The High Court
Case Details
- 1 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA MISCELLANEOUS FIRST APPEAL NO. 2445 OF 2018 C/W MISCELLANEOUS FIRST APPEAL NO. 8918 OF 2015 MFA CROSS OBJECTION NO. 41 OF 2024 IN MFA No. 2445/2018: BETWEEN: 1. SRI YELLAPPA S/O SRI NARAYANAPPA AGED ABOUT 40 YEARS, R/AT BELATHUR VILLAGE KADUGODI, BANGALURU-560058. (BY SRI. V.K.NARAYANA SWAMY., ADVOCATE) …APPELLANT Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA AND: 1. SMT PRAMILA W/O LATE PARTHASARATI AGED ABOUT 38 YEARS, 2. DINKARAN S/O LATE PARTHASARATI AGED ABOUT 11 YEARS, MINOR 3. PRADEEPAN S/O LATE PARTHASARATI AGED ABOUT 9 YEARS, MINOR - 2 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 4. C JAYARAMAN S/O LATE PARTHASARATI AGED ABOUT 62 YEARS, 5. SMT MUNIYAMMAL W/O C JAYARAMAN AGED ABOUT 61 YEARS, SL.No. 2 AND 3 ARE MINORS, REPTD. BY THEIR MOTHER AS NATURAL GUARDIAN PETITIONER No.1 ALL ARE R/AT No.104, SAI COLONY 2ND MAIN ROAD., BATTARAHALLI VIRGONAGARA, BENGALURU-560 064. 6. CHOLAMANDALAM GENERAL INSURANCE CO LTD NO.135/5, 2ND FLOOR J C NAGAR, 3RD MAIN 15TH CROSS, BANGALURU 560078 POLICE COVER NOTE NO.0374208 VALID FROM 11.8.2010 TO 10.08.2011
Legal Reasoning
As far as liability is concerned, it is settled law that if there is contention raised by the insurer that there was breach of policy, it would nevertheless have to pay the compensation and recover the same from the owner of the bus. In that view of the matter, the impugned order insofar as liability is concerned would have to be modified and have to be held that the owner of the bus would be liable to pay the compensation, but the insurer shall pay the same and thereafter proceed to recover the same from the owner of the bus. 10. As far as compensation is concerned, the deceased was aged about 31 years as on the date of the accident and there is no proof of actual income. 11. The Tribunal has recorded a finding that the deceased was earning a sum of Rs.5,000/- per - 9 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 month notionally since there was no evidence as to the actual income of the deceased. In such circumstances, since the accident is of the year 2011, it would be appropriate to adopt the notional income determined by the Karnataka State Legal Services Authority, which would be Rs.6,500/-. Since the deceased was aged 31 years, future prospects of 40% requires to be added to the same, which makes his income to be Rs.9,100/- (Rs.6,500/- + Rs.2,600/-). Since the deceased has 5 dependants, 1/4th requires to be deducted from the same, which makes his income to be Rs.6,825/- (Rs.9,100/- - Rs.2,275/-). 12. Thus, the claimants would be entitled to Rs.13,10,400/- (Rs.6,825/- X 12 X '16') towards ‘loss of dependency’. 13. The claimants would also be entitled to Rs.48,400/- each towards 'loss of love and affection', which would be Rs.2,42,000/- (Rs.48,400/- X 5 members). They - 10 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 are also entitled to a sum of Rs.36,300/- towards 'miscellaneous expenses'. 14. Thus, the claimants would be entitled to a sum of Rs.15,88,700/- as against Rs.7,56,000/- as compensation along with interest at the rate of 6% p.a. from the date of filing of the cross-objection. 15. The Insurance Company is directed to deposit the amount of compensation awarded within two months from the date of receipt of a certified copy of this judgment and thereafter shall recover the same from the owner of the offending vehicle. 