- 1 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD 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. 716 OF 2015 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 601 OF 2015 (MV-D) MISCELLANEOUS FIRST APPEAL NO. 717 OF 2015 (MV-D) MISCELLANEOUS FIRST APPEAL NO. 3790 OF 2015 (MV-D) IN MFA No. 716/2015 BETWEEN: MR. DEEPAK RAJ SHETTY S/O LATE GOPALA KRISHNA SHETTY AGED ABOUT 40 YEARS, SRI VIJAYA VAHINI NIVAS, KOTTARA CHOWKI, MANGALORE-575006, D K. …APPELLANT (BY SRI. Y RAJENDRA PRASAD SHETTY .,ADVOCATE) AND: 1. SMT. R. RADHA W/O MAHESH KUMAR G @ KURVVA MAHESH AGED ABOUT 25 YEARS, 2. KAISALE RAMANNA @ KURUBA RAMANNA S/O LATE MALLAIAH, AGED ABOUT 58 YEARS, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER BOTH ARE RESIDING AT JAKKENAHALLY VILLAGE, INAGUR POST, GOWRI BIDANUR TALUK, CHIKKABALLAPURA DISTRICT-561208. 3. THE MANAGER ORIENTAL INSRUACE COMPANY LTD REGIONAL OFFICE AT NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALORE-560025. …RESPONDENTS (BY SRI. D.NAGARAJA REDDY, ADVOCATE FOR R1 & R2; SRI. S. SRISHAILA, ADVOCATE FOR R3) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 15.11.2014 PASSED IN MVC NO.3520/2011 ON THE FILE OF THE XII ADDITIONAL SMALL CAUSES JUDGE AND MEMER, MACT, BANGALORE, AWARDING COMPENSATION OF RS.11,40,000/- WITH INTEREST AT 6% P.A FROM THE DATE OF PETITION TILL THE PAYMENT. IN MFA NO. 601/2015 BETWEEN: 1. SMT CHOWDAMMA W/O LATE RANGAPPA AGED ABOUT 72 YEARS R/AT NO22, 1ST FLOOR, 7TH CROSS, 5TH MAIN, J.C. NAGAR,KURUBARA HALLY, BANGALORE-80 OLD AT IDAGUR VILLAGE, GOWRIBIDANUR TALUK CHIKKABALLAPURA DISTRICT. 2. SRI. HANUMANTHARAYA @ HANUMANTHARAO @ HANUMANTHARAJU S/O LATE RANGAPPA AGED ABOUT 41 YEARS - 3 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER R/AT NO22, 1ST FLOOR, 7TH CROSS, 5TH MAIN, J.C. NAGAR,KURUBARA HALLY, BANGALORE-80, OLD AT IDAGUR VILLAGE, GOWRIBIDANUR TALUK CHIKKABALLAPURA DISTRICT. 3. SMT. PARVATHAMMA W/O ASHWATHAPPA AGED ABOUT 38 YEARS R/AT NO22, 1ST FLOOR, 7TH CROSS, 5TH MAIN, J.C. NAGAR,KURUBARA HALLY, BANGALORE-80, OLD AT IDAGUR VILLAGE, GOWRIBIDANUR TALUK CHIKKABALLAPURA DISTRICT. 4. SMT. GANGAMMA W/O SHANKRAPPA AGED ABOUT 35 YEARS R/AT NO22, 1ST FLOOR, 7TH CROSS, 5TH MAIN, J.C. NAGAR,KURUBARA HALLY, BANGALORE-80, OLD AT IDAGUR VILLAGE, GOWRIBIDANUR TALUK CHIKKABALLAPURA DISTRICT. ...APPELLANTS (BY SRI. ARAVIND BABU J.,ADVOCATE) AND: 1. ORIENTAL INSURANCE CO. LTD., REGIONAL OFFICE NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALORE-26. 2. SRI. DEEPAK RAJ SHETTY S/O GOPALKRISHNA SHETTY SRI. VIJAYAVAHINI NIVAS KOTTARCHOWKI, MANGALORE-573003. ...RESPONDENTS (BY SRI. SRISHAILA S., ADVOCATE FOR R1; - 4 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER SRI. Y. RAJENDRA PRASAD SHETTY, ADVOCATE FOR R2) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 15.11.2014 PASSED IN MVC NO.7845/2011 ON THE FILE OF THE XII ADDITIONAL SMALL CAUSES JUDGE, MEMBER,MACT, BANGALORE, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. IN MFA NO. 717/2015 BETWEEN: MR. K. DEEPAK RAJ SHETTY S/O LATE K GOPALA KRISHNA SHETTY AGED ABOUT 40 YEARS SRI VIJAYA VAHINI NIVAS KOTTARA CHOWKI MANGALORE 575 006, DK. ...APPELLANT (BY SRI. Y RAJENDRA PRASAD SHETTY .,ADVOCATE) AND: 1. SMT. CHOWDAMMA W/O LATE RANGAPPA AGED ABOUT 51 YEARS 2. SRI HANUMANTHARAYA ALIAS HANUMANTHA RAO ALIAS HANUMANTHA RAJU S/O LATE RANGAPPA AGED ABOUT 41 YEARS 3. SMT PARVATHAMMA W/O SRI ASHWATHAPPA AGED ABOUT 37 YEARS PREVIOUS ADDRESS: NARASAPUR MADHUGIRI TALUK, TUMKUR DISTRICT. - 5 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER 4. SMT GANGAMMA W/O SRI SHANKARAPPA AGED ABOUT 34 YEARS ALL ARE RESIDING AT NO.22, 1ST FLOOR, 7TH CROSS, 5TH MAIN J C NAGAR, KURUBARAHALLI BANGALORE 560086 OLD AT INAGUR VILLAGE GOWRI BIDANUR TALUK CHIKKABALLAPURA DISTRICT 561208. 