SMT. KUSUMA SHETTY vs RAGHURAMA RAO

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019




IN THE HIGH COURT OF KARNATAKA AT BENGALURU


TH
DATED THIS THE 15 DAY OF OCTOBER, 2026


BEFORE

THE HON'BLE MR. JUSTICE K.S.BHARATH KUMAR

MISCELLANEOUS FIRST APPEAL NO. 6059 OF 2019 (MV-D)


BETWEEN:

1. SMT. KUSUMA SHETTY
W/O LATE. ANANDA SHETTY
AGED ABOUT 51 YEARS.

2.
SATHYANANDA SHETTY
S/O LATE. ANANDA SHETTY,
AGED ABOUT 23 YEARS.

3. NITHYANANDA SHETTY
S/O LATE. ANANDA SHETTY,
AGED ABOUT 25 YEARS.

NOS. 1 TO 3 ARE RESIDING AT OF
VAKVADI POST & VILLAGE,
KUNDAPURA TALUK - 570 201.
…APPELLANTS
(BY SRI. NAGARAJA HEGDE, ADVOCATE)











Digitally signed
by RAKSHA
Location: high
court of
karnataka

AND:

1. RAGHURAMA RAO
S/O LATE. NARASIMHA RAO,
AGED ABOUT 60 YEARS,
R/AT NO.C204/8,
NANASAHEB ROAD,
VODERHOBLI VILLAGE,
KUNDAPURA TALUK - 576 201.

2. THE UNITED INDIA INSURANCE CO. LTD.,
KUNDAPURA BRANCH,

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



SRI LAXMI VENKATESH COMPLEX,
NH 66 VODERHOBLI,
KUNDAPURA BY ITS
BRANCH MANAGER.
…RESPONDENTS
(BY SRI. JANARDHAN REDDY, ADVOCATE FOR R2;
NOTICE TO R1 DISPENSED WITH)

THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S
173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD
DATED. 19.01.2019, PASSED IN MVC NO.376/2018, ON THE
FILE OF THE ADDITIONAL DISTRICT JUDGE AND ADDITIONAL
MACT, UDUPI (SITTING AT KUNDAPURA), PARTLY ALLOWING
THE CLAIM PETITION FOR COMPENSATION AND SEEKING
ENHANCEMENT OF COMPENSATION.
THIS APPEAL, COMING ON FOR FINAL HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE K.S.BHARATH KUMAR

ORAL JUDGMENT

This appeal is filed by the claimants calling in question
the legality and correctness of the judgment and award dated
19.01.2019, passed by the Additional District Judge &
Additional MACT, Udupi (for short `Tribunal'), in
MVC No.376/2018.
2. For the sake of convenience, the parties are
referred to as per their rankings before the Tribunal.

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



3. The brief facts of the case are that:-
The claimants/appellants filed a claim petition before the
Motor Accident Claims Tribunal (MACT), Udupi, seeking
compensation for the death of Sri.Ananda Shetty, (husband of
claimant No.1 and father of claimant Nos.2 and 3), in a road
traffic accident that occurred on 14.01.2018 due to the rash
and negligent driving of the driver of the Maruti Omni car
bearing registration No. KA-20-N-7827.
4. After recording and appreciating the evidence on
record, the Tribunal assessed the compensation payable to the
claimants and awarded compensation under different heads as
under:-
Rs.

1. Loss of dependency 5,34,600/-
2. Loss of estate 15,000/-
3. Loss of love and affection 40,000/-
4. Loss of consortium 40,000/-
5. Transportation and funeral expenses 15,000/-
__________
6,44,600/-
__________

5. Further, the Tribunal awarded interest at the rate of
6% per annum from the date of petition till the date of

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



realization and directed respondent Nos.1 and 2 to deposit the
award amount along with interest.
6. Being aggrieved by the quantum of compensation
awarded by the Tribunal, the claimants have preferred the
instant appeal.
7. It is contended by learned counsel appearing for the
appellants that the deceased, Ananda Shetty, was working as a
cook at Morning Star Hotel, Kundapura, and was earning
Rs.19,500/- per month. It is further contended that, to
substantiate the said income of deceased, the claimants
produced the deceased salary certificate at Ex. P8. The
Tribunal has taken the monthly income of the deceased at only
Rs.9,000/- despite the salary certificate produced at Ex.P8. It
is further contended that the Tribunal erred in deducting 50%
of the income of the deceased towards his personal and living
expenses, though the deceased left behind three dependants,
namely, his wife and two children. Learned counsel submits
that, in view of the number of dependants, the Tribunal ought
rd
to have deducted only 1/3 of the income of the deceased
towards his personal and living expenses.

