Karnataka High Court

Admissibility of Salary Certificates and Enhancement of Interest Rates in Motor Accident Compensation Claims

SMT. K S PAVITHRA vs THE DIVISIONAL CONTROLLER

Karnataka High CourtJUDGMENT: June 04, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On October 4, 2016, K.J. Sushanth Rai died in a motor vehicle accident when his motorcycle was struck by a KSRTC bus driving on the wrong side of the road while overtaking

Source reference: p. 5

The deceased was 31 years old and allegedly earned ₹11,000 per month as a 'RSSM' at Rajatha Distributors

Source reference: p. 11

The claimants (wife and minor son) filed a petition under Section 166 of the MV Act

Source reference: p. 5

The Tribunal awarded ₹22,41,200 with 6% interest

Source reference: p. 4

KSRTC appealed (MFA No. 4996/2020) seeking reduction, while the claimants filed cross-objections (MFA.CROB No. 31/2021) seeking enhancement

Source reference: p. 4
02

Issues

1. Whether the income of the deceased was correctly assessed at ₹11,000 per month based on the salary certificate

Source reference: p. 10

2. Whether the compensation awarded under non-pecuniary heads (specifically "loss of love and affection") was excessive or duplicative

Source reference: p. 10

3. Whether the rate of interest awarded by the Tribunal (6%) requires modification

Source reference: p. 23
03

Law Applied

The court applied Section 166 of the Motor Vehicles Act, 1988, regarding just compensation

Source reference: p. 5

It relied on National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 to standardize conventional heads (loss of estate, consortium, and funeral expenses) and future prospects

Source reference: p. 17, 20

Regarding the standard of proof for income, it applied Rajwati v. United India Insurance Co. Ltd. (2022 SCC OnLine SC 1699), which establishes that the MV Act is beneficial legislation where facts must be proved on a preponderance of probabilities rather than beyond reasonable doubt

Source reference: p. 13-15

For the interest rate, the court cited United India Insurance Co. Ltd. v. Sri. Malyadri.M (2026: KHC: 25458), affirming that 9% is generally appropriate in death cases

Source reference: p. 22
04

Reasoning

The High Court rejected KSRTC’s contention that the income was unproven, noting that the employer (PW3) testified and produced a signed salary certificate (Ex. P8) on the firm's letterhead

Source reference: p. 11-13

Under Rajwati, strict proof of business registration is not mandatory for a Tribunal to accept salary evidence

Source reference: p. 15

The Court found the Tribunal’s award of ₹2,00,000 for "loss of love and affection" was an impermissible duplication under Pranay Sethi, as such emotions are subsumed within the "loss of consortium" head

Source reference: p. 17-19

Regarding interest, the Court found 6% too low given the claimants' circumstances (a son who never saw his father) and enhanced it to 8%, but limited the accrual to the 25% balance amount since 75% was already deposited by KSRTC in 2020

Source reference: p. 23-24
05

Holding

The Court partly allowed the appeals, reducing the total compensation from ₹22,41,200 to ₹20,92,264

The Court enhanced the interest rate from 6% to 8% per annum

Source reference: p. 24

The "loss of dependency" was fixed at ₹19,71,264 based on an income of ₹11,000 with 40% future prospects and a 16 multiplier

Source reference: p. 16

The Court ordered the modified amount to be released to the claimants upon application

Source reference: p. 25
Karnataka High Court

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SMT. K S PAVITHRAvsTHE DIVISIONAL CONTROLLER

Karnataka High Court · June 04, 2026

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