5. ORIENTAL INSURANCE CO LTD., REGIONAL OFFICE AT NO.44/45 LEO SHOPPING COMPLEX RESIDENCY ROAD, BANGALORE 560025. ...RESPONDENTS (BY SRI. ARAVIND BABU.J., ADVOCATE FOR R1 TO R4 SRI. S SRISHAILA., ADVOCATE FOR R5) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 15.11.2014 PASSED IN MVC NO.7845/2011 ON THE FILE OF THE 12TH ADDITIONAL SMALL CAUSES JUDGE, MEMBER, MACT, BANGALORE, AWARDING A COMPENSATION OF RS.9,88,000/- WITH INTEREST @ 6% P.A FROM THE DATE OF THE CLAIM PETITION TILL THE DATE OF PAYMENT/BANK DEPOSIT. IN MFA NO. 3790/2015 BETWEEN: 1. SMT RADHA AGED ABOUT 26 YRS, W/O LATE MAHESH KUMAR G. @ KURVVA MAHESH, 2. SRI. KAISALE RAMANNA @ KURUBA RAMANNA AGED ABOUT 59 YRS, S/O LATE MALLAIAH, BOTH ARE R/A JAKKENA HALLI VILLAGE, - 6 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER IDAGUR POST, GOURIBIDANUR TALUK, CHIKKABALLAPUR-561208 ...APPELLANTS (BY SRI. NAGARAJA REDDY D.,ADVOCATE) AND: 1. THE MANAGER THE ORIENTAL INSURANCE CO. LTD., REGIONAL OFFICE, NO.44/45, LEO SHOPPING COMPLEX, RESIDENCY ROAD, BANGALORE-560 025. 2. SRI. DEEPAK RAJ SHETTY AGED ABOUT 41 YRS, S/O GOPALKRISHNA SHETTY, "SRI VIJAYAVAHINI NIVAS" KOTTARACHOWKI, MANGALORE-573003. ...RESPONDENTS (BY SRI. S SRISHAILA., ADVOCATE FOR R1) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 15.11.2014 PASSED IN MVC NO.3520/2011 ON THE FILE OF THE 12TH ADDITIONAL SMALL CAUSES JUDGE, MEMBER, MACT, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS, COMING ON FOR FINAL DISPOSAL, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 7 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER 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 claimants and the concerned owner calling in question the common Judgment and Award dated 15.11.2014 in MVC Nos.3520/2011 and 7845/2011 on the file of the XII Additional Small Causes Judge and Member and MACT, Bangalore [for short, 'the Tribunal']. The details of the claim petitions and the corresponding appeals are as follows: Sl. No. MVC No. The claimant's appeal [MFA] The owner's appeal [MFA] 1 3520/2011 3790/2015 716/2015 2 7845/2011 601/2015 717/2015 The parties, for reasons of convenience, are referred to as the 'claimants' in the respective claim petitions, 'the owner' and the 'insured. - 8 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER 2. The Tribunal has granted as follows the compensation in a sum of Rs.11,40,000/- to the claimants in MVC No.3520/2011 and a sum of Rs.9,88,000/- to the claimants in MVC No.7845/2011 under the following heads: IN MVC NO.3520/2011 Loss of dependency Rs.10,80,000/- Loss of consortium Rs. 10,000/- Loss of love and affection Rs. 20,000/- Loss of estate Rs. 10,000/- Transportation of dead body and funeral expenses. Rs. 20,000/- Total Rs.11,40,000/- IN MVC NO.7845/2011 Loss of dependency Rs. 9,18,000/- Loss of love and affection Rs. 40,000/- Loss of estate Rs. 10,000/- Transportation of dead body and funeral expenses. Rs. 20,000/- Total Rs. 9,88,000/- 3. The claimants in MVC No.3520/2011 are the wife and father of Sri Mahesh Kumar G, and the claimants in MVC No.7845/2011 are the mother and siblings of Sri. R. Lokesh. On 07.04.2011, Sri - 9 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER Mahesh Kumar G. was riding a two-wheeler with Sri R. Lokesh on the pillion, and when they were near Industrial Area Thumkunta, Andhra Pradesh, they met with an accident involving a Tanker bearing No. KA-19/B-6201 [‘the Tanker’]. Sri Mahesh Kumar G has died at the spot. Sri R. Lokesh is shifted to Hindupur Government Hospital. While being shifted to a hospital in Bengaluru, Sri R. Lokesh has breathed his last near Gowribidanur, and he is declared dead by the General Hospital at Gowribidanur. 