- 1 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.104577 OF 2019 (MV-D) C/W MISCELLANEOUS FIRST APPEAL NO.104348 OF 2019 IN M.F.A. NO.104577 OF 2019 BETWEEN: SMT. ROOPA WD/O. RATNAKAR SANADI, AGE : 29 YEARS, OCC : HOUSE HOLD WORK, R/O: H.NO.333, AMBEDKAR GALLI, PANT BALEKUNDRI, BELAGAVI, TQ: AND DIST: BELAGAVI, PIN-591103. …APPELLANT (BY SRI HARISH S.MAIGUR, ADVOCATE) AND: 1. THE MANAGER, ORIX AUTO INFRASTRUCTURE SERVICE LTD., OFF: NO.1, BANDAPPA COLONY, NEW BYAPPANAHALLI, EXTENSION, OLD MADRAS ROAD, INDIRANAGAR, BENGALURU-560038. 2. THE DIVISIONAL MANAGER, THE NEW INDIA INSURANCE CO. LTD., CLUB ROAD, BELAGAVI-590001, ISSUING OFFICE: DO 9TH FLOOR, NEW INDIA CENTRE, COOPARAGE ROAD, MUMBAI. …RESPONDENTS (BY SRI S.S. KOLIWAD, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, PRAYING TO THE IMPUGNED JUDGMENT AND AWARD DATED 30.08.2019 IN MVC Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 NO.1626/2018 PASSED BY THE IX ADDITIONAL DISTRICT AND SESSIONS JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BELAGAVI, AT: BELAGAVI MAY BE MODIFIED BY ENHANCING THE COMPENSATION AMOUNT AS PRAYED FOR IN THE APPEAL AND THE COST OF RS.20,000/- OF THIS LITIGATION MAY KINDLY BE AWARDED TO THE APPELLANTS. IN M.F.A. NO.104348 OF 2019 BETWEEN THE DIVISIONAL MANAGER, NEW INDIA ASSURANCE CO. LTD., CLUB ROAD, BELAGAVI, ISSUING OFFICE, DO, 9TH FLOOR, NEW INDIA CENTRE, COOPARAGE ROAD MUMBAI, REPRESENTED BY ITS’ AUTHORIZED SIGNATORY MANAGER. ...APPELLANT (BY SRI S.S. KOLIWAD, ADVOCATE) AND 1. SMT. ROOPA W/O. RATNAKAR SANADI, AGE: 29 YEARS, OCC: HOUSE HOLD WORK, R/O: HOUSE NO.333, AMBEDKAR GALLI, PANT BALEKUNDRI, BELAGAVI-577428. 2 . THE MANAGER, ORIX AUTO INFRASTRUCTURE SERVICES LTD., OFFICE NO.1 BANDAPPA COLONY, NEW BYAPPANAHALLI EXTENSION, OLD MADRAS ROAD, INDIRA NAGAR, BENGALURU, PIN-560008. RESPONDENTS (BY SRI HARISH S.MAIGUR, ADVOCATE FOR R1; NOTICE TO R2 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 30.08.2019 PASSED IN MVC NO.1626/2018 ON THE FILE OF THE IX ADDITIONAL DISTRICT AND SESSIONS JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BELAGAVI, THE APPELLANT IN THE INTEREST OF JUSTICE. - 3 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) The appeal is filed by the appellant/claimant challenging the judgment and award dated 30.08.2019 passed in MVC No.1626/2018 by the IX Additional District and Sessions Judge and Additional MACT, Belagavi (hereinafter referred to as ‘the Tribunal’ for short), seeking enhancement of compensation. Whereas, MFA No.104348/2019 filed by the Insurance company challenging the liability fastened on it to pay compensation. 2. For the sake of convenience and easy reference, the parties are referred to as per their rankings before the Tribunal. 3. The factum of accident and death occurred in the case are not in dispute. The disputed question is whether the claimant is entitled for enhancement of compensation and the Insurance Company is liable to pay the compensation or not. - 4 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 4. The claimant (legal heir of the deceased) has filed claim petition under Section 163-A of the Motor Vehicles Act (hereinafter referred to as ‘the MV Act’ for short) and the Tribunal by considering the notional income of Rs.40,000/- p.a. by deducting 1/3rd of income towards personal and expenses and multiplied by relevant to the Gazette notification accordingly, granted compensation of Rs.3,33,333/- under the head loss of dependency and also awarded compensation under other heads. 5. Upon considering the factum of accident amount of compensation awarded by the Tribunal is found to be just and proper as the claimant has filed claim petition under Section 163-A of the MV Act, for claiming compensation. Therefore, the appeal filed by the claimant in MFA No.104577/2019, is liable to be dismissed. 6. Considering the grounds raised by the Insurance company that the offending vehicle is Mahindra XUV 500 bearing Reg.No.KA-03/AB-1108 did not have permit to ply on the road, therefore, the Insurance Company is not liable - 5 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 to indemnify the owner and pay the compensation to the claimant. When the Insurance Company raised ground and also by calling upon the owner of the offending vehicle to produce the permit, fitness certificate and RC, but the owner of the offending vehicle has failed to discharge his burden by producing the permit. Therefore, in the present case, there is no permit to the Mahindra XUV 500 vehicle to ply on the road. Therefore, because of violation of conditions of insurance policy, the insurance company is not liable to pay compensation. Hence the Insurance Company is liable to be exonerated from liability to pay compensation. The owner is liable to pay compensation. However, the order of pay and recovery is made. REGARDING PAY AND RECOVERY 7. The insurance company is able to establish the defence as per sub-section (2) of section 149 of M.V.Act. However, the claimant is third party to the offending vehicle/Mahindra XUV 500. 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 - 6 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 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 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 is directed to deposit the compensation within eight weeks from the date - 7 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 of receipt of a certified copy of this judgment at the first instance and then recover it from the owner of offending vehicle as discussed above. 9. Accordingly, I proceed to pass the following: ORDER i. MFA No.104577/2019 filed by the claimant is dismissed. ii. MFA No.104348/2019 filed by the Insurance Company is allowed in part. iii. The impugned judgment and award dated 30.08.2019 passed in MVC No.1626/2018 by the IX Additional District and Sessions Judge and Additional MACT, Belagavi stands modified holding that respondent No.1 owner of the offending vehicle shall pay compensation to the claimant. iv. The appellant/Insurance Company in MFA No.104348/2019 shall pay the compensation amount to the claimant at the first instance and then recover the same from the owner of the lorry bearing Reg.No.KA-03-AB-1108. v. No order as to costs. - 8 - NC: 2025:KHC-D:1910 MFA No. 104577 of 2019 C/W MFA No. 104348 of 2019 vi. Registry is directed to return the TCR along with certified copy of this judgment to the Tribinal forthwith. vii. Amount in deposit made by the appellant/Insurance Company in MFA No.104348/2019 shall be transmitted to the tribunal. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE SRA List No.: 1 Sl No.: 73