- 1 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF MARCH, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 924 OF 2016 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 925 OF 2016 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 4748 OF 2017 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 4759 OF 2017 (MV-D) IN MFA No. 924/2016 BETWEEN: M/S. ORIENTAL INSURANCE COMPANY LIMITED, REGIONAL OFFICE, NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BENAGLURU - 560 025. REPRESENTED BY ITS AUTHORIZED SIGNATORY. …APPELLANT (BY SRI. LAKSHMI NARASAPPA, ADVOCATE FOR SRI. A. M. VENKATESH, ADVOCATE) AND: 1. ANNAIAH S/O. THIMMAIAH , AGED ABOUT 54 YEARS, 2. DEVAMMA W/O ANNAIAH, AGED ABOUT 46 YEARS, 3. NAVEEN KUMAR S/O ANNAIAH , Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER AGED ABOUT 29 YEARS, ALL ARE R/AT K. HOSUR VILLAGE, KANATHUR POST, DODDABETTA HOBLI, TURUVEKERE TALUK, TUMKUR DISTRICT - 572 101. NOW R/AT NO.86, 14TH MAIN ROAD, MUNESHWARA BLOCK, SRINAGAR, BENGALURU - 560 050. 4. GOPAL T S/O THIMMAREDDAPPA, NO.93, A/C, RANTHAVALALU VILLAGE & POST, DODDERI HOBLI, MADHUGIRI TALUK, TUMKUR DISTRICT - 572 101. AND ALSO AT LECTURER IN SIDDARTHA ENG. COLLEGE, KUNIGAL MAIN ROAD, TUMKUR - 572 101. 5. CHANDRAKALA H W/O SRIRAM REDDY, NO.154, 4TH CROSS, 7TH MAIN ROAD, 80 FEET ROAD, SUBBAIAHNAPALYA, PEDDANNA LAYOUT, MARUTHI SEVANAGAR, BENGALURU - 560 033. 6. SHRIRAM GENERAL INSURANCE CO. LTD., REGIONAL OFFICE, NO.14, 2ND FLOOR, MONARCH CHAMBERS, INFANTRY ROAD, BENGALURU - 560 001. …RESPONDENTS (BY SRI. HALESHA R G., ADVOCATE FOR R1 TO R3; - 3 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER SRI. K. SHANTHARAJ, ADVOCATE FOR R4; SRI. O MAHESH, ADVOCATE FOR R6; SRI. PRADEEP NAIK K., ADVOCATE FOR R5) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:16.11.2015 PASSED IN MVC NO.3312/2014 ON THE FILE OF THE 3RD ADDITIONAL SENIOR CIVIL JUDGE, COURT OF SMALL CAUSES, BANGALORE, AWARDING COMPENSATION OF RS. 10,27,000/- WITH INTEREST AT 9% PA. FORM THE DATE OF PETITION TILL DEPOSIT. IN MFA NO. 925/2016 BETWEEN: M/S ORIENTAL INSURANCE COMPANY LIMITED, REGIONAL OFFICE, NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BENGALURU - 560 025. REPRESENTED BY ITS AUTHORIZED SIGNATORY. ...APPELLANT (BY SRI. A. M. VENKATESH, ADVOCATE) AND: 1. RANGAMMA W/O LATE MALLAPPA, AGED ABOUT 60 YEARS, 2. RANGANAYAKULU S/O LATE MALLAPPA, AGED ABOUT 39 YEARS, 3. NAGAPPA S/O LATE MALLAPPA, AGED ABOUT 34 YEARS, ALL ARE R/AT HOUSE NO.12P, APPEPALLI COLONY, ROLLA MANOAL ANANTHAPURA, A.P NOW R/AT NO.95/A, - 4 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER 17TH MAIN ROAD, KURUBARAHALLI, BENGLAURU - 560 086. 4. GOPAL T S/O THIMMAREDDAPPA, NO.93, A/C, RANTHAVALALU VILLAGE & POST, DODDERI HOBLI, MADHUGIRI TALUK, TUMKUR DISTRICT - 572 101. AND ALSO AT LECTURER IN SIDDARTHA ENG. COLLEGE, KUNIGAL MAIN ROAD, TUMKUR - 572 101. 5. CHANDRAKALA H W/O SRIRAM REDDY, NO.154, 4TH CROSS, 7TH MAIN ROAD, 80 FEET ROAD, SUBBAIAHNAPALYA, PEDDANNA LAYOUT, MARUTHI SEVANAGAR, BENGALURU - 560 033. 6. SHRIRAM GENERAL INSURANCE CO. LTD., REGIONAL OFFICE, NO.14, 2ND FLOOR, MONARCH CHAMBERS, INFANTRY ROAD, BENGALURU - 560 001. ...RESPONDENTS (BY SRI. HALESHA R G., ADVOCATE FOR R1 TO R3; SRI. K. SHANTHARAJ, ADVOCATE FOR R4; SRI. PRADEEP NAIK K., ADVOCATE FOR R5; SRI. O MAHESH, ADVOCATE FOR R6) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:16.11.2015 PASSED IN MVC NO.3313/2014 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE, COURT OF SMALL CAUSES, MACT, BENGALURU, AWARDING COMPENSATION OF RS.9,19,000/- WITH INTEREST @ 9% P.A FROM THE DATE OF PETITION TILL THE DATE OF DEPOSIT. - 5 