- 1 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 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.102050 OF 2023 (MV-D) BETWEEN: THE NEW INDIA ASSURANCE COMPANY LTD., SIET/DO 10400 TO 714000 SIET BUILDING, 2ND FLOOR, OLD NO.312, NEW NO.453, ANNA SALAE, TAYANAMPET, TAMILNADU, THROUGH ITS DIVISIONAL MANAGER, THE NEW INDIA ASSURANCE COMPANY LTD., DIVISIONAL OFFICE, CLUB ROAD, BELAGAVI, REP. THROUGH ITS REGIONAL OFFICE, KALBURGI BHADRPUR INFINITI, 2ND FLOOR, PINTO ROAD, HUBBALLI, BY ITS DULY CONSTITUTED ATTORNEY. …APPELLANT (BY SRI. N.R. KUPPELUR, ADVOCATE) AND: 1. SMT. KAMALAVVA W/O HANAMANT HOSAMANI AGE. 31 YEARS, OCC. HOUSEHOLD WORK, R/O MANIKATTI, TQ. SAUNDATTI, DIST. BELAGAVI-591102. 2. KUMARI SANGEETA D/O HANAMANT HOSAMANI, AGE. 08 YEARS, OCC. NIL, R/O MANIKATTI, TQ. SAUNDATTI, DIST. BELAGAVI-591102. (SINCE RESPONDENT NO.2 IS MINOR, R/BY HER MOTHER NATURAL GUARDIAN R1) Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 3. SMT. TIPPAVVA W/O KENCHAPPA HOSAMANI, AGE. 83 YEARS, OCC. NIL, R/O MANIKATTI, TQ. SAUNDATTI, DIST. BELAGAVI-591102. 4. SGM MARIYAPPA S/O SM GANGAPPA, AGE. 64 YEARS, OCC. RETD., HEAD CONSTABLE, R/O AVINAHALLI ROAD, SN NAGAR, HP GAS GODOWN BACK SIDE, SAGAR, DIST. SHIVAMOGGA-577401, (OWNER OF THE ASHOK HGV TIPPER BEARING NOS.KA15/A3713) …RESPONDENTS (BY SRI. ANAND D. BAGEWADI, ADVOCATE FOR R1 TO R3; SRI. S.G. NANDOOR, ADVOCATE FOR R4; R2 IS MINOR R/BY R1) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLE ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 30.01.2023 PASSED IN MVC NO.152/2019 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE, AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, SAUNDATTI, AT SAUNDATTI, AWARDING COMPENSATION OF RS.22,73,940/- WITH INTEREST AT 7 PERCENT P.A. FROM THE DATE OF PETITION & ETC. THIS MFA COMING ON FOR HEARING ON INTERLOCUTORY APPLICATION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL - 3 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL) This appeal is filed by the Insurance Company challenging the judgment and award dated 30.01.2023 passed in MVC No.152/2019 by the learned Principal Senior Civil Judge and Additional MACT, Saundatti1. 2. Brief facts leading to filing of this appeal are that the claimants who are the wife, minor daughter and the mother of the deceased Hanamant Hosamani, filed a claim petition under Section 166 of the MV Act contending that on 15.11.2018, the deceased Hanamant Hosamani and his friend Basavaraj Sambaragi were proceeding on motorcycle towards Sambaragi land and the said Basavaraj Sambaragi was riding the said motorcycle and deceased Hanamant Hosamani was the pillion rider. When they were proceedings near Hallikeri cross of Ugargol village on Betasur-Hirekumbi road, the driver of Ashoka HGV Tipper vehicle bearing No.KA-15/A-3713 came from back side driven at high speed and in a rash and negligent manner and dashed to the 1 For short, ‘Tribunal’ - 4 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 motorcycle ridden by Basavaraj and caused the accident. Both of them have fell down and suffered simple and grievous injuries. The deceased Hanamant Hosamani succumbed to the injuries on the spot. The claimants have spent huge amount towards transportation of dead body and funeral ceremony. It is averred that the deceased was aged about 38 years, was agriculturist and also a shepherd and earning Rs.3,00,000/- per annum from his agriculture and Rs.25,000/- per month from his shepherd avocation. 3. The Insurance Company filed written statement denying the age, income and avocation of the deceased and denied that the occurrence of the accident was due to the negligent driving of the driver of the Ashoka HGV Tipper vehicle bearing Reg. No.KA-15/A-3713 and sought to dismiss the claim petition. 4. The Tribunal on appreciation of oral and documentary evidence on record, awarded a total compensation of Rs.22,73,940/- with interest at the rate of 7% per annum from the date of petition till the date of - 5 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 realization. Aggrieved by the same, the Insurance Company is before this Court seeking to set aside the judgment and award of the Tribunal. 5. Heard the learned counsel for the appellant and learned counsel for the respondents. 6. Learned counsel Sri. N.R.Kuppelur appearing for the appellant submits that the Tribunal has committed a grave error in saddling the liability on the Insurance Company and without appreciating the fact that as on the date of accident, the vehicle involved in the accident was not having a valid permit. Hence, the liability should be on the owner of the vehicle and not on the Insurance Company. 7. It is submitted that the Tribunal further committed an error in assessing the income of the deceased at Rs.13,000/- per month without any evidence on record. It is submitted that in the absence of evidence, normally this Court and the Tribunal placed reliance on the notional income chart prepared by KSLSA and assess the income. Hence, he seeks to reassess the income of the deceased as - 6 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 per the notional income chart prepared by KSLSA. Thirdly, it is submitted that the interest awarded by the Tribunal at the rate of 7% per annum is without any justifiable reason as the rate of interest paid on the fixed deposit by the nationalized bank at 6% per annum is required to be considered. Hence, he seeks to allow the appeal filed by the appellant-Insurance Company. 