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2026 Supreme(Online)(Kar) 27998

THE HIGH COURT OF KARNATAKA
Shivashankar Amarannavar, J
Kamalamma – Appellant
Versus
Vasudeva Murthy K – Respondent
MFA No. 2400 of 2023



Advocates:
For the Appellants/Petitioners: Sanath Kumara K M
For the Respondents: K Nagarajaiah

In motor vehicle accident death claims, all legal representatives, including major children, are considered dependents, and the deduction for personal living expenses of the deceased should be calculated at one-fourth of the income rather than one-half.

Headnote:The appeal concerns a challenge to the quantum of compensation awarded in a motor vehicle accident death claim under the Motor Vehicles Act, 1988. The primary issue involved was whether the Tribunal erred in deducting half of the deceased's income towards personal expenses by classifying only the widow as a dependent, excluding the major children. Relying on settled precedents, the Court determined that all legal representatives, including major children, constitute dependents for the purpose of loss of dependency calculation. The core issue is the determination of the deduction for personal living expenses from the deceased's income. The ratio decidendi established that legal representatives, regardless of their financial independence or marital status, are to be treated as dependents under the Act. Consequently, the deduction for personal expenses should be applied at one-fourth of the deceased's annual income rather than one-half when multiple legal heirs are present. The appeal is allowed in part, and the claimants are granted an enhanced compensation of Rs. 5,26,050 with interest at 6% per annum.

Table of Content
1. factual context of the appeal regarding compensation enhancement. (Para 1 , 2 , 3 , 4 , 5)
2. parties' contentions regarding the deduction of personal living expenses. (Para 6 , 7 , 8 , 9)
3. legal standard for defining dependency and calculation of loss of dependency. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DT.06.04.2022 PASSED IN MVC NO.238/2020 ON THE FILE OF THE ADDITIONAL SENIOR CIVIL JUDGE, MACT, CHAMARAJANAGARA, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR

ORAL JUDGMENT

This appeal is by the appellants/claimants seeking enhancement of compensation awarded in the judgment and award dated 6th April, 2022 in MVC No.238/2020 by the learned Additional Senior Civil Judge and MACT, Chamarajanagar.

2. Even though the appeal is listed for admission, with the consent of both counsels, the appeal is taken up for disposal.

3. The claimants being the wife and four major children of deceased - Rangaswamy made a claim petition in respect of death of Rangaswamy in a road traffic accident taken place on 13.08.2020. The accident and liability of the respondent No.2/Insurer is not in dispute.

4. The Tribunal, after hearing the arguments and appreciating evidence on record, has awarded compensation under different heads as under:

1 Loss of dependency Rs.10,53,000/-
2 Loss of consortium Rs. 1,60,000/-
3 Towards transportation of dead body and funeral expenses Rs. 15,000/-
4 Loss of estate Rs. 15,000/-
5 Medical Bills Rs. 7,185/-
Total Rs.12,50,185/-

5. The appellants seeking enhancement of the said compensation have filed the present appeal.

6. Heard the learned counsel for appellants and learned counsel for respondent No.2/Insurer.

7. The learned counsel for appellants would contend that the Tribunal has deducted half of the income of the deceased towards his personal expenses. Considering that, the wife is the only dependant and the other three claimants are major children of the deceased. He placing reliance on the Division Bench of this Court in the case of Smt.Lathamma alias Latha and others -vs Sri Mohammed Saleem and another rendered in MFA No.118/2018 disposed of on 26.03.2021 would contend that the claimants No.2 to 4 have to be considered as dependants on the income of the deceased and considering the same, the deduction towards personal expenses of the deceased has to be taken at one fourth instead of half.

8. The learned counsel for the appellants submits that the appellants are not seeking any enhancement under other heads and submits that the income taken etc. is proper and correct.

9. The learned counsel for respondent No.2/Insurer submits that the claimants are major children of the deceased, and therefore, the Tribunal has rightfully deducted half of the income of the deceased towards his personal expenses.

10. Heard the learned counsel and the Court has perused the impugned judgment and award.

11. The following point arises for consideration.

Whether the Tribunal was justified in deducting half of the income of the deceased towards his personal income while assessing the compensation?

12. The answer to the above question is in the negative for the following reasons.

13. The Division Bench of this Court in the case of Smt.Lathamma alias Latha and others -vs Sri Mohammed Saleem and another rendered in MFA No.118/2018 placing reliance on the decision of the Hon'ble Apex Court has observed as under:

"8. We have considered the submissions made by the learned counsels for the parties and perused the records. The only question which arises for our consideration in this appeal is with regard to the quantum of compensation. The Supreme Court in National Insurance Company Limited vs. Birender (2020 SCC Online SC 28), has held that the l

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