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Uday Achuta Kodiya Yane Mahale, vs United Insurance Co. Ltd.,
2021 Latest Caselaw 3349 Kant

Citation : 2021 Latest Caselaw 3349 Kant
Judgement Date : 20 September, 2021

Karnataka High Court
Uday Achuta Kodiya Yane Mahale, vs United Insurance Co. Ltd., on 20 September, 2021
Author: Rajendra Badamikar
               IN THE HIGH COURT OF KARNATAKA
                       DHARWAD BENCH

          DATED THIS THE 20TH DAY OF SEPTEMBER, 2021

                            BEFORE

       THE HON'BLE MR. JUSTICE RAJENDRA BADAMIKAR

                   MFA NO.24171/2011 (MV)

Between:

Uday Achuta Kodiya Yane Mahale,
Age:29 years,
Occ:now nil, formerly barber & private service
R/o Duggumane, Tq:Sirsi
Dist:Karwar.
                                                      ...Appellant
(By Sri.Vishwanath Hegde, Advocate)

AND:

1.     United Insurance Co., Ltd.,
       General Manager, Branch Office,
       Modi Complex, Hospet road,
       Sirsi, Dist:Karwar.

2.     Manjunath R Naik,
       Owner of Bajaj CT 100,
       Occ:Business R/o Hulekal,
       Tq:Sirsi, Dist:Karwar.
                                                  ...Respondents
(By Sri.S.S.Joshi, Advocate for R1,
    R2 served)

       This Appeal is filed under Section 173(1) of M.V.Act,1988,
against the judgment and award dated 14.10.2010 passed in
MVC No.91/2007, on the file of the Presiding Officer, Fast Track
Court, Sirsi, dismissing the petition filed under Section 163A of
MV Act.
                                 2




      This appeal having been heard and reserved for judgment
on 13.09.2021 coming on for pronouncement of judgment this
day, the Court delivered the following:


                            JUDGMENT

This appeal is filed by the claimant under Section

173(1) of MV Act challenging the judgment and award

passed in MVC No.91/2007 dated 14.10.2010 on the

file of the Fast Track Court, Sirsi (hereinafter referred

to as 'the Tribunal' for short) whereby the Tribunal has

rejected the claim by dismissing the appeal and

prayed for allowing the MFA by awarding the

compensation.

2. The parties herein are referred with the

ranks occupied by them before the trial Court.

3. The factual matrix leading to the case are

that, the appellant is a barber by profession and was

also working under respondent No.2. On 05.11.2006,

at about 11.30 a.m., in Ganasin kani village road

while he was proceeding on a Bajaj CT 100 vehicle

bearing No.KA-31/K-3971 it met with accident and he

sustained grievous injuries over the head and other

parts of the body. Then he has taken treatment in

Government Hospital and later on shifted to Kasturba

Hospital, Manipal and he was inpatient till 14.12.2006

and spent Rs.86,000/- towards treatment and medical

bills. That he has filed the claim petition claiming

compensation and he has got examined himself as

Pw.1 and placed reliance on Ex.P1 to P57. The vehicle

was insured with respondent No.1. Though the

petition was initially filed under Section 166 of MV Act,

subsequently, it was converted under 163A of MV Act

by way of amendment. However, the tribunal has

rejected the claim petition on the ground that

petitioner himself was rash and negligent and further

his income does not fit within the parameters. Being

aggrieved by this judgment the appellant has filed this

appeal.

4. Heard the arguments advanced by learned

counsel for the appellant and the learned counsel for

the respondent No.1. Respondent No.2 is

unrepresented.

5. Learned counsel for the appellant would

contend that when the Court has allowed the

amendment and when he scaled down his income by

bringing his annual income of Rs.40,000/-, the

tribunal was not justified in rejecting his claim by

making observation that it is impermissible. He would

also contend that scaling down of the income and

conversion of the petition under Section 166 to 163A

of MV Act is permissible and it is a social beneficial act

and hence, strict proof is not required. Hence, he

would contend that the impugned judgment may be

set aside and sought for allowing the petition by

awarding the compensation.

