Karnataka High Court
The Manager National Insurance Co. Ltd vs Smt.Nazeera Begum And Ors on 4 September, 2024
Author: N.S.Sanjay Gowda
Bench: N.S.Sanjay Gowda
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NC: 2024:KHC-K:6636
MFA No. 200424 of 2019
C/W MFA No. 201448 of 2019
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 4TH DAY OF SEPTEMBER, 2024
BEFORE
THE HON'BLE MR. JUSTICE N.S.SANJAY GOWDA
MISCL. FIRST APPEAL NO. 200424 OF 2019 (ECA)
C/W
MISCL. FIRST APPEAL NO. 201448 OF 2019(ECA)
IN MFA NO.200424/2019:-
BETWEEN:
1. SMT. NAZEERA BEGUM W/O IBRAHIM PATEL,
AGE: 55 YEARS, OCC: HOUSEHOLD,
2.. SRI. IBRAHM PATEL S/O MAHEBOOB PATEL,
AGE: 57 YEARS, OCC: AGRICULTURE,
BOTH ARE R/O GADIKESHWAR VILLAGE,
Digitally signed TQ:CHINCHOLI, DIST: KALABURAGI.
by SUMITRA
SHERIGAR
Location: HIGH ...APPELLANTS
COURT OF (BY SMT. SHARADA PATIL KULGERI, ADVOCATE)
KARNATAKA
AND:
1. AKBAR AHMED S/O MOHD. MAQSOOD AHMED,
AGE: MAJOR, OCC: OWNER OF VEHICLE,
R/O. H.NO.7-3509, MOMINPURA(B),
KALABURAGI-585102.
2. THE MANAGER,
NATIONAL INSURANCE CO. LTD,
BILGUNDI COMPLEX,
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NC: 2024:KHC-K:6636
MFA No. 200424 of 2019
C/W MFA No. 201448 of 2019
OPP:MINI VIDHAN SOUDHA,
STATION ROAD,
KALABURAGI-585101.
...RESPONDENTS
(BY SMT. SANGEETA BHADRASHETTY, FOR R2;
NOTICE TO R1 IS DISPENSED WITH)
THIS MFA IS FILED U/S 30(1) OF E.C. ACT, PRAYING TO
ALLOW THE ABOVE APPEAL AND CONSEQUENTLY BE PLEASED
TO MODIFY THE JUDGMENT AND AWARD PASSED BY
COMMISSIONER FOR EMPLOYEE'S COMPENSATION AND THE
PRL. SENIOR CIVIL JUDGE, KALABURAGI IN ECA NO.128/2014
DATED 02.08.2018 AND CONSEQUENTLY BE PLEASED TO
ENHANCE THE COMPENSATION SUITABLY.
IN MFA NO.201448/2019:
BETWEEN:
THE MANAGER,
NATIONAL INSURANCE CO. LTD,
BILGUNDI COMPLEX,
OPP:MINI VIDHAN SOUDHA,
STATION ROAD, GULBARAGA,
NOW REPRESENTED BY ITS
AUTHORIZED SIGNATORY,
DIVISIONAL OFFICE, STATION ROAD,
KALABURAGI-585102.
...APPELLANT
(BY SMT. SANGEETA BHADRASHETTY, ADVOCATE)
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NC: 2024:KHC-K:6636
MFA No. 200424 of 2019
C/W MFA No. 201448 of 2019
AND:
1. SMT. NAZEERA BEGUM
W/O IBRAHIM PATEL,
AGE: 54 YEARS,
OCC: HOUSEHOLD,
2. SRI IBRAHIM PATEL
S/O MEHBOOB PATEL,
AGE: 56 YEARS,
OCC: AGRICULTURE,
BOTH R/O. GADIKESHWAR VILLAGE,
TQ.: CHINCHOLI,
DIST: KALABURAGI-585324.
3. AKBAR AHMED S/O MOHD. MAQSOOD AHMED,
AGE: MAJOR, OCC: OWNER OF VEHICLE,
R/O. H.NO.7-3509, MOMINPURA (B),
KALABURAGI-585104.
...RESPONDENTS
(BY SMT. SHARADA PATIL, ADV. FOR R1 AND R2;
NOTICE TO R3 IS HELD SUFFICIENT)
THIS MFA IS FILED U/S 30(1) OF E.C. ACT, PRAYING TO
ALLOW THIS APPEAL BY SETTING ASIDE THE IMPUGNED
JUDGMENT AND AWARD IN E.C.A. NO.128/2014, DATED
02.08.2018, PASSED BY THE I ADDL. SENIOR CIVIL JUDGE
AND THE COMMISSIONER FOR EMPLOYEE'S COMPENSATION
AT KALABURAGI.
THESE APPEALS COMING ON FOR FINAL HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
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NC: 2024:KHC-K:6636
MFA No. 200424 of 2019
C/W MFA No. 201448 of 2019
CORAM: HON'BLE MR. JUSTICE N.S.SANJAY GOWDA
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE N.S.SANJAY GOWDA)
These appeals by the Insurer and the claimant were
admitted to consider the following substantial questions of
law :
In MFA No.201448/2019 by the Insurer :
1. Whether the Commissioner for Employees'
Compensation is justified in awarding
compensation of `4,37,380/- with interest
@ of 12% p.a., within 30 days from the
date of passing the award till the
realization, without applying principles of
law, without any basis?
