- 1 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 13TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO.100618 OF 2023 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO.100055 OF 2023 IN MISCELLANEOUS FIRST APPEAL NO.100618 OF 2023 BETWEEN: SHRI. ASIF S/O. DADASAB @ DADAPEER SANGOLLI, AGE. 27 YEARS, OCC. MASON, (NOW NIL), R/O. BAILHONGAL, TQ. BAILHONGAL-591102, DIST. BELAGAVI. &APPELLANT (BY SRI. MADANMOHAN M.KHANNUR, ADVOCATE) AND: 1. SHRI. RUDRAPPA S/O. APPAYYA KILOJI, AGE. 40 YEARS, OCC. BUSINESS, R/O. KILLIJI GALLI, ITAGI, TQ. KHANAPUR, DIST. BELAGAVI-591102. 2. THE BRANCH MANAGER, ORIENTAL INSURANCE COMPANY LIMITED, MERCHANT BANK BUILDING, BAILHONGAL, DIST. BELAGAVI-591102. Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 3. SHRI. MUGUTSAB S/O. HAZARATSAB ATTAR, AGE. 25 YEARS, OCC. COOLIE, R/O. INDIRA NAGAR, TQ. BAILHONGAL, DIST. BELAGAVI-591102. 4. THE MANAGER, UNITED INDIA INSURANCE COMPANY, SRINIVAS TALKIES COMPLEX LIMITED, DHARWAD-580111, THROUGH IT9S THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE COMPANY LIMITED, 1ST FLOOR, MARUTI GALLI, BELAGAVI, KARNATAKA. &RESPONDENTS (BY SRI. S.S. KOLIWAD, ADVOCATE FOR R2; NOTICE TO R3 IS SERVED AND UNREPRESENTED; SMT. PREETI SHASHANK, ADVOCATE FOR R4; V/O DATED 16.07.2024 SERVICE OF NOTICE TO R1 IS HELD SUFFICIENT) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO, a) ENHANCE THE COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD DATED 05.11.2022 PASSED IN MVC NO.903/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BAILHONGAL, AT: BAILHONGAL, AND AWARD THE COMPENSATION AS CLAIMED IN THE CLAIM WRIT PETITION, IN THE INTEREST OF JUSTICE AND EQUITY. - 3 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 b) FASTEN THE LIABILITY TO PAY THE COMPENSATION UPON RESPONDENT NO.2 IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.,. IN MISCELLANEOUS FIRST APPEAL NO.100055 OF 2023 BETWEEN: SHRI. RAJASAB S/O. HAZARATSAB ATTAR, AGE. 34 YEARS, OCC. MASON (NOW NIL), R/O. BAILHONGAL, TQ. BAILHONGAL-591102, DIST. BELAGAVI. &APPELLANT (BY SRI. MADANMOHAN M.KHANNUR, ADVOCATE) AND: 1. SHRI. RUDRAPPA S/O. APPAYYA KILOJI, AGE. 46 YEARS, OCC. BUSINESS, R/O. KILLIJI GALLI, ITAGI, TQ. KHANAPUR-591302, DIST. BELAGAVI-591102. 2. THE BRANCH MANAGER, ORIENTAL INSURANCE COMPANY LIMITED, MERCHANT BANK BUILDING, BAILHONGAL-591102, DIST. BELAGAVI. 3. SHRI. MUGUTSAB S/O. HAZARATSAB ATTAR, AGE. 31 YEARS, OCC. COOLIE, R/O. INDIRA NAGAR, TQ. BAILHONGAL-591102, DIST. BELAGAVI. - 4 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 4. THE MANAGER, UNITED INDIA INSURANCE COMPANY, SRINIVAS TALKIES COMPLEX LIMITED, DHARWAD-580011. THROUGH IT9S THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE COMPANY LIMITED, 1ST FLOOR, MARUTI GALLI, BELAGAVI-590016, KARNATAKA. &RESPONDENTS (BY SRI. S.S. KOLIWAD, ADVOCATE FOR R2; SMT. PREETI SHASHANK, ADVOCATE FOR R4; NOTICE TO R1 AND R3 ARE SERVED AND UNREPRESENTED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF MOTOR VEHICLES ACT, 1988, a) ENHANCE THE COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD DATED 05.11.2022 PASSED IN MVC NO.902/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, BAILHONGAL, AT: BAILHONGAL, AND AWARD THE COMPENSATION AS CLAIMED IN THE CLAIM WRIT PETITION, IN THE INTEREST OF JUSTICE AND EQUITY. b) DIRECT AND INSURANCE COMPANY TO DEPOSIT THE AWARD AMOUNT BY SETTING ASIDE THE JUDGMENT AND AWARD DATED 05.11.2022 AGAINST RESPONDENT NO.1 AND ETC.,. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR JUDGMENT, THIS DAY, THE COURT DELIVERED THE FOLLOWING: - 5 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL COMMON JUDGMENT Aggrieved by the judgment and award dated 05.11.2022 passed in M.V.C Nos.903 and 902 of 2016 by the Senior Civil Judge & Additional M.A.C.T., Bailhongal (hereinafter referred to as 8the Tribunal9, for short), the claimants are before this Court seeking enhancement of compensation and also questioning the liability that is fixed on the owner of the offending vehicle. 