4. The Tribunal has found that the accident was because the driver of the Tanker was negligent but has absolved the Insurer of the liability to pay compensation calling upon the owner of the Tanker to pay compensation because there is a breach of two policy conditions viz., [a] the Tanker did not have a permit to ply outside the State of Karnataka and [b] the driver of the Tanker did not have an endorsement - 10 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER to drive a Tanker carrying hazardous material [furnace oil]. The owner is aggrieved by this finding as also the quantum of compensation with the claimants seeking enhancement in the compensation awarded. 5. Sri Y. Rajendra Prasad Shetty, the learned counsel for the owner, submits that the accident indisputably is within 16 kilometers from the check post, and therefore, this Court must hold that there is no breach of the policy conditions, and the learned counsel proposes to rely upon the provisions of the Petroleum Act, 1934 to contend that a quantity below a certain volume would not be hazardous. 6. Sri Aravind Babu J., and Sri D.Nagaraja Reddy, the learned counsels for the claimants, are heard and they canvass that even if it is shown that there is breach of policy conditions on two counts, the Tribunal could not have absolved the Insurer of - 11 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER the liability to pay compensation and that the Tribunal should have stipulated that the Insurer must pay the compensation and recover the same from the owner. Sri Srishaila, the learned counsel for the Insurer, is heard in the light of these rival submissions. The learned counsel submits that breach of the policy conditions is established beyond doubt, and therefore, the Tribunal is justified in absolving the Insurer. 7. This Court must observe that the driver of the Tanker did possess a driving license to drive a heavy vehicle, but in the light of the undisputed fact that the Tanker, which was carrying furnace oil [inflammable and hazardous], the driver had to possess endorsement as contemplated under Section 14 of the Motor Vehicles Act, 1988 [for short, 'the MV Act'] and Rule 9 of the Central Motor Vehicles Rules, 1989 [for short, 'the CMV Rules']. Initially, the proviso to Section 14(2) (a) of the MV Act stipulated that the - 12 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER license to drive a transport vehicle carrying goods which are dangerous or hazardous will be effective for one year and the renewal thereof shall be subject to the condition that the driver must undergo one day refresher course of the prescribed syllabus. 8. The proviso to Section 14(2) (a) of the MV Act is amended, and currently the stipulation is that the license issued will be effective for three years subject to renewal on conditions specified by the Central Government under the CMV Rules. The Rule 9 of the CMV Rules stipulates that a person driving a goods carriage carrying dangerous or hazardous goods must know to read and write one of the languages specified in the VII Schedule of the Constitution and possess a certificate after having successfully completed a course of a syllabus as prescribed and periodicity connected with the transport of such goods. The driver of the vehicle indisputably did not possess the certificate and the - 13 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER endorsement. There is a breach in the terms of the policy. 