2. Whether the Commissioner for Employees'
Compensation is justified in fastening the
liability upon the appellant insurance
company to pay compensation to the
respondent No.1 herein, without applying
provisions of law?
3. Whether the appreciation of evidence by
the Commissioner for Employees'
NC: 2024:KHC-K:6636
Compensation is in accordance with law and
in proper perspective?
4. Whether the Judgment and Award passed
by the Commissioner for Employees'
Compensation is in accordance with law?
In MFA No.200424/2019 by the claimants :
"Whether the Court below committed an
error in considering the income of the
deceased of `5,000/- per month?"
2. It is the case of the Insurer that the policy
which was relied upon by the claimants was a fake policy
and therefore it had no liability to satisfy the
compensation.
3. In the affidavit of the Assistant Manager, it was
stated as follows :
"3. I state on oath that the vehicle lorry
bearing No.AP-36/V-4519 is not at all insured with
National Insurance Co.Ltd., It is submitted that
policy bearing No.604000/31/ 11/6700000823 has
not been issued to alleged vehicle bearing No.AP-
36/V-4519 standing in name of Akbar Ahmed S/o
NC: 2024:KHC-K:6636
Md.Maqsood Ahmed, R/o H.No.7-3509, Mominpura
(B), Gulbarga, as alleged policy furnished by
claimant petitioner is illegally generated document
xxxxxxxxxx and there is violation of 64 VB of
Insurance Act, 1938 in view of non receipt of
premium from R1 as such the petition should be
dismissed against R2."
4. In the course of his cross examination, he
admitted as follows :
"1£Éà JzÀÄgÀÄzÁgÀ£À ºÉ¸ÀjUÉ £ÀªÀÄä PÀA¥À¤¬ÄAzÀ Éà ¥Á°¹
¤ÃrzÀAvÉ zÁR É EgÀÄvÀÛzÉ JAzÀgÉ ¸Àj. CzÀ£ÀÄß AiÀiÁgÀÄ ¤ÃrgÀÄvÁÛgÉ
£À£ÀUÉ UÉÆwÛ®è. £ÀªÀÄä PÀA¥À¤AiÀÄ M§â ¹§âA¢ ¤ÃrgÀ§ºÀÄzÀÄ. ¸ÀļÀÄî
¥Á°¹ ¤ÃrzÀ §UÉÎ £ÀªÀÄä PÀA¥À¤AiÀĪÀgÀÄ zÀÆgÀÄ ¸À°è¹zÀÄÝ ¹©L vÀ¤SÉ
£ÀqÉ¢gÀÄvÀÛzÉ. EzÉà vÀgÀºÀ ¥Á°¹AiÀÄ DzÁgÀzÀ ªÉÄÃ É £ÀªÀÄä PÀA¥À¤AiÀÄ
«gÀÄzÀÞ wÃ¥ÀÄðUÀ¼ÀÄ DVgÀÄvÀÛªÉ JAzÀgÉ ¸Àj. CªÀÅUÀ¼À£ÀÄß £ÁªÀÅ ¥Àæ²ß¹
ªÉÄîä£À« ¸À°è¹gÀÄvÉÛãÉ."
5. As could be seen from the said deposition, the
fact that the policy was issued by the Insurer is not in
dispute. The witness of the Insurer also candidly admits
that a policy had been issued, but it was unaware as to
who had issued the policy and it was possible that one of
the employees could have issued the policy. In the light of
NC: 2024:KHC-K:6636
this evidence, it cannot be argued that there was a fake
policy. In fact, the Tribunal has noticed this particular
deposition and has come to the conclusion that the liability
of the Insurer cannot be absolved because of this
evidence. In the light of these facts, the questions of law
framed by this Court will have to be answered against the
Insurer and their appeal will have to be dismissed.
6. As regards the claim for enhancement is
concerned, it was the case of the claimant that the
deceased was working as a cleaner and was earning
`5,000/- per month. The employer though served did not
choose to appear and contest the proceedings. The Insurer
no doubt took-up the contention that there was no
employer and employee relationship. However, since the
employer did not deny the assertion of the claimants that
the deceased was working as a cleaner drawing a salary of
`5,000/- per month, will have to be accepted. It will also
be relevant to state here that the accident is of the year
2011, the case Karnataka State Legal Services Authority
NC: 2024:KHC-K:6636
has determined the notional at `6,000/- per month and
therefore the application of notional income of `5,000/-
would not be incorrect.
7. Consequently, the claimants would be entitled
to sum of `5,42,275/- (`2,500/- x 216.91) along with the
interest from the date of the accident. The substantial
questions of law are answered in favour of claimants.
8. The Insurance Company is directed to deposit
the amount of compensation awarded along with interest
within a period of eight weeks from the date of receipt of a
certified copy of this judgment.
9. The disbursement shall be in terms of the
award.
10. The appeal filed by the claimants i.e., MFA
No.200424/2019 is accordingly allowed in part and the
appeal filed by the Insurer i.e., MFA No.201448/2019 is
dismissed.
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11. The amount in deposit, if any, shall be
transferred to the Tribunal for disbursal in terms of the
award.
Sd/-
(N.S.SANJAY GOWDA)
JUDGE
SN
CT: VD
