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Oriental Insurance Co. Ltd vs Mahesh S/O. Rachappa Andani
2024 Latest Caselaw 1341 Kant

Citation : 2024 Latest Caselaw 1341 Kant
Judgement Date : 16 January, 2024

Karnataka High Court

Oriental Insurance Co. Ltd vs Mahesh S/O. Rachappa Andani on 16 January, 2024

Author: V.Srishananda

Bench: V.Srishananda

                                                -1-
                                                        NC: 2024:KHC-D:1056
                                                          MFA No. 21370 of 2013
                                                      C/W MFA No. 21371 of 2013



                    IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

                          DATED THIS THE 16TH DAY OF JANUARY, 2024

                                             BEFORE
                           THE HON'BLE MR JUSTICE V.SRISHANANDA
                    MISCELLANEOUS FIRST APPEAL NO.21370 OF 2013 (MV-D)
                                                C/W
                          MISCELLANEOUS FIRST APPEAL NO.21371 OF 2013

                   IN M.F.A. NO.21370 OF 2013
                   BETWEEN:
                   ORIENTAL INSURANCE COMPANY LTD.,
                   REPRESENTED BY ITS SENIOR DIVISIONAL MANAGER,
                   BELAGAVI D.O. AT MADIWALE ARCADE,
                   CLUB ROAD, BELAGAVI,
                   REPRESENTED BY ITS ASST.MANAGER
                   REGIONAL OFFICE, 2ND FLOOR,
                   SUMANGALA COMPLEX, HUBLI.
                                                                    ...APPELLANT
                   (BY SRI. S.K. KAYAKAMATH, ADVOCATE)

                   AND:
                   1.   SRI. MAHESH S/O. RACHAPPA ANDANI,
                        AGE: 47 YEARS, OCC: BUSINESS,
Digitally signed
by SAMREEN              R/O. 1249, BANAGAR GALLI,
AYUB
DESHNUR                 GOKAK, DIST: BELAGAVI.
Date: 2024.02.01
15:37:08 +0530
                   2.   SMT. TRIVENI W/O. MAHESH ANDANI,
                        AGE: 41 YEARS, OCC: BUSINESS
                        and HOUSEHOLD WORK,
                        R/O. 1249, BANAGAR GALLI,
                        GOKAK, DIST: BELAGAVI.
                   3.   MR. VISHWANATH R.GUL ,
                        AGE: MAJOR, OCC: BUSINESS,
                        R/O. 1249, BANAGAR GALLI,
                        GOKAK, DIST: BELAGAVI.
                        (OWNER OF MOTORCYCLE BEARING NO.KA-49/E4056)
                   4.   SRI. NARAYAN MANIKRAO KALE,
                        R/O. VANI SANGAMA, TQ: SONPET,
                              -2-
                                     NC: 2024:KHC-D:1056
                                       MFA No. 21370 of 2013
                                   C/W MFA No. 21371 of 2013



     DIST: PRABANI, STATE: MAHARASHTRA
     (OWNER OF MOTORCYCLE BEARING NO.KA-49/E4056)

5.   SRI. EKANATH S/O. DYANOBA KESKAR,
     R/O. SHANTNAGAR, MAJGAON,
     DIST: BEED, STATE: MAHARASHTRA.
     (OWNER OF MOTORCYCLE BEARING NO.KA-49/E4056)

6.   SADASHIV BHAGAWAN RAO CHAVAN
     R/O.BHRAMAPURI, TQ and DIST: PRABHANI,
     STATE: MAHARASHTRA,
     (OWNER OF TRAIL NO.MH-22/H-8866)
                                               ...RESPONDENTS

(BY SRI. S.S. YALIGAR, ADVOCATE FOR
    SRI. MRUTYUNJAY TATA BANGI, ADVOCATE FOR R1 AND R2;
    R3 SERVED;
    SMT. KAVITA JADHAV, ADVOCATE FOR R4 AND R5;
    R6 - DISMISSED)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 173(1) OF MV ACT 1988, AGAINST THE JUDGMENT AND
AWARD DATED: 01.02.2013 PASSED IN MVC NO.653/2012 ON THE
FILE OF THE PRESIDING OFFICER, FAST TRACK COURT-I AND
MEMBER ADDITIONAL M.A.C.T., BELAGAVI, AWARDING THE
COMPENSATION OF RS.5,47,000/- WITH INTEREST AT THE RATE OF
8% P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION.

