- 1 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF JULY, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 1070 OF 2016 (MV-I) BETWEEN: BRANCH MANAGER NATIONAL INSURANCE CO. LTD BRANCH OFFICE MAGANUR COMMERCIAL COMPLEX DAVANGERE ROAD CHITRADURGA-577 501 NOW REPRESENTED BY ITS REGIONAL MANAGER NATIONAL INSURANCE CO. LTD REGIONAL OFFICE SUBHARAM COMPLEX 144 M G ROAD BANGALORE-560 001. APPELLANT (BY SRI. AN KRISHNA SWAMY.,ADVOCATE) AND: 1. SMT GOWRAMMA W/O ANJAYYA NADIGE ANJINAPPA @ RAMANJINAPPA NOW AGED ABOUT 37 YEARS 2. ANJAYYA NADIGE ANJINAPPA @ RAMANJINAPPA S/O SANJEEVAPPA Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 NOW AGED ABOUT 47 YEARS BOTH ARE PERMANENT R/O VRINDAVANAHALLI CHALLAKERE TALUK NOW R/O KYADIGERE VILLAGE CHITRADURGA TALUK AND DISTRICT 577522. 3. SRINIVASA G S/O G GOVINDAPPA NOPW AGED ABOUT 52 YEARS R/O KATUKARA BEEDI RANGANNANAKAPILE CHALLAKERE-577 522 RESPONDENTS (BY SMT DEEPU BM,. ADVOCATE FOR SRI. B PRAMOD., ADVOCATE FOR R1 & R2) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 01.12.2015 PASSED IN MVC NO.549/2014 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE, C.J.M. & MACT-III, CHITRADURGA, AWARDING THE COMPENSATION OF RS.9,00,000/- WITH INTEREST AT 7.5% P.A. FROM THE DATE OF PETITION TILL THE DEPOSIT AND ETC,. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA - 3 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 ORAL JUDGMENT This appeal is filed by the insurance company under Section 173(1) of Motor Vehicles Act, 1988 challenging the judgment and award dated 01.12.2015 passed in MVC.No.549/2014 on the file the Court of the Principal Senior Civil Judge, CJM and MACT-III, Chitradurga, seeking to modify the enhanced compensation. 2. Heard the arguments of learned counsel for the appellant and learned counsel for respondent Nos. 1 and 2. The ranks of the parties are retained as per Tribunal for the sake of convenience. 3. Shivu @ Shivanna working as cleaner cum conductor met with an accident on 04.11.2013 and died subsequently. His parents have filed the claim petition claiming compensation of Rs.30,00,000/-. The Tribunal considering the entire evidence on record granted an amount of Rs.9,00,000/- with interest at the rate of 7.5% p.a., from the date of filing the petition till the date of deposit and directed respondent Nos.1 and 2 jointly and severally liable to pay the compensation. Being aggrieved by the said order, this appeal is filed and - 4 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 mainly contended that, liability of the insurer is to be restricted to the Workmen’s Compensation Act, 1923 in view of explanation to Section 147(1) of Motor Vehicles Act, 1988 (for short 'MV Act') and also basing on Ex.R2. Learned counsel for the appellant has also relied upon the citation in National Insurance Company Ltd., V.s. Prembai Patel and others1. He further stated that, he is liable to pay Rs.5,65,950/- and excess amount of Rs.3,34,050/- is to be paid by respondent No.3 fastening the entire liability on the appellant is erroneous and it is to be modified. 4. Learned counsel for the respondents requested for pay and recovery of the balance amount also by the insurance company. 5. The provision of Section 147 of MV Act, reads as follows: "Provided that a policy shall not be required- i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment other than a liability arising under the Workmen's Compensation Act, 1923 1 2005 ACJ 1323 SC - 5 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 (8of 1923), in respect of the death of, or bodily injury to, any such employee- a) engaged in driving the vehicle, or b) if it is a public service vehicle engaged as a conductor of the vehicle or in examining tickets on the vehicle, or c) if it is a good carriage, being carried in the vehicle, or ii) to cover any contractual liability." 6. Therefore, this Court finds that it is just reasonable to restrict the liability of the appellant/insurance company to an amount of Rs.5,65,950/-. It is stated that the insurance company already deposited 50% of the said amount and is directed to deposit the balance amount with interest at the rate of 12% per annum from the dated of accident till the date of deposit within one month from the date of the order. The owner/ respondent No.3 is liable to pay Rs.3,34,050/- with interest at the rate of 12% per annum from date of accident till the date of deposit within one month from the date of the order. 7. Accordingly, the following: ORDER i. The appeal is allowed; ii. The judgment and award dated 01.12.2015 passed in MVC.No.549/2014 on the file the Court of the - 6 - HC-KAR NC: 2026:KHC:34073 MFA No. 1070 of 2016 Principal Senior Civil Judge, CJM and MACT-III, Chitradurga, is modified; iii. Appellant/Insurance Company has already deposited 50% of the award amount before the Tribunal. Therefore, appellant/Insurance Company is directed to deposit the balance compensation along with the interest at the rate of 12% per annum from the date of accident till the date deposit within one month from the date of this order; iv. Respondent No.3/owner is liable to pay Rs.3,34,050/- with interest at the rate of 12% per annum from the date of accident till the date deposit within one month from the date of this order; v. On such deposit, the parents of the deceased are permitted to withdraw the said amount along with interest accrued on the same. Sd/- (P SREE SUDHA) JUDGE PNV - List No.: 1 Sl No.: 19