- 1 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF MARCH, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 3661 OF 2016 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 5065 OF 2016 (MV-I) IN MFA No. 3661/2016 BETWEEN: RELIANCE GENERAL INSURANCE CO. LTD., BY ITS MANAGER, RELIANCE CENTRE, WALCHAND HIRACHAND MARG, BALLARD ESTATE, MUMBAI-400 001 1ST FLOOR, MANI PLAZA, ST.MARKS ROAD, BANGALORE-560 002 THE REGIONAL MANAGER RELIANCE GENERAL INSURANCE CO.LTD., NO.28, 5TH FLOOR, CENTENARY BUILDING, M.G.ROAD, BANGALORE-560 001 NOW REP BY ITS LEGAL MANAGER, RELIANCE GENERAL INSURANCE CO. LTD., REGIONAL OFFICE, 5TH FLOOR, CENTENARY BUILDING, NO.28, M.G.ROAD, BANGALORE-560 001 …APPELLANT (BY SRI. PRADEEP B., ADVOCATE) AND: 1. BHASKAR K., S/O HANUMAIAH, R/AT DEVARAJANAGARA, DODDABALLAPUR TOWN, Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 BANGALORE RURAL DISTRICT 2. MR.G.R.DHARNANDRA KUMAR S/O G.N.RATHNA BALARAJ SWASTIK AGENCIES, OLD BUS STAND, TUMKUR-562 101 …RESPONDENTS (BY SRI.N.S.MLLIKARJUNA, ADVOCATE FOR SRI.S.S.HAVERI, ADVOCATE FOR R1 SRI.SHIVAKUMAR H., ADVOCATE FOR R2) THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:2.4.2016 PASSED IN MVC NO.81/2012 ON THE FILE OF THE 7TH ADDITIONAL DISTRICT & SESSIONS JUDGE, C/c. I ADDITIONAL DISTRICT & SESSIONS JUDGE, BENGALURU RURAL DISTRICT, BENGALURU, AWARDING A COMPENSATION OF RS.1,92,400/- WITH INTEREST @ 8% P.A FROM THE DATE OF PETITION TILL REALIZATION. IN MFA NO. 5065/2016 BETWEEN: BHASKAR.K S/O HANUMAIAH AGED ABOUT 30 YEARS RESIDING AT DEVARAJANAGARA DODDBALLAPURA TOWN BANGALORE RURAL DISTRICT – 561 203 ...APPELLANT (BY SRI.N.S.MLLIKARJUNA, ADVOCATE FOR SRI.S.S.HAVERI, ADVOCATE) AND: 1. RELIANCE GENERAL INSURANCE CO. LTD., BY ITS MANAGER, RELIANCE CENTRE 19, WALCHAND HIRACHAND MARG BALLARD ESTATE MUMBAI – 400 001 1ST FLOOR, MANI PLAZA, ST. MARKS ROAD, BANGALORE – 560 002 (INSURER OF MAXI CAB BEARING REG NO KA-06-5726) - 3 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 2. THE REGIONAL MANAGER RELIANCE GENERAL INSURANCE CO. LTD., NO 28, 5TH FLOOR, EAST WING, CENTENARY BUILDING, M.G.ROAD, BANGALORE – 560 001 3. MR G.R.DHARANANDRA KUMAR S/O G.N.RATHNA BALARAJ SWASTHIK AGENCIES OLD BUS STAND TUMKUR – 562 101 (OWNER OF THE MAXI CAB BEARING REG NO KA-06-5726) ...RESPONDENTS (BY SRI.B.PRDEEP, ADVOCATE FOR R1 R2- SERVED) THIS MFA FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:02.04.2016 PASSED IN MVC NO.81/2012 ON THE FILE OF THE VII ADDITIONAL DISTRICT & SESSIONS JUDGE, C/c. I ADDITIONAL DISTRICT & SESSIONS JUDGE, BANGALORE RURAL DISTRICT, BANGALORE, 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 passed in M.V.C.No.81/2012 dated 02.04.2016 by the I Additional District and Session Judge and MACT-II, Bangalore Rural District, Bangalore both the Insurance Company as well as the claimant are before this - 4 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 court. The insurance company appeal is MFA No.3661/2016 and the claimant appeal is MFA No.5065/2016. 2. The claim petition is filed seeking compensation of an amount of Rs.5,00,000/- for the injuries sustained by the claimant in the road traffic accident on 23.11.2011. According to the claimant due to the accident he sustained fracture of neck and femur with IP lateral fracture of shaft of femur and abrasion over the left elbow. The doctor has deposed that the claimant had sustained 33% disability to the limb and 18% to the whole body. According to the claimant he is earning an amount of Rs.7000/- per month. The Tribunal considering the income of the claimant at Rs.5,000/- per month granted the compensation as per the table given below: SL. No. Heads Compensation Awarded 1. Pain and suffering : Rs. 30,000/- 2. Conveyance charge : Rs. 5,000/- 3. Loss of income during laid up period : Rs. 30,000/- 4. Medical expenses : Rs. 5,000/- 5. Loss of earning capacity : Rs. 1,22,400/- TOTAL : Rs. 1,92,400/- - 5 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 3. When it comes to the liability, it is the case of the Insurance Company that the vehicle was not having a valid permit as on the date of accident and as such the Insurance Company is not liable to pay the compensation. The trial court had observed that on perusal of the documents produced by the insurance company, it discloses that the accident took place on 23.11.2011. The permit to the said maxi cab was up to 22.11.2011.Therefore, it discloses that on 23.11.2011 no valid permit was there to the said vehicle, but merely on that ground the Insurance Company cannot avoid its liability to make payment of compensation. It is also not the case of the Insurance Company since there was no valid permit and it is also an admitted fact that at the time of accident, insurance policy was in force. It is submitted that accordingly, the Trial Court has held that the Insurance Company as well as insurer and insured are jointly and severally liable to pay the compensation. 