- 1 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 6TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO. 102325 OF 2024 (MV-D) BETWEEN: THE DIVISIONAL MANAGER NEW INDIA ASSURANCE CO. LTD. SOMESHWAR HEIGHTS, NEAR OLD S.P. OFFICE, DHARWAD NOW REPRESENTED BY REGIONAL MANAGER, NEW INDIA ASSURANCE COMPANY LTD., HUBLI …APPELLANT (BY SRI. M. Y. KATAGI, ADVOCATE) AND: 1. SHRIKANT S/O. LALCHANDRA NARAYANKAR AGE: 34 YEARS, OCC: COOLIE WORK, R/O. KAKKAYYA NAGAR, KALAGHATAGI ROAD, DHARWAD 2. KUMARI ANANNYA D/O. SHRIKANT NARAYANKAR AGE: 9 YEARS, OCC: STUDENT, R/O. KAKKAYYA NAGAR, KALAGHATAGI ROAD,DHARWAD Digitally signed by ANJALI M Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 3. KUMAR ASHWATH S/O SHRIKANT NARAYANKAR AGE: 9 YEARS, OCC: STUDENT, R/O KAKKAYYA NAGAR, KARAGHATAGI ROAD, DHARWAD (THE PETITIONERS NO.2 AND 3 ARE MINORS THEY ARE REPRESENTED BY PETITIONER NO.1) 4. AVINASH S/O KUBER PACHANGE AGE. 23 YEARS, OCC. STUDENT, R/O NO. PLOT NO.1551, NEAR DATTA MANDIR, ANJANEYA NAGAR, BELAGAVI 590016 (OWNER CUM RIDER OF MOTORCYCLE BEARING REG.NO.KA-22/EK-2120) …RESPONDENTS (BY SRI. R. H. ANGADI, ADVOCATE FOR R1 TO R3-R2 AND R3 ARE MINORS REP. BY R1, R4 SERVICE HELD SUFFICIENT.) MFA FILED U/S.173(1) OF MV ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 05.02.2024 PASSED IN MVC NO.416/2022 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL DHARWAD, IN MVC NO.416/2022 WITH COSTS IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: CORAM: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR - 3 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR) This appeal is directed against the judgment and award dated 5th February 2024 passed in MVC No.416/2022 by the III Additional Sr.Civil Judge and Addl.MACT, Dharwad. 2. The learned Tribunal, based upon the claim petition filed by the claimants on account of the death of Nandini who died in a road traffic accident occurred on 13.2.2022 has come to the conclusion that the claimants being the LRs and dependents of deceased Nandini are entitled for compensation of Rs.29,73,400/- together with interest at the rate of 6% p.a. from the date of petition till its realization. The said petition was disposed of on merits. 3. Being aggrieved by the same, the claimants have not preferred any claim, thereby, admits the award passed by the Tribunal, whereas, the appellant-Insurer arrayed as respondent No.2 has filed this appeal challenging the findings with regard to the liability directing the respondent No.-2- Insurer to deposit the compensation to the claimant - 4 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 Nos. 1 to 3 and recover the same from respondent no.1 who is arrayed as respondent no.4 in this appeal. Respondent No.4 though served with notice in this appeal, remained absent and service of notice on respondent no.4 is held sufficient. The respondent nos. 1 to 3 are represented by learned Sri R.H. Angadi, Advocate who are claimants before the Tribunal. Owner of the offending vehicle has not preferred any appeal perhaps admitting his liability. 4. The only grievance of the appellant-insurer in this appeal is that, the fastening of liability on respondent No.2 to deposit the compensation and then recover the same from respondent No.1 is incorrect and if at all the said recovery is to be made by the insurer, it is difficult for the Insurance Company to recover the same. The learned counsel for the appellant Sri M.Y.Katagi, submits that as per the information collected by the Insurance Company, Respondent no.4 has deposited the money with fixed deposit of Rs.5,27,991/- with Karnataka Vikas Grameen Bank, Dharwad Branch and the maturity amount is Rs.6,93,815/- and the said deposit is going to mature on 31.8.2026. If - 5 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 respondent No.4 is arrayed in this appeal after maturity of the Fixed Deposit or prior to its maturity, it will become very difficult for the Insurer to recover the amount after depositing the compensation amount as directed by the Tribunal. 5. To show that, Respondent No.4 owner of offending vehicle has a fixed deposit with the District Court Complex, Dharwad with Karnataka Vikas Grameen Bank, he has produced the photocopy of the FD receipt wherein it shows that the insured, Respondent no.4 of the offending vehicle has deposited the aforesaid amount in Account No.89137384398 dated 31.08.2021 and its maturity date is shown as 31.8.2026. 6. The learned counsel for the appellants is not disputing the award of compensation so also quantum of compensation awarded by the Tribunal but, only submits that, if the said amount is attached by creating a charge on the said amount, the Insurance Company would recover the same by seeking its attachment which executing the award against the owner i.e. Respondent No.1. He fairly submits - 6 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 that, though the Insurance Company has challenged the impugned award on various grounds but, restricts to pass an order creating charge over the said deposit. 7. We have considered the submissions of both the side with regard to creation of charge on the said fixed deposit made by the owner of the offending vehicle. Perused the records. 8. The appellant-Insurance Company restricts its appeal with regard to the creation of charge over the said Fixed Deposit only and gives up other grounds mentioned in the appeal. The learned Tribunal has passed an order directing the Insurance Company to deposit the compensation amount, with a liberty to recover the same. It is not in dispute that, claimants are third parties. As M.V. Act is social-beneficial legislation, third party claimants shall not be put to any hardship. However, to keep the interest of the Insurance Company, the liability to pay the compensation is otherwise resting on the owner of the insured vehicle and it shall continue till the owner of the insured vehicle pays the entire award amount with interest - 7 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 to the insurance company. Therefore, it is just and proper to create charge on the fixed deposit standing in the name of the owner of offending vehicle stated above. Thus, as prayed, first charge, is to be created in favour of insurer-appellant. To this extent, the appeal of the appellant deserves to be allowed. So far as other aspects with regard to quantum of compensation, the judgment and award impugned in this appeal is to be confirmed. Resultantly, we pass the following: ORDER i. Appeal is allowed in-part. ii. Judgment and award with regard to quantum of compensation is confirmed. iii. There shall be first charge over the Fixed Deposit amount of Rs.5,27,991/- having maturity amount at Rs.6,93,815/-with maturity date 31.8.2026 standing in name of insured/owner of the offending vehicle with K.V.G Bank, Dharwad District Court branch in favour of appellant/Insurance Company. - 8 - NC: 2025:KHC-D:2312-DB MFA No. 102325 of 2024 iv. The Insurer is at liberty to execute the award against the insured- respondent No.4 for recovery of the amount deposited before the Tribunal and seek necessary orders with regard to the said Fixed Deposit. v. No order as to costs. SD/- (B.M.SHYAM PRASAD) JUDGE SD/- (RAMACHANDRA D. HUDDAR) JUDGE SK/CT-VG LIST NO.: 1 SL NO.: 19