9. The permit for the vehicle is to ply within the State of Karnataka, and the accident is beyond its boundaries. It is contended that there would be no breach because the accident is within 16 kilometers from the check post, but in the absence of the Rule providing for such an exception, this Court cannot opine that there is no breach. The second breach is also thus established. The question that remains for consideration for this Court is: whether the Insurer is completely absolved despite this breach. 10. It is trite that at least in the cases before amendment in the year 2022 that notwithstanding the breach of policy conditions, an Insurer will be liable to pay compensation to the third party victim's dependents but will be at liberty to recover the same from the owner and this is because the - 14 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER victims/dependents cannot be left to the vagaries of recovery in the light of the statutory mechanism for indemnification, a position that remains uncontroverted in the present proceedings in view of the decision of a Full Bench of this Court in New India Assurance company Limited vs. Yallavva1 The Tribunal’s judgment must be modified in this regard. 11. The learned counsels are also heard on the quantum of compensation awarded. The claimants in MVC No.3520/2011 are the father and wife of the deceased Mahesh Kumar G. who was aged 25 years. The claimants have not established the deceased’s actual income, but there cannot be any doubt about his earning abilities. In the absence of actual proof of income, it will be just and appropriate to adopt the income that is evolved for settlement in Lok Adalat in the cases arising out of accidents in the year 2011. The notional income must be taken at Rs.6,500/- per 1 AIR ONLINE 2020 KAR 986 - 15 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER month, and the Tribunal has taken the notional income at Rs.5,000/- per month. 12. The claimants in MVC No.7845/2011 are the mother and siblings of deceased R. Lokesh. The siblings are all aged above 30 years. These claimants have also not established the deceased’s actual income, but there cannot be any dispute about his earning ability. Even in this case, the notional income, for reasons as aforesaid, should be taken at Rs.6,500/- and the Tribunal has taken the income at Rs.6,000/- per month. The award of compensation towards loss of dependency in both of these claim petitions must be revisited with this change. 13. The other aspect that needs to be considered is the deduction that should be made towards the personal expenses. It is undisputed dispute that the deduction in MVC No.3520/2011 must be one-third [1/3rd] because Sri Mahesh Kumar - 16 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER G. has died leaving behind a spouse and a parent and in MVC No.7845/2011, the deduction should be on – half [1/2] because Sri R. Lokesh has died a bachelor and other than the mother none can be considered as his dependents. There is no dispute that the appropriate multipliers in the corresponding cases will be '18' and '17'. 