- 1 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 16TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 22761 OF 2013 (MV-D) BETWEEN: 1. SRI. BHOJU S/O KUPPA KUMBAR @ KULAL, AGE: 58 YEARS, OCC: NILL, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI-576215, UDUPI. 2. SMT. VANAJA W/O BHOJU KUMBAR @ KULAL, AGE: 53 YEARS, OCC: NIL, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI-576215, UDUPI. 3. SRI. DINESH S/O BHOJU KUMBAR @ KULAL, AGE: 31 YEARS, OCC: NIL, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI-576215, UDUPI. 4. SMT. SHASHIKALA D/O BHOJU KUMBAR @ KULAL, AGE: 23 YEARS, OCC: HOUSEHOLD, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI-576215, UDUPI. 5. SMT. CHANDRAKALA D/O BHOJU KUMBAR @ KULAL, AGE: 21 YEARS, OCC: HOUSEHOLD, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI-576215, UDUPI. &APPELLANTS (BY SRI. RAJENDRA R. PATIL, ADV) AND: 1. SMT. SHANTA BABU NANIKAR MAJOR, OCC: BUSINESS, R/O: KAMATNUR, TALUK: HUKKERI, DIST: BELGAUM. 2. THE DIVISIONAL MANAGER NATIONAL INSURANCE CO. LTD., HAVING ITS OFFICE AT RAMDEV GALLI, MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 BELGAUM. 3. SRI. SANTOSH S/O BHOJU KUMBAR @ KULAL, AGE: 26 YEARS, OCC: NIL, R/O: 38, KOTTUR, POST: SANTHEKATTE, CHULKODI, UDUPI-576215. &RESPONDENTS (BY SRI. VITTHAL S TELI, ADV FOR R1, SRI. C.M. HOSAMANI, ADV FOR SRI. S.S.JOSHI, ADV FOR R2, AND NOTICE TO R3 IS SERVED) THIS MFA IS FILED U/SEC.173(1) OF MV ACT, AGAINST JUDGMENT & AWARD DTD:18.12.2012, PASSED IN MVC.NO.704/2010 ON THE FILE OF THE ADDL. SENIOR CIVIL JUDGE AND JMFC AND ADDL. MACT ATHANI, PARTLY ALLOWING THE CLAIM PETITITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR HEARING, THwIS DAY, THE JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI) This Miscellaneous First Appeal is filed by the petitioners being dissatisfied with the quantum of compensation awarded by the Tribunal vide judgment and award dated 18.12.2012 passed in M.V.C.No.704/2010 by the learned Addl. Senior Civil Judge and J.M.F.C., and Addl. M.A.C.T., Athani. - 3 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 2. Brief facts leading rise to the filing of this appeal are as follows: On 22.10.2009, the deceased Umesh Bhoju Kumbar @ Kulal and one Raju were returning from Jamkhandi to Athani on motorcycle bearing registration No. KA-22/TC- 164 after attending the private work. The deceased Umesh Bhoju Kumbar was the pillion rider on the said motorcycle. The rider of the motorcycle was riding the motorcycle in a rash and negligent manner and lost control and the motorcycle was capsized on the road. As a result, deceased Umesh Bhoju Kumbar sustained grievous injuries and succumbed to the injuries. The petitioners being the legal representatives of the deceased, filed a claim petition under Section 166 of M.V. Act claiming compensation on account of the death of the deceased. 3. Respondent No.1-the owner of the offending vehicle, despite the service of notice, remained unrepresented and he was placed exparte. - 4 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 4. The Insurance Company filed a statement of objections denying the averments made in the claim petition and contended that the rider of the motorcycle did not possess a valid and effective driving license as of the date of the accident. It is also contended that the charge sheet is filed under Section 3 of the M.V. Act and there is violation of policy conditions. The motorcycle was ridden by an unauthroised person and hence, the Insurance Company is not liable to pay the compensation as claimed by the petitioners. Hence, prays to dismiss the claim petition against the insurance company. 5. The Tribunal, based on the pleadings of the parties, framed the relevant issues. 6. The petitioners, to substantiate their case, petitioner No.3 was examined as PW-1 and marked 10 documents as Exs.P-1 to P-10. The officer of the Insurance Company was examined as RW-1 and marked 3 documents as Exs.R-1 and R-3. - 5 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 7. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part and awarded compensation of Rs.2,84,000/- with interest at 6% p.a. from the date of petition till the date of realization and dismissed the claim petition against the Insurance Company and directed the owner of the motorcycle to pay the compensation amount. 8. The petitioners, being dissatisfied with the quantum of compensation, filed this appeal seeking for enhancement of compensation. 9. Heard the learned counsel for the petitioners, learned counsel for the Insurance Company and the learned counsel for the owner of the motorcycle. 10. Learned counsel for the petitioners submits that the compensation awarded by the Tribunal is on the lower side. He also submits that as of the date of the accident the vehicle was insured with the Insurance Company. Though the rider of the motorcycle was not possessing a valid and - 6 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 effective driving license, however, the Tribunal should ought to have directed the Insurance Company to deposit the compensation amount at first instance and recover the same from the owner of the motorcycle. To buttress his arguments, he relied upon the judgment of this Court in the case of New India Assurance Co. Ltd. Bijapur by its Divisional Manager vs. Yallavva and another1. Hence, on these grounds he prays to allow the appeal. 11. Per contra, learned counsel for Insurance Company supported the impugned judgment and prays to dismiss the appeal. 