Smt. Lakshmidevi Vs Mr. Rakesh. T. R. — Motor Accident Claims | Karnataka HC (2026)

Smt. Lakshmidevi Vs Mr. Rakesh. T. R. — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Enhancement of compensation by Rs.8,09,500/- over the Tribunal award of Rs.22,25,000/-, carrying interest at 6% p.a. from the date of petition till the date of deposit; respondent No.2 (United India General Ins. Co. Ltd.) to deposit the enhanced sum within 08 weeks of receipt of certified copy; the Tribunal's order of pay and recovery and its apportionment apply to the enhanced sum; appellant Nos.1, 4 and 5 permitted to withdraw their shares on deposit; shares of minor appellant Nos.2 and 3 to be held in a nationalized-bank fixed deposit till majority, withdrawable thereafter in full.

Issue for consideration

Whether the Tribunal's award to the six dependents of deceased C.T. Manjunatha required enhancement by adding future prospects to the Tribunal-assessed notional income of Rs.15,000/- p.m., the appellants contending they are entitled to a higher sum and being aggrieved solely by the Tribunal's failure to add future prospects.

Court's answer

The Tribunal erred in failing to add future prospects; since the deceased C.T. Manjunatha died at the age of 38 years, 40% of earnings are required to be added towards future prospects, as per the Apex Court decision in National Insurance Company Limited vs. Pranay Sethi (2017) 16 SCC 680.

Ratio / Principle

Adding 40% towards future prospects to the Tribunal's notional income of Rs.15,000/- p.m., retaining the 1/4 deduction for personal and living expenses and applying multiplier 15, the appellants' entitlement towards loss of dependency is Rs.28,35,000/- (Rs.15000x12+40%-1/4x15).

Key takeaways

Over and above the Tribunal's loss-of-dependency figure of Rs.20,25,500/-, the appellants are entitled to an additional sum of Rs.8,09,500/-.ratio¶51
The Tribunal's compensation in MVC No.261/2021 is enhanced by Rs.8,09,500/-, and the enhanced sum shall carry interest at 6% p.a. from the date of petition till the date of deposit.ratio¶56
Respondent No.2 (United India General Ins. Co. Ltd.) is directed to deposit the enhanced sum within 08 weeks from receipt of the certified copy of this judgment.ratio

Detailed headnote1 paragraphs

MFA No. 3441 of 2023 (MV-D), High Court of Karnataka at Bengaluru (Dr. Justice Chillakur Sumalatha, sole judge), decided 18.02.2026 — claimants' enhancement appeal filed under S.173(1) of the MV Act against the judgment and award dated 22.02.2023 of the Additional Senior Civil Judge and MACT-XI, Tumakuru in MVC No.261/2021, which had partly allowed the petition of the six dependents of C.T. Manjunatha (killed in a 2021 road traffic accident at about age 38) — widow Smt. Lakshimidevi (appellant 1), minor children C.M. Punya and C.M. Kumaraswamy (appellants 2-3, represented by the mother as natural guardian), father Thopaiah (appellant 4), mother Rathnamma (appellant 5) and brother C.T. Ramesh (appellant 6) — granting Rs.22,25,000/- in total, of which Rs.20,25,500/- towards loss of dependency on notional income of Rs.15,000/- p.m. Holding that the Tribunal erred in omitting future prospects, and applying National Insurance Company Limited vs. Pranay Sethi (2017) 16 SCC 680, the Court added 40% towards future prospects, retained the 1/4 personal-and-living-expenses deduction and multiplier 15, and fixed loss of dependency at Rs.28,35,000/-. Appeal allowed in part: compensation enhanced by Rs.8,09,500/- with interest at 6% p.a. from the date of petition till deposit; respondent No.2, the Manager, United India General Ins. Co. Ltd., directed to deposit within 08 weeks; Tribunal's pay-and-recovery order and apportionment extended to the enhanced sum; appellants 1, 4 and 5 to draw their shares, while the minors' shares remain in fixed deposit with a nationalized bank until majority. Respondent No.1 (Mr. Rakesh T.R.) served but did not contest.