- 1 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.100916 OF 2017 (MV-I) BETWEEN: DIVISIONAL MANAGER, RELIANCE GENERAL INSURANCE COMPANY LIMITED, DIVISIONAL OFFICE, OPPOSITE BALAL RESIDENCY HOTEL, PARVATHI NAGAR, BALLARI, REPRESENTED BY ITS AUTHORIZED SIGNATORY, RELIANCE GENERAL INSURANCE COMPANY LTD., DESAI CROSS, DESHPANDE NAGAR, HUBBALLI-580 020. … APPELLANT (BY SRI G.N. RAICHUR, ADVOCATE) AND: 1. S. RAMESH S/O SANNA MARANNA, AGE: 28 YEARS, R/O: GUGGARAHATTI, BALLARI-583 101. 2. RAYAPPA M. BISHYAL S/O MALAPPA BISHYAL AGE: 33 YEARS, OCC: DRIVER OF THE LORRY BEARING REG. NO.MH-43/U-4680, R/O: BISINAL, MALAHALLI VILLAGE, TQ: SURAPURA, DIST: YADAGIRI-585 201. 3. RANJIT MAHAL SINGH UPPAL S/O GURUMITH SINGH UPPAL, AGE: 43 YEARS, OWNER OF THE LORRY BEARING REG.NO.MH-43/U-4680, R/O: C-5/192-3, SECTOR NO.5, CBD BELAPUR, NAVI MUMBAI, MAHARASTRA-400 001. … RESPONDENTS (BY SRI GURUKUMAR V.A., ADVOCATE FOR R1; R2 – NOTICE SERVED; Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH DHARWAD - 2 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 R3 – SERVICE OF NOTICE HELD SUFFICIENT.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 01.10.2016, PASSED IN MVC NO.1067/2014, ON THE FILE OF THE MOTOR ACCIDENT CLAIMS TRIBUNAL-II, BALLARI, BY ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND EQUITY. THIS APPEAL COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) This appeal is filed by the insurance company challenging the judgment and award dated 01.10.2016, passed by the Motor Accident Claims Tribunal-II, Ballari, in MVC No.1067/2014, questioning its liability to pay compensation on the ground that the cheque for payment of premium was dishonoured and it was communicated to the owner of the offending vehicle and the insurance policy was cancelled. Therefore, the appellant is not liable to pay compensation and also to reduce compensation. 2. Heard the arguments and perused the trial Court records and the material placed before the Court. - 3 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 3. In this case, the date of accident is 15.04.2014. Ex.R.2 is the cheque issued on 08.07.2013 paying premium towards purchase of insurance policy. The cheque was dishonoured on 10.07.2013 and Ex.R.3 is the bank endorsement. The appellant company has issued legal notice and dispatched on 16.07.2013 and Ex.R.6 is the cancellation of insurance policy. But the insurance company has not produced any evidence to show that the intimation of dishonour of cheque was communicated to the owner of the vehicle. Further, there is no evidence that cancellation of policy was communicated to the owner of the offending vehicle. Therefore, on perusing the records no proof is found produced by the appellant insurance company that the fact of dishonour of cheque was communicated to the owner of the vehicle and also the fact of cancellation of insurance policy was communicated to the owner of the vehicle. Therefore, in the absence of this, it is to be held that the insurance policy was in existence. - 4 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 4. Ex.R.4 is the dispatch list which only proves the fact that notice has been sent but there is no proof that the notice was reached to the owner of the vehicle. Mere dispatch of notice is not sufficient, but at the same time the insurance company shall also prove the fact that the notice is reached and received by the owner of the vehicle. 5. The issue is squarely covered by the judgment of this Court in MFA No.24732/2011 dated 21.02.2025 in the case of Sri P.Yadava Rao S/o.Mallaiah vs. Sri Ramaiah S/o.Sriramulu and others. Therefore, in the absence of proof of dishonour of cheque was communicated and cancellation of policy was communicated, then, the insurance company is held liable to pay compensation. REGARDING QUANTUM OF COMPENSATION: 6. In the present case, from the medical evidence on record it is proved that the claimant had suffered the following injury. - 5 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 ”Fracture of mandible shaft right femur and ORIF with plate screw for the mandible at symphysis Menti.” 7. The Tribunal after considering the facts and circumstances and evidence on record, has awarded total compensation of Rs.4,61,740/- along with interest at the rate of 7% per annum from the date of petition till the date of realization, under the following heads: Sl. No. Heads. Amount in (Rs.) 1. Towards pain and sufferings. 