16. It is also made clear that in respect of the interest component on the amount awarded by the Tribunal. it shall be the liability of the owner to pay the interest component, since he has chosen to file an appeal and had got the same dismissed for non- prosecution and is, therefore, responsible for the delay in the disposal of the appeal. - 11 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 17. However, in respect of the enhanced compensation, the insurer will be liable to pay the interest. Consequently, the appeal filed by the owner as well as the cross-objection filed by the victims are disposed of in the aforementioned terms. 18. It is also made clear that the amount deposited by the owner of the bus shall be made over to the claimants. 19. The entire compensation amount shall be released to the claimants in the ratio of 60:10:10:10:10. 20. M.F.A. No.8918/2015 and M.F.A. Crob. No.41/2024
Arguments
7. MR. G.A.SANAULLA S/O LATE G.AMANULLA., AGED ABOUT 56 YEARS, MAJOR, No.89, MAHALAXMI LAYOUT, KHUTHUB SHAHINSHA NAGAR, KOLAR-562101. (BY SRI. K.V.NAIK., ADVOCATE FOR R-1, R-2, R-3 & R-5 (R-2 & R-3 ARE MINORS & REPRESENTED BY R-1); (R-1 TO R-3 & R-5 ARE LRs OF DECEASED R-4); SRI. B.PRADEEP., ADVOCATE FOR R-6; SMT. G.M.SUMITHRA., ADVOCATE FOR R-7) …RESPONDENTS THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED:08.04.2013 PASSED IN MVC NO.4299/2011 ON THE FILE OF THE - 3 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 ADDITIONAL JUDGE, MEMBER, MACT, COURT OF SMALL CAUSES, MAYO HALL UNIT, BANGALORE, AWARDING COMPENSATION OF RS.7,56,000/- WITH INTEREST @ 6% P.A. FROM THE DATE OF PETITION TILL PAYMENT, ETC. IN MFA NO. 8918/2015: BETWEEN: 1. SRI YELLAPPA S/O SRI NARAYANAPPA AGED ABOUT 37 YEARS R/AT BELATHUR VILLAGE KADUGODI BANGALURU (BY SRI. V K NARAYANA SWAMY., ADVOCATE) ...APPELLANT AND: 1. SMT PRAMILA W/O LATE PARTHASARATI AGED ABOUT 29 YEARS 2. DINKARAN S/O LATE PARTHASARATI AGED ABOUT 07 YEARS MINOR 3. PRADEEPAN S/O LATE PARTHASARATI AGED ABOUT 5 YEARS MINOR 4. C JAYARAMAN S/O LATE PARTHASARATI AGED ABOUT 60 YEARS 5. SMT MUNIYAMMAL W/O C JAYARAMAN AGED ABOUT 57 YEARS SL.No.2 AND 3 ARE MINORS, - 4 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 REPTD., BY THEIR MOTHER AS NATURAL GUARDIAN, PETITIONER No.1 ALL ARE RESIDING AT NO 104 SAI COLONY, 2ND MAIN ROAD, BATTARAHALLI VIRGONANAGARA, BENGALURU. 6. CHOLAMANDALAM GENERAL INSURANCE CO LTD NO 135/5, 2ND FLOOR, J C NAGAR, 3RD MAIN, 15TH CROSS, BANGALURU - 560078. POLICE COVER NOTE NO 0374208 VALID FROM 11-08-2010 TO 10.08.2011 (BY SRI. K.V.NAIK., ADVOCATE FOR R-1 TO R-3 & R-5; SRI. B.PRADEEP., ADVOCATE FOR R-6) ...RESPONDENTS 21.11.2015 THIS MFA IS FILED UNDER SECTION 173(1) OF THE M.V. ACT, PRAYING TO SET ASIDE THE JUDGMENT AND ORDER DATED IN MISC.No.130/2014 DISMISSING THE SAID PETITION BY THE HON'BLE TRIBUNAL FOR SET ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED:08.04.2013 MADE IN M.V.C No.4299/2011 AND TO RESTORE THE SAME AND TO PERMIT THE APPELLANT TO CONSTEST THE MATTER, ETC. PASSED IN MFA.CROB NO. 41/2024 BETWEEN: 1. SMT. PRAMILA W/O LATE PARTHASARATHI, AGED ABOUT 40 YEARS, 2. DINAKARAN S/O LATE PARTHASARATHI, AGED ABOUT 18 YEARS, 3. PRADEEPAN, S/O LATE PARTHASARATHI, - 5 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 AGED ABOUT 16 YEARS, MINOR C JAYARAMAN, S/O LATE CHINNAPPA SINCE DEAD ON 08/04/2021 BY HIS