- 1 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 29TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO.100162 OF 2022 (MV-D) BETWEEN: 1. SHRI. BHARAMAPPA JINAPPA SIRAGUPPI, AGE. 54 YEARS, OCC. NIL, R/O. H.NO.1332, ULAGADDI KHANAPUR, TQ. HUKKERI, DIST. BELAGAVI-590001. 2. SMT. JAYASHREE BHARAMAPPA SIRAGUPPI, AGE. 44 YEARS, OCC. HOUSEHOLD, R/O. H.NO.1332, ULAGADDI KHANAPUR, TQ. HUKKERI, DIST. BELAGAVI-590001. …APPELLANTS (BY SRI. UMESH C.AINAPUR, ADVOCATE) AND: 1. SHRI. SURESH APPARAO SATNAIK, AGE. MAJOR, OCC. AGRI., R/O. 999, HAKARI ONI, ULLAGADDI KHANAPUR, TQ. HUKKERI, DIST. BELAGAVI-590001. (OWNER OF MOTOR CYCLE BEARING ENGINE NO.MC38EFEGT00048), CHASSIS NO.(BLMC38EH3GJ00050) MC38EFJ00048 MBLMC38EHEGJ00050 2. THE DIVISIONAL MANAGER, THE NATIONAL INSURANCE CO. LTD., Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 RAMDEVI GALLI, BELAGAVI, TQ. AND DIST. BELAGAVI-590001. (CERTIFICATE NO.39010231156204139952 VALID FROM 28/01/2016 TO 26/01/2017) 3. SMT. LAXMI W/O. OMKARAPPA, AGE. MAJOR, OCC. BUSINESS, R/O. 5TH WARD TALAVARA PETE, EMMIGNOOR BELLARY, KARNATAKA-583101. (OWNER OF HARVESTER MACHINE KA-34/M-7153) 4. SHRIRM GENERAL INSURANCE CO. LTD., CTS NO.477/1M/1, 1ST FLOOR, V.A. KALBURGI HALL MARK, BESIDE INDUS LAND BANK, DESAI CROSS, PINTO ROAD, HUBLI-580020, DIST. DHARWAD. …RESPONDENTS (BY SRI. S.K. KAYAKAMATH, ADVOCATE FOR R2; NOTICE TO R1, R3, R4 ARE SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLE ACT, 1988, PRAYING TO ALLOW THE APPEAL AND MODIFY THE JUDGMENT AND AWARD DATED 18.03.2021 PASSED IN MVC NO.1072/2017 ON THE FILE OF THE II ADDL. DISTRICT AND SESSIONS JUDGE, AND MEMBER OF ADDL. MACT, BELAGAVI IN THE INTEREST OF JUSTICE AND EQUITY. THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 ORAL JUDGMENT Aggrieved by the award passed in MVC No.1072/2017 dated 18.03.2021 by the II Additional Sessions Judge and Member of Addl.M.A.C.T., Belagavi (hereinafter referred to as ‘the Tribunal’ for short), 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 Tribunal has considered the income of the deceased at Rs.6,000/- per month, future prospects at 25% and granted the compensation as per the table given below: Heads Compensation Awarded 1. Loss of dependency : Rs. 8,10,000/- 2. Funeral expenses : Rs. 10,000/- TOTAL : Rs. 8,20,000/- 3. Learned counsel appearing for the appellants/claimants submits that, even in cases where the driver of the offending vehicle does not possess a valid driving licence, the principle of “Pay and Recover” will apply. It is submitted that, the accident had taken place in the year 2016 - 4 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 and the Tribunal has taken Rs.6,000/- per month as the income of the deceased instead of Rs.8,750/- per month. As the age of the deceased was 21 years at the time of the accident, future prospects at 40% ought to have been taken, but the Tribunal had taken the future prospects at 25%. It is submitted that, on all the other conventional heads also, the compensation that is awarded by the Tribunal is not just and reasonable. 4. Learned counsel appearing for respondent No.2/Insurance Company submits that, the Tribunal has rightly considered and rightly granted the compensation and there are no grounds to interfere. 5. Having heard the submissions of the learned counsel on either side, perused the material on record. First coming to the aspect of liability, considering the fact that the driver of the vehicle is not having the valid driving licence to drive the vehicle at the time of the accident, that itself cannot be a ground for the Tribunal to exonerate the Insurance Company from paying the compensation. Considering the judgment of the Hon’ble Supreme Court in NATIONAL INSURANCE CO. LTD. V. SWARAN - 5 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 SINGH AND OTHERS1, the principle of pay and recover will apply. The Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle. 6. Now coming to the aspect of quantum, the accident had taken place in the year 2016. Hence, this Court, as per the chart prepared by the Karnataka State Legal Services Authority is taking the notional income of the deceased at Rs.8,750/- per month. As the deceased was aged 21 years at the time of the accident, future prospects has to be added at 40%, which comes to Rs.3,500/-. Then the income of the deceased comes to Rs.12,250/- per month. As he is a bachelor, 50% has to be deducted towards personal expenses, which comes to Rs.6,125/- . Then his contribution to the family would be Rs.6,125/- per month. Accordingly, the claimants are entitled to an amount of Rs.13,23,000/- (Rs.6,125 x 12 x 18) under the head of loss of dependency. Then coming to the loss of consortium, the claimants are entitled to Rs.96,000/- (Rs.48,000 x 2). This Court is granting an amount of Rs.36,000/- towards funeral expenses. 1 AIR 2004 SC 1531 - 6 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 7. In the light of the law laid down by the Hon'ble Apex Court in the case of V.Mekala Vs. M. Malathi And Another2, the claimants would be entitled for an amount of Rs.10,000/- towards Legal Expenses. 8. The claimants are therefore, entitled to the compensation under the following heads: Heads Compensation Awarded by the Tribunal Compensation Awarded by this Court 1. Loss of dependency : Rs. 8,10,000/- 13,23,000/- 2. Funeral expenses and loss of estate : Rs. 10,000/- 36,000/- 3. Loss of consortium : Rs. 00/- 96,000/- 4. Legal expenses : Rs. 00/- 10,000/- TOTAL : Rs. 8,20,000/- 14,65,000/- 9. Altogether, the claimants are entitled for an amount of Rs.14,65,000/-. 10. Accordingly, the appeal filed by the claimants is partly allowed by enhancing the compensation from an amount of Rs.8,20,000/- to Rs.14,65,000/-. 2 (2014) 11 SCC 178 - 7 - HC-KAR NC: 2026:KHC-D:1155 MFA No. 100162 of 2022 i. The enhanced amount shall carry interest at 6% per annum from the date of petition till the date of realization. i. The respondent No.2- Insurance Company shall pay the compensation to the claimants and recover the same from the owner of the vehicle. ii. The respondent No.2- Insurance Company shall deposit the amount within a period of eight weeks from the date of receipt of copy of the 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. The apportionment of the amount shall be as per the order passed by the Tribunal. v. No costs. vi. Pending miscellaneous petitions, if any, shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI RH CT: UMD/List No.: 2 Sl No.: 23