14. The last aspect that needs to be considered is the addition that must be made towards loss of consortium and the award under the conventional heads. The two claimants in MVC No.3520/2011 would be entitled to loss of consortium at Rs.40,000/- each and a sum of Rs.30,000/- under the conventional heads. The claimants in MVC No.7845/2011 will be entitled similarly to Rs.40,000/- per person with a sum of Rs.30,000/- towards conventional heads. The claimants in the respective claim petitions would be entitled to compensation as follows. - 17 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER IN MVC No.3520/2011 [MFA No.3790/2015]: Details for Computation of Loss of Dependency Monthly Income Rs. 6,500/- Addition towards Future Prospects 40% Rs. 2,600/- Monthly Income + Future Prospects Rs. 9,100/- Annual Income Rs.1,09,200/- Deduction Towards personal expenses 1/3 Rs. 36,400/- Multiplicand [After Deduction towards personal Expenses] Rs. 72,800/- Multiplier 18 Loss of Dependency Rs.13,10,400/- ` IN MVC No.7845/2011 [MFA No.601/2015] Details for Computation of Loss of Dependency Monthly Income Rs.6,500/- Addition towards Future Prospects 40% Rs.2,600/- Monthly Income + Future Prospects Rs.9,100/- Annual Income Rs.1,09,200/- Deduction Towards personal expenses ½ Rs.54,600/- Multiplicand [After Deduction towards personal Expenses] Rs.54,600/- Multiplier 17 Loss of Dependency Rs.9,82,800/- The computation showing the enhancement is as follows: - 18 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER IN MVC NO.3520/2011 [MFA No.3790/2015]: By the Tribunal By this Court Loss of dependency Rs.10,80,000/- Rs.13,10,400/ Loss of Consortium Rs.10,000/- Loss of love and affection Rs.20,000/- Loss of estate Rs.10,000/- Rs. 80,000/- Transportation of dead body funeral expenses. Rs.20,000/- Rs. 30,000/- Total Rs.11,40,000/- Rs.14,20,400/- Enhanced compensation Rs. 2,80,400/- IN MVC NO.7845/2011 [MFA No.601/2015] By the Tribunal By this Court Loss of dependency Rs.9,18,000/- Rs.9,82,800/- Loss of Consortium - Loss of love and affection Rs.40,000/- Loss of estate Rs.10,000/- Rs.1,60,000/- Transportation of dead body funeral expenses. Rs.20,000/- Rs. 30,000/- Total Rs.9,88,000/- Rs.11,72,800/- Enhanced compensation Rs. 1,84,800/- In the light of the afore, the following: - 19 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER ORDER [A] The appeal filed by the owner in MFA No.716/2015 and MFA No.717/2015 are allowed-in-part modifying the Tribunal's common Judgment and Award dated 15.11.2014 in MVC Nos.3520/2011 and 7845/2011 directing the Insurer to pay compensation as now awarded [except the amount in deposit in these appeals] with liberty to recover the same from the owner of the Tanker [the appellant in these appeals]. [B] The claimants in MVC No.3520/2011 and appellants in MFA No.3790/2015 are granted compensation in a sum of Rs.14,20,400/-, including enhanced compensation in a sum of Rs.2,80,400/-, along with interest at the rate of 6% per - 20 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER annum from the date of the petition to the date of deposit. [C] The claimants in MVC No.7845/2011 and appellants in MFA No.601/2015 are granted compensation in a sum of Rs.11,72,800/-, including the enhanced compensation of Rs.1,84,800/-, along with interest at 6% per annum from the date of the petition to the date of deposit. [D] The amount in deposit in the corresponding appeals shall transferred to the Tribunal, and the Insurer is called upon to deposit the remaining amount along with interest at 6% per annum within eight [8] weeks from the date of receipt of a certified copy of this order. [E] The apportionment inter se the concerned claimants shall be as directed by the - 21 - HC-KAR NC: 2025:KHC:24054-DB MFA No. 716 of 2015 C/W MFA No. 601 of 2015 MFA No. 717 of 2015 AND 1 OTHER Tribunal. [F] The office is directed to transmit the Trial Court Records expeditiously. Sd/- (B M SHYAM PRASAD) JUDGE Sd/- (G BASAVARAJA) JUDGE SA ct:sr