- 1 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 9TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. MISCELLANEOUS FIRST APPEAL NO.103914 OF 2017 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO.104062 OF 2017 (MV-I) IN MFA NO.103914/2017: BETWEEN: MAST. SHAILESH NAGESH HUNDARE, AGE: 09 YEARS, OCC: STUDENT, R/BY HIS MINOR GUARDIAN, NATURAL MOTHER, SMT. SWETA NAGESH HUNDARE, AGE: 28 YEARS, OCC: HOUSEHOLD, R/O: CROSS NO.3, HINDWADI, BELAGAVI-590011. …APPELLANT (BY SRI. HARISH S. MAIGUR, ADVOCATE) AND: 1. SHRI SRINATH JAYAPAL LAD, AGE: MAJOR, OCC: BUSINESS, R/O: MACCHE, TQ: DIST: BELAGAVI-590014. 2. THE DIVISIONAL MANAGER, RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 NATIONAL INSURANCE CO. LTD., RAMDEV GALLI, BELAGAVI-590001. 3. SHRI ANIL MASHNU YALLURKAR, AGE: MAJOR, OCC: BUSINESS, R/O: 619, RAJHUNS GALLI, ANGOL, BELAGAVI-590006. …RESPONDENTS (BY SRI. RAJESH B. RAJANAL, ADVOCATE FOR R2) (NOTICE TO R1 & R3-SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, AGAINST THE JUDGMENT AND AWARD DATED 04.09.2017 PASSED IN MVC NO.891/2016 ON THE FILE OF THE XI- ADDITIONAL DISTRICT & SESSIONS JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BELAGAVI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION & ETC. IN MFA NO.104062/2017: BETWEEN: THE DIVISIONAL MANAGER, NATIONAL INSURANCE COMPANY LTD., RAMDEV GALLI, BELAGAVI-590020, NOW REPRESENTED BY ITS ADMINISTRATIVE OFFICER. ...APPELLANT (BY SRI. RAJESH B. RAJANAL, ADVOCATE) AND: 1. MASTER SHAILESH NAGESH HUNDARE, AGE: 9 YEARS, OCC: STUDENT, - 3 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 R/BY HIS MINOR GUARDIAN NATURAL MOTHER SMT. SWETA NAGESH HUNDARE, AGE: 28 YEARS, OCC: HOUSEHOLD, R/O. CORSS NO.3, HINDWADI, BELAGAVI-590020. 2. SHRI SRINATH JAYAPAL LAD, AGE: MAJOR, OCC: BUSINESS, R/O. MACCHE, TQ & DIST: BELAGAVI-590013. (OWNER OF MOTOR CYCLE NO. KA-22/EN-2718). 3. SRI ANIL MASHNU YALLURKAR, AGE: MAJOR, OCC: BUSINESS, R/O. 619, RAJHUNS GALLI, ANGOL, BELAGAVI-590012. (AS PER R.C. OWNER OF MOTOR CYCLE BEARING NO.KA-22/EN-2718) ...RESPONDENTS (BY SRI. HARISH S. MAIGUR, ADVOCATE FOR R1) (NOTICE TO R2-HELD SUFFICIENT) (NOTICE TO R3-SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 04.09.2017 PASSED IN MVC NO.891/2016 ON THE FILE OF THE XI-ADDITIONAL DISTRICT AND SESSIONS JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BELAGAVI, AWARDING COMPENSATION OF RS.3,61,500/- WITH INTEREST AT 9% P.A. FROM THE DATE OF PETITION TILL ITS PAYMENT & ETC. THESE APPEALS COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 CORAM: THE HON'BLE MR. JUSTICE S G PANDIT AND THE HON'BLE MRS JUSTICE GEETHA K.B. ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE S G PANDIT) Both, the injured claimant and the insurer are in appeal against the judgment and award, dated 04.09.2017, passed in M.V.C. No.891/2016 by the XI Additional District & Sessions Judge and Additional Motor Accident Claims Tribunal, Belagavi (for short, ‘the Tribunal’). 2. The appeal in M.F.A. No.103914/2017 is filed by the injured claimant seeking enhancement of the compensation awarded by the Tribunal, whereas the appeal in M.F.A. No.104062/2017 is filed by the insurer contending that since rider of the motorcycle in question was a minor, who had no licence, the insurer is not liable to indemnify the owner of the motorcycle and the owner is liable to pay the compensation. The insurer is also questioning the rate of interest awarded by the Tribunal at the rate of 9% per annum. 3. For the sake of convenience, the parties will be referred to as per their rank before the Tribunal. - 5 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 4. Brief facts of the case are that the injured claimant, a minor boy aged nine years represented by his mother, filed claim petition under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘MV Act’, for short) claiming compensation for the grievous injuries sustained by him in a motor vehicle accident that took place on 22.03.2016 involving motorcycle bearing registration No.KA-22/EN-2718. It was stated by the claimant that he sustained grievous fracture injuries in the accident and took treatment in Deccan Hospital and Kale Hospital, Belagavi. On issuance of notice, respondent No.1-owner of the motorcycle remained absent and he was placed ex parte, while respondent No.2-insurer appeared before the Tribunal. Respondent No.2-insurer filed its objection statement denying the claim petition averments