The Manager Vs Smt Shobha — Motor Accident Claims | Karnataka HC (2026)

The Manager Vs Smt Shobha — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

MFA No.7765/2017 partly allowed; judgment and award dated 2.8.2017 in M.V.C.No.4/2016 modified, compensation reduced from Rs.5,23,339/- to Rs.4,57,839/- with interest at 9% p.a.; insurance company (which has already deposited Rs.3,00,000/-) directed to deposit the balance amount with interest within one month; on such deposits claimants permitted to withdraw the entire amount with accrued interest as per the Tribunal's apportionment; amount in deposit to be transferred to MACT; MFA CROB No.64/2021 dismissed.

Issue for consideration

Whether the insurer could resist liability under Section 163A of the Motor Vehicles Act, 1988 on the ground that the accident occurred due to the negligence of the deceased motorcyclist himself, the charge sheet against the rider having been abated. +2 more

Court's answer

The argument of the appellant-insurer that it is not liable for the compensation — because the deceased rider himself was negligent and the charge sheet against him stood abated — cannot be accepted; under Section 163A of the Act it is not open to raise the defence of negligence on the part of the victim (as per United India Insurance Company Ltd. v. Sunil Kumar, 2018 ACJ 1).

Ratio / Principle

Compensation recomputed under the following heads: loss of dependency Rs.4,53,339/-, funeral expenses Rs.2,000/- and loss of estate Rs.2,500/-, totalling Rs.4,57,839/-.

Key takeaways

Interest at the rate of 9% per annum granted by the Tribunal is not interfered with, as the accident occurred in the year 2015.ratio¶66
Total compensation reduced from Rs.5,23,339/- to Rs.4,57,839/- with interest at the rate of 9% per annum.ratio¶73
The claimants' cross objection, MFA CROB No.64/2021 seeking enhancement of compensation, is dismissed.ratio

Detailed headnote1 paragraphs

Motor Vehicles Act, 1988 — S.163A — S.173(1) appeal by insurer and claimants' cross objection under Order 41 Rule 22 r/w S.173(1) against award dated 02.08.2017 in MVC No.4/2016 (Principal District Judge/MACT, Madikeri) granting Rs.5,23,339/- with 9% interest to the parents of Surendra, who died on the spot when a Tata Indica car dashed his motorcycle — HELD: insurer's plea that the deceased himself was negligent (charge sheet against the rider abated) and that no compensation was payable cannot be accepted; under S.163A it is not open to raise the defence of negligence of the victim (United India Insurance Company Ltd. v. Sunil Kumar, 2018 ACJ 1, relied on by claimants' counsel; Ningamma and Another v. United Indian Insurance Company, 2009 ACJ 2020, cited by insurer) — compensation recomputed at Rs.4,57,839/- (loss of dependency Rs.4,53,339/-, funeral expenses Rs.2,000/-, loss of estate Rs.2,500/-) with interest at 9% p.a. undisturbed (accident of 2015) — award reduced; MFA partly allowed; insurer to deposit balance within one month and claimants to withdraw as per the Tribunal's apportionment; cross objection for enhancement dismissed.

NC: 2026:KHC:28628 MFA No. 7765 of 2017 C/W MFA.CROB No. 64 of 2021

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 12^TH DAY OF JUNE, 2026

BEFORE

THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO.7765 OF 2017(MV-D)

C/W

MFA CROSS OBJECTION NO. 64 OF 2021 (MV-D)

IN MFA No. 7765/2017

BETWEEN:

THE MANAGER, CHOLAMANDALAM M.S. GIC LTD, 1^ST FLOOR, SIGMA COMPLEX, NEW KANTHARAJ URS ROAD, KUVEMPUNAGARA, MYSURU - 570 023.

Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court of Karnataka

NOW REPRESENTED BY ITS SR. MANAGER - CLAIMS, CHOLAMANDALAM M S GIC LTD, NO.1/2, GOLDEN HEIGHTS BUILDING, 6^TH FLOOR, 59^TH C CROSS, RAJAJINAGAR ENTERANCE, BANGALORE - 10.

…APPELLANT

(BY SRI. PRADEEP B., ADVOCATE)

AND:

SMT. SHOBHA, W/O. CHANDRARAJU K.T.,

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NOW AGED ABOUT 39 YEARS,

CHANDRARAJU K.T., S/O. THIMMEGOWDA, NOW AGED ABOUT 43 YEARS, BOTH ARE R/AT KUSHALANAGAR, HEBBAL ROAD, KUDLOOR VILLAGE AND POST, KUSHALNAGAR, SOMWARPET TALUK - 571 237.

T.A.RAMACHANDRA, S/O. ANNAJI RAO T, MAJOR, R/AT ATHOOR-NALOOR VILLAGE, KAMBIBANE POST, SUNTICOPPA, SOMWARPET TALUK - 571 237.

