Partly allowed

The Manager Micro Office v. Nahimabanu @ Nayimunnisa

Karnataka HC4 Oct 2023MFA/100529/2021

Case brief

AI extract

What is this about?

The High Court allowed appeals filed by the insurance company and the claimant. The Court modified the Tribunal's award to enhance compensation to Rs. 12,31,152 with 6% interest, ruling that the insurer must pay initially and later recover from the owner/owner's license violation.

What did the court decide?

Compensation enhanced to Rs. 12,31,152 with 6% interest; insurer liable to deposit; order modified to allow pay and recovery.

The Manager Micro Office Vs Nahimabanu @ Nayimunnisa — Insurance | Karnataka HC (2023)

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NC: 2023:KHC-D:12012 MFA No. 100529 of 2021 C/W MFA No. 100844 of 2021

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

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DATED THIS THE 4^TH DAY OF OCTOBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR

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MISCELLANEOUS FIRST APPEAL NO.100529/2021(MV) C/W MISCELLANEOUS FIRST APPEAL NO.100844/2021(MV)

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IN MFA.NO.100529/2021:

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BETWEEN:

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THE MANAGER MICRO OFFICE UNITED INDIA INSURANCE CO. LTD., SUDAMBI CHAWL, RANEBENNUR, THROUGH ITS REGIONAL OFFICE, TP HUB, NK COMPELX, KESHWAPUR, HUBBALLAI, REPRESENTIVE BY ITS DEPUTY MANAGER.

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…APPELLANT

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(BY SRI N. R. KUPPELUR, ADVOCATE)

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AND:

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NAHIMABANU @ NAYIMUNNISA, W/O. ABDUL RAHIMSAB BIDADARI, AGE: 42 YEARS, OCC: NIL, R/O. DURGIDUDI ONI, HONNALI, DIST: DAVANAGERE.

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Digitally signed by BHARATHI H M

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AVINASH G. T. S/O. TIMMEGOUDA, R/O: KESHWAPUR BADAWANE, GANDHI NAGAR, BHADRAVATI, DIST: SHIVAMOGGA. (POLICY HOLDE OF THE MOTOR CYCLE NO. KA14/EJ3430).

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RAVI N. S/O. NAGENAYAK, R/O: CHANNENAHALLI, TQ: CHANNAGERE, DIST: DAVANAGERE. (OWNER OF THE MOTOR CYCLE NO. KA14/EJ3430). …RESPONDENTS (BY SRI ANJANEYA M. ADVOCATE FOR R1; R3 IS SERVED)

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THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO CALL FOR THE RECORDS

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NC: 2023:KHC-D:12012 MFA No. 100529 of 2021 C/W MFA No. 100844 of 2021

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CONNECTED WITH IN MVC NO.830/2018 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE AND ADDL. MACT, RANEBENNUR, AND SET ASIDE AWARD DATED 01.07.2020 AS AGAINST THE APPELLANT IN THE INTEREST OF JUSTICE.

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IN MFA.NO.100844/2021:

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BETWEEN:

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SMT. NAHIMABANU @ NAYIMUNNISA, W/O. ABDUL RAHIMSAB BIDADARI, AGE: 43 YEARS, OCC: NIL, R/O: DURGIDUDI ONI, HONNALI, DIST: DAVANAGERE.

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…APPELLANT

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(BY SRI ANJANEYA M., ADVOCATE)

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AND:

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SRI AVINASH G.T. S/O. TIMMEGOUDA, AGE: MAJOR, OCC: PRIVATE WORK, R/O: KESHWAPUR BADAWANE, GANDHI NAGAR, BHADRAVATI – 577 245.

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SRI RAVI N. S/O. NAGYANAIK, AGE: MAJOR, OCC: PRIVATE WORK, OWNER OF THE MOTOR CYCLE BEARING NO.KA-14/EJ-3430, R/O: CHANNENAHALLI, TQ: CHANNAGERE,

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DIST: DAVANAGERE – 577 213.

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MANAGER, MICRO OFFICE, UNITED INDIA INSURANCE COMPANY LIMITED, SUDAMBI CHOWL, RANEBENNUR – 581 115.

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…RESPONDENTS (BY SRI N.R.KUPPELUR, ADVOCATE FOR R3; NOTICE TO R1 AND R2 ARE DISPENSED WITH)

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THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO CALL FOR THE RECORDS HEAR THE PARTIES AND MAY KINDLY BE MODIFIED AND ENHANCED HE COMPENSATION IN THE JUDGMENT AND AWARD DATED 01.07.2020 PASSED BY THE PRINCIPAL SENIOR CIVIL JUDGE AND ADDL. MACT, RANEBENNUR, IN MVC 830/2018, BY ALLOWING THIS APPEAL WITH COST IN THE ENDS OF JUSTICE AND EQUITY.

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THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, THE COURT DELIVERED THE FOLLOWING:

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NC: 2023:KHC-D:12012 MFA No. 100529 of 2021 C/W MFA No. 100844 of 2021

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JUDGMENT

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MFA No.100529/2021 is filed by the insurance

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company challenging the liability as well as quantum of compensation awarded by the Tribunal.

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MFA No.100844/2021 is filed by the appellant / claimant challenging the judgment and award dated 01.07.2020, passed by the tribunal in MVC No.830/2018, seeking enhancement of compensation.

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Heard the arguments and perused the material placed on record.