and specifically contending that the charge sheet was filed against the rider of the motorcycle for the offences punishable under Section 279 and 338 of the Indian Penal Code, 1860 and under Section 4 read with Section 181 of the MV Act. It further contended that as there was violation of terms and conditions of insurance policy, it was not liable to indemnify the owner. Before the Tribunal, the mother of the claimant examined herself as - 6 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 P.W.1, examined the doctor as P.W.2, and produced and marked 12 documents as Exs.P.1 to P.12. The respondent No.2-insurer examined its Officer as R.W.1 and got marked two documents as Exs.R.1 and R.2. The Tribunal, on appreciation of the material on record, awarded a total compensation of Rs.3,61,500/- on the following heads: Sl. No. Heads Compensation amount in Rs. 1 Loss of physical disability 3,00,000 2 Pain and suffering 20,000 3 Medical expenses 41,478 Total Rounded off 3,61,478/- 3,61,500/- While awarding the above compensation, the Tribunal assessed the disability suffered by the injured claimant at 13% to the whole body, and in terms of the decision of the Hon’ble Apex Court in the case of Master Mallikarjuna Vs. Divisional Manager, the National Insurance Company Limited and another1, awarded a sum of Rs.3,00,000/- towards loss of physical disability. The Tribunal saddled the liability to pay the compensation on the insurer. 1 AIR 2014 SC 736 - 7 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 5. Being aggrieved by the judgment and award of the Tribunal, the insurer is in appeal contending that the rider of the motorcycle was a minor as on the date of the accident who had no driving licence and as such, it is not liable to indemnify the owner of the motorcycle, whereas the injured claimant is in appeal seeking enhancement of the compensation. 6. Heard Sri. Rajesh B.Rajanal, learned counsel for the insurer and Sri. Harish S.Maigur, learned counsel for the claimant. Perused the entire appeal paper as well as the records of the Tribunal. 7. Learned counsel appearing for the insurer contended that the rider of the motor cycle was minor and he had no driving licence to rider the motor cycle. Hence, he submits that the insurer is not liable to indemnify the owner of the motorcycle as there is violation of terms and conditions of policy. Learned counsel would further submit that charge sheet was filed against the rider and the owner of the motorcycle for the offence punishable under Section 4 read with Section 181 of the MV Act and under Sections 279 and 338 of the Indian Penal Code. Learned counsel would submit that, in such - 8 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 circumstances, the insurer is not liable to pay the compensation. Learned counsel would also submit that the Tribunal committed a grave error in awarding 9% interest while the bank interest rate as on the date is not more than 6%. Thus, he would pray for allowing the appeal. 8. Learned counsel for claimant, Sri. Harish S.Maigur would contend that, in an accidental claim for compensation, where the driver/rider of an offending vehicle has no licence, the Hon’ble Apex Court has held that it is a case of ‘pay and recover’. It is submitted that since in the instant case, the rider of the motorcycle was not possessing driving licence, it is for the insurance company to pay the compensation at the first instance and to recover the same from the owner of the motorcycle in question. He would also submit that the Tribunal has failed to award any compensation on the head ‘loss of income during laid up period’ in favour of the parents. Thus, he would pray for grant of compensation under the said head and for passing appropriate orders. - 9 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 9. Having heard the learned counsel for the parties and on perusal of the appeal papers, the following points arise for consideration: (i) Whether, as contended by the insurer, the insurer is not liable to pay compensation or is not liable to indemnify the owner? (ii) Whether the injured claimant would be entitled for enhancement of compensation? 