Kannan. N Vs the Managing Director — Karnataka HC (2025) — LawSathi Research

Kannan. N Vs the Managing Director — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Compensation enhanced from Rs.45,000/- (Tribunal award) to Rs.3,71,800/- (loss of dependency Rs.2,87,100/-; loss of consortium Rs.48,400/-; conventional heads Rs.36,300/-), with interest at the rate of 6% per annum from the date of petition till realization; Insurance Company directed to deposit the awarded amount within two months from receipt of a certified copy of the judgment; appeal of the claimant allowed in part.

Issue for consideration

Whether the compensation awarded by the Tribunal under different heads was meager/inadequate and required enhancement, particularly having regard to the proper assessment of the income of the deceased (a retired railway employee drawing pension of Rs.9,570/- p.m., alleged by the claimant to earn Rs.30,000/- p.m. in all from real estate business).

Court's answer

The accident in question and the liability are not in dispute; the deceased, a retired railway employee aged 73 years at the time of the accident and drawing pension of Rs.9,570/- per month, yields loss of dependency of Rs.2,87,100/- computed as (Rs.9,570 x 50% x 12 x 5).

Ratio / Principle

The claimant, being the son of the deceased, is entitled to Rs.48,400/- towards loss of consortium and Rs.36,300/- under conventional heads, as per National Insurance Company Limited v. Pranay Sethi & Others, (2017) 16 SCC 680.

Key takeaways

The Insurance Company is directed to deposit the amount of compensation awarded within a period of two months from the date of receipt of a certified copy of the judgment.ratio¶¶52

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru, MFA No.5630 of 2021 (MV-D), decided 16.10.2025 (judgment by Rajesh Rai K, J.; coram D K Singh and Rajesh Rai K, JJ.) — enhancement of motor-accident compensation under S.173(1) MV Act against the award dated 31.08.2020 in MVC No.1530/2018 (II Additional District Judge and MACT, Mysuru), which had awarded only Rs.45,000/- for the death of K.R. Nagaraju, a 73-year-old retired railway employee drawing a pension of Rs.9,570/- p.m. (accident dated 20.08.2018; accident and liability not in dispute). The Court recomputed the award: loss of dependency Rs.2,87,100/- (Rs.9,570 x 50% x 12 x 5); loss of consortium Rs.48,400/- and conventional heads Rs.36,300/- as per National Insurance Company Limited v. Pranay Sethi & Others, (2017) 16 SCC 680; total Rs.3,71,800/- with interest at 6% per annum from the date of petition till realization, the insurer to deposit within two months of receipt of a certified copy. Appeal allowed in part. Four decisions (Jitendra Kumar; Deep Sikhs; Vinish Jain; Yogesh Jain) were pressed by counsel for the insurer but were not engaged with by the Court.

1

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 16^TH DAY OF OCTOBER, 2025

PRESENT

THE HON'BLE MR JUSTICE D K SINGH

AND

THE HON'BLE MR JUSTICE RAJESH RAI K

MISCELLANEOUS FIRST APPEAL NO.5630 OF 2021(MV-D)

BETWEEN

1 . KANNAN. N

S/O. K. R. NAGARAJU, AGED ABOUT 50 YEARS,

2 . ISHWARYA D/O. N. KANNAN, AGED ABOUT 17 YEARS,

APPELLANT NO.2 IS A MINOR, REPRESENTED BY HER FATHER NATURAL GUARDIAN 1^ST APPELLANT BOTH ARE RESIDING AT NO.198/2B, 9^TH CROSS, 'A' BLOCK, MAHADEVAPURA, MYSORE-571 114.

...APPELLANTS

(BY SRI. SHANTHARAJ K, ADVOCATE)

AND

1 . THE MANAGING DIRECTOR KERALA STATE ROAD TRANSPORT CORPORATION SULTANBATHERI UNIT, TIRUVANANTHAPURA DISTRICT, KERALA STATE-673 592.

