- 1 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 11TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 102781 OF 2017 (MV-I) BETWEEN: SHRI IRAPPA S/O SHIVAPPA CHOBARI, AGE: 23 YEARS, OCC: COOLIE-GOUNDI, NOW NILL, R/O: SOMANHATTI, POST: NESARAGI, TQ: BAILHONGAL, PRESENTLY RESIDING AT VANTAMURI COLONY, BELAGAVI, TAL: AND DIST: BELAGAVI. … APPELLANT (BY SRI HANAMANT R. LATUR, ADVOCATE.) AND: 1. SHRI CHENCHAIAH BANDI S/O CHENCHAIAH, AGE: 50 YEARS, OCC: BUSINESS, R/O: 1-35, KESHAVRAM VILL, KOTA MDL, NELLOR, ANDRAPRADESH, PIN-524 001. 2. SHRIRAM GENERAL INSURANCE COMPANY LTD., E-8, RIICO INDUSTRIAL AREA, SITAPUR, RAJASTAN, PIN-302 022. 3. SHRI SHIVAJI S/O MALLAPPA MURAKIBHAVI, AGE: 50 YEARS, OCC: AGRICULTURE, R/O: UPPARATTI, TQ: GOKAK, DIST: BELAGAVI. 4. SHRI ADIVEPPA S/O SOMAPPA CHACHADI, AGE: 50 YEARS, OCC: AGRICULTURE, R/O: SOMANATTI, R/O: NESARAGI, TAL: BAILHONGAL, DIST: BELAGAVI. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 5. THE NEW INDIA ASSURANCE CO. LTD DIVISIONAL OFFICE, DIVISIONAL MANAGER, CLUB ROAD, BELAGAVI, PIN: 590 001. … RESPONDENTS (BY SRI NAGARAJ C. KOLLOORI, ADVOCATE FOR R2; R3 – NOTICE SERVED; R1 – SERVICE OF NOTICE HELD SUFFICIENT; SRI DEEPAK S. KULKARNI, ADVOCATE FOR R4; SRI M.K. SOUDAGAR, ADVOCATE FOR R5.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO ENHANCE THE COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD DATED 10.06.2016, PASSED IN MVC NO.2519/2013, ON THE FILE OF THE VI ADDITIONAL DISTRICT AND SESSIONS JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BELAGAVI, AT BELAGAVI AND ETC.,. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) This appeal is filed by the claimant challenging the judgment and award dated 10.06.2016, passed by the VI Additional District and Sessions Judge and Additional MACT, Belagavi, in MVC No.2519/2013, seeking enhancement of compensation as well as questioning the liability fastened on the owners of the lorry and jeep. - 3 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 2. For the purpose of convenience and easy reference, ranking of the parties is referred to as per their status before the trial Court. 3. In this case, the occurrence of a road traffic accident on 28.09.2012 and the claimant sustaining injuries in the said accident are not in dispute. The claimant was occupant in a jeep No.KA-23/M-4113. The accident was between truck bearing No.AP-26/TT-9756 and the said jeep. The claim petition is filed under section 163-A of the Motor Vehicles Act. Upon claim petition, the tribunal has awarded compensation as under: Sl. No. Heads. Amount in (Rs.) 1. Pain and suffering. 5,000 2. Loss of income during the treatment period. 9,900 3. Medical expenses. 9,000 4. Loss of future income. 63,360 Total: 87,260 4. The tribunal, while awarding the compensation, fastened liability on the owner of jeep and owner of truck at the ratio of 50:50, on the reason that for the jeep is - 4 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 concerned, the insurance policy is an Act policy and the claimant is occupant of the jeep; therefore the risk is not covered under the Act policy for the occupant and the truck is concerned, driver of the truck did not have driving licence. Therefore, the insurance companies of the jeep as well as the truck are not liable to pay compensation. 5. The claim petition is filed under section 163-A of the M.V.Act. The driver of the jeep is concerned, the insurance policy is the Act policy. The claimant is occupant in the jeep. Therefore, the risk of occupant in the jeep is not covered in Act policy. Hence, the owner of jeep alone shall pay compensation to the claimant to the extent of 50%. 6. So far as driver of truck is concerned, the driver of the truck did not have driving licence to drive the truck. Therefore, the tribunal is correct in exonerating the insurer of the truck to pay compensation and held that the owner - 5 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 of the truck is liable to the remaining 50% of compensation. 7. The insurance company of the truck is able to establish the defence as per sub-section (2) of section 149 of M.V.Act. However, the claimant is a third party to the truck. Hence as per sub-section (1), (5) and (7) of section 149 of the M.V.Act, and also as per the principle of law laid down by the Hon’ble Supreme Court in the cases of Pappu and Others vs. Vinod Kumar Lamba and another reported in (2018) 3 SCC 208; National Insurance Company Limited vs. Swaran Singh and others reported in (2004) 3 SCC 297; and also as per the Full Bench decision of this Court in the case of New India Assurance Company Limited vs. Yellavva and another reported in 2020 ACJ 2560, the insurance company shall satisfy the claim at the first instance to the claimant and then recover it from the owner of the offending vehicle. However, the insurance company is at liberty to file execution petition before the jurisdictional - 6 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 executing Court as against the owner of the offending vehicle and may seek attachment of movables or immovable properties or both, till recovery is made and also the recovery process can be as per the decision of the Hon’ble Supreme Court in Oriental Insurance Co. Ltd., vs. Nanjappan and others, reported in 2004 AIR SCW 952. 