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In this case, the factum of accident, death of

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deceased in the said accident and coverage of insurance are not in dispute.

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In the present case, the tribunal by holding monthly income at Rs.9,000/- p.m. and by deducting 50% towards personal expenses awarded compensation under various

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heads as follows:

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Sl.No.	Heads.	Amount in (Rs.)
1.	Loss of dependency	2,70,000-00
2.	Consortium and love and affection	44,000-00
3.	Loss of estate	16,500-00
4.	Funeral expenses	16,500-00
5.	Transportation of dead body	5,000-00
6.	Medical expenses	7,44,152-00
	Total:	10,96,000-00

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The claimant is wife of deceased. Therefore, the deceased is having family. Therefore, deduction of 50% income towards personal expenses is not correct because of the reason that the claimant is wife and the deceased contribution to the family is more.

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The deceased was aged 68 years as on the date of

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accident that is on 13.12.2017 and he was doing rice business. The accident is of the year 2017. Hence notional income is to be taken at Rs.10,250/- p.m. as recognized by the Karnataka State Legal Services Authority. Considering the age of the deceased, the appropriate applicable multiplier is 5. Therefore loss of dependency is re-assessed and quantified at

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Rs.10,250x2/3x5x12 = Rs4,09,999-00 rounded of to Rs.4,10,000/-.

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In view of the decision of the Hon’ble Supreme Court

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in the case of Magma General Insurance Co. Limited v. Nanu Ram & Others, reported in 2018 ACJ 2782 and in the case of Pranay Sethi supra , the claimant is entitled to Rs.40,000/- each under the head ‘loss of consortium’, along with 10% escalation. Accordingly, Rs.44,000/- (Rs.40,000 x 1 + 10%) is awarded under the head ‘loss of consortium including loss of love and affection’.

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Further, a compensation of Rs.15,000/- each is awarded under the head ‘loss of estate’ and ‘funeral and transportation’ respectively, along with 10% escalation. Therefore under these heads Rs.33,000/- (Rs.15,000 x 2 + 10%) is awarded.

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Further, compensation awarded under the head medical expenses of Rs.7,44,152/- is kept in tact.

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Thus, the claimants would be entitled for

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compensation under various heads as under:

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Sl.	Heads.	Amount in
No.		(Rs.)
1.	Towards loss of dependency	4,10,000-00
2.	Towards loss of consortium	44,000-00
3.	Towards loss of estate and transportation of dead body & funeral expenses. (15,000 x 2 + 10%)	33,000-00
4.	Medical expenses(Kept in tact)	7,44,152-00
	Total:	12,31,152-00

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Therefore, the claimant is entitled for compensation of Rs.12,31,152-00 along with interest at the rate of 6% p.a. from the date of filing of the petition till realization, as against Rs. 10,96,000-00 awarded by the tribunal. The insurance company is directed to deposit the compensation within eight weeks from the date of receipt of a certified copy of this judgment.

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The tribunal has granted 7% interest on the compensation awarded and the same is scaled down to 6% p.a.

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In the present case, the offending vehicle is motorcycle bearing No.KA-14/EJ-3430. But, the rider of the said motorcycle was holding driving license to drive light motor vehicle of four wheelers. The investigating officer has filed charge sheet against the driver and owner of the motor cycle for the offence punishable under Motor vehicle Act for not holding driving license while riding motorcycle. Therefore, it is obligatory on the part of the driver or owner of the motorcycle to produce driving license but has not produced driving license. Therefore, as per Sub section (2) of Section 149 of M.V. Act, insurance company is able to establish the defence so as to avoid the liability. Therefore, the Insurance Company is exonerated from paying compensation to the claimants.

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However, as per Sub-section (2) of Section 149 of Motor Vehicle Act, when the Insurance Company established the fact that driver was not holding driving license, then as per Sub-sections (1), (5), (7) of Section 149 of Motor Vehicle Act, the Insurance Company as if the

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judgment debtor shall satisfy the claim in respect of third parties at first instance and then recover the same from owner of the offending vehicle. Accordingly, order of pay and recovery is made as per the principle of law laid down by the Hon’ble Supreme Court in the cases of Pappu and others vs. Vinod Kumar Lamba and another¹ and also as per the full bench decision of this Court in the case of New India Assurance Co. Ltd., Bijapur vs. Yallavva w/o. Yamanappa Dharanakeri²

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Thus, an order of pay and recovery is made. To this extent, the judgment and award passed by the Tribunal is required to be modified.

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In the result, I proceed to pass the following:

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ORDER

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i) Both the appeals are allowed.

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1 (2018) 3 SCC 208

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2 2020 (2) AKR 484.

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ii) The judgment and award dated 01.07.2020, passed by the Prl. Senior Civil Judge and Addl. MACT., Ranebennur, in MVC No.830/2018 stands modified.

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iii) The claimant is entitled for total compensation of Rs. Rs.12,31,152-00 along with interest at the rate of 6% p.a. from the date of petition till its realization, as against Rs. 10,96,000-00 awarded by the tribunal.

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iv) The rate of interest at 7% p.a. awarded by the tribunal is scaled down to 6% p.a.

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v) The insurance company shall deposit

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the amount within a period of eight weeks from the date of receipt of a copy of this judgment.

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vi) Send back the trial Court records along with a copy of this judgment.

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NC: 2023:KHC-D:12012 MFA No. 100529 of 2021 C/W MFA No. 100844 of 2021

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