- 1 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 13TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL MISCELLANEOUS FIRST APPEAL NO.102796 OF 2023 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.102872 OF 2023 (MV-I) IN MFA NO.102796/2023: BETWEEN: 1. SMT. SAKREWWA W/O LAXMAN RAJANAGOL @ NAIK, AGE 45 YEARS, OCC.: HOUSEHOLD WORK, R/O. BHUTRAMANAHATTI, TAL. DIST. BELAGAVI-591156. 2. KUM. RAMESH S/O. LAXMAN RAJANAGOL @ NAIK, AGE 23 YEARS, OCC. STUDENT, R/O BHUTRAMANAHATTI, TAL. DIST. BELAGAVI-591156. 3. KUM. BHIMA S/O. LAXMAN RAJANAGOL @ NAIK, AGE 18 YEARS, OCC. STUDENT, R/O BHUTRAMANAHATTI, TAL. DIST. BELAGAVI-591156. 4. KUM. VAISHALI D/O. LAXMAN RAJANAGOL @ NAIK, AGE 15 YEARS, OCC. STUDENT, R/O BHUTRAMANAHATTI, TAL. DIST. BELAGAVI-591156. APPELLANT NO.4 IS MINOR REP. BY THEIR NATURAL GUARDIAN MOTHER APPELLANT NO.1. - APPELLANTS (BY SRI. ASHOK A. NAIK, ADVOCATE) AND: 1. SHRI MOHAMMEDAFTAB S/O. IKRAM KURESHI AGE MAJOR, OCC. BUSINESS, R/O. ISLAMPUR ROAD, KATAGAR ONI, GOUSHIYA TOWN, HUBLI-580024. 2. THE IFFCO TOKIO GENERAL INSURANCE CO-LTD., BRANCH OFFICE, Digitally signed by VINAYAKA B V Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 SHIKSHAK VISVAST MANDAL SHIKSHAK BHAVAN, OPPOSITE SANMAN PETROL, PUMP COLLEGE ROAD, BELAGAVI-590001. - RESPONDENTS (BY SRI. RAVINDRA R. MANE, ADVOCATE FOR R2; NOTICE TO R1 HELD SUFFICIENT) THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S 173(1) OF M.V. ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 27.09.2017 PASSED IN M.V.C. NO. 2713/2016 ON THE FILE OF VIII ADDITIONAL DISTRICT AND SESSIONS JUDGE, BELAGAVI & ETC. IN MFA NO.102872/2023: BETWEEN: SHRI CHANNAPPA BASAPPA HITTANAGI, AGE 43 YEARS, OCC. VEGETABLE VENDING, NOW NIL R/O. BOLASHANATTI, POST. MANAGUTTI, TAL. HUKKERI, DIST. BELAGAVI. - APPELLANT (BY SRI. ASHOK A. NAIK, ADVOCATE) AND: 1. SHRI MOHAMMEDAFTAB S/O IKRAM KURESHI, AGE MAJOR, OCC. BUSINESS, R/O. ISLAMPUR ROAD, KATAGAR ONI, GOUSHIYA TOWN, HUBLI-580024. 2. THE IFFCO TOKIO GENERAL INSURANCE CO. LTD., BRANCH OFFICE, SHIKSHAK VISVAST MANDAL SHIKSHAK BHAVAN, OPPOSITE SANMAN PETROL PUMP COLLEGE ROAD, BELAGAVI-590001. - RESPONDENTS (BY SRI. RAVINDRA R. MANE, ADVOCATE FOR R2; NOTICE TO R1 HELD SUFFICIENT) THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S 173(1) OF M.V. ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 27.09.2017 PASSED IN M.V.C. NO. 2714/2016 ON THE FILE OF VIII ADDITIONAL DISTRICT AND SESSIONS JUDGE, BELAGAVI & ETC. THESE MISCELLANEOUS FIRST APPEALS COMING ON FOR HEARING ON INTERLOCUTORY APPLICATION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) Since both the appeals arise out of the same accident and common judgment and award dated 27.09.2017 passed in M.V.C. No. 2713/2016 and M.V.C. No. 2714/2016 by the learned VIII Addl. District & Sessions Judge, Belagavi (for short, the ‘trial Court’), they are taken up together and disposed of by this common order. 2. M.F.A. No. 102796/2023 is filed by the claimants in M.V.C. No. 2713/2016, who are wife and children of Laxman Rajanagol @ Naik, i.e., the deceased, whereas M.F.A. No. 102872/2023 is filed by injured-Channappa in M.V.C. No. 2714/2016. Both the appeals are filed challenging the liability to pay compensation being fastened on the owner of the offending vehicle and seeking for enhancement of compensation. - 4 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 3. Brief facts of the case are that on the fateful day, i.e., on 08.10.2016 Laxman Bhima Rajanagol @ Naik and Channappa Basappa Hittanagi after loading the vegetable bags at vegetable wholesale market at Belagavi in Bolero Camper Goods Vehicle bearing No. KA-25-D-5957 (the ‘offending vehicle’) boarded the vehicle to unload the same at Managutti vegetable market. When they were plying on NH-4 New Vantamuri-Belagavi road, due to the rash and negligent driving of the driver of the vehicle, the accident in question had occurred resulting in causing fatal injuries to Laxman, who succumbed to those injuries. Channappa also sustained injuries. Dependents of the deceased and also the injured claimant filed separate claim petitions seeking compensation. 4. Upon service of notice respondents No.1 and 2, owner and insurer respectively, appeared and filed their separate statement of objection. Owner of the offending vehicle denied the averments made in the claim petition, however contended that the vehicle is having insurance - 5 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 and the insurer would be liable to indemnify the claimants. Hence he prayed to dismiss the claim petition. 5. Respondent No.2-insurer denied the allegations in the claim petition as regards negligence, the manner in which the accident had occurred, avocation and earning of the deceased and the injured respectively. It further stated that the deceased and injured were traveling in the vehicle as gratuitous passengers and therefore there is a violation of the policy condition. Hence, it prayed to dismiss the claim petition. 