Absent proof of actual earnings, the deceased’s income was assessed at ₹14,000 monthly for a 2019 accident.

In brief

The question

Whether the Tribunal’s assessment of the deceased’s income and the resulting compensation for loss of dependency required enhancement

The court held

The claimants’ appeal was allowed in part and NEKRTC’s appeal was dismissed.

It also directed

The award was modified from ₹12,04,000 to ₹23,95,000; the claimants were granted enhanced compensation of ₹11,91,000, with interest at 6% per annum from the date of the claimants’ appeal until realization.

NEKRTC was directed to deposit the enhanced amount within six weeks of receiving the certified judgment, with apportionment and disbursement to follow the Tribunal’s order.

01Facts

The claimants— the deceased’s wife, two children and mother—sought compensation after he died in a collision between the auto-rickshaw he was driving and a KSRTC bus on 22 June 2019.

pp. 7–9

The Tribunal awarded ₹12,04,000.

pp. 7–9

The claimants appealed for enhancement, contending that the deceased’s income as an auto-rickshaw driver had been understated and that consortium compensation required correction. NEKRTC appealed, alleging that the deceased had caused the accident by attempting to overtake the bus

pp. 7–9

02Issues

i.Whether the Tribunal’s assessment of the deceased’s income and the resulting compensation for loss of dependency required enhancement

pp. 8–10

ii.Whether the deceased was contributorily negligent, so as to affect liability for the accident

pp. 8–9

iii.Whether the award for loss of consortium required modification

p. 10

03Law Applied

Under the Motor Vehicles Act, 1988, the High Court may hear an appeal against a compensation award under Section 173(1).

pp. 3–4

Where a claimant’s asserted income is not substantiated by documents, the court may determine income notionally; the Court applied the chart-based monthly income of ₹14,000 for an accident occurring in 2019.

p. 9

For loss of dependency, it applied a 25% addition to income, a one-fourth deduction for personal expenses, and a multiplier of 14.

p. 10

Relying on National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680, it assessed consortium at ₹40,000 for each of the four dependants.

p. 10

Provisions in the judgment · 1 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173

04Reasoning

The claimants’ assertion that the deceased earned ₹30,000 per month was unsupported by documentary evidence.

pp. 9–10

The Court therefore used the notional monthly income of ₹14,000, added 25%, deducted one-fourth for personal expenses and applied multiplier 14, calculating loss of dependency at ₹22,05,000.

pp. 9–10

It increased consortium to ₹1,60,000 for four dependants, while retaining ₹15,000 each for loss of estate and funeral expenses, producing total compensation of ₹23,95,000.

p. 10

The Court rejected NEKRTC’s contributory-negligence challenge, finding its grounds unacceptable, though it gave no further detailed explanation.

p. 9, 11

05Holding

The claimants’ appeal was allowed in part and NEKRTC’s appeal was dismissed.

pp. 10–12

NEKRTC was directed to deposit the enhanced amount within six weeks of receiving the certified judgment, with apportionment and disbursement to follow the Tribunal’s order.

pp. 10–12

LawLens.Karnataka High Court

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