4. Learned counsel appearing for the appellant/claimant submits that the compensation that is awarded by the Trial Court is not a reasonable compensation. The Trial Court has taken the income at Rs.5000/- when it is pleaded that his - 6 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 income is Rs.7000/- per month. He submits that on all the counts the amount needs to be enhanced. 5. Learned counsel appearing for the Insurance Company submits that when there is a fundamental breach of the terms and conditions of the policy, the Trial Court ought to have applied the principle of pay and recovery, whereas in this case, though as on the date of the accident there is no valid permit still the Trial Court had fastened the liability on the insurance company. He submits that the tribunal had granted the interest at 8% instead of 6%. 6. Having heard the learned counsels on either side, perused the entire material on record. When it comes to the aspect of liability, the accident had taken place on 23.11.2011 and permit was up to 22.11.2011. Hence it disclosed that as on the date of the accident, there was no permit. In the light of the law laid down by the Hon’ble Apex court in Rani & others vs. National Insurance Co., ltd., & other 1 it amounts to breach of the terms and conditions of the policy and the principle of 1 (2018) 8 SCC 492 - 7 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 pay and recovery applies and as such the Insurance Company shall pay the compensation and recover the same from the owner of the vehicle. 7. 7. Then coming to aspect of compensation, the claimant had sustained one fracture, under the head of pain and suffering he is entitled for an amount of Rs.40,000/-.He was in hospital for 28 days, considering the hospitalization, towards conveyance, transport and nourishment he is entitled for an amount of Rs.28,000/-. Towards medical expenses basing on evidence the tribunal had granted an amount of Rs.5000/- which is reasonable and no interference is called for As the accident has happened in the year 2011 and as per the chart prepared by the legal service authority, this court is taking income at Rs.6,500/- for 6 months this court is granting an amount of Rs.39,000/- towards loss of income during laid up period. Towards loss of future earning this court is granting an amount of Rs.1,59,120/-. (Rs.6500× 12×17× 12/100= Rs.1,59,120/-). Considering the disability of 12%, towards loss of amenities this court is granting an amount of Rs.30,000/-. - 8 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 8. In the light of the law laid down by the Hon'ble Supreme Court in the case of V.Mekala Vs. M.Malathi and Another2, the claimant is entitled for an amount of Rs.10,000/- towards legal expenses. 9.The claimant is therefore, entitled to the compensation under the following heads: SL. No. Heads Compensation Awarded by Tribunal Compensation Awarded by this Court 1. Pain and suffering Rs. 30,000/- 40,000/- 2. Conveyance charge Rs. 5,000/- 28,000/- 3. Loss of income during laid up period Rs. 30,000/- 39,000/- 4. Medical expenses Rs. 5,000/- 5,000/- 5. Loss of earning capacity Rs. 1,22,400/- 1,59,120/- 6. Loss of amenities Rs. 00/- 30,000/- 6. Legal Expenses Rs. 00/- 10,000/- TOTAL Rs. 1,92,400/- 3,11,120/- Enhancement Rs. 1,18,720/- 2 (2014) 11 SCC 178 - 9 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 i. Accordingly the appeal filed by the claimant is Partly Allowed by enhancing the compensation from an amount of Rs.1,92,400/- to Rs.3,11,120/-. The appeal of the Insurance Company is partly Allowed by reducing the interest from 8% to 6%. ii. The compensation amount shall be paid by the insurance company and can recover the same from the owner of the vehicle. iii. The enhanced amount shall carry interest @ 6% per annum from the date of petition, till the date of realization. iv. Respondent-Insurance Company shall deposit the said compensation amount with accrued interest eight weeks. On such deposit, the claimant is entitled to withdraw the entire amount without furnishing any security. v. The amount in deposit by the insurance company shall be transferred to the MACT, with a direction to keep the amount in Fixed Deposit. vi. The Registry is directed to return the Trial Court Record to the Tribunal along with the - 10 - NC: 2025:KHC:12931 MFA No. 3661 of 2016 C/W MFA No. 5065 of 2016 certified copy of the order passed by this Court forthwith without any delay. vii. No Costs. Pending miscellaneous petitions, if any, shall stands closed. SD/- (LALITHA KANNEGANTI) JUDGE TS List No.: 3 Sl No.: 12