- 1 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND THE HON'BLE MR. JUSTICE G BASAVARAJA MISCELLANEOUS FIRST APPEAL NO. 4496 OF 2018 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO. 2561 OF 2019 (MV-I) IN MFA 4496/2018 BETWEEN: THE NEW INDIA ASSURANCE COMPANY LIMITED BRANCH AT PANDURANGA COMPLEX, K.T.STREET, CHIKAMAGALUR -577 101 REP BY THE MANAGER THE NEW INDIA COMPANY LIMITED, TP CLAIMS HUB, 2ND FLOOR, MAHALAKSHMI CHAMBERS, M.G.ROAD, BENGALURU-560 001. …APPELLANT (BY SMT. GEETHA R.,ADVOCATE) AND: 1. SMT LAVANYA W/O LATE SHRI V. AJAYAKUMAR, AGED ABOUT 22 YEARS Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 2. SHRI C.VENKATAPPA S/O LATE SHRI CHINNAPPAIAH, AGED ABOUT 56 YEARS 3. SMT.VENKATAMMA W/O SHRI C.VENKATAPPA, AGED ABOUT 53 YEARS PETITIONERS/ RESPONDENTS 2 AND 3 ARE THE PARENTS OF LATE SHRI. V. AJAYAKUMAR ALL ARE RESIDING AT J. VADDARA COLONY J. THIMMASANDRA POST SRINIVASAPURA TALUK KOLAR DISTRICT - 563 135. 4. SHRI AFSAR KHAN S/O ALTE SHRI ABDUL MAJEED, MAJOR, R/AT BEHIND NOORANI MASJID, GOWRI KALUVE, CHIKKAMAGALUR-577 101. …RESPONDENTS (BY MISS SUNANDA SARKAR, ADVOCATE) SRI. RAHUL S REDDY.,ADVOCATE FOR R1-R3) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 13.10.2017 PASSED IN MVC NO.467/2015 ON THE FILE OF THE MACT AND II ADDITIONAL SENIOR CIVIL JUDGE, KOLAR, AWARDING COMPENSATION OF - 3 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 RS.13,14,000/- WITH INTEREST @ 6%P.A. FROM THE DATE OF PETITION TILL REALIZATION. IN MFA 2561/2019 BETWEEN: THE NEW INDIA ASSURANCE CO LTD CHIKKAMAGALORE BRANCH, PANDURANGA COMPLEX, T.STREET, CHIKKA MANGALORE-577 101 REPRESENTED BY THE MANAGER, THE NEW INDIA ASSURANCE CO. LTD., BANGALORE REGIONAL OFFICE-670000 MOTOR THIRD PARTY CLAIMS HUB, MAHALAKSHMI CHAMBERS, M.G.ROAD, BANGALORE-560 001. …APPELLANT (BY SMT. GEETHA R.,ADVOCATE) AND: 1. SRI SHIVAPPA @ SHIVAKUMAR AGED ABOUT 29 YEARS S/O RAMAPPA, R/AT J.A.VADDARA COLONY, SRINIVASAPUR TALUK-563135 KOLAR DIST. 2. MR.AFSAR KHAN S/O LATE ABDUL MAJEED, R/AT BEHIND NOORI MASJID, GOWRI KALUVE, CHIKKA MANGALORE-577 101 …RESPONDENTS (BY SRI. KRISHNAMURTHY V., ADVOCATE FOR SRI. A G NAGARAJA.,ADVOCATE FOR R1; - 4 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 VIDE ORDER DATED 26.02.2024; NOTICE TO R2-H/S) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 14.01.2019 PASSED IN MVC NO.308/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE & CJM, MACT, KOLAR, AWARDING COMPENSATION OF RS.2,19,034/- WITH INTEREST AT 6% P.A. FROM THE DATE OF PETITION TILL ITS PAYMENT. THESE APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE G BASAVARAJA ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD) These appeals are by the Insurer, which had issued a policy for the Eicher Vehicle bearing registration No. KA-04-B-7512 [the Goods Vehicle] at the relevant time. The Insurer is aggrieved by the Judgment and Award dated 13.10.2017 and 14.01.2019 respectively in MVC No.467/2015 on the file of the Motor Accident Claims Tribunal and II - 5 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 Additional Senior Civil Judge, Kolar and in MVC No.308/2015 on the file of the Motor Accident Claims Tribunal and Principal Senior Civil Judge and MACT, Kolar [for short 'the Tribunals']. 2. The claim petitions, though presented before different Tribunals, arise out of the same accident, and the accident is on 20.05.2015 when Sri Ajaya Kumar and Sri Shivappa were traveling on a two-wheeler. In MVC No.467/2015, the Tribunal has granted a total sum of Rs.13,14,000/- with 6% interest per annum to the young widow and parents of Sri Ajaya Kumar [the claimants in MVC No. 467/2015], and the Tribunal has granted a total sum of Rs.2,19,034/- with 6% interest per annum to Sri Shivappa [the claimant in MVC No. 308/2015]. The Tribunals have awarded the aforesaid amounts under the following heads: - 6 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 In MVC No.467/2015: Sl. No. Particulars Amount [In Rs.] 1. Loss of dependency 12,24,000 2. Loss of Consortium 25,000 3. Loss of estate 40,000 4. Funeral expenses & Transportation of dead body 25,000 TOTAL 13,14,000 In MVC No.308/2015: Sl.No. Particulars Amount (in Rs.) 1. Food, nourishment, conveyance and attendant charges 12,000 2. Pain and suffering 25,000 3. Medical expenses 1,46,034 4. Loss of income during laid up period 36,000 Total 2,19,034 3. The Insurer disputes its liability on the ground that the goods vehicle did not have a permit to ply outside Karnataka, but this Court must observe that this defense is not part of the Statement of Objections. The Insurer has essentially contested the petitions stating that its liability would be subject to the driver of the vehicle holding an effective and - 7 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 valid license. The Tribunals, after discussing the evidence let in by the Insurer to substantiate its case, have directed the Insurer to pay compensation but with directions. Further, the Tribunal in MVC No. 467/2015 has directed the Insurer to pay the compensation as aforesaid with no liberty, but the Tribunal in MVC No. 308/2015 has reserved liberty to the Insurer to recover the amount paid from the owner of the goods vehicle. 