- 1 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO. 476 OF 2024 (MV-D) BETWEEN: 1. SMT. SAROJAMMA S N W/O LATE S.N. SHANKARAPPA AGED ABOUT 42 YEARS, 2. SMT. PRIYANKA S D/O LATE S.N. SHANKARAPPA AGED ABOUT 23 YEARS, 3. SRI. RAGHAVENDRA S S/O LATE S.N. SHANKARAPPA AGED ABOUT 21 YEARS, THE PETITIONERS NO.1 TO 3 ARE RESIDING AT DIBBURAHALLI VILLAGE, SADALI HOBLI, SHDLAGHATTA TALUK CHIKKABALLAPUR DISTRICT. …APPELLANTS (BY SRI. SUMANA S.N., ADVOCATE) AND: 1. TATA AIG GENERAL INSURANCE CO. LTD., 5TH AND 6TH FLOOR IMPERIAL TOWERS, H NO.7-1-6-617/A GHMC NO.615, 616 HYDERABAD, TELANGANA HYDERABAD - 560 016 POLICY NO.016097222230000 FROM 16/06/2020 TO 15/06/2021 Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 2. SRI. CHILABANDALA SURESH S/O CHILABANDLA YERRISWAMY AGED ABOUT 47 YEARS, R/AT DUDDEKUNTA VILLAGE, BELUGUPPA MANDALAM URUVAKUNDA TALUK - 515 741 ANANTHAPURA DISTRICT ANDHRA PRADESH STATE. …RESPONDENTS (BY SRI. RAVI SHANKAR S. SAMPRATHI, ADVOCATE FOR R1; NOTICE TO R2 IS HELD SUFFICIENT, VIDE ORDER DATED 23.04.2025) THIS MFA IS FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DT.16.06.2023 PASSED IN MVC NO.26/2021 ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC, MACT, SIDLAGHATTA, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 ORAL JUDGMENT Aggrieved by the award passed in M.V.C.No.26/2021 dated 16.06.2023 by the Senior Civil Judge & JMFC., and Motor Accident Claims Tribunal, Shidlaghatta, (hereinafter referred to as "Tribunal") the claimants are before this Court seeking enhancement of the compensation as well as questioning the liability that is fixed on the owner of the vehicle. 2. The claim petition was filed seeking compensation of an amount of Rs.25,00,000/- for the death of the deceased in the accident that took place on 02.07.2020. The Tribunal has fixed the liability on the owner of the vehicle on the ground that as on the date of the accident, the driver of the offending vehicle was not having valid driving licence. The owner has not even taken sufficient steps to ensure that there was no breach of terms and conditions of the policy and hence, the Insurance Company is liable to pay the compensation. Basing on the evidence on record, the Tribunal has awarded the compensation as per the table given below: - 4 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 SL. No . Heads Calculation Claim 1. Wages Rs.10,000/- 2. 10% of the above income to be added as future prospects Rs.10,000+10,00 = 11,000/- 3. 1/3rd is deducted towards personal expenses of the deceased Rs.11,000-3,666= 7,334/- 4. Compensation after multiplier is 13 is applied Rs.7,334x13x12= Rs.11,44,104=00 5. Transportation charges, medical charges and attendant charges Rs.10,000=00 6. Loss of Consortium Rs.40,000=00 7. Funeral Expenses Rs.25,000=00 8. Loss of estate Rs.15,000=00 TOTAL Rs.12,34,104=00 4. Learned counsel appearing for the claimants submits that though there was no valid driving licence, still the Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle. But the Tribunal had wrongly fixed the liability on the owner of the vehicle alone by exonerating the Insurance Company. It is submitted that the compensation that is awarded by the - 5 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 Tribunal is not just and reasonable. The Tribunal had taken income at Rs.10,000/- As this accident had taken place in the year 2020, the Tribunal ought to have taken the income at Rs.14,000/-. It is submitted that on other conventional heads also the amount that is awarded by the Tribunal is not reasonable. 5. Learned counsel appearing for the Insurance Company submits that the Tribunal had considered all the aspects and granted a reasonable compensation and no enhancement is called for. 6. Having heard the learned counsels on either side, perused the material on record. First, coming to the aspect of the liability just on the ground that the driver of the offending vehicle was not having a valid driving license, that itself is not a reason to exonerate the Insurance Company. Hence, in the light of the law laid down by the Hon'ble Apex Court in the case of National Insurance Company Limited vs. Swaran Singh and others1, the principle of pay and recover will apply. The Insurance Company shall pay the compensation and recover the same from the owner of the vehicle. 1 (2004) 3 SCC 297 - 6 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 7. Coming to the compensation, this Court is taking the income at Rs.14,000/- and 10% future prospects would come to Rs.1,400/- i.e., (Rs.14,000+1400) Rs.15,400/-. There are three claimants, 1/3rd has to be deducted towards personal expenses i.e., Rs.5,133/-. Then the contribution to the family is (Rs.15,400-5133) Rs.10,267/- under the head of loss of dependency this Court is granting an amount of (Rs.10,267x12x13) is Rs.16,01,652/-. Towards loss of consortium, this Court is granting an amount of (Rs.44,000x3) Rs.1,32,000. Towards Funeral Expenses, this Court is granting an amount of Rs.36,000/-. 8. In the light of the law laid down in the case of V.Mekala Vs. M. Malathi and Another2, the claimants is entitle for an amount of Rs.10,000/- towards legal expenses. 9. Altogether, the claimants are entitled for an amount of Rs.17,79,652/- under the following heads: SL. No. Heads Compensation Awarded by Tribunal Compensation Awarded by this Court 1. Loss of dependency : Rs. 11,44,104/- 16,01,652/- 2 (2014) 11 SCC 178 - 7 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 2. Transportation Charges, medical charges and attendant charges : Rs. 10,000/- 00/- 3. Loss of consortium : Rs. 40,000/- 1,32,000/- 4. Loss of estate : Rs. 15,000/- 00/- 5. Funeral Expenses : Rs. 25,000/- 36,000/- 6. Legal expenses : Rs. 00/- 10,000/- TOTAL : Rs. 12,34,104 17,79,652/- 10. Accordingly, the appeal filed by the claimants, is partly allowed by enhancing the compensation from an amount of Rs.12,34,104/- to Rs.17,79,652/-, the Insurance Company shall pay and recover the same from the owner of the vehicle. i. The enhanced amount shall carry interest at 6% per annum from the date of the appeal till the date of realization. ii. The Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment and shall recover from the owner. On such deposit, the claimant is entitled to withdraw the entire amount as per the award. iii. Registry is directed to return the Trial Court Records to the Tribunal, along with certified - 8 - HC-KAR NC: 2025:KHC:45176 MFA No. 476 of 2024 copy of the order passed this Court forthwith without any delay. iv. The apportionment of the amount shall be as per the order passed by the Tribunal. v. The amount in deposit shall be forthwith transferred to the Tribunal. vi. No costs. vii. Pending miscellaneous petitions, if any, shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE GJM List No.: 1 Sl No.: 4