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER IN MFA NO. 4748/2017 BETWEEN: 1. RANGAMMA W/O LATE MALLAPPA, AGED ABOUT 61 YEARS, 2. RANGANAYAKULU S/O LATE MALLAPPA, AGED ABOUT 40 YEARS, 3. NAGAPPA S/O LATE MALLAPPA, AGED ABOUT 35 YEARS, ALL ARE R/AT HOUSE NO.12P, APPEPALLI COLONY, ROLLA MANDAL, ANANTHAPURA, A.P. NOW R/AT NO.95/A, 17TH MAIN ROAD, KURUBARAHALLI, BENGALURU - 560 086. ...APPELLANTS (BY SRI. HALESHA R G., ADVOCATE) AND: 1. GOPAL T S/O THIMMAREDDAPPA, NO.93, A/C, RANTAVALALU VILLAGE & POST, DODDERI HOBLI, MADHUGIRI TALUK, TUMKUR DISTRICT - 572 101. AND ALSO AT LECTURER IN SIDDARTHA ENG. COLLEGE, KUNIGAL MAIN ROAD, TUMKUR - 572 101. 2. THE ORIENTAL INSURANCE CO., LTD., REGIONAL OFFICE NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALORE - 560 025. 3. CHANDRAKALA H - 6 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER W/O SRIRAM REDDY, NO.154, 4TH CROSS, 7TH MAIN ROAD, 80 FEET ROAD, SUBBAIAHNAPALYA, PEDDANNA LAYOUT, MARUTHI SEVANAGAR, BENGALURU-33. 4. SHRIRAM GENERAL INSURANCE CO., LTD., REGIONAL OFFICE NO.14, 2ND FLOOR, MONARCH CHAMBERS, INFANTRY ROAD, BANGALORE - 560 001. ...RESPONDENTS (BY MS. DEEKSHA N AMRUTESH, ADVOCATE FOR R1; SRI. LAKSHMI NARASAPPA, ADVOCATE FOR SRI. A M VENKATESH, ADVOCATE FOR R2; VIDE ORDER DATED 27.3.2025 NOTICE TO R3 & R4 DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:16.11.2015 PASSED IN MVC NO.3313/2014 ON THE FILE OF THE 3RD ADDITIONAL SENIOR CIVIL JUDGE, COURT OF SMALL CAUSES, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 4759/2017 BETWEEN: 1. ANNAIAH S/O THIMMAIAH, AGED ABOUT 55 YEARS, 2. DEVAMMA W/O ANNAIAH AGED ABOUT 47 YEARS, 3. NAVEEN KUMAR S/O ANNAIAH AGED ABOUT 30 YEARS, ALL ARE R/AT K. HOSUR VILLAGE, - 7 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER KANATHUR POST, DABBEGATTA HOBLI, TURUVEKERE TALUK, TUMKUR DISTRICT, NOW R/AT NO.86, 14TH MAIN ROAD, MUNESHWARA BLOCK, SRINAGAR, BANGALORE - 560 050. ...APPELLANTS (BY SRI. HALESHA R G., ADVOCATE) AND: 1. GOPAL T S/O THIMMAREDDAPPA NO.93, A/C RANTAVALALU VILLAGE AND POST, DODDERI HOBLI, MADHUGIRI TALUK, TUMKUR DISTRICT - 572 101. AND ALSO AT LECTURER IN SIDDARTHA ENG. COLLEGE, KUNIGAL MAIN ROAD, TUMKUR - 572 101. 2. THE ORIENTAL INSURANCE CO.LTD, REGIONAL OFFICE NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALORE - 560 025. REPRESENTED BY REGIONAL MANAGER. 3. CHANDRAKALA H W/O SRIRAM REDDY, NO.154, 4TH CROSS, 7TH MAIN ROAD, 80 FEET ROAD, SUBBAIAHNAPALYA, PEDDANNA LAYOUT, MARUTHI SEVANAGAR, BENGALURU - 33. 4. SHRIRAM GENERAL INSURANCE CO.LTD REGIONAL OFFICE NO.14 2ND FLOOR, MONARCH CHAMBERS, INFANTRY ROAD, BANGALORE - 560 001. REPRESENTED BY REGIONAL MANAGER ...RESPONDENTS - 8 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER (BY MS. DEEKSHA N AMRUTESH, ADVOCATE FOR R1; SRI. LAKSHMI NARASAPPA, ADVOCATE FOR SRI. A M VENKATESH, ADVOCATE FOR R2; VIDE ORDER DATED 27.03.2025 NOTICE TO R3 & R4 DISPENSED WITH) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:16.11.2015 PASSED IN MVC NO.3312/2014 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE, COURT OF SMALL CAUSES, MOTOR ACCIDENT CLAIMS TRIBUNAL, BENGALURU (SCCH-18), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL JUDGMENT Aggrieved by the award dated 16.11.2015 passed in MVC Nos.3312/2014 and 3313/2014 by III Additional Senior Civil Judge and Motor Accident Claims Tribunal, Bengaluru (SCCH- 18), the Insurance Company has filed MFA No.924/2016 and MFA No.925/2016 respectively. Even the claimants have also filed MFA No.4748/2017 and MFA No.4759/2017 aggrieved by the award dated 16.11.2015 passed in MVC Nos.3312/2014 & 3313/2014 by III Additional Senior