4. The Insurer has examined the Regional Transport Officers from Palamaner and Chittoor to justify its case based on permit violation though there is no pleading in this regard. The officer from the Regional Transport Office at Palamaner is examined as RW1 in MVC No.467/2015, and the officer from the Regional Transport Office at Chittoor is examined as RW1 in MVC No.308/2015. If the Officer from the Regional Transport Office, Palamaner has stated that the permit has not been issued to the goods vehicle - 8 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 for the period between 20.05.2015 and 24.05.2015, the other Officer has stated that a temporary permit was issued for the period between 15.03.2014 and 13.04.2014 and there is no other permit. The Insurer has applied under Order XLI Rule 27 of the Code of Civil Procedure, 1908 for permission to place on record a challan for payment of compounding fee from the office of the Regional Transport Office. 5. Smt. Geetha R, the learned counsel for the Insurer, relies upon this document to contend that the owner has got the goods vehicle released paying compounding fee acknowledging there is no permit, and the learned counsel contends that this Court must interfere to dislodge the liability fastened. However, it remains undisputed that Ajaya Kumar [the deceased] and Sri Shivappa [the injured] were traveling on a two-wheeler with the deceased riding when the goods vehicle dashed against them. In the light of these undisputed facts, this Court must opine - 9 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 that the Insurer is called upon to answer a third- party claim and even if it could establish breach of a Policy condition, it cannot avoid its liability to pay compensation to the dependents/ the injured [the respective claimants]. 6. The Tribunal's finding in MVC No.308/2015 will be unexceptionable, and there is need for interference, but the Tribunal's finding in MVC No. 467/2015 must be interfered with providing liberty to the Insurer to recover from the owner the amounts paid to the Claimants. However, this Court must observe that the owner’s defense, if put forth in the execution proceedings, that the Insurer can file to recover the amount paid in terms of this Order, must be examined in such proceedings. 7. This Court must next observe that though Smt. Geetha R proposes to canvass against the quantum of compensation in both these appeals, this - 10 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 Court, upon hearing the learned counsels and on perusal of records, is not persuaded to opine that there is any reason for interference. In MVC 467/2015, the Tribunal, because the claimants could not prove the deceased’s actual income, has computed loss of dependency taking notional income in a sum of Rs.6,000/- [the notional income as per the Schedule evolved for settlement in Lok Adalat] deducting 1/3rd towards personal expenses and applying the right multiplier [17]. In MVC No. 308/2015, the Tribunal has granted conventional sums for the injuries [fracture of right femur/ tibia and fibula] and the major part of the compensation is towards medical Bills, Therefore, the following: ORDER [a] The appeal in MFA No.4496/2018 is allowed in part modifying the Judgment and Award dated 13.10.2017 in MVC No. 467/2015 on the file of Motor Accident Claims Tribunal and II - 11 - HC-KAR NC: 2025:KHC:23737-DB MFA No. 4496 of 2018 C/W MFA No. 2561 of 2019 Additional Senior Civil Judge, Kolar, directing the Insurer to pay the compensation along with interest as awarded within eight [8] weeks from today with liberty to recover the same from the owner of the goods vehicle but subject to the observation as aforesaid. [b] The appeal in MFA No.2561/2019 is also disposed with the observation as aforesaid. [c] The amount in deposit in these appeals shall be transmitted to the Tribunal for disbursement. SD/- (B M SHYAM PRASAD) JUDGE SD/- (G BASAVARAJA) JUDGE AN/-