6. Based on the above pleadings, the Tribunal framed necessary issues for consideration and proceeded for common trial. Wife of the deceased and the injured are examined as PWs1 and 2 and got marked Exs.P.1 to P.11. Official of the insurer is examined as RW1 and got marked Exs.R.1 to R.3. 7. The Tribunal analyzing the pleadings and evidence on record partly allowed M.V.C. No. 2713/2016 awarding - 6 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 compensation of Rs.12,00,000/- with interest at the rate of 9% p.a. from the date of petition till the date of realization. The Tribunal allowed M.V.C. No. 2714/2016 awarding global compensation of Rs.7,000/- with interest at 9% p.a. from the date of petition till the date of realization. The Tribunal saddled liability on the owner of the offending vehicle to pay compensation on the ground that the deceased and the injured were gratuitous passengers. The claimants in both the appeals are challened the saddling of liability on the owner and also seeking for enhancement of compensation. 8. We have heard arguments of Sri Ashok A. Naik, learned counsel for the claimants-appellants and Sri Ravindra R. Mane, learned counsel for the insurer. Owner of the offending vehicle though served remained absent. 9. Learned counsel for the appellants-claimants contended that the Tribunal has committed a grave error in recording the finding that the deceased and the injured - 7 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 were gratuitous passengers without appreciating the evidence on record in its proper perspective. Thus he seeks to shift the liability to pay compensation on the insurance company as both the deceased and the injured were travelling in the goods vehicle along with the goods. 10. It is submitted that the Tribunal in M.V.C. No. 2713/2016 assessed the income of the deceased at Rs.7,500/- per month which is required to be reassessed properly. Furthermore, adequate compensation needs to be awarded towards loss of consortium and under conventional heads. Further, the Tribunal in M.V.C. No. 2714/2016 awarded meager compensation of Rs.7,000/- and hence it is prayed to enhance the compensation. 11. Per contra, Sri Ravindra R. Mane, learned counsel for the insurer supporting the impugned judgment and award insofar as the finding of the Tribunal with regard to fastening liability on the owner of the vehicle contended that the Tribunal upon appreciation of the oral evidence - 8 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 and chargesheet materials has rightly recorded the finding that the deceased and the injured were gratuitous passengers in the goods vehicle, which is impermissible and is in violation of the conditions of the policy. Hence the insurer is not liable to pay any compensation and the judgment of the Tribunal is passed after taking note of the evidence, which does not call for interference. Thus, he prayed to dismiss the appeals. 12. We have given our anxious consideration to the arguments advanced on behalf of the parties and perused the records. The point which arises for our consideration is: Whether the impugned common judgment and award of the Tribunal calls for interference? The answer to the above point is in the affirmative for the following reasons. 13. The pleadings and evidence on record indicate that the deceased and injured were traveling in the offending - 9 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 vehicle along with the goods. The Tribunal on appreciation of the pleadings and evidence on record and and also considering the chargesheet materials, has recorded finding that the deceased as well as injured were gratuitous passengers and they were not traveling with the goods and saddled liability on the owner of the vehicle to pay the compensation. 14. We have re-analyzed the evidence on record and are of the considered view that the finding of the Tribunal with regard to liability is required to be affirmed. However we are also of the considered view that the Tribunal ought to have directed the respondent No.2-insurer to pay compensation initially and recover it from the owner of the vehicle in the same proceedings. The said view of ours gains support from the decision of the Hon’ble Supreme Court in the case of Anu Bhanvara Etc. vs Iffco Tokio General Insurance Company Ltd. & Ors1 and also the recent decision in the case of Sunita & Ors. Vs. United 1 AIR 2019 SC 3934 - 10 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 India Insurance Co. Ltd. & Ors.2 dated 17.07.2025. It will be useful to extract the relevant paragraphs of the aforesaid judgment as under: “14. We must advert to the exposition of this Court in National Insurance Co. Ltd. v. Baljit Kaur. The deceased therein was travelling as a gratuitous passenger, and due to the rash and negligent driving of the offending vehicle, lost his life. The Insurance Company was directed to satisfy the amount awarded by the Courts below and recover the same from the owner of the vehicle, as the premium was not paid by the owner of the vehicle towards gratuitous passenger. 