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Judgment
This appeal is filed by the appellants/claimants seeking enhancement of compensation awarded in judgment and award dated 16.08.2025 passed in MVC No.2053/2024 by the II Additional Judge, Court of Small Causes and Member, MACT, Bengaluru (SCCH-13).
The appellants made a claim petition praying to award compensation for the death of Praveen Rayanagouda Hosagoudar in a road traffic accident occurred on 03.02.2024 contending that the accident occurred due to rash and negligent driving of the driver of car bearing Regn.No.KA-01-MG-4047. The Tribunal after recording the evidence of the parties, appreciating the evidence assessed the compensation and awarded compensation under various heads as under:
| Sl.No. | Heads | Amount in (Rs.) |
|---|---|---|
| 01. | Loss of dependency | 23,56,200/- |
| 02. | Loss of consortium | 88,000/- |
| 03. | Loss to estate | 20,000/- |
| 04. | Transportation of dead body, funeral and obsequies expenses | 16,500/- |
| Total | 24,80,700/- |
The Tribunal also awarded interest @ 6% p.a. from the date of petition till realization and directed respondent No.1/insurer to deposit the award amount with interest. The claimants seeking enhancement of compensation have filed the present appeal.
Heard learned counsel for the appellants and learned counsel for respondent No.1/insurer.
The accident occurred on 03.02.2024 and as on the date of accident, the claimant was aged 27 years. Considering the said age of the claimant, the Tribunal has rightly applied multiplier '17'.
The deceased had appeared for 4th semester of ITI "Fitter" of two years course and in that regard Ex.P14 -study certificate and Ex.P15, copy of marks card of all the four semesters are produced. Considering the said aspect, deceased had completed ITI course. Since the deceased has completed ITI course his income has to be taken higher than the notional income fixed for the year 2024. The notional income fixed for the year 2024 is Rs.17,000/-p.m. therefore the notional income of the deceased is taken at Rs.18,000/- p.m. The Tribunal has rightly added 40% future prospects and deducted 50% towards personal expenses of the deceased since he was bachelor. In view of the same, the loss of dependency is calculated as under: Rs.18,000 + 40% = 25,200 - 1/2 = Rs.12,600/-Rs.12,600 x 12 x 17 = 25,70,400/-
The Tribunal even though awarded compensation under conventional heads taking escalation at 10% but the Tribunal ought to have taken escalation at 20% since the accident occurred after six years of decision of the Hon'ble Apex Court in the case of National Insurance Co. Ltd vs Pranay Sethi (AIR 2017 SC 5157). Therefore, 20% escalation has to be added under conventional heads. The claimants being the parents of the deceased are entitled to consortium in a sum of Rs.96,000/- (Rs.48,000 x 2), Rs.18,000/- towards loss of consortium and Rs.18,000/-towards funeral expenses and transportation of dead body.
In view of the above, the claimants are entitled to compensation under various heads as under:
| Sl.No. | Heads | Amount in (Rs.) |
|---|---|---|
| 01. | Loss of dependency | 25,70,400/- |
| 02. | Loss of consortium | 96,000/- |
| 03. | Loss of estate | 18,000/- |
| 04. | Funeral expenses and transportation of dead body | 18,000/- |
| Total | 27,02,400/- |
Considering the above aspects, the claimants are entitled to total compensation of Rs.27,02,400/- as against Rs.24,80,700/- awarded by the Tribunal with interest. Consequently, the claimants are entitled to enhanced compensation of Rs.2,21,700/- with interest @ 6% p.a. from the date of petition till realization. The claimants are not entitled to interest for the delay of 281 days in filing the appeal as per order dated 29.10.2026 passed on I.A.1/2026. Respondent No.1/insurer is liable to pay the said enhanced compensation with interest.
In view of the above, the following:
ORDER
The appeal is allowed in part.
ii) The appellants/claimants are entitled to enhanced compensation of Rs.2,21,700/-with interest @ 6% p.a. from the date of petition till realization.
iii) Respondent No.1/insurer shall deposit the enhanced compensation with interest before the Tribunal within a period of six weeks from this day.
iv) The appellants/claimants are not entitled to interest for the delay period of 281 days in filing the appeal.
The appellants/claimants are entitled to release of entire enhanced compensation in the ratio of 50:50.