12. Per contra, learned counsel for owner of the motorcycle submits that admittedly the insurance company has not proved that the rider of the offending vehicle did not possess a valid and effective driving license as of the date of accident and the insurance policy was in force as of the date of the accident. He also submits that the Tribunal 1 ILR 2020 KAR 2239 - 7 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 could have directed the Insurance Company to pay the compensation and recover the same from the owner of the motorcycle. Hence, on these grounds, he prays to dispose of the appeal. 13. Perused the records and considered the submissions of the learned counsel for the parties. 14. The points that would arise for consideration are regarding the liability and the quantum of compensation. Reg. Liability 15. The petitioners to substantiate their case, petitioner No.3 was examined himself as PW1. He reiterated the claim petition averments in the examination-in-chief and to prove that the accident occurred due to the rash and negligent riding by the rider of the motorcycle, produced the charge sheet marked as Ex.P-6 which is filed against the rider of the motorcycle in question, under Section 3 of the M.V. Act. There is violation of policy conditions as the rider - 8 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 of the motorcycle did not possess valid and effective driving license. Hence, the Tribunal was justified in recording its finding that the accident occurred due to the rash and negligent riding of the rider of the motorcycle in question and held liable the owner of the motorcycle in question to pay the compensation. However, as the vehicle was insured with the Insurance Company and as of the date of accident, the policy was in force, the Insurance Company is legally bound to indemnify the owner of the motorcycle against the third party in view of the proposition laid down by this Court in Yallavva9s case (referred to supra). Hence, the Insurance Company is directed to deposit the compensation at the first instance and recover the same from the owner of the offending vehicle. Regarding quantum of compensation: 16. There is no dispute regarding the occurrence of the accident and the death of the deceased Umesh Bhoju Kumbar in the road traffic accident. The deceased was - 9 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 aged 24 years old as of the date of the accident and he was unmarried. The petitioners have contended that the deceased was working as a Manager in Vijaya Hotel, Athani and earning Rs.5,000/- p.m. The petitioners, to prove the employment of the deceased, have neither produced any records, nor examined the employer of the deceased and also not produced any income proof. In the absence of income proof, this Court assesses the notional income as per the schedule notified by the Karnataka state Legal Services Authority. The accident is of the year 2009. The notional income as per the schedule is to be taken at Rs.5,000/-. In addition to it, the future prospects is to be added in view of the proposition laid down by the Hon'ble Apex Court in the case of National Insurance Company Limited vs. Pranay Sethi and Others2. The deceased was aged 24 years old as of the date of the accident. Hence, 40% future prospects is to be added to the notional income. The deceased was a bachelor and 50% of the income is to 2 AIR 2017 SC 5157 - 10 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 be deducted towards personal expenses of the deceased. The applicable multiplier to the age group of the deceased is 18. Accordingly, the loss of dependency is worked out as follows: Rs.5,000 + Rs.2,000/-(40% of Rs.,000/-) = Rs.7,000/- Rs.7,000-3,500 (50% of Rs.7,000/-) = 3,500/-. Rs.3,500 x 12 x 18 = 7,56,000/- 17. Thus, the claimants are entitled to a compensation of Rs.7,56,000/- towards the loss of dependency. There are six petitioners. Each petitioner is entitled to a compensation of Rs.48,000/- as loss of consortium (Rs.48,000 x 6 = Rs.2,88,000/-). In addition to it, the petitioners are entitled to a compensation of Rs.36,000/- under the head of loss of estate and funeral expenses. Thus, the petitioners are entitled to a total compensation of Rs.10,80,000/- as against Rs.2,84,000/- and enhanced compensation of Rs.7,96,000/-. - 11 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 18. Thus, in view of the above discussion, I proceed to pass the following: ORDER (i) The appeal is allowed in part. (ii) The judgment and award dated 18.12.2012 passed in M.V.C.No.704/2010 by the learned Addl. Senior Civil Judge and J.M.F.C., and Addl. M.A.C.T., Athani is modified. (iii) The petitioners are entitled to an enhanced compensation of Rs.7,96,000/- with interest at the rate of 6% per annum from the date of the petition till the date of realisation of the amount. (iv) The apportionment of the enhanced compensation shall be as per the award of the Tribunal. (v) The Insurance Company is directed deposit the compensation amount with accrued interest within eight weeks from the date of receipt of the copy of this Judgment at the first instance and recover the same from the owner of the offending vehicle in accordance with law. - 12 - HC-KAR NC: 2025:KHC-D:12172 MFA No. 22761 of 2013 (vi) The office is directed to transmit the trial Court records to the Tribunal forthwith. Sd/- (ASHOK S. KINAGI) JUDGE NAA CT: BSB List No.: 1 Sl No.: 6