. INTERNATIONAL SCHOOL, BANGALORE-MANGALORE ROAD, KENCHATAHALLI, B.M.ROAD, HASSAN - 573 201. …RESPONDENTS (BY SRI. GIRISH B BALADARE,ADVOCATE FOR R1 TO R3; V/O/D 19.11.2024, NOTICE TO R4 IS D/W) THIS MFA IS FILED U/S. 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DT.19.09.2024 PASSED IN MVC NO.1492/2022 ON THE FILE OF THE II ADDITIONAL DISTRICT AND SESSIONS JUDGE AND MACT, HASSAN, AWARDING COMPENSATION OF RS.27,97,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF FILING OF THE PETITION TILL THE DATE OF DEPOSIT. THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA ORAL JUDGMENT This appeal is filed by the appellant/insurance company under Section 173(1) of Motor Vehicles Act, 1988 challenging the judgment and award dated 19.09.2024 passed in MVC No.1492/2022, by the Court of - 3 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 the II Addl. District and Sessions Judge & MACT, Hassan, for reducing the compensation. 2. Heard the arguments of learned counsel for appellant/insurance company and learned counsel for the respondents. 3. Brief facts of the case are that, Sri.D Sagar, met with an accident on 25.06.2022. His parents and sister filed claim application claiming compensation of Rs.50,00,000/-. The Tribunal considering the entire evidence on record granted Rs.27,97,000/- with interest at the rate of 6% p.a. from the date of petition till the date of realisation. Aggrieved by the said order, the appellant-insurance company has preferred this appeal and mainly contended that the Tribunal has erred in awarding sum of Rs.27,20,000/- towards 'loss of dependency' by relying on the wage slips of the deceased for the month of May and June, 2022. The salary of the deceased for the month of May, 2022 is Rs.17,990/- and Rs.12,850/- for the month of June, 2022 as per Exs.P13 - 4 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 and P.14 respectively. However, the said wage slips are not established by examining the employer, in view of the same, the Tribunal ought to have adopted the notional income for the purpose of calculation of 'loss of dependency' and the claimants have not produced the appointment letter of the deceased. 4. Further, the Tribunal has erred in not deducting the income tax and professional tax while calculating 'loss of dependency' and awarded higher compensation under the said head. 5. The Tribunal even assuming that the wage slips were to be taken into account for awarding loss of dependency, the overtime (O.T) payment were to be deducted and the average salary ought to have been adopted for award of loss of dependency as the basic salary and O.T. were vary month to month. As such, the same has to be reduced. 6. Lastly, it is contended that the Tribunal has erred in granting award under the head 'future prospects'. - 5 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 On all these grounds, the appellant-insurance company prays for reduction of compensation. 7. It is contended that the deceased Sagar was working as operator in Suraksha Security Services, Hassan and he was also doing agriculture work and earning Rs.50,000/- per month. Ex.P10 is the bank statement of the deceased Sagar, Ex.P11 is the RTC extract, Ex.P12 is the identity card of the deceased Sagar and Exs.P13 and P14 are the wage slips for the month of May and June, 2022 respectively. 8. On perusal of Exs.P13 and P14 which are the wage slips of the deceased Sagar, it is noticed that salary for the month of May is Rs.17,990/- per month and salary for the month of June is Rs.12,850/- which is partial salary since Sagar died on 25.06.2022. 9. Further, on perusal of Ex.P11.5- RTC extracts, it discloses that they do not stand in the name of deceased Sagar, but it stands in the name of his father. Hence, the - 6 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 Tribunal has also not considered the agricultural income of the deceased. 10. Learned counsel for the appellant relied upon the Notification dated 20.07.2021 issued by the Government of Karnataka in respect of amendment to the earlier Notification dated 02.01.2021 wherein it is substituted as 'No employee in any establishment shall be required or allowed to work for more than nine hours on any day and forty eight hours in any week' provided that, the total number of hours of work including over time shall not exceed ten hours in any day except on the day of stock-taking and preparation of accounts. He further contended that the Tribunal has erred in considering the overtime period while calculating 'loss of dependency'. It is the bounden duty on the part of the employer to adhere to the terms and conditions notified in the aforesaid Notification but unfortunately, the employer failed to do so. Therefore, this Court finds it reasonable to deduct the overtime payment from the income of the deceased which - 7 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 comes to Rs.17,790/- (Rs.17,990/- -200/-). The age of the deceased is 20 years and the appropriate multiplier to be adopted is '18' and 40% to be added towards future prospects as per the dictum of the Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi1 (i.e. Rs.17,790/- +40/100= Rs.24,906/-). Since the deceased was a bachelor, 50% of the income has to be deducted towards personal expenses. Accordingly, loss of dependency comes to Rs.26,89,848/- (Rs.24,906/-x12x18-50%). However, the Tribunal has granted reasonable compensation of Rs.27,20,000/- towards 'loss of dependency'. As such, this Court finds no reason to interfere with the said amount. 11. Petitioner Nos.1 and 2 being the parents of deceased are entitled to Rs.44,000/- each under the head 'loss of consortium' that comes to Rs.88,000/- under the head 'fillial' consortium'. Apart from that, the appellants are also entitled for Rs.36,000/- towards 1 (2017) 16 SCC 680 - 8 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 'conventional heads' as per the decision rendered by the Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi & Other. Accordingly, the respondents/claimants are entitled for compensation and the appeal is liable to be dismissed and the impugned judgment and award passed by the Tribunal has to be confirmed. 12. Thus in all, components awarded by this Court are as below: 13. Compensation is enhanced from Rs.27,97,000/- to Rs.28,44,000/- and the enhanced compensation is Rs.47,000/-, which carries interest at the rate of 6% per annum. Particulars Amount in Rs. Loss of dependency 27,20,000.00 Loss of parental consortium 88,000.00 Conventional heads 36,000.00 Total 28,44,000.00 - 9 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 14. Further, the appellant/insurance company contended that the amount has already been deposited. As such, the appellant/insurance company is directed to deposit the enhanced amount of compensation with interest at the rate of 6% per annum from the date of deposit till realization. 15. In the result, the following order is passed: ORDER i. The appeal is dismissed. ii. The judgment and award dated 19.09.2024 passed in MVC No.1492/2022, by the Court of II Addl. District & Sessions Judge & MACT, Hassan, is confirmed insofar as to the extent of compensation awarded under the head 'loss of dependency'. iii. Appellant/insurance company is directed to deposit the enhanced compensation of Rs.47,000/- with interest at the rate of 6% per annum within one month from the date of this order on such deposit and - 10 - HC-KAR NC: 2026:KHC:5067 MFA No. 7369 of 2024 iv. Respondent Nos.1 and 2 being the parents of the deceased are permitted to withdraw the entire enhanced compensation with interest accrued on it, equally. v. The amount in deposit shall be transmitted to the Tribunal. vi. Draw award accordingly. Sd/- (P SREE SUDHA) JUDGE SSD List No.: 1 Sl No.: 10