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



8. It is further contended that in view of the law laid
down by the Hon'ble Apex Court in the case of NATIONAL
INSURANCE COMPANY LTD. V. PRANAY SETHI AND
1
OTHERS , the Tribunal erred in not considering the 10%
escalation while awarding compensation under the head loss of
consortium, loss of estate and funeral expenses.
9. Per contra, learned counsel appearing on behalf of
respondent No.2 - Insurance Company sought to justify the
impugned judgment and award and requested to dismiss the
appeal.
10. I have heard the learned counsel appearing on
behalf of the appellant and respondent No.2 and perused the
material on record.
11. As could be seen from the records, the deceased,
Ananda Shetty, was working as a cook at Morning Star Hotel,
Kundapura, and earning Rs.19,500/- per month, as per the
salary certificate marked at Ex.P8. Though the
claimants/appellants have produced the salary certificate at

1
(2017) 16 SCC 680

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



Ex.P8 to substantiate the income of the deceased, they have
not examined its author.
12. However, the monthly income of the deceased
assessed by the Tribunal at Rs.9,000/- for the accident that
occurred in the year 2018 is on the lower side. Since the
accident is of the year 2018, I deem it appropriate to assess
the income of the deceased at Rs.12,500/- per month.
13. Further, the claimants are the wife and children of
the deceased, Ananda Shetty. Since the dependants are three
in number, I am of the considered opinion that the learned
Tribunal erred in deducting 50% of the income of the deceased
towards his personal and living expenses. The learned Tribunal
rd
ought to have deducted 1/3 of his income towards his
personal and living expenses. By adding 10% towards future
prospects to the monthly income of Rs.12,500/-, an amount of
Rs.1,250/- is arrived at, and the monthly income of the
rd
deceased works out to Rs.13,750/-. After deducting 1/3
towards the personal and living expenses of the deceased, the
monthly income for the purpose of calculating loss of
dependency works out to Rs.9,167/-.

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



14. The age of the deceased as on the date of the
accident was 57 years. Therefore, the appropriate applicable
multiplier is ‘9’. Therefore, the compensation under the head
‘loss of dependency’ is (Rs.9167 × 12 × 9 = Rs.9,90,036/-).
15. The learned Tribunal while awarding compensation
under the head loss of consortium, loss of estate and funeral
expenses has not taken into consideration 10% escalation for
every three years as laid down by the Hon'ble Apex Court in the
case of Pranay Sethi . Therefore, 20% has to be added by
way of escalation while awarding compensation under the head
loss of consortium, loss of estate and funeral expenses. The
compensation under the head loss of estate works out to
Rs.18,000/- (Rs.15,000 + Rs.3,000/-). The compensation
under the head funeral expenses works out to Rs.18,000/-
(Rs.15,000 + Rs.3,000/-).
16. As observed supra the dependents are three in
numbers. Therefore under the said factual matrix the learned
Tribunal grossly erred in awarding compensation of Rs.40,000/-
under the head loss of consortium. Hence, the compensation

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



under the head loss of consortium works out to Rs.1,44,000/-
(Rs.48,000/- x 3).
17. Accordingly, the following compensation is
awarded:
Particulars Amount in Rs.
Loss of dependency
9,90,036.00
(Rs.9167 × 12 × 9 = Rs.9,90,036/-).
Loss of consortium 1,44,000.00
Loss of estate and funeral expenses 36,000.00
Total 11,70,036.00
Amount awarded by the Tribunal
6,44,600.00


Enhancement-
5,25,436.00



18. Thus, the claimants are entitled for enhanced
compensation of Rs.5,25,436/- with interest at 6% p.a. on the
enhanced amount from the date of petition till its realization.

19. Accordingly, I proceed to pass the following:
ORDER

i) The Appeal is allowed in part .

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HC-KAR
NC: 2026:KHC:58388
MFA No. 6059 of 2019


CNR: KAHC010295712019



ii) The judgment and award dated
19.01.2019 , passed in MVC.No.376/2018, by the
Additional District Judge & Additional MACT, Udupi,
stands modified.
iii) The claimants are entitled to enhanced
compensation of Rs.5,25,436/- with interest at the
rate of 6% p.a. on the enhanced amount, from the
date of petition till its realization.
iv) The second respondent - Insurer shall
deposit enhanced compensation with interest before
the Tribunal within a period of six weeks from today.
v) The apportionment and release etc., are as
per the award passed by the Tribunal.
vi) Draw award accordingly.
vii) Registry is directed to send back the
records along with a copy of this judgment to the
concerned Tribunal.


Sd/-
(K.S.BHARATH KUMAR)
JUDGE



VMB
List No.: 1 Sl No.: 41