8. Per contra, learned counsel Sri.Anand D. Bagewadi appearing for respondent Nos.1 to 3 and learned counsel Sri.S.G.Nandoor appearing for respondent No.4 have supported the impugned judgment and award of the Tribunal and submits that the vehicle involved in the accident was having a valid Insurance Policy. Hence, the Insurance Company cannot deny its liability. It is submitted that the Tribunal has exercised its judicious discretion in assessing the income at Rs.13,000/- per month which also does not call for any interference. Hence, he seeks to dismiss the appeal. - 7 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 9. We have heard the arguments of the learned counsel for the appellant-Insurance Company as well as the learned counsel for the respondents and perused the appeal papers along with the original records. 10. Having heard the learned counsel for the parties and on perusal of the material available on record, the only point that would fall for consideration in the present appeal is, whether the impugned judgment and award of the Tribunal calls for any interference? 11. Answer to the above point would be in the affirmative for the following reasons; The undisputed facts are that on 15.11.2018 deceased Hanamant Hosamani sustained grievous injuries and succumbed to the injuries. It is not in dispute that the driver of the Ashoka HGV Tipper vehicle bearing Reg. No.KA-15/A- 3713 driven the said lorry in a rash and negligent manner and caused the accident. It is also not in dispute that the said lorry was insured with the appellant. The pleading and the material on record indicate that the accident is occurred - 8 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 on 15.11.2018 and on the said date, the vehicle involved in the said accident was not having a valid permit. When things stood thus, in our considered view the Tribunal committed an error in saddling the liability on the Insurance Company to pay the compensation. The Hon’ble Supreme Court in the case of Amrit Paul Singh and Another Vs. TATA AIG General Insurance Company Limited and Others2 has held that plying of transport vehicle in public without permit is statutory breach and if such vehicle gets involved in an accident, the insurer will be absolved from the liability to pay. 12. Keeping in mind the enunciation of law laid down by the Hon’ble Supreme Court referred supra we are of the considered view that the liability to pay the compensation is shifted on the respondent No.4-the owner of the vehicle by directing the appellant-Insurance Company to pay the compensation amount initially and recover the same from respondent No.4. Accordingly, we modify the impugned judgment and award of the Tribunal. 2 (2018) 7 SCC 558 - 9 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 13. The Tribunal considering the pleading and material on record has assessed the income of the deceased at Rs.13,000/- per month. We have meticulously perused the documents placed by the claimants before the Tribunal. There is no legal evidence on record to accept the income of the deceased at Rs.13,000/- per month. In the absence of acceptable evidence, we notionally reassess the income of the deceased at Rs.11,750/- per month placing notional income chart prepared by KSLSA. Having reassessed the notional income of the deceased, we recalculate the compensation as under; Rs.11,750/- + 40% x 12 x 15 x 2/3 = Rs.19,74,000/- 14. The claimants are 3 in number hence, they are entitled for consortium at Rs.40,000/- each as per the law laid down by the Hon’ble Supreme Court in the case of Magma General Insurance Company Limited Vs. Nanu Ram & Others3 and also Rs.15,000/- under the head of loss of estate, Rs.15,000/- towards the transportation of the dead 3 2018 ACJ 2782 - 10 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 body and funeral expenses as held by the Hon’ble Supreme Court in the case of National Insurance Company Limited Vs. Pranay Sethi & Others4. The Tribunal has committed an error in awarding compensation at the rate of 7% per annum. In our view, the same is required to be modified at 6% per annum taking note of the prevailing rate of interest by the nationalized bank on the term deposits. 15. The claimants are entitled for the following modified compensation with interest at the rate of 6% per annum: 1 Loss of dependency Rs.19,74,000/- 2 Loss of consortium (Rs.40,000/- each to claimants are 3 in number) Rs.1,20,000/- 3 Transportation of dead body and Funeral expenses Rs.15,000/- 4 Loss of estate Rs.15,000/- Total Rs.21,24,000/- 16. Thus, the claimants would be entitled to total compensation of Rs.21,24,000/- as against Rs.22,73,940/- awarded by the Tribunal. 17. Hence, we proceed to pass the following: 4 2017 (16) SCC 680 - 11 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 ORDER i. The appeal is allowed in part. ii. The impugned judgment & award of the Tribunal is modified holding that the respondent Nos.1 to 3-claimants are entitled for total compensation of Rs.21,24,000/- as against Rs.22,73,940/- awarded by the Tribunal. iii. The aforesaid compensation shall carry interest at the rate of 6% per annum from the date of petition till date of payment. iv. Appellant/Insurance Company shall deposit the compensation amount with accrued interest before the Tribunal within a period of eight [8] weeks from the date of receipt of certified copy of this judgment and the liberty is reserved to recover the said amount from respondent No.4-owner of the vehicle involved in the accident. v. The amount in deposit shall be transmitted back to the Tribunal forthwith. vi. The apportionment and disbursement shall be made as per the award of the Tribunal. vii. Registry to transmit the records to the Tribunal forthwith. - 12 - HC-KAR NC: 2025:KHC-D:10191-DB MFA No. 102050 of 2023 viii. Draw modified award accordingly. ix. No order as to costs. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE PJ, CT:VP LIST NO.: 1 SL NO.: 35