Civil Judge and Motor Accident Claims Tribunal, Bengaluru (SCCH-18), respectively. - 9 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER 2. The claim petition is filed by the claimants seeking compensation for the death of the deceased in a road traffic accident that took place on 13.07.2014. It is the case of the claimants that on 13.07.2014, at about 5:00 a.m. the deceased Madhu and Ravikumar were proceeding in a Tata Ace vehicle bearing registration No.KA-64-0375 and the same is driven by its driver in a rash and negligent manner and when they reached near Chikonahalli gate, Honnenahalli village, C.R. Patna Taluk and at that time the lorry was parked in the middle of the road by its driver, without any indicator and due to the same, the driver of the Tata Ace vehicle lost control over the vehicle and dashed to the lorry. As a result of the said accident, the inmates of the goods vehicle sustained grievous injuries and died at the spot. Then the claim petition is filed against the owner and insurer of the goods vehicle as well as the owner and insurer of the lorry which was parked on the road. The Tribunal has given a finding that the accident had happened because of the rash and negligent driving of the driver of the goods vehicle. As such, the claim petition against the owner and insurer of the lorry i.e., 3rd and 4th respondent came to be dismissed. - 10 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER 3. Then coming to the liability on the Insurance Company, it is the case of the Insurance Company that they are the gratuitous passengers and were travelling in a goods vehicle, the Insurance Company is not liable to pay the compensation. According to them, as per the policy there is additional PA for owner, driver, an amount of Rs.100/- and additional legal liability to the coolie as per IMT39, an amount of Rs.100/- is paid. It is submitted that unless and until it is established that the deceased or the cleaner were working with the Dodla Company, to whom the said goods vehicle belongs to, they are not entitled for the compensation. The tribunal has observed that as per the contention of the claimants, the deceased person was working as a vehicle cleaner in Dodla Milk Dairy and offending vehicle belongs to Milk Diary. 4. On perusal of evidence of PW.3 as on the date of the accident, the milk packets and boxes were being transported in the offending vehicle. As the tribunal has held that the respondent-Insurance Company has failed to prove that as on the date of the accident, the deceased persons were travelling in the offending vehicle as unauthorised passengers - 11 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER and accordingly, the tribunal had granted an amount of Rs.10,27,000/- in MVC No.3312/2014 and an amount of Rs.9,19,000/- in MVC No.3313/2014. Aggrieved by the said order, both Insurance Company as well as the claimants are before this Court. 5. Learned counsel appearing for the Insurance Company submits that the deceased were gratuitous passengers and the Insurance Company is not liable to pay the compensation. It is submitted that initial burden lies on the claimants who have filed the petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation. But the Tribunal had fixed the burden on the Insurance Company that they have to prove that the deceased were not the employees of the Dodla Milk Company. It is submitted by learned counsel that no evidence is adduced by the claimants with regard to the same and without there being any evidence, the Court cannot come to the conclusion that they are the employees of the Dodla Company