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Judgment
MFA No. 5063/2026 is filed by the claimants of MVC No. 8947/2024 seeking enhancement of compensation awarded in the judgment and award dated 17.04.2026 passed by II Additional Judge, Court of Small Causes and MACT, Bengaluru (SCCH-13).
MFA No. 5062/2026 is filed by the claimants of MVC No. 8948/2024 seeking enhancement of compensation awarded in the judgment and award dated 17.04.2026 passed by II Additional Judge, Court of Small Causes and MACT, Bengaluru (SCCH-13).
Even though the appeals are listed today for `Admission’, they are taken up for disposal with the consent of learned counsel appearing for the parties.
MVC No. 8947/2024 was filed by parents of Jeevan praying to award compensation for his death in a road traffic accident that occurred on 19.11.2024. Claimants in MVC No. 8948/2024, the parents and brother of Adithya filed claim petition praying to award compensation for his death in a road traffic accident that occurred on 19.11.2024. In both the claim petitions they contended that the accident occurred due to the negligent driving by the driver of the lorry bearing No. KA-52-B-4798. The Tribunal recorded common evidence in both the petitions and appreciating the evidence on record assessed the compensation and awarded compensation under various heads. In MVC No. 8947/2024 the Tribunal has awarded compensation as under:
| Heads | Amount in (Rs.) | ||
|---|---|---|---|
| 1. | Loss of dependency | 24,94,800/- | |
| 2. | Loss of consortium | 88,000/- | |
| 3. | Loss of estate | 20,000/- | |
| 4. | Transportation of dead body, Funeral & obsequies Expenses | 16,500/- | |
| Total | 26,19,300/- | ||
| 5. | In MVC No. 8947/2024 awarded compensation as under: | the Tribunal has | |
| Heads | Amount in (Rs.) | ||
| 1. | Loss of dependency | 24,94,800/- | |
| 2. | Loss of consortium | 88,000/- | |
| 3. | Loss of love and affection | 10,000/- | |
| 3. | Loss of estate | 20,000/- |
| 4. | Transportation of dead body, Funeral & obsequies Expenses | 16,500/- |
| Total | 26,19,300/- | |
The Tribunal in both the claim petitions 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 deposit the award amount with interest. The claimants of both the claim petitions have filed the present appeals seeking enhancement of compensation awarded by the Tribunal.
Heard learned counsel for the appellants in both the appeals and learned counsel for respondent No.2 -insurer.
Learned counsel for appellants in MFA No. 5063/2026 (MVC No. 8947/2024) would contend that the deceased was aged 18 years as on the date of accident and he was studying in I year BA and had completed 3 months course of Computer (Finance Accounting) and he was also having Driving License to drive light motor vehicle. Considering the same, income taken by the Tribunal is on lower side and income is to be taken on higher side. He further submits that the Tribunal has not added escalation at 20% on conventional heads. With this he prayed to allow the petition.
Learned counsel for appellants in MFA No. 5062/2026 (MVC No. 8948/2024) would contend that the deceased was aged 17 years as on the date of accident and he was studying in I year BA and higher income than the notional income is to be taken. He further submitted that the Tribunal has not awarded consortium to claimant No. 3 – brother of the deceased and the Tribunal has not added 20% escalation on conventional heads. With this he prayed to allow the petition.
Learned counsel appearing for respondent No. 2 – insurer would contend that the deceased in MVC No. 8947/2024 was studying in I semester of BA and Computer course completed by him was of duration of 3 months. Even though he was having Driving License to drive light motor vehicle his occupation was not driver to take higher income than the notional income. He further contended that the deceased in MVC No. 8948/2024 was aged 17 years and he was a student of I semester BA and notional income is to be taken and the Tribunal has taken the notional income. With this he prayed to dismiss the appeals.
Having heard learned counsel for the parties, the Court has perused impugned judgment, award and other materials placed on record.
MFA No. 5063/2026 (MVC No. 8947/2024)
The accident occurred on 19.11.2024 and the deceased was aged 18 years as on the date of accident. Considering the age of the deceased and that he was a bachelor, the Tribunal has rightly added 40% towards future prospects, deducted 50% towards personal expenses of the deceased and applied multiplier `18’. Ex.P.17 and Ex.P.18 indicate that the deceased was studying in I year BA. Ex.P.18 indicate that the deceased had completed 3 months course of Computer (Finance Accounting). Ex.P.16 indicate that he was having Driving License to drive light motor vehicle. Notional income fixed for the year 2024 is Rs.17,000/-. Considering the qualification of the deceased, the income of the deceased is to be taken at Rs.20,000/-. Future prospects is to be added at 40%. In view of the above, loss of dependency is calculated as under:
20,000 + 8,000 (40%) = Rs.28,000/-28,000 – 14,000 (50%) = Rs.14,000/-14,000 X 12 X 18 = Rs.30,24,000/-
The Tribunal has added 10% escalation towards loss of consortium. Since the accident had taken place in the year 2024, after 6 years of decision in the case of National Insurance Company Vs Pranay Sethi and Others reported in AIR 2017 SC 5157, 20% escalation is to be added to loss of consortium and also to compensation under conventional heads, namely, loss of estate and funeral expenses. Therefore, claimants are entitled to consortium in a sum of Rs.96,000/- (Rs.48,000 X 2) and Rs.18,000/- each towards loss of estate and funeral expenses including transportation of dead body.