6. Per contra the learned counsel appearing

for respondent-insurer has opposed the petition on

the ground that though the petition was got amended

by scaling down the income and by converting it under

Section 163A of MV Act, however, the evidence itself

disclose that annual income of the petitioner is more

than Rs.40,000/- and hence, the petition is not

maintainable and he would contend that the

admissions given by the claimant cannot be taken

away and though he technically scaled down which is

not permissible but the evidence again disclose his

higher income and as such the petition is liable to be

dismissed. Hence, he would contend that trial Court is

justified in rejecting the claim petition and sought for

dismissal of the appeal.

7. Having heard the arguments and perusing

the records, it is undisputed fact that the petitioner

has initially filed the petition under Section 166 of MV

Act, but after examination and cross examination of

Pw.1 he has got it amended under Section 163A of MV

Act by reducing the monthly income from Rs.4,000/-

p.m., to Rs.3,200/-. Whether rightly or wrongly the

said amendment was allowed. The petitioner has

disclosed his profession as Barber and private service

under respondent No.2. Interestingly on perusal of the

petition, it is evident that he did not specifically admit

that accident is because of his actionable negligence

and he never assert that he was the rider but simply

asserts that the vehicle met with accident and he

suffered injury. However, during the cross

examination it is elicited that he himself was the rider

of the motorbike and the accident was because of his

actionable negligence. Apart from that the records

also disclose that the present claimant/appellant

himself was charge sheeted by the investigating

agency. The said charge sheet is not challenged or set

aside. Hence, it is evident that prima-facie there is

material evidence to show that accident is because of

the actionable negligence on the part of the present

petitioner.

8. In his examination in chief Pw.1 initially on

07.10.2009 stated that his income is Rs.4,000/- p.m.,

He was subjected to cross examination in this regard.

He has also admitted that he was working under 2nd

respondent. He has given further evidence wherein he

has scaled down his income from Rs.4,000/- to

Rs.3,200/- p.m., But though he has scaled down is

monthly income from Rs.4,000/- to Rs.3,200/- p.m.,

his cross examination completely falsify this defence.

In his cross examination he admitted that he is

getting salary from the 2nd respondent to the tune of

Rs.3,000/- and he is earning Rs.120/- per day from

the profession of barber. This part of the cross

examination reads as under:

£À£Àß PËëjPÀ ªÀÈwÛ¬ÄAzÀ £À£ÀUÉ ¥Àæw¢£À gÀÆ.200 C®è DzÀgÉ gÀÆ.120-00 DzÁAiÀÄ EzÉ. 2£Éà JzÀÄgÀÄzÁgÀ £À£ÀUÉ wAUÀ½UÉ CAzÁdÄ gÀÆ.3,000-00 PÉÆqÀÄwÛzÀÝ. ¥ÀjºÁgÀ ¥ÀqÉAiÀÄ®Ä £Á£ÀÄ wAUÀ½UÉ gÀÆ.3,200-00 DzÁAiÀÄ«vÀÄÛ CAvÁ ¸ÀÄ:¼ÀÄî ºÉüÀÄwÛzÉÝÃ£É CAzÀgÉ ¸ÀjAiÀÄ®è.

If this version is taken in to consideration,

monthly income of the claimant-Pw.1 would be

Rs.3000+3600(120*30) = 6600*12 = 79,200/-.

Hence, his annual income will be Rs.79,200/- as per

his own admission.

9. The petition under Section 163A of the MV

Act is maintainable only if the annual income is less

than Rs.40,000/-. The learned counsel for the

appellant would contend that in view of the escalation

in the prices, Court should consider this aspect, but

that ground cannot be accepted as it is a statutory

limitation fixed by the statute.