8. Therefore, the insurance company of the truck shall pay compensation to the claimant to the extent of 50% at the first instance and then recover it from the owner of the truck. 9. In the present case, the claimant-Irappa S/o. Shivappa Chobari has suffered the following injuries: “Fracture of left pubic sympysis and dislocation of hip joint of right leg.” 10. The claimant has filed claim petition under Section 163-A of the Motor Vehicles Act, 1988. The Tribunal has awarded compensation of Rs.87,260/- along - 7 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 with interest at the rate of 9% p.a. from the date of petition till the date of realization. 11. Considering the nature of injuries sustained, compensation awarded by Tribunal is lesser side. Therefore, the same is required to be enhanced by modifying the judgment and award. 12. It is not in dispute that the appellant met with a road accident on 28.09.2012. Admittedly, the claim petition is filed under Section 163-A of the M.V.Act. The doctor-PW.2 has stated that the claimant has got permanent physical disability of 35% to the right lower limb. The Tribunal has taken functional disability of the claimant at 10%, which is on lower side. Considering the nature of injuries sustained, it is just and proper to take 20% as functional disability to the whole body. 13. The claimant was coolie and was earning Rs.3,300/- per month. Therefore whatever may be his income, in terms of Section 163-A of the M.V.Act, the - 8 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 annual income to be taken for consideration for calculation of loss of future income due to disability is Rs.40,000/- per annum. Therefore, considering the age of the claimant, appropriate applicable multiplier is 16 as per Schedule-II of the Motor Vehicles Act, 1988. Hence, loss of future income due to disability is hereby reassessed and quantified as Rs.1,28,000/- (Rs.40,000 x 20% x 16). 14. Considering the injuries sustained, a compensation of Rs.5,000/- towards pain and suffering is awarded. The compensation awarded towards medical expenses of Rs.9,000/- is as per the actual bills and receipts produced; therefore, the same is kept intact. 15. Thus, the claimant would be entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards loss of future income due to disability. 1,28,000/- 2. Towards pain and suffering. 5,000/- 3. Towards medical expenses. 9,000/- Total: 1,42,000/- - 9 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 16. Therefore, the claimant is entitled for total compensation of Rs.1,42,000/- along with interest at the rate of 6% p.a. from the date of filing of petition till realization. 17. The Tribunal has awarded interest on the compensation at 9% per annum, which is on the higher side. Considering the rate of interest awarding on the fixed deposits, this Court is awarding interest at the rate of 6% per annum. 18. In the result, I proceed to pass the following: ORDER i) The appeal is allowed in part. ii) The judgment and award dated 10.06.2016 passed in MVC No.2519/2013 on the file of VI Additional and Sessions Judge and Additional MACT, Belagavi, stands modified. - 10 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 iii) The claimant is entitled for total compensation of Rs.1,42,000/- along with interest at the rate of 6% p.a. from the date of petition till its realization as against Rs.87,260/- awarded by the Tribunal. iv) The claimant is not entitled for interest for the delayed period of 307 days in filing the appeal. v) The owner of the jeep and owner of truck are liable to pay compensation to the claimant at 50:50 ratio. vi) In respect of the jeep is concerned, the owner of the jeep shall deposit 50% of the award amount within a period of eight weeks from the date of receipt of a copy of this judgment - 11 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 vii) In respect of the truck is concerned, the Insurance Company of the truck shall pay 50% of the compensation to the claimant at the first instance and then recover it from the owner of the truck. viii) The insurance company of the truck is at liberty to file execution petition before the jurisdictional executing Court as against the owner of the offending vehicle and may seek attachment of movables or immovable properties or both, till recovery is made and also the recovery process can be as per the decision of the Hon’ble Supreme Court in Oriental Insurance Co. Ltd., vs. Nanjappan and others, reported in 2004 AIR SCW 952. ix) Send back the trial Court records along with a copy of this judgment and award to the tribunal. - 12 - HC-KAR NC: 2025:KHC-D:8655 MFA No. 102781 of 2017 x) No order as to costs. xi) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK-para 1 to 8. PMP-para 9 to end. CT:BCK LIST NO.: 1 SL NO.: 104