In view of the above, claimants are entitled to total compensation under various heads as under:
| Heads | Amount in (Rs.) | |||
|---|---|---|---|---|
| 1. | Loss of dependency | 30,24,000/- | ||
| 2. | Loss of consortium | 96,000/- | ||
| 3. | Loss of estate | 18,000/- | ||
| 4. | Transportation of dead body, Funeral & obsequies | 18,000/- | ||
| Expenses | ||
| Total | 31,56,000/- | |
Considering the above aspects, the claimants are entitled to total compensation of Rs.31,56,000/- as against Rs.26,19,300/- awarded by the Tribunal with interest at the rate of 6% per annum from the date of petition till the date of realization. Consequently, the claimants are entitled to enhanced compensation of Rs.5,36,700/- 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 said enhanced compensation with interest.
MFA No. 5062/2026 (MVC No. 8948/2024)
The accident occurred on 19.11.2024 and the deceased was aged 17 years as on the date of accident. Ex.P.29 indicate that the deceased was studying in I year BA. Since the deceased was pursuing his education his income is to be taken higher than the notional income. Notional income fixed for the year 2024 is Rs.17,000/-. Therefore, income of the deceased is to be taken at Rs.18,000/-. The Tribunal has rightly added 40% towards future prospects, deducted 50% towards personal expenses of the deceased and applied multiplier `18’. In view of the above, loss of dependency is calculated as under:
18,000 + 7,200 (40%) = Rs.25,200/-25,200 – 12,600 (50%) = Rs.12,600/-12,600 X 12 X 18 = Rs.27,21,600/-
The Tribunal has awarded consortium only to claimant Nos. 1 and 2. Claimant No. 3 is the brother of the deceased and he is also entitled to consortium. The Tribunal has only added 10% escalation towards loss of consortium. Since the accident had taken place in the year 2024, after 6 years of decision in the case of National Insurance Company Vs Pranay Sethi and Others reported in AIR 2017 SC 5157, 20% escalation is to be added to loss of consortium and also to compensation under conventional heads, namely, loss of estate and funeral expenses. Therefore, claimants are entitled to consortium in a sum of Rs.1,44,000/- (Rs.48,000 X 3). Claimants are also entitled to loss of estate in a sum of Rs.18,000/- and funeral expenses and transportation of dead body in a sum of Rs.18,000/-. In view of awarding of consortium, claimants are not entitled to loss of love and affection awarded by the Tribunal in a sum of Rs.10,000/-.
In view of the above, claimants are entitled to total compensation under various heads as under:
| Sl.No. | Heads | Amount in (Rs.) | |
|---|---|---|---|
| 1. | Loss of dependency | 27,21,600/- | |
| 2. | Loss of consortium | 1,44,000/- | |
| 3. | Loss of estate | 18,000/- | |
| 4. | Transportation of dead body, Funeral & obsequies Expenses | 18,000/- | |
| Total | 29,01,600/- | ||
Considering the above aspects, the claimants are entitled to total compensation of Rs.29,01,600/- as against Rs.26,29,300/- awarded by the Tribunal with interest at the rate of 6% per annum from the date of petition till the date of realization. Consequently, the claimants are entitled to enhanced compensation of Rs.2,72,300/- 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 said enhanced compensation with interest.
In view of the above, the following:
ORDER
Both the appeals are allowed in part.
ii) Appellants in MFA No. 5063/2026 (MVC No. 8947/2024) are entitled to enhanced compensation of Rs.5,36,700/- with interest at the rate of 6% per annum from the date of petition till the date of realization.
iii) Appellants in MFA No. 5062/2026 (MVC No. 8948/2024) are entitled to enhanced compensation of Rs.2,72,300/- with interest at the rate of 6% per annum from the date of petition till the date of realization.
iv) Respondent No.2 -insurer shall deposit the enhanced compensation with interest before the Tribunal within a period of six weeks from this day.
Appellants – claimants are entitled to release of entire enhanced compensation in the ratio as determined by the Tribunal.
Learned counsel for respondent No. 2 – insurer is permitted to file vakalath within 10 days.