LRS., 4. SMT. MUNIYAMMAL W/O C JAYARAMAN, AGED ABOUT 68 YEARS THE APPELLANT No.3 IS MINOR HENCE REPRESENTED BY HIS MOTHER AS A NATURAL GUARDIAN, BY HIS MOTHER BY THE APPELLANT No.1 ALL ARE RESIDING AT NO.104, SAI COLONY, 2ND MAIN ROAD, BATTARAHALLI, VIRGONAGARA, BENGALURU. (BY SRI. K.V.NAIK., ADVOCATE) AND: ...CROSS OBJECTORS 1. YELLAPPA, S/O NARAYANAPPA, MAJOR, R/AT BELATHUR VILLAGE, KADUGODI, BENGALURU (R.C.OWNER OF THE BUS BEARING NO. KA-08-4222) 2. THE MANAGER CHOLAMANDALAM GENERAL INSURANCE COM. LTD., NO. 135/5, 2ND FLOOR, J.C.NAGAR, 3RD MAIN, 15TH CROSS, BENGALURU - 560078 (POLICY COVER NOTE NO. 0374208 VALID FROM 11.08.2010 TO 10.08.2011) (BY SRI. V.K.NARAYANA SWAMY., ADVOCATE FOR R-1; SRI. B. PRADEEP., ADVOCATE FOR R-2) ...RESPONDENTS - 6 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 THIS MFA CROB IS FILED UNDER ORDER 41 RULE 22 R/W SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 08.04.2013 PASSED IN MVC.NO.4299/2011 ON THE FILE OF THE COURT OF SMALL CAUSES, MAYO HALL UNIT, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS ALONG WITH MFA CROB., COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE N S SANJAY GOWDA 1. 2. 3. ORAL JUDGMENT The occurrence of the accident is not in dispute. As a result of the accident, Sri.Parthasarathi, a 31 year old was killed. In a claim petition filed by the wife, children and his parents, the Tribunal proceeded to award a sum of Rs.7,56,000/- along with the interest at the rate of 6% p.a. 4. However, the Tribunal fastened the liability on the owner of the bus, since the bus did not have a permit to ply on the road, at that point of time. The Tribunal has held that there was a breach of policy - 7 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 conditions and hence the owner of the bus alone is liabile to pay the compensation amount. 5. As a consequence, the owner has preferred M.F.A. No.8918/2015. However, this appeal was dismissed for non-prosecution and after a period of 2921 days, the owner has filed an application for recalling this order. 6. The claimants are also before this Court seeking for enhancement of compensation by filing cross- objection in M.F.A. Crob.No.41/2024. 7. Having regard to the fact that the appeal was dismissed for non-prosecution, in my view, it would be appropriate to condone the delay in filing the application filed by the owner of the bus and also restore the appeal. 8. It is, however, made clear that the liability to pay interest on the compensation awarded shall lie only - 8 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 on the owner and not on the insurer in respect of the compensation awarded by the Tribunal. 9.
Decision
are, accordingly, disposed of. 21. Learned counsel for the appellant seeks to withdraw M.F.A. No.2445/2018, in the light of the fact that he has made an application for recalling the order dismissing the earlier appeal for non-prosecution. 22. The said submission is recorded. - 12 - NC: 2025:KHC:10545 MFA No. 2445 of 2018 C/W MFA No. 8918 of 2015 MFA.CROB No. 41 of 2024 23. M.F.A. No.2445/2018 is dismissed as withdrawn. In view of the dismissal of said appeal, I.A. No.3/2018 for condonation of 1717 days' delay in filing the appeal does not survive for consideration. 24. In view of the disposal of the petition, all pending interlocutory applications, if any, stand disposed of. Sd/- (N S SANJAY GOWDA) JUDGE HNM List No.: 1 Sl No.: 30