Karnataka High Court
Smt. Sagayamary. M vs Sri. L. Ravi on 26 July, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
-1-
NC: 2024:KHC:29581
MFA No. 4952 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 26TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
MISCELLANEOUS FIRST APPEAL NO. 4952 OF 2019
BETWEEN:
1. SMT. SAGAYAMARY. M,
W/O. LATE MADHIVANAN,
AGED ABOUT 57 YEARS,
2. SRI. KARUNAKARAN. M,
S/O. LATE MADHIVANAN,
AGED ABOUT 35 YEARS,
3. SRI. MANIMARAN. M,
S/O. LATE MADHIVANAN,
AGED ABOUT 33 YEARS,
4. SMT. VIJAYAKUMARI,
W/O. LATE MADHIVANAN,
AGED ABOUT 47 YEARS,
5. SRI. SILAMBARASAN M,
Digitally signed by B
K S/O. LATE MADHIVANAN,
MAHENDRAKUMAR
Location: HIGH
AGED ABOUT 28 YEARS,
COURT OF
KARNATAKA
ALL ARE RESIDENT OF NO.124,
"P" BLOCK, CHAMPION REEFS,
K.G.F. BANGARPET TALUK,
KOLAR DISTRICT.
6. SMT. DEVI,
W/O LATE VELU,
AGED ABOUT 74 YEARS,
(APPELLANT NO.6 DELETED AS
PER ORDER DATED 16.01.2020)
...APPELLANTS
(BY SRI. KAILAS SHANKAR P.S, ADVOCATE)
-2-
NC: 2024:KHC:29581
MFA No. 4952 of 2019
AND:
1. SRI. L. RAVI,
FATHERS NAME NOT KNOWN,
AGE IN MAJOR,
R/AT NO. 162/1, GANESHPURAM,
ROBERTSONPET, K.G.F.,
KOLAR DISTRICT.
2. THE MANAGER
IFFICO-TOKIO GENERAL INSURANCE CO. LTD.,
SRI. SHANTHI TOWERS, 5TH FLOOR,
NO.141, 3RD MAIN,
EAST OF NGEF LAYOUT,
KASTURI NAGAR,
BENGALURU - 560 043.
...RESPONDENTS
(BY SRI. B. PRADEEP, ADVOCATE FOR R2;
R1 - L. RAVI, SERVED)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 27.06.2018 PASSED IN MVC
NO.2505/2017 ON THE FILE OF THE XXII ADDITIONAL SMALL
CAUSES JUDGE MEMBER, MACT, BENGALURU, PARTLY
ALLOWING THE CLAIM PETITION FOR COMPENSATION AND
SEEKING ENHANCEMENT OF COMPENSATION.
THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
ORAL JUDGMENT
This appeal is filed by the claimant under Section 173(1) of
the Indian Motor Vehicles Act, challenging the judgment and award
dated 27.06.2018 passed by the XXII Additional Small Causes
Judge and Member, MACT, Bengaluru, in MVC No. 2505/2017.
NC: 2024:KHC:29581
2. The appellant/claimant filed this petition under Section
166 of the Motor Vehicles Act, seeking just and proper
compensation on account of the death of Sri Madhivanan in a road
traffic accident on 15.02.2017. The Tribunal awarded a total
compensation amount of Rs. 5,02,000/- with interest at 8% per
annum from the date of the petition until its realization. The
appellant/claimant has preferred this appeal seeking enhancement
of the compensation awarded by the Tribunal.
3. I have heard the learned counsel for the parties and
perused the records of the Trial Court.
4. The fact of Sri Madhivanan's death in a road traffic
accident on 15.02.2017 is not in dispute. It is also not contested
that, as of the date of the accident, the rider of the motorcycle
involved did not possess a valid driving licence. Consequently, the
Tribunal held the owner of the motorcycle liable to pay the
compensation, reasoning that the rider's lack of a valid driving
licence constituted a breach of policy conditions.
5. The Full Bench of this Court, in the case of *New India
Assurance Company Limited v. Yallavva W/o Yamanappa*
reported in 2020 (2) AKR 484, has established the following
principle:
"In cases of breach of policy conditions, the principle
of 'pay and recovery' must be applied by directing the
insurer to satisfy the claim amount in the first instance
and then recover the amount from the owner of the
vehicle in the same proceedings." This Court held that
when a policy condition is violated, the insurance
company cannot absolve itself of the liability to pay the
NC: 2024:KHC:29581
compensation awarded to the claimant initially but may
recover the same from the owner of the vehicle in
question in the very same proceedings.
Therefore, the respondent - Insurance Company cannot be
absolved of its liability to pay compensation at the first instance and
is entitled to recover the same from the owner-cum-rider of the
offending vehicle in the same proceedings, in accordance with law.
6. The deceased was aged 57 years at the time of his
death. In the absence of proof of income, the notional income of
the deceased is assessed at Rs. 11,000/- per month as per the
chart prepared by the Karnataka State Legal Services Authority, as
opposed to Rs. 6,000/- as assessed by the Tribunal. Adding 10%
towards future prospects, deducting 1/4th towards personal
expenses, and applying a multiplier of '9', the appellants/claimants
are entitled to a compensation amount of Rs. 9,80,100/-.
Additionally, the claimants are entitled to compensation of Rs.
40,000/- each towards 'loss of consortium', amounting to Rs.
2,00,000/-, and a sum of Rs. 30,000/- towards 'loss of estate' and
'funeral expenses'.
7. Therefore, the claimants are entitled to a total
compensation of Rs. 12,10,100/- as opposed to the Rs. 5,02,000/-
awarded by the Tribunal. The enhanced compensation amount of
Rs. 7,08,100/- shall carry interest at the rate of 6% per annum from
the date of the petition until its realization.
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8. The respondent No. 2 - Insurance Company is held
liable to pay the entire compensation amount, along with accrued
interest, to the claimant at the first instance. The respondent No. 2
- Insurance Company is then entitled to recover the same from
respondent No. 1 - the owner-cum-rider of the offending vehicle in
the same proceedings, in accordance with law.
9. The entire compensation amount shall carry interest at
the rate of 6% per annum from the date of the petition until the date
of realization.
Sd/-
(HEMANT CHANDANGOUDAR)
JUDGE
DHA
CT: BHK