and granted compensation. It is submitted that even the interest is awarded at 9%, which is on the higher side. - 12 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER 6. Learned counsel for the claimants submits that the PW3 is the complainant and eye-witness, who has given the complaint. As per his complaint, as on the date of the accident, the milk packets and boxes were being transported in the offending vehicle. Basing on that, the tribunal had rightly come to the conclusion. He submits that the compensation that is awarded by the Tribunal is not just and reasonable and the same needs to be enhanced. 7. Having heard the learned counsels on either side and perused the material on record, there is no dispute about the fact that the vehicle is a goods vehicle and the employees are covered as per the policy. It is the case of the claimants that the deceased were the employees. It is the case of the Insurance Company that they are the gratuitous passengers. The initial burden lies on the claimants to prove that they were travelling in the said vehicle as employees of Dodla Company and there being no material placed to the contrary, then the burden shifts to the Insurance Company. In this case, the claimants are ready to discharge their initial burden and the findings of the tribunal basing on the evidence of PW3 that as - 13 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER on the date of accident, because the deceased were transporting the milk packets and other stuff, it cannot come to the conclusion that they are employees of Dodla Milk Company and such finding of the tribunal holding that they are the employees without there being any evidence, is contrary to the evidence on record. 8. Learned counsel for the claimants submits that as this is a case of death, an opportunity be granted to examine the authorised person of the Dodla Milk Company with regard to the fact that the deceased persons were working with them. Considering the fact that this is the case of death and MVCs are of the year 2013-2014 in the interest of both the parties it is appropriate to remand the matters to the tribunal. As far as the percentage of interest is concerned that is granted at 9% is on the higher side and it should have been at 6%. The tribunal shall also look into this aspect. Accordingly, this Court is passing the following: ORDER (i) The appeals are allowed. - 14 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER (ii) The judgment and award dated 16.11.2015 passed in MVC No.3312/2014 and 3313/2014 passed by III Additional Senior Civil Judge and Motor Accident Claims Tribunal, Bengaluru (SCCH-18) are set aside. (iii) The matters are remanded to the tribunal for fresh consideration both on the issue of compensation as well as the liability of the Insurance Company and particularly, with regard to the employment of the deceased with Dodla Dairy. (iv) The parties without further notice shall appear before the tribunal on 22.04.2025. (v) The tribunal shall dispose off the matter within one year from 22.04.2025. (vi) The amount in deposit by the insurance company shall be transferred to the MACT, with a direction to keep the amount in Fixed Deposit. (vii) The Registry is directed to return the Trial Court Record to the Tribunal along with the certified copy of the order passed by this court forthwith without any delay. - 15 - NC: 2025:KHC:13032 MFA No. 924 of 2016 C/W MFA No. 925 of 2016 MFA No. 4748 of 2017 AND 1 OTHER (viii) No Costs. (ix) Pending miscellaneous petitions, if any, shall stand closed. Sd/- (LALITHA KANNEGANTI) JUDGE DS List No.: 3 Sl No.: 13 CT:SK