- 1 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 06TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 101209 OF 2014 (MV-D) BETWEEN: THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., ENKAY COMPLEX, KESHWAPUR, HUBLI. … APPELLANT (BY SRI RAJASHEKHAR S. ARANI, ADVOCATE.) AND: 1. SRI BASAPPA S/O TIRAKAPPA PARVATER, AGE: 60 YEARS, OCC: AGRICULTURE, R/O: ASUNDI VILLAGE IN RANEBENNUR TALUK, DIST: HAVERI. 2. SMT. PUTTAWWA W/O BASAPPA PARVATER, AGE: 56 YEARS, OCC: AGRICULTURE, R/O: ASUNDI VILLAGE IN RANEBENNUR TALUK, DIST: HAVERI. 3. SRI MANJUNATH S/O GANGAPPA KOLUR, AGE: MAJOR, OCC: BUSINESS, R/O: KADARMANDALGI VILLAGE IN BYADGI TALUK, DIST: HAVERI. … RESPONDENTS (BY SRI B.S.SANGATI, ADVOCATE FOR R1 AND R2; SRI HAREESH S. NAYAK, ADVOCATE FOR R3.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 29.06.2013 PASSED IN MVC NO.67/2008, ON THE FILE OF THE II ADDL. DISTRICT AND SESSIONS JUDGE AT HAVERI (SITTING AT RANEBENNUR) AND ETC.,. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) This appeal is filed by the insurance company challenging the judgment and award dated 29.06.2013, passed by the II Additional District and Sessions Judge at Haveri, sitting at Ranebennur, in MVC No.67/2008, questioning the liability fastened on it to pay the compensation and for reducing the quantum of compensation. 2. Heard the arguments and perused the material placed before the Court. 3. The occurrence of accident, death of the deceased Ramesh in a road traffic accident, are not in dispute in this case. 4. The deceased died in a road traffic accident that occurred on 23.04.2007. The claimants are parents of the deceased. - 3 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 5. In this case, the tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of dependency. 4,68,000 2. Towards filial love and affection. 10,000 3. Towards medical expenses. 10,500 4. Towards transportation of dead body. 5,000 5. Towards funeral expenses. 5,000 Total: 4,98,500 6. The tribunal has fastened liability on the insurance company to pay compensation. 7. Learned counsel for appellant submitted that the driver of the offending vehicle was not holding driving licence at the time of accident. Hence, there is breach of conditions of policy as per section 149 of the Motor Vehicles Act and the insurance company is not liable to pay compensation. 8. The claimants as well as the owner of the offending auto rickshaw have not produced the driving licence of the driver of the offending vehicle. Whatever driving licence produced is not that of the accused who caused the accident, but that is of a different person. - 4 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 Therefore, in the present case the driver of the offending auto rickshaw was holding driving licence is not proved. Therefore the insurance company is liable to be exonerated and also in the charge sheet allegation against the accused is made under section 3 of the Motor Vehicles Act. The Investigating Officer is also examined, which prove the fact that the driver of the offending auto rickshaw did not have driving licence to drive the vehicle. Therefore, there is infraction proved. Hence the Insurance Company is liable to be exonerated from liability to pay compensation. The owner of the offending vehicle is liable to pay compensation. 9. The insurance company is able to establish the defence as per sub-section (2) of section 149 of M.V.Act. However, the claimants are third party to the offending vehicle. Hence as per sub-section (1), (5) and (7) of section 149 of the M.V.Act, and also as per the principle of law laid down by the Hon’ble Supreme Court in the cases of PAPPU AND OTHERS Vs. VINOD KUMAR LAMBA AND ANOTHER reported in (2018) 3 SCC 208; NATIONAL INSURANCE COMPANY LIMITED VS. SWARAN - 5 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 SINGH AND OTHERS reported in (2004) 3 SCC 297; and also as per the Full Bench decision of this Court in the case of NEW INDIA ASSURANCE COMPANY LIMITED VS. YELLAVVA AND ANOTHER reported in 2020 ACJ 2560, the insurance company shall satisfy the claim at the first instance to the claimants and then recover it from the owner of the offending vehicle. However, the insurance company is at liberty to file execution petition before the jurisdictional executing Court as against the owner of the offending vehicle and may seek attachment of movables or immovable properties or both, till recovery is made and also the recovery process can be as per the decision of the Hon’ble Supreme Court in ORIENTAL INSURANCE CO. LTD., VS. NANJAPPAN AND OTHERS, reported in 2004 AIR SCW 952. 10. With regard to quantum of compensation is concerned, the accident is of the year 2007. The notional income ought to have been considered as Rs.4,000/-, but the tribunal has considered it as Rs.4,500/- per month. Though the tribunal has committed an error in deducting - 6 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 1/3rd of the amount towards personal expenses of the deceased, the notional income would take care of the submission of the learned counsel for the insurance company. Therefore, there is no need to make any interference with the quantum of compensation arrived at by the tribunal in the absence of appeal by the claimants. Therefore, the quantum of compensation awarded by the tribunal is kept intact. 11. Therefore, the insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment at the first instance and then recover it from the owner of offending vehicle as discussed above. 12. In the result, I proceed to pass the following: ORDER i) The appeal is allowed in part. ii) The judgment and award dated 29.06.2013, passed by the II Additional District - 7 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 and Sessions Judge at Haveri, sitting at Ranebennur, in MVC No.67/2008, stands modified to the extent as mentioned hereunder. iii) The insurance company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. iv) The insurance company shall satisfy the claim at the first instance to the claimants and then recover it from the owner of the offending vehicle. v) The insurance company is at liberty to file execution petition before the jurisdictional executing Court as against the owner of the offending vehicle and may seek attachment of movables or immovable properties or both, till recovery is made and also the recovery process can be as per the decision of the Hon’ble Supreme Court in Oriental Insurance Co. Ltd., vs. - 8 - HC-KAR NC: 2025:KHC-D:7391 MFA No. 101209 of 2014 Nanjappan and others, reported in 2004 AIR SCW 952. vi) Send back the trial Court records along with a copy of this judgment and award to the tribunal. vii) The amount in deposit, if any, shall be transmitted to the concerned tribunal for disbursement. viii) No order as to costs. ix) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK CT: BCK LIST NO.: 1 SL NO.: 33