60,000/- 2. Towards loss of amenities 10,000/- 3. Loss of income during laid-up period 20,000/- 4. Medical expenses 42,740/- 5. Loss of future income 2,04,000/- 6. Future medical expenses 25,000/- 7. Loss of future prospects 1,00,000/- Total: 4,61,740/- 8. Further, upon considering the nature of injuries sustained, compensation awarded by Tribunal is on higher side. Therefore, the same is required to be reduced by modifying the judgment and award. 9. Considering the injuries sustained, a compensation of Rs.25,000/- towards pain and suffering, - 6 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 Rs.30,000/- towards loss of amenities are awarded. The compensation awarded towards medical expenses and hospital charges of Rs.42,740/- is as per the actual bills and receipts produced; therefore, the same is kept intact. Rs.22,500/-(7,500 x 3) towards loss of income during laid- up period for a period of three months. Further, Rs.15,000/- towards incidental expenses like food, nourishment, traveling, attendant charges, etc., is awarded. The compensation of Rs.25,000/- awarded towards future medical expenses is kept intact. 10. The doctor- PW.2 has stated that the claimant had suffered 26% of partial permanent disability, but the Tribunal has taken 20% of disability, which is on higher side. Therefore, considering the evidence of doctor and injuries suffered by the claimant, 12% functional disability is taken into consideration. 11. The accident is caused on 15.04.2014. The claimant was Driver by profession. Therefore, in the - 7 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 absence of proof of income, notional income of Rs.7,500/- per month is to be taken into consideration for the accident year 2014, which is recognized by the Karnataka State Legal Service Authority. The claimant was aged 26 years at the time of accident. Therefore appropriate applicable multiplier is ‘17’. Hence, loss of future income due to disability is hereby re-assessed and quantified as Rs.1,83,600/- (Rs.7,500 x 12% x 12 x 17). 12. Thus, the claimant is entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Towards pain and sufferings. 25,000/- 2. Towards loss of amenities 30,000/- 3. Towards medical expenses 42,740/- 4. Loss of income during laid-up period 22,500/- 5. Loss of future earning capacity on account of permanent disability 1,83,600/- 6. Towards food, nourishment, travelling, and attendant charges 15,000/- 7. Towards future medical expenses 25,000/- Total: 3,43,840/- 13. Therefore, the claimant is entitled for total compensation of Rs.3,43,840/-, along with interest at the rate of 6% p.a. from the date of filing of the petition till - 8 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 realization, as against Rs.4,61,740/- awarded by the Tribunal. The Insurance Company is directed to deposit the compensation amount within eight weeks from the date of receipt of a certified copy of this judgment. 14. The Tribunal has awarded interest on the compensation at 7% 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. 15. In the result, I proceed to pass the following: ORDER i. The appeal is allowed in part. ii. The judgment and award dated 01.10.2016, passed by the Motor Accident Claims Tribunal-II, Ballari, in MVC No.1067/2014, is modified. iii. The claimant is entitled for total compensation of Rs.3,43,840/-, along - 9 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.4,61,740/- awarded by the Tribunal. iv. The Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment. v. Send back the trial Court records along with a copy of this judgment and award to the tribunal. vi. The amount in deposit made by the Insurance Company, if any, shall be transmitted to the concerned tribunal for disbursement. vii. Draw modified award accordingly. viii. No order as to costs. - 10 - HC-KAR NC: 2025:KHC-D:9171 MFA No. 100916 of 2017 In view of disposal of the appeal, pending interlocutory applications, if any, stand disposed of as they do not survive for consideration. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK-para 1 to 5. RKM-para 6 to end. CT:BCK LIST NO.: 1 SL NO.: 78