10. Learned counsel for the appellant has

placed reliance on the decision reported in 2002 3

ACC 350 in the case of Guruanna Vadi vs. General

Manager, Karnataka State Road Transport

Corporation and argued that as per the principles

enunciated in the said decision in a case the person

who with higher income notionally brings down his

income to Rs.40,000/- in order to present his claim

petition under Section 163A of MV Act, same is

permissible. However, in paragraph No. 38 of the

judgment while answering question No.6, the Hon'ble

Apex Court has held that a claimant during the

pendency of the proceedings at the original or

appellate stage can amend his claim petition made

under Section 166 of MV Act to a petition under

Section 163A of MV Act provided he satisfies other

conditions such as income factor etc., If this is taken

in to consideration, it is evident that though the

petition under Section 166 of MV Act can be amended

to petition under Section 163A of MV Act, it depends

on the income which is a material factor to be proved

on the basis of the evidence. In the instant case,

admittedly, the cross examination of Pw.1 after

amendment itself disclose that he was getting daily

income of Rs.120/- from the profession of Barber and

further he was being paid Rs.3,000/- p.m., by

respondent No.2. Hence, the annual income is more

than Rs.40,000/- as per his own admission and

though he has notionally brought it for conversion, he

did not withstand the cross examination in this regard

and he failed to satisfy the condition regarding the

income factor as observed while answering question

No.6 by the Hon'ble High Court in the above cited

decision. Infact the principles enunciated in the above

sited decision does not help the appellant and it would

on the contrary help the respondent No.1.

11. Learned counsel for the appellant has

further placed reliance on the decision reported in ILR

2007 Kar 28 in the case of United India Insurance

Co. Ltd. and Others vs. Anitha and Others. But

the facts and circumstances are entirely different and

it is clearly observed in the said decision that tribunal

could not have allowed the petition as if it was under

Section 163A of MV Act by scaling down the annual

income of Rs.1,20,000/- to Rs.40,000/- so as to bring

the case within the purview of Section 163A of MV

Act.

12. He has further placed reliance on the

decision reported on AIR 2019 SC 994 in the case of

Sunita and Ors. Vs. Rajasthan State Road

Transport Corporation and Ors. It is argued that

standard of proof is based on preponderance of

probability. He has invited the attention of this Court

to paragraph No.20 in this regard. But the said facts

are entirely different. There is no dispute in the civil

case, the standing proof is based on preponderance of

probability and in case of criminal cases, it is beyond

all reasonable doubt. The admission given by Pw.1 in

his cross examination cannot be ignored and if they

are ignored then virtually there is no need for cross

examination.

13. The learned counsel has further placed

reliance in MFA No.4493/2015 in the case of The

Claim Manager, Future General India Insurance

Co. Ltd., vs. Future General India Insurance Co.

Ltd., But in the said case the income of the deceased

was taken at Rs.3,300/- p.m., and hence, the annual

income was Rs.39,600/- and hence, the petition under

Section 163A of the MV Act was entertained and

petition was allowed. But in the instant case, though

the income was scaled down to Rs.36,000/-, the

evidence and admission given by Pw.1 itself disclose

that his income is more than Rs.50,000/- p.a., Hence,

it is evident that only for the purpose of petition he

has scaled down his income but there is no reduction

of the income. Even he has not scaled down is day

today income in this regard. Hence, the principles

enunciated in the above cited decision does not come

to the aid of the appellant in any way.

14. He has further placed reliance on the

decision reported in 2009(3) ALL MR (JOURNAL)

53 (KARNATAKA HIGH COURT) in the case of New

India Assurance Co. Ltd. Vs.Abdul Bhasheer Alias

Basheer & Ors., wherein it is held scaling down is

permissible.

15. He has further placed reliance on the

decision of the Karnataka High Court reported in 2004

2 ACC 534 in the case of Sulochana vs.Karnataka

State Road Transport Corporation. But the facts of

the said cases are entirely different in the said case,

the evidence itself establish that income was less than

Rs.40,000/- p.a., and hence, the scaling down of the

income was allowed and evidence was appreciated.

But in the instant case, no such evidence is

forthcoming.

16. On the contrary, the learned counsel for

respondent No.1 has placed reliance on the decision of

the Division Bench of this Court reported in ILR 2007

Kar 4488 in the case of Bangalore Metro

Transport Corporation vs. Lakshmamma and

Others, wherein the Division Bench of this Court has

observed as under:

1. BMTC has filed this appeal challenging the Judgment and award passed by the MACT, Bangalore dated:

10-6-2002 in MVC 2110/1999.