IN M.F.A. NO.21371 OF 2013
BETWEEN:
ORIENTAL INSURANCE COMPANY LTD.,
REPRESENTED BY ITS SENIOR DIVISIONAL MANAGER,
BELAGAVI D.O. AT MADIWALE ARCADE,
CLUB ROAD, BELAGAVI,
REPRESENTED BY ITS ASST.MANAGER
REGIONAL OFFICE, 2ND FLOOR,
SUMANGALA COMPLEX, HUBLI.
                                                 ...APPELLANT
(BY SRI. S.K. KAYAKAMATH, ADVOCATE)

AND:

1.   SRI. MAHESH S/O. RACHAPPA GULL,
     AGE: 52 YEARS, OCC: BUSINESS,
                              -3-
                                     NC: 2024:KHC-D:1056
                                       MFA No. 21370 of 2013
                                   C/W MFA No. 21371 of 2013



     R/O. 1249, BANAGAR GALLI,
     GOKAK, DIST: BELAGAVI.

2.   SMT. VIDYA W/O. MAHESH GULLA,
     AGE: 43 YEARS, OCC: BUSINESS
     AND HOUSEHOLD WORK,
     R/O. 1249, BANAGAR GALLI,
     GOKAK, DIST: BELAGAVI.

3.   MR. VISHWANATH R.GUL ,
     AGE: MAJOR, OCC: BUSINESS,
     R/O. BANAGAR GALLI,
     GOKAK, DIST: BELAGAVI.
     (OWNER OF HERO HONDA SPLENDOR
     MOTORCYCLE BEARING NO.KA-49/E4056)

4.   SRI. NARAYAN MANIKRAO KALE,
     AGE: MAJOR,
     R/O. WANI SANGAMA, TQ: SONPET,
     DIST: PRABANI, STATE: MAHARASHTRA
     (OWNER OF THE TRACTOR BEARING
     NO.MH-22/H-5993)

5.   SRI. EKANATH S/O. DYANOBA KESKAR,
     R/O. SHANTNAGAR, MAJGAON,
     DIST: BEED, STATE: MAHARASHTRA.
     (OWNER OF LMV TRAILER BEARING
     NO.MH-23/C-4272)

6.   SRI. SADASHIV S/O. BHAGAWAN RAO CHAVAN,
     AGE: MAJOR,
     R/O.BHRAMHAPURI, TQ and DIST: PRABHANI,
     (OWNER OF LMV TRAILER BEARING
     NO.MH-22/H-8866)

                                             ...RESPONDENTS
(BY SRI. S.S. YALIGAR, ADVOCATE FOR
    SRI. MRUTYUNJAY TATA BANGI, ADVOCATE FOR R1 AND R2;
    R3 SERVED;
    SMT. KAVITA JADHAV, ADVOCATE FOR R4 AND R5;
    R6 - DISMISSED)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 173(1) OF MV ACT 1988, AGAINST THE JUDGMENT AND
AWARD DATED: 01.02.2013 PASSED IN MVC NO.654/2012 ON THE
                               -4-
                                      NC: 2024:KHC-D:1056
                                        MFA No. 21370 of 2013
                                    C/W MFA No. 21371 of 2013



FILE OF THE PRESIDING OFFICER, FAST TRACK COURT-I AND
MEMBER ADDITIONAL M.A.C.T., BELAGAVI, AWARDING THE
COMPENSATION OF RS.5,58,000/- WITH INTEREST AT THE RATE OF
8% P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION.


     THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR
HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING:


                          JUDGMENT

Heard Shri. S. K. Kayakamath, learned counsel for the

appellant-Insurance Company, Shri. S. S. Yaligar representing

Shri. Mrutyunjay Tata Bangi, learned counsel for respondent

Nos.1 and 2 and Smt. Kavita Jadhav, learned counsel for

respondent Nos.4 and 5.

2. These two appeals are filed challenging the validity

of judgment and award passed in MVC Nos.653/2012 and

654/2012 dated 01.02.2013 on the file of Fast Track Court-I

and Member Additional MACT, Belagavi.

3. The facts in brief which are utmost necessary for

disposal of the present appeals are as under:

3.1. Two claim petitions came to be filed under Section

163A of the Motor Vehicles Act, 1988 (for short the 'M.V. Act'),

claiming compensation in respect of death of Amit S/o.

Mahesh Andani and Prabhu S/o. Mahesh Gull, who were the

NC: 2024:KHC-D:1056

rider and pillion rider of the motor cycle bearing registration

No.KA-49/E-4056 involving another vehicle i.e., Tractor bearing

registration No.MH-22/H-5993 and Trailers bearing registration

Nos.MH-23/C-4272 and MH-22/H-8866 (for short 'T.T. Unit').

4. Upon receipt of the notice of the claim petitions, the

Insurance Company and the owner of the T.T. Unit appeared

before the Court and filed necessary written statement.

5. They denied the averments made in the claim

petitions except the death of Amit and Prabhu.

6. The Tribunal raised necessary issued and thereafter

considering the oral and documentary evidence placed on

record on behalf of the parties, allowed the claim petitions in

granting a sum of Rs.5,47,000/- in respect of claim in MVC

No.653/2012 and a sum of Rs.5,58,000/- in respect of claim in

MVC No.654/2012 and directed respondent Nos.1 to 5 jointly

and severally liable to pay the compensation.

7. Being aggrieved by the same, the Insurance

Company of the motor cycle bearing registration No.KA-49/E-

4056 has preferred these appeals.

8. Shri. S.K. Kayakamath, learned counsel for the

appellant-Insurance Company of the said motor cycle,

NC: 2024:KHC-D:1056

reiterated the grounds urged in the appeal memorandum

contended that admittedly the driver of the T.T.Unit has been

charge sheeted by the police including offence of not

possessing valid insurance and the same is not challenged by

the driver of the T.T. Unit.

9. He also pointed out that as on the date of accident,

T.T.Unit did not possess a valid insurance and therefore, the

owner of the T.T.Unit cannot escape the liability.

10. He further submits that principal liability if any will

be on the owner of the T.T.Unit and in the absence of any

contract to contrary, the owner of the T.T.Unit who is made

liable to pay the compensation. But the Tribunal has directed

the Insurance Company of the motor cycle bearing registration

No.KA-49/E-4056 to pay the compensation which has resulted

in miscarriage of justice and sought for allowing the appeal.

11. Alternatively he contended that in the event of this

Court holding that the Insurance Company of the motor cycle is

liable to pay the compensation, taking note of the fact that

T.T.Unit was not insured, the appellant may be permitted to

recover the adjudged compensation which is paid to the

claimant, from owner of the T.T. Unit.

NC: 2024:KHC-D:1056

12. He also contended that since petitions are under

163A of the M.V. Act, the quantum compensation assessed by

the Tribunal is incorrect and sought for modification of the

quantum of compensation.

13. He further contended that with regard to the

interest which is granted at the rate of 8% per annum is

reduced to at the rate of 6% per annum and sought for

allowing the appeal.

14. Per contra, Shri. S. S. Yaligar representing Shri.

Mrutyunjay Tata Bangi, learned counsel for respondent Nos.1

and 2 supported the impugned judgment and sought for

dismissal of the appeal.

15. Smt. Kavita Jadhav, learned counsel for respondent

Nos.4 and 5, also supports the impugned judgment and

contended that the arguments of the Insurance Company of the

motor cycle cannot be countenanced in law and sought for

dismissal of the appeal.