10. Our answer to the above points would be in the negative and affirmative respectively, for the following reasons: (a) The accident in question that took place on 22.03.2016 involving motorcycle bearing registration No.KA-22/EN- 2718 and the resultant grievous injuries suffered by the claimant is not in dispute in this appeal. The insurer is in appeal contending that it is not liable to indemnify the owner of the motorcycle and the claimant is in appeal claiming enhancement of compensation. (b) It is an admitted fact that the rider of the motor cycle was a minor as on the date of the accident. Further, admittedly, the rider of the motor cycle had no driving licence to ride - 10 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 the motor cycle. In such circumstances, a Full Bench of this Court in the case of New India Assurance Co. Ltd., Bijapur by its Divisional Manager Vs. Yallavva and Another2 has held that in an accidental claim for compensation, where the driver/rider of the offending vehicle was not holding a valid and effective driving licence as on the date of the accident, it is a case of "Pay and Recover", i.e., the insurance company shall pay the compensation to the claimants, at the first instance, with liberty to recover the same from the owner of the offending vehicle. Respectfully following the decision of the Full Bench, we reject the contention of the insurer that it is not liable to indemnify the owner. However, we make it clear that the insurance company shall pay the compensation at the first instance and it is at liberty to recover the same from the owner of the motor cycle in question in an appropriate proceedings. (c) The Tribunal taking note of the evidence of P.W.2-doctor and the disability certificate at Ex.P.10 as well as the discharge card at Ex.P.8 has rightly assessed the disability 2 ILR 2020 KAR 2239 - 11 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 sustained by the claimant at 13%. The Tribunal, by following the decision of the Hon’ble Apex Court in Master Mallikarjun’s case (supra), has rightly awarded a sum of Rs.3,00,000/- on the head of ‘loss of physical disability’ which does not require any interference. The Tribunal has also rightly awarded a sum of Rs.20,000/- on the head of ‘pain and suffering’ and Rs.41,478/- being the actual expenses incurred towards medical treatment, which are also not interfered with. (d) The Tribunal has failed to award any compensation on the head of discomfort, inconvenience and ‘loss of earnings during laid up period’ in favour of the parents of the injured claimant. The nature of injury suffered by the child would have taken more than three months to heal and hence, parents would have to be compensated for the said period. Though there is no specific averment with regard to the income of the parents, we deem it appropriate to award a lumpsum amount to the parents on the said head in a sum of Rs.25,000/- and accordingly, the claimant would be - 12 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 entitled to enhanced compensation of Rs.25,000/- under the said head. (e) The Tribunal has awarded interest at the rate of 9% per annum on the compensation. The accident is of the year 2016. Taking judicial note of the bank interest rate on the fixed deposits, we deem it appropriate to reduce the rate of interest from 9% to 6%. 11. In view of the above, we pass the following: ORDER (i) Both the appeals are allowed in part. (ii) The judgment and award, dated 04.09.2017, passed in MVC No.891/2016 by the XI Additional District & Sessions Judge and Additional Motor Accident Claims Tribunal, Belagavi, is modified to the extent of holding that the claimant would be entitled to enhanced compensation of Rs.25,000/-; and that the compensation of Rs.3,61,500/- awarded by the Tribunal and the enhanced compensation of Rs.25,000/- awarded by this Court shall carry interest at the rate of 6% per annum from the date of claim petition till realization. - 13 - HC-KAR NC: 2025:KHC-D:13674-DB MFA No. 103914 of 2017 C/W MFA No. 104062 of 2017 (iii) The judgment and award of the Tribunal in all other aspects remain unaltered. (iv) The appellant-Insurance Company shall deposit the compensation amount with accrued interest before the Tribunal within six weeks from the date of receipt of certified copy of this judgment. (v) The appellant-Insurance Company is at liberty to recover the compensation from the owner of the motorcycle in question in an appropriate proceeding. Draw modified award accordingly. The amount in deposit before this Court and the records of the Tribunal be transmitted to Tribunal forthwith. Sd/- (S G PANDIT) JUDGE Sd/- (GEETHA K.B.) JUDGE KMS, CT:VP LIST NO.: 1 SL NO.: 29