Respondents were the claimants before the tribunal. Originally claim petition was lodged by them under Section 166 of MV Act claiming compensation on account of the death of Hanumanna alias Ramanna who died in road traffic accident on 28- 10-1998 at about 7-30 a.m. near Corporation Bus-stand, deceased was 51 years and drawing salary of Rs. 4090/-.

Appellant-BMTC      contested    the   case
denying      the    accident.    Later   on

amendment was sought by the claimants seeking permission of the court to convert claim petition from provisions of Section 166 of MV Act to Section 163-A of the MV Act restricting the income at Rs. 40,000/- per annum. The tribunal though held that deceased was annually getting Rs.

51,804/- restricting the income to Rs. 40,000/- awarded compensation of Rs. 3,02,833/-. This judgment and award is called in question in this appeal.

2. We have heard the counsel for both the parties.

3. It is not in dispute that deceased was a sweeper by profession and was an employee of the corporation of City of Bangalore and his gross salary was Rs. 4342/- and not salary was Rs. 4179/-. Ex.P-6 is the salary certificate. By looking

into Ex.P-6, considering the pleadings of the claimants, we are of the opinion that claim petition under Section 163-A of the MV Act was not maintainable. Claim petition under Section 163-A is applicable to the person whose income is less than Rs. 40,000/- per annum. Tribunal has no power to restrict the income of the claimant or deceased as the case may be to Rs. 40,000/- to bring the petition within the purview of Section 163-A of the MV Act. Section 163-A of the MV Act is enacted to give benefit to particular class of people whose income is less than Rs. 40,000/- per annum. Therefore, when a person is having income of more than Rs. 40,000/- in order to get benefit under Section 163-A of the MV Act, cannot maintain a petition by restricting his income to Rs. 40,000/- per annum.

Therefore, we are of the opinion that judgment and award of the tribunal has to be set aside and we have to direct the tribunal to consider the case of the claimants under Section 166 of the MV Act.

4. In the result, this appeal is allowed. Judgment and award of the tribunal are hereby set aside. Matter is remanded to the tribunal for fresh consideration and dispose of the claim petition treating it under Section 166 of the MV Act. Amount in deposit is ordered to be sent to the tribunal. If any amount is drawn by the claimants, same shall be

subject to fresh outcome by the tribunal and out of the amount deposited by the BMTC if any amount is lying with the tribunal, same shall be invested in any nationalized bank in fixed deposit for a period of one year and the same shall be released subject to the outcome of the decision of the tribunal.

17. He has also placed reliance on the Division

Bench decision reported in 2010 ACJ 977 in the case

of Oriental Insurance Co. Ltd., vs. Sharada G. and

others. In view of the decisions, it is evident that

when a person is having income more than

Rs.40,000/- p.a., he cannot maintain a petition under

Section 163A of MV Act. Though the income can be

scaled down but as per the decision reported in

Guruanna Vadi of this Court, it is permissible in case

the claimant satisfies the other conditions such as the

income factor etc., But in the instant case, the

evidence itself disclose that the income of the claimant

is more than Rs.50,000/- and though he has

technically scaled down the income by making

amendment, in his cross examination he has admitted

that his income is more than Rs.40,000/-. That

admission cannot be ignored. Admittedly when his

income is more than Rs.40,000/- he cannot maintain

the petition under Section 163 of MV Act. The accident

is because of his negligence and he was rash and

negligent as per the charge sheet submitted against

him. Further the evidence on record disclose that his

income is more than Rs.40,000/-. As such question of

he maintaining any petition under Section 163A of MV

Act does not arise at all. Hence, the appeal is devoid

of any merits and needs to be rejected. The tribunal

has considered this aspect and considering the

admissions given by the appellant has rightly

dismissed the appeal holding that the petition is not

maintainable under Section 163A of MV Act, in view of

the fact that annual income is more than Rs.40,000/-.

As such the appeal is devoid of any merits and needs

to be rejected.

Accordingly, I proceed to pass the following:

ORDER

The appeal is rejected.

Sd/-

JUDGE

NS

 
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