…RESPONDENTS (BY SMT.SUMA K., ADVOCATE FOR SRI. V.PADMANABHA KEDILAYA, ADVOCATE FOR R1 AND R2; SRI.M.K. NIYAZUDDIN, ADVOCATE FOR R3)

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE

JUDGMENT AND AWARD DATED 02.08.2017 PASSED IN MVC NO.4/2016 ON THE FILE OF THE PRINCIPAL DISTRICT AND SESSIONS JUDGE, PRINCIPAL DISTRICT JUDGE AND M.A.C.T., MADIKERI, AWARDING COMPENSATION OF RS.5,23,339/WITH INTEREST AT 9% P.A. PENDENTE-LITE AND FUTURE

NC: 2026:KHC:28628 MFA No. 7765 of 2017 C/W MFA.CROB No. 64 of 2021

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INTEREST TILL THE DATE OF REALIZATION OF AWARD

AMOUNT.

IN MFA.CROB NO. 64/2021

BETWEEN:

SMT. SHOBHA, W/O CHANDRARAJU K.T., AGED ABOUT 43 YEARS,

SRI. CHANDRARAJU K.T., S/O THIMMEGOWDA, AGED ABOUT 47 YEARS,

BOTH ARE R/AT KUSHALNAGAR - HEBBAL ROAD, KUDLOOR VILLAGE AND POST, KUSHALNAGAR, SOMWARPET TALUK.

...CROSS OBJECTORS

(BY SMT. SUMA K., ADVOCATE)

AND:

SRI. T.A.RAMACHANDRA, SON OF ANNAJI RAO T., MAJOR, R/O ATHOOR - NALOOR VILLAGE, KAMBIBANE POST, SUNTICOPPA, SOMWARPET TALUK - 571 237.

THE CHOLAMANDALAM MS GENERAL INSURACE COMPANY LTD.,

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1^ST FLOOR, SIGMA COMPLEX, NEW KANTARAJ URS ROAD, KUVEMPUNAGARA, MYSURU - 570 023.

...RESPONDENTS

(BY SRI.PRADEEP B., ADVOCATE FOR R2;

MR.K.NIYAZUDDIN, ADVOCATE FOR R1)

THIS MFA CROB IS FILED UNDER ORDER 41 RULE 22 R/W U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 02.08.2017 PASSED IN MVC NO.4/2016

ON THE FILE OF THE PRL. DISTRICT AND SESSIONS JUDGE, MACT, KODAGU MADIKERI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING

ENHANCEMENT OF COMPENSATION.

THIS MFA AND MFA CROB COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA

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ORAL JUDGMENT

Heard the arguments of both sides.

2. This appeal is filed against the award of the Tribunal in MVC No.4/2016 dated 02.08.2017.

3. Surendra and his friend were travelling on a motorbike, at that time, the driver of the Tata Indica car came from opposite direction and dashed the motorcycle, as a result, Surendra sustained grievous injuries and died on the spot. His parents filed claim petition claiming compensation of Rs. 11,14,000/-. The Tribunal considering the entire evidence on record, granted an amount of Rs.5,23,339/- with interest at the rate of 9% per annum, from the date of petition till realization.

4. Aggrieved by the said order, Insurance Company preferred the appeal and mainly contended that this application is filed under Section 163A of the Motor Vehicles Act, 1988, and they relied upon the citation of Hon'ble Supreme Court in case of Ningamma and Another -Vs- United Indian Insurance

Company reported in 2009 ACJ 2020 and stated that Tribunal failed to appreciate that accident occurred only due to

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the negligence of the rider of the motorcycle and abated charge sheet is filed against him. As he himself is negligent in driving and died due to his self-fall, the claimants are not entitled for any compensation and the Tribunal has erred in granting higher compensation.

5. Per contra, the learned counsel of the respondent relied upon the citation, in the case of United India Insurance Company Ltd . Vs - Sunil Kumar and others , reported in 2018 ACJ 1 , in which it was held that, under Section 163A of the Act, it is not open for the individual to raise any defence of negligence on the part of the victim. Therefore the argument of the appellant's counsel, that they are not liable for the compensation cannot be accepted.

6. Loss of dependency is Rs.4,53,339/-. Apart from that claimants are also entitled for Rs.2,000/- towards funeral expenses. Rs.2,500/- towards loss of estate. Therefore, the total compensation comes to Rs.4,57,839/-. The Tribunal has granted interest at the rate of 9% per annum, this Court finds no reason to interfere with the interest granted by the Tribunal as the accident occurred in the year 2015.

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In all, the total compensation comes to

Rs.4,57,839/- under the following heads:-

Sl No	Particulars		Amount
1	Loss of dependency		4,53,339/-
2	Towards funeral expenses		2,000/-
3	Towards loss of estate		2,500/-
		Total	Rs.4,57,839/-

Thus, compensation is reduced from

Rs.5,23,339/- to Rs.4,57,839/- with interest at the rate of 9% per annum.

In the result, the following order is passed:

ORDER

i. MFA No.7765/2017 is partly allowed.

ii. The judgment and award dated 2.8.2017 passed in M.V.C.No.4/2016 by the learned Prl.District Judge and MACT, Kodagu at Madikeri is modified;

iii. Insurance company has already deposited Rs.3,00,000/- and they are directed to deposit

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the balance amount along with interest within one month from the date of this order.

iv. On such deposits, claimants are permitted to withdraw the entire amount along with interest accrued on the same as per the apportionment of the Tribunal

v. Amount in deposit is to be transferred to MACT.

MFA Crob .64/2021 filed by the claimants is dismissed.

Sd/(P SREE SUDHA) JUDGE

HR

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