- 1 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 8085 OF 2025 (MV-D) BETWEEN: MRS NAYANIKA RAJASHEKARA W/O ADITYA URAS, AGED ABOUT 36 YEARS, R/O REVAPPA, BEHIND LAKSHMI RICE MILL, ALKOLA SHIMOGA KARNATAKA - 577 204. …APPELLANT (BY SRI. LINGARAJU K.R., ADVOCATE) AND: 1. VIVEK DESAI S/O SURYAKANT DESAI, AGED ABOUT 'MAJOR' R/O 604, SHANKASHWARA KRUPA, SOC BIRLA COLLAGE ROAD, NR KOKAN RATHNA HOTEL KALYAN WEST THANE, MAHARASHTRA - 421 301. 2. BRANCH MANAGER, BHARATI AXA GENERAL INSURANCE COMPANY LIMITED REPRESENTED BY ICICI LAMBORD GENERAL INSURANCE COMPANY LTD., 3. MANI W/O LATE BASAVARAJU AGED ABOUT 42 YEARS, Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 4. SINCHANA M B D/O LATE BASAVARAJU AGED ABOUT 22 YEARS, 5. THEJASGOWDA M S/O LATE BASAVARAJU AGED ABOUT 20 YEARS, 6. SAVITHRAMMA W/O LATE NINGEGOWDA AGED ABOUT 75 YEARS, RESPONDENTS NO. 3 TO 6 ARE R/O MATTANAVILE VILLAGE, SHRAVANABELAGOLA HOBLI, CHANNARAYAPATNA TALUK, HASSAN DISTRICT - 573 135. …RESPONDENTS (BY SRI. A.N. KRISHNA SWAMY, ADVOCATE FOR R2 V/O DATED 15/04/2026, R1 PLACED EXPARTE. R3 TO R6 SD) THIS MFA IS FILED U/S.173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DT. 16.11.2024 PASSED IN MVC NO. 681/2023 ON THE FILE OF THE IV ADDITIONAL DISTRICT AND SESSIONS JUDGE, HASSAN SITTING AT CHANNARAYAPATNA, HASSAN, AWARDING COMPENSATION OF RS. 11,55,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL REALIZATION EXCLUDING THE INTEREST ON THE AMOUNT OF RS. 4,15,896/-. THIS MFA, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA ORAL JUDGMENT Learned counsel for the appellant/purchaser of the vehicle and also learned counsel for respondent No.2/Insurance Company are present. 2. Heard the arguments of learned counsel for the appellant and learned counsel for the respondent No.2. The rank of the parties are referred to as per their rankings before the Tribunal for the sake of convenience. 3. This appeal is filed against the award of the Tribunal in MVC No.681/2023 dated 16.11.2024. 4. Brief facts of the case are that, one Basavaraju, met with an accident on 01.05.2023 and subsequently succumbed to the injuries. His wife, children and mother filed a claim petition claiming compensation of Rs.50,00,000/-. - 4 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 5. The Tribunal considering the entire oral and documentary evidence on record granted an amount of Rs.11,55,000/- with interest at the rate of 6% per annum, from the date of petition till realization and directed respondent No.2 to deposit the award amount within three months from drawing the award. Aggrieved by the said order, respondent No.2/purchaser of the vehicle filed this appeal and mainly contented that respondent No.1 is the owner of the vehicle, but he has not appeared even after service of the notice and as such he is placed ex-parte. Respondent No.2 purchased the vehicle from respondent No.1 in March 2022 and the accident occurred on 01.05.2023. She relied upon a citation and stated that vehicle was not transferred in her name within 14 days, but the Tribunal erred in fixing the liability 50% on her. Therefore, requested to setaside the order passed by the Tribunal. 6. The learned counsel for the appellant has relied upon a citation in AIR 2025 SC (Civil) 2406 between - 5 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 Brij Bihari Gupra and Manmet and others, in which it was held as follows: "As per S.50 of Motor Vehicles Act, 1988 a transferee has to report fact of transfer in prescribed from to Registering Authority within whose jurisdiction transfer was effected, within 14 days of transfer, Registered owner had not pleaded having made such a report, Ownership was with registered owner even at time of the accident, Registered owner was liable to compensate victims in accident, which had to be indemnified by insurer." 6. No doubt respondent No.1 is the actual owner of the vehicle, but he remained ex-parte before the Tribunal and after purchase of the vehicle from him in March 2022, the accident has occurred on 01.05.2023. But immediately after the accident it was not transferred in the name of respondent No.2 within 14 days and he is registered owner of the vehicle as on the date of accident. Therefore, respondent No.1 alone is liable to pay the compensation. It was observed by the Tribunal that there was a fake policy which was not in existence as on the date of accident. As such, insurance company was already exonerated from paying the liability, but the Tribunal erred in fixing the liability of 50% on the appellant and it is to be - 6 - HC-KAR NC: 2026:KHC:20403 MFA No. 8085 of 2025 setaside. Respondent No.1 is alone is liable to pay entire compensation of Rs.23,10,000/- within one month from the date of the order, failing which, claimants are at liberty to initiate execution proceedings against him. In the result, the appeal is allowed. An amount of Rs.25,000/- already deposited by the appellant is to be refunded digitally to respondent No.2. Sd/- (P SREE SUDHA) JUDGE DS CT:VS List No.: 1 Sl No.: 19