2. The Tribunal by the order impugned had granted the compensation as per the tables given below: In M.V.C. No.903/2016:- Sl. No. Heads Compensation Awarded 1. Pain and suffering : Rs. 40,000/- 2. Medical expenses : Rs. 38,893/- 3. Towards diet food nourishment attendant and conveyance charges : Rs. 21,000/- 4. Towards loss of future earning capacity due to permanent disability : Rs. 2,93,760/- 5. Loss of income during laid up period : Rs. 16,000/- - 6 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 6. Towards loss of amenities and enjoyment in life : Rs. 16,000/- TOTAL : Rs. 4,25,653/- In M.V.C. No.902/2016:- Sl. No. Heads Compensation Awarded 1. Pain and suffering : Rs. 40,000/- 2. Medical expenses : Rs. 24,017/- 3. Towards diet food nourishment attendant and conveyance charges : Rs. 12,000/- 4. Towards loss of future earning capacity due to permanent disability : Rs. 2,12,160/- 5. Loss of income during laid up period : Rs. 16,000/- 6. Towards loss of amenities and enjoyment in life : Rs. 16,000/- TOTAL : Rs. 3,20,177/- 3. When it comes to liability, the Tribunal has held that, as the driver of the offending vehicle is not having valid driving licence to drive the vehicle, the principle of pay and recover will not apply, hence, the Insurance Company is not liable to pay the compensation and the liability is fixed on the owner of the vehicle. - 7 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 4. Learned counsel appearing for the claimants submits that, the Tribunal has not awarded just and reasonable compensation. Further, in the light of the law laid down by the Hon9ble Supreme Court in NATIONAL INSURANCE CO. LTD. V. SWARAN SINGH AND OTHERS1 case, as the petitioners are the third parties the Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle. But, the Tribunal has fixed the liability on the owner of the vehicle. 5. Learned counsel appearing for the respondent No.2/Insurance Company submits that the Tribunal had considered all the aspects and granted the compensation and there are no grounds to enhance the same. Then coming to the liability, it is submitted that, as the driver who is not having a valid driving licence, the Tribunal has rightly fixed the liability on the owner of the offending vehicle and exonerated the Insurance Company. 6. Having heard the counsels on either side, perused the material on record. First coming to the aspect of 1 AIR 2004 SC 1531 - 8 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 compensation, this Court has perused the awards in both the cases and the compensation that is awarded by the Tribunal. For the injuries sustained by the claimants, the Tribunal on all the heads has granted a reasonable compensation and this Court finds no reasons to interfere. 7. Then coming to the aspect of liability, as rightly argued by the learned counsel appearing for the claimants, in light of the law laid down in SWARAN SINGH9s case (referred supra), the principle of pay and recover will apply and the Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle. 8. Accordingly, MFA No.100618/2023 and MFA No.100055/2023 filed by the claimants are partly allowed by applying the principle of pay and recover. i. The respondent No.2- Oriental Insurance Company Limited shall pay the compensation to the claimants and recover the same from the owner of the vehicle. ii. The respondent No.2- Oriental Insurance Company Limited shall deposit the amount within a period of eight weeks from the date of receipt of copy of the - 9 - HC-KAR NC: 2026:KHC-D:383 MFA No. 100618 of 2023 C/W MFA No. 100055 of 2023 judgment. On such deposit, the claimants are entitled to withdraw the entire amount without furnishing any security. iii. Registry is directed to return the Trial Court Records to the Tribunal, along with certified copy of the order passed by this Court forthwith without any delay. iv. No costs. v. Pending miscellaneous petitions, if any, shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI RH CT: UMD List No.: 2 Sl No.: 1