Karnataka High Court
United India Insurance Co.Ltd vs Ramadevi Medam on 27 June, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
-1-
NC: 2024:KHC:27439
MFA No. 2905 of 2019
C/W MFA No. 9536 of 2018
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 27TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
MISCELLANEOUS FIRST APPEAL NO. 2905 OF 2019 (MV-D)
C/W
MISCELLANEOUS FIRST APPEAL NO. 9536 OF 2018 (MV-D)
IN M.F.A.No.2905/2019
BETWEEN:
RAMADEVI MEDAM,
W/O THIRUPATHI REDDY,
AGED ABOUT 44 YEARS,
RESIDING AT NO.397,
DARSI, KOTHAREDDY PALEM,
PRAKASAM DISTRICT,
ANDHRA PRADESH.
...APPELLANT
(BY SRI. SREENIVASAIAH A., ADVOCATE)
AND:
1. SUBRAMANI,
S/O NARAYANAPPA,
NO.15, DODDAKAMBALI
(VILLAGE & POST),
Digitally signed by B
K
MAHENDRAKUMAR
BANGARPET TALUK,
Location: HIGH KOLAR DISTRICT.
COURT OF
KARNATAKA
2. UNITED INDIA INSURANCE CO. LTD.,
R.O. NO.18, 5TH FLOOR,
KRUSHI BHAVAN,
HUDSON CIRCLE,
BENGALURU - 560 001.
...RESPONDENTS
(BY SRI.JANARDHAN REDDY., ADVOCATE FOR R2;
NOTICE TO R1 IS HELD SUFFICIENT VIDE ORDER
DATED 09.01.2024)
-2-
NC: 2024:KHC:27439
MFA No. 2905 of 2019
C/W MFA No. 9536 of 2018
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 30.07.2018 PASSED IN MVC
NO.7102/2016 ON THE FILE OF THE II ADDITIONAL JUDGE AND
XXVIII ACMM, ADDITIONAL SMALL CAUSES JUDGE, MOTOR
ACCIDENTS CLAIMS TRIBUNAL, BENGALURU (SCCH-13), PARTLY
ALLOWING THE CLAIM PETITION FOR COMPENSATION AND
SEEKING ENHANCEMENT OF COMPENSATION.
IN M.F.A.No.9536/2018
BETWEEN:
UNITED INDIA INSURANCE CO. LTD.,
REGIONAL OFFICE
#18, 5TH AND 6TH FLOORS,
KRUSHI BHAVAN,
HUDSON CIRCLE,
BENGALURU - 560 001.
REPRESENTED BY ITS MANAGER.
...APPELLANT
(BY SRI. JANARDHAN REDDY, ADVOCATE)
AND:
1. RAMADEVI MEDAM,
W/O THIRUPATHI REDDY,
AGED ABOUT 43 YEARS,
RESIDING AT NO.397,
DARSI, KOTHAREDDY PALEM,
PRAKASH DISTRICT,
ANDHRA PRADESH.
2. SUBRAMANI,
S/O NARAYANAPPA,
MAJOR IN AGE,
NO.15, DODDAKAMBALI
(VILLAGE & POST),
BANGARPET TALUK,
KOLAR DISTRICT.
(OWNER OF THE CAR BEARING
NO.KA-08-6882).
...RESPONDENTS
(BY SRI.A.SREENIVASAIAH, ADVOCATE FOR C/R1;
R2 SERVED)
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NC: 2024:KHC:27439
MFA No. 2905 of 2019
C/W MFA No. 9536 of 2018
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 30.07.2018 PASSED IN MVC
NO.7102/2016 ON THE FILE OF THE II ADDITIONAL JUDGE AND
XXVIII ACMM, COURT OF SMALL CAUSES, BENGALURU, [SCCH-13],
AWARDING COMPENSATION OF RS.8,26,000/- WITH INTEREST @
6% P.A. FROM THE DATE OF PETITION TILL REALIZATION.
THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, THE
COURT DELIVERED THE FOLLOWING:
JUDGMENT
These appeals are filed by the claimant under Section 173(1) of the Motor Vehicles Act, 1988, challenging the judgment and award dated 30.07.2018 in MVC No.7102/2016 passed by the learned Addl. Small Causes Judge and the MACT, Bengaluru (SCCH-13).
2. The claimant filed a claim petition under Section 166 of the MV Act, seeking just and proper compensation on account of the death of Thirupathi Reddy, who succumbed to injuries sustained in a road traffic accident on 07.08.2016 while riding his motorcycle. The Tribunal awarded a total compensation amount of Rs. 8,26,000/- with 6% interest per annum from the date of the petition until realization. The insurance company has appealed in MFA No.9536/2018, challenging both the liability and the quantum of compensation, while the claimant has appealed in MFA No.2905/2019, seeking an enhancement of the compensation.
3. Heard the learned counsels for the parties and perused the records.
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4. The death of Thirupathi Reddy, who succumbed to accidental injuries, is not disputed. As of the date of the accident, the deceased was aged 45 years. In the absence of proof of income, the notional income of the deceased is assessed at Rs.9,500/- as per the chart issued by the Karnataka State Legal Services Authority, as opposed to Rs.9,000/- assessed by the Tribunal. Adding 25% towards future prospects and deducting 1/3rd towards personal expenses, the income of the deceased is assessed at Rs.7,917/-. Therefore, the claimant is entitled to a compensation amount of Rs.13,30,056/- (i.e., Rs.7917*12*14) towards loss of dependency as opposed to Rs.7,56,000/- awarded by the Tribunal. The claimant is also entitled to compensation of Rs.40,000/- towards consortium and Rs.30,000/- towards estate and funeral expenses. In all, the claimant is entitled to a total compensation of Rs.14,00,056/- as opposed to Rs.8,26,000/-.
5. Admittedly, the offending vehicle, which was insured with the appellant insurance company, did not hold a valid permit for commercial use and did not possess a fitness certificate as of the date of the accident.
6. The full Bench of this Court, in the case of New India Assurance Company Limited vs. Yallavva W/o Yamanappa reported in 2020 (2) AKR 484, ruled that:
"iv) Thus, in a case where Section 149(2)(b) applies and the Insurance Company successfully establishes that the policy is void, in such a case also, the insurer is not absolved of its liability to satisfy the judgment or award as rights or obligations would flow even from a policy which is void vis-à-vis a third party. In -5- NC: 2024:KHC:27439 MFA No. 2905 of 2019 C/W MFA No. 9536 of 2018 such a case, the insurer is not completely absolved of its liability; the insured would have to satisfy the award vis-à-vis the third party and recover from the insured the amount paid to the third party and may also have a right to seek damages from the insured."
7. In view of what is elucidated by the full bench of this court, the impugned judgment and award passed by the Tribunal are modified as follows:
a. Appeals are allowed in part.
b. The claimant is entitled to a total compensation amount of Rs.14,00,056/- as against Rs.8,26,000/- awarded by the Tribunal.
c. The enhanced compensation amount of Rs.5,74,056/- shall carry interest at 6% per annum from the date of the petition until actual realization.
d. The respondent-Insurance Company before the Tribunal is held liable to pay the entire compensation amount with interest at the rate of 6% p.a. to the claimant in the first instance and recover the same from respondent No.1 - the owner of the vehicle, in the same proceedingd in accordance with the law.
e. The compensation amount is to be deposited by the respondent insurance company within a period of three months from the date of receipt of a copy of this order.-6-
NC: 2024:KHC:27439 MFA No. 2905 of 2019 C/W MFA No. 9536 of 2018 To this extent, the impugned judgment and award stands modified.
Sd/-
JUDGE RKA