2 . NATIONAL INSURANCE COMPANY LIMITED BY ITS MANAGER, DIVISION OFFICE-II,

2

NO.1, SRI SRINIVASA PLAZA, 1^ST FLOOR, 5^TH STAGE, ADICHUNCHANAGIRI ROAD, KUVEMPUNAGARA, MYSURU-570 023.

…RESPONDENTS (BY SMT. GEETHA RAJ, ADVOCATE FOR R2, VIDE COURT ORDER DATED 09.11.2021, NOTICE TO R1 IS DISPENSED WITH)

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 31.08.2020 PASSED IN MVC NO.1530/2018 ON THE FILE OF THE II ADDITIONAL DISTRICT JUDGE AND MACT, MYSURU, ALLOWING THE CLAIM PETITION FOR COMPENSATION SEEKING ENHANCEMENT OF COMPENSATION.

THIS APPEAL HAVING BEEN RESERVED FOR JUDGMENT ON 13.10.2025 COMING ON FOR PRONOUNCEMENT THIS DAY, RAJESH RAI K, J., DELIVERED THE FOLLOWING:

CORAM: HON'BLE MR. JUSTICE D K SINGH

and

HON'BLE MR. JUSTICE RAJESH RAI K

CAV JUDGMENT

(PER: HON'BLE MR. JUSTICE RAJESH RAI K)

In respect of an accident, which is not in dispute and

which has occurred on 20.08.2018, the Tribunal has awarded a sum of Rs.45,000/- as compensation for the death of one K.R. Nagaraju, who was a retired railway employee drawing pension.

3

The learned counsel for the claimant contended that the

sums awarded by the Tribunal under different heads are meager. He also contended that the Tribunal has not properly assessed the income of the deceased, who was a retired railway employee, drawing pension of Rs.9,570/- p.m. and was doing real estate business and thus, in all, he was earning a sum of Rs.30,000/- p.m. As such, he prays to allow the appeal by enhancing the compensation.

Per contra , learned counsel for the insurer fairly conceded that the Tribunal has erred in not considering the income of the deceased at Rs.9,570/-. She, however, contended that the claimant, being not dependent on the deceased, deduction towards personal and living expenses would have to be at 50%. To buttress her argument, she relied on the following judgments:

1. Jitendra Kumar & Anr vs Sanjay Prasad & Ors -Civil Appeal No.7199/2025

2. Deep Sikhs & Anr vs. National Insurance Co. Ltd & Ors - SLP (C) No (S).22265-66/2018

3. New India Assurance Co. Ltd vs Vinish Jain & Ors SLP (C) No (S).13931-32/2017

4

4. New India Assurance Co. Ltd vs Yogesh Jain & Ors- SLP

(C) No (S).13933/2017

We have carefully perused the impugned award and also the Trial Court records.

The accident in question and the liability are not in dispute. The deceased was a retired railway employee and was aged 73 years at the time of accident and was drawing pension of Rs.9,570/- per month. Thus, the claimant would be entitled to the loss of dependency at Rs.2,87,100/- (Rs.9,570 X 50% X 12 X 5).

The claimant, being the son of the deceased, would be entitled to Rs.48,400/- towards loss of consortium and Rs.36,300/- under conventional heads as per the judgment in

the case of NATIONAL INSURANCE COMPANY LIMITED VS.

PRANAY SETHI & OTHERS - (2017) 16 SCC 680 .

Thus, the claimant, in modification of the impugned award, would be entitled to the following sums:

Sl.	Particulars	Amount (In Rs.)
1.	Loss of Dependency	2,87,100
2.	Loss of Consortium	48,400

5

3.	Conventional Heads	36,300
	Total	3,71,800

Thus, the claimant would be entitled for compensation of

Rs.3,71,800/- as against Rs.45,000/- awarded by the Tribunal, along with interest at the rate of 6% per annum from the date of petition till its realization.

The Insurance Company is directed to deposit the amount of compensation awarded within a period of two months from the date of receipt of a certified copy of this judgment.

Accordingly, the appeal of the claimant is allowed in

part .

SD/(D K SINGH) JUDGE

SD/(RAJESH RAI K) JUDGE

PKS