15. The above position has been followed by this Court in Anu Bhanvara v. IFFCO Tokio General Insurance Co. Ltd., wherein the injured person was travelling as a gratuitous passenger and was not covered under the Insurance Policy, the driver and owner of the vehicle was held liable for payment of compensation amount. This Court applied the principle of “Pay and Recover” and directed the Insurance Company to pay the amount and, thereafter, recover the same from the owner of the vehicle. 16. The aforementioned principle was adopted by this Court in various judgments of this Court in Amrit Lal Sood v. Kaushalya Devi Thapar; New India Assurance Co. Ltd. 2 2025 SCC OnLine SC 1464 - 11 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 v. C.M. Jaya; National Insurance Co. Ltd. v. Challa Upendra Rao; New India Assurance Co. Ltd. v. Vimal Devi; National Insurance Co. Ltd. v. Saju P. Paul; Manuara Khatun v. Rajesh Kumar Singh; and Puttappa v. Rama Naik.” 17. Applying the above expositions of law, the Courts below ought to have directed the Insurance Company to indemnify the amount and thereafter recover the same.” 15. Keeping in view of the enunciation of law referred above, we are of the considered view that the liability saddled on the respondent No.1-owner of the offending vehicle is required to be upheld by directing the respondent No.2-insurer to pay compensation and recover the same from the respondent No.1 in the very same proceedings. 16. Insofar as the quantum of compensation is concerned, in M.V.C. No. 2713/2016 the Tribunal assessed income of the deceased at Rs.7,500/- per month. Admittedly, the claimants have not produced any evidence with regard to the income of the deceased. The accident occurred is in the year 2016. Hence, we notionally - 12 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 reassess income of the deceased at Rs.8,750/- per month relying upon the notional income chart prepared by the Karnataka State Legal Services Authority. The deceased was aged 40 years. In view of the law laid down by the Hon’ble Supreme Court in the case of National Insurance Co., Ltd., Vs. Pranay Sethi and Ors.3 The claimants would be entitled to an addition of 25% towards future prospects. The appropriate multiplier would be ‘15’. There are four dependents and the deduction towards personal expenses would be 1/4th. Thus the loss of dependency is reassessed at Rs.14,76,630/-, the details are as below: Rs.8,750/- + Rs. 2,188/-=Rs. 10,938/- x 15 x 12 x1/4 17. The claimants are four in number. In view of the ratio laid down by the Hon’ble Supreme Court in the case of Magma General Insurance Company Ltd. Vs. Nanu Ram alias Chuhru Ram and others4 claimants are 3 AIR 2017 SUPREME COURT 5157 4 (2018) 18 SCC 130 - 13 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 entitled for loss of consortium at Rs.40,000/- each with 10% escalation. 18. The claimants are also entitled for compensation of Rs.15,000/- each with 10% escalation towards loss of estate and towards transportation of dead body and funeral expenses. The claimants are thus entitled for compensation as under: Sl. No. Particulars Amount 1. Loss of dependency 14,76,630.00 2. Loss of consortium (44,000/- x 4) 1,76,000.00 3. Loss of estate 16,500.00 4. Transportation of dead body and funeral expenses 16,500.00 Total 16,85,630.00 19. In M.F.A. No. 102872/2023 (M.V.C. No. 2714/2016) by taking note of the documentary evidence on record, we are of the considered view that interest of justice would be met if global compensation of Rs.15,000/- is awarded. 20. In both the claim petitions, the Tribunal without assigning any justifiable reasons has awarded interest at - 14 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 the rate of 9% p.a. However, taking note of the prevailing interest rate of the Nationalized Banks paid on the fixed deposits, we award interest on the enhanced compensation at the rate of 6% p.a. from the date of claim petition till payment. It is made clear that in view of the order condoning delay in filing the appeals, the claimants in both the appeals are not entitled for interest on the period of delay caused in filing the appeals. 21. For the aforesaid reasons, we proceed to pass the following order. ORDER (i) Both the appeals are allowed in part. (ii) Claimants in M.F.A. No. 102796/2023 are entitled for compensation of Rs.16,85,630/- as against Rs.12,00,000/- awarded by the Tribunal. So also, claimant in M.F.A. No. 102872/2023 is entitled for compensation of Rs.15,000/- as against Rs.7,000/- awarded by the Tribunal. (iii) The claimants in the respective appeals are entitled for interest on the enhanced compensation at the rate of - 15 - HC-KAR NC: 2025:KHC-D:10201-DB MFA No. 102796 of 2023 C/W MFA No. 102872 of 2023 6% p.a. from the date of petition till its realization. However, they are not entitled for interest for the period of delay caused in filing the appeals. (iv) The apportionment of the compensation amount shall be in terms of the award of the Tribunal. Respondent-insurer shall deposit entire compensation amount along with up to date interest within a period of eight weeks. Office to draw award accordingly. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE BVV, CT:VP LIST NO.: 1 SL NO.: 36