16. In view of the rival contentions of the parties, this

Court perused the records meticulously.

17. On such perusal of the material on record, it is

crystal clear that the driver of T.T.Unit has been charge sheeted

NC: 2024:KHC-D:1056

by the police not only for the offences under the Indian Penal

Code but also for violation of the provisions of M.V. Act

including the offence of allowing T.T.Unit being driven on the

road without proper insurance.

18. Taking note of the same, the Trial Court has held

that all respondents are jointly and severally liable to pay the

compensation.

19. However, learned counsel for the appellant

contended that since the charge sheet is filed on the driver of

the T.T.Unit who drove the T.T.Unit on road without insurance,

the liability should be fastened on the owner of the T.T.Unit and

not on the Insurance Company of the motor cycle.

20. There is sufficient force in the arguments put forth

by learned counsel for the appellant-Insurance Company of the

motor cycle.

21. This would take us to the question that whether the

appellant alone is liable to pay compensation or appellant be

allowed to pay compensation at the first instance and recover

the same from the owner of the T.T.Unit.

22. As could be seen from the material available on

record, the driver of the T.T.Unit has been charge sheeted and

NC: 2024:KHC-D:1056

it is not challenged by the driver. As such, the only course is

open for the appellant is to pay the adjudged compensation at

the first instance and recover the same from the owner of the

T.T.Unit.

23. Further, as rightly contended by the counsel for the

appellant that the quantum compensation assessed by the

Tribunal is incorrect which needs re-assessment in view of the

Schedule 2 of the M.V. Act as the claim petitions are under

Section 163A of the M.V. Act.

24. Accordingly, the compensation amount in both the

claim petitions is re-assessed as under:

In MVC No.653/2012 (MFA No.21370/2013):

1 Loss of Dependency Rs.4,57,833/- 2 Loss of love and affection of petitioner Rs.20,000/-

3 Loss of Estate Rs.10,000/-

4 Transportation of dead body and Rs.10,000/-

Funeral expenses Total Rs.4,97,833/-

In MVC No.654/2012 (MFA No.21371/2013):

1 Loss of Dependency Rs.4,31,166/-

- 10 -

NC: 2024:KHC-D:1056

2 Loss of love and affection of petitioner Rs.20,000/-

3 Loss of Estate Rs.10,000/-

4 Transportation of dead body and Rs.10,000/- Funeral expenses 5 Medical expenses Rs.11,000/-

Total Rs.4,82,166/-

24. Since the claim petitions are filed under Section

163A of the M.V. Act, the interest should be payable at 6% per

annum not as 8% per annum from the date of petition till its

realization. Hence, a case is made out for reduction on

quantum of compensation and also interest at the rate of 8%

per annum to 6% per annum.

25. Hence, the following order is passed:

ORDER

(i) Appeals are allowed in apart.

(ii) As against the sum of Rs.5,47,000/-

awarded by the Tribunal in respect of claim in MVC

No.653/2012, the claimants are entitled for

compensation in a sum of Rs.4,97,833/- with

- 11 -

NC: 2024:KHC-D:1056

interest at the rate of 6% per annum from the date

of petition till its realization.

(iii) As against the sum of Rs.5,58,000/-

awarded by the Tribunal in respect of claim in MVC

No.654/2012, the claimants are entitled for

compensation in a sum of Rs.4,82,166/- with

interest at the rate of 6% per annum from the date

of petition till its realization.

(iv) The modified quantum of compensation

is to be paid by the appellant at the first instance

and then entitled to recover the same from the

owners of the T.T.Unit in the very same

proceedings.

(v) Office is directed to pass modified award

accordingly.

(vi) Amount in deposit is ordered to be

transmitted to the Tribunal for disbursement in

accordance with law.

- 12 -

NC: 2024:KHC-D:1056

(vii) Balance amount if any is to be deposited

within a period of four weeks by the Insurance

Company.

(viii) Ordered accordingly.

Sd/-

JUDGE

SMM

 
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