National Insurance Company Ltd v. Annappa Sheregar

NC:(2026:KHC:1497( MFA(No.(3658(of(2017( C/W(MFA.CROB(No.(34(of(2020( , ,,HC-KAR( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU(

THDATED(THIS(THE(9 (DAY(OF(JANUARY,(2026(

BEFORE(

THE(HON'BLE(MR.(JUSTICE(C.M.(POONACHA(

MISCELLANEOUS(FIRST(APPEAL(NO.(3658(OF(2017((MV-I)(

C/W(

MFA(CROSS(OBJECTION(NO.(34(OF(2020((MV-I)( ( IN(MFA(No.(3658/2017( (

BETWEEN:(( ( NATIONAL,INSURANCE,COMPANY,LTD,, KUNDAPURA,BRANCH,OFFICE,, SRI,SAI,CENTRE,,2ND,FLOOR,,

Y.M.,SHETTY,ROAD,, KUNDAPURA, REPRESENTED,BY,ITS,BRANCH,MANAGER, …APPELLANT, (BY,SMT.,RENUKA,H,R.,ADVOCATE), , AND:( (

1., ANNAPPA,SHEREGAR,, Digitally S/O,RAMAKRISHNA,SHEREGAR,,signedtiby AGED,ABOUT,52,YEARS,,NIRMALA R/O,THEGGARSE,VILLAGE,,DEVI KUNDAPURA,TALUK,,Location: UDUPI,DISTRICT,576,201.,HIGH ,COURT0OF KARNATAKA 2., SIYAB, S/O,ABDUL,RAZAK,,,ADULT,,, R/AT,BADAKERE,, NAVUNDA,POST,&,VILLAGE,, KUNDAPURA,TALUK, UDUPI,DISTRICT,576,201., …RESPONDENTS, (BY,SRI.NAGARAJ,HEGDE.,ADVOCATE,FOR,R1, ,R2,SERVED), , NC:(2026:KHC:1497( MFA(No.(3658(of(2017( C/W(MFA.CROB(No.(34(of(2020( , ,,HC-KAR( ( ( , THIS, MFA, IS, FILED, U/S, 173(1), OF, MV, ACT, AGAINST, THE, JUDGMENT, AND, AWARD, DATED, 05.01.2017, , PASSED, IN, MVC, NO.255/2015, ON, THE, FILE, OF, THE, SENIOR, CIVIL, JUDGE, AND, MEMBER,ADDITIONAL,MOTOR,VEHICLE,ACCIDENT,CLAIMS,TRIBUNAL, AT, KUNDAPURA,, AWARDING, COMPENSATION, OF, RS.3,67,633/-, WITH, INTEREST, AT, THE, RATE, OF, 6%, P.A., ON, RS.3,55,633/-, (EXCLUDING, FUTURE, MEDICAL, EXPENSES), FROM, THE, DATE, OF, PETITION,,TILL,THE,DATE,OF,DEPOSIT., , IN(MFA.CROB(NO.(34/2020( , BETWEEN:( , SRI,ANNAPPA,SHEREGAR, S/O,RAMAKRISHNA,SHEREGAR, AGED,ABOUT,54,YEARS,, R/O,THEGGARSE,VILLAGE,, KUNDAPURA,TALUK, UDUPI,DISTRICT-576,201, ...,CROSS,OBJECTOR, (BY,SRI.,NAGARAJA,HEGDE.,ADVOCATE), , AND:( ,

1., SRI,SIYAB, S/O,ABDUL,RAZAK, AGE,MAJOR, R/O,NAVUNDA,POST,AND,VILLAGE,, KUNDAPURA,TALUK, UDUPI,DISTRICT-576201, ,

2., THE,NATIONAL,INSURANCE,COMPANY,LTD.,, BRANCH,OFFICE,KUNDAPURA, SRI,SAI,CENTRE,, 2ND,FLOOR,,Y,M,SHETTY,ROAD,, KUNDAPURA,-576201, REP,BY,ITS,BRANCH,MANAGER, ...RESPONDENTS, (BY,SMT,H,R,RENUKA.,ADVOCATE,FOR,R2, ,NOTICE,TO,R1,IS,DISPENSED,WITH), , ,,,,,,,THIS,MFA,CROB,IN,MFA,3658/2017,IS,FILED,U/O.22,OF,CPC, R/W, SEC.173(1), OF, MV, ACT,, AGAINST, THE, JUDGMENT, AND, AWARD,DT.05.01.2017,PASSED,IN,MVC,NO.255/2015,ON,THE,FILE, OF, THE, SENIOR, CIVIL, JUDGE,, , MEMBER,, MACT,, KUNDAPURA,,

PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

THIS APPEAL AND CROB, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT

The above appeal is filed by the insurer assailing the judgment and award dated 5.01.2017 passed in MVC No.255/2015 by the Court of the Senior Civil Judge and Additional Motor Vehicle Accident Claims Tribunal, Kundapura1, contending, inter alia, that the insured driver did not have a valid and effective driving license to drive the insured vehicle as on the date of the accident and hence the insurer is required to be exonerated from its liability to pay the compensation awarded. It is contended that the disability assessed by the Tribunal is excessive. The cross objection is filed by the claimant seeking for enhancement of compensation.

¶2Vide the impugned judgment and award, the Tribunal has partly allowed the claim petition and awarded a compensation of `3,67,633/-, together with interest at 6% p.a on `3,55,633/-

1 Hereinafter referred to as the 'Tribunal'

from the date of petition till the date of deposit. It was further ordered that the owner and insurer are jointly and severally liable to pay the compensation awarded.

¶3Heard submissions of the learned counsel Smt. HR Renuka for the insurer and Sri. Nagaraja Hegde for the claimant.

¶4The insurer is that the insured vehicle is an autorickshaw which is a Light motor vehicle (LMV) whose unladen weight is 350kgs. The driver of the insured vehicle possessed a license to drive a non-transport vehicle from 25.01.2011 to 24.01.2031. The Tribunal held that the insured vehicle, being an autorickshaw, is a LMV and hence the driver held a valid and effective driving license.

¶5The Supreme Court in the case of Mukund Dewangan v. Oriental Insurance Company Ltd.,2 has held as under: "46. xxxxx

(i) 'Light motor vehicle' as defined in section 2(21) of the Act would include a transport vehicle as per the weight

2 [2017 SC 3668]

prescribed in section 2(21) read with section 2(15) and 2(48). Such transport vehicles are not excluded from the definition of the light motor vehicle by virtue of Amendment Act No.54/1994."

¶6In view of the judgment of the Supreme Court in Mukund Dewangan2, the contention regarding liability put forth by the insurer does not merit consideration and is accordingly rejected.

¶7With regard to the quantum of compensation, it is forthcoming that the claimant was aged 50 years as on the date of the accident, i.e., as on 22.01.2015. The claimant was stated to be doing centering work for construction. However, no documents have been produced to demonstrate his income. The Tribunal has assessed the income of the claimant as `7,000 per month. However, the notional income of the claimant, having regard to the date of the accident, is reassessed as `9,000 per month.

¶8The claimant sustained comminuted fracture of both bones of the right toes with bone loss; right hand fifth finger loss with fracture of PPX; and that fracture of right ulna and radium bone. The claimant has examined a Doctor (PW-2),

who has assessed the disability of the claimant as 30% to the right upper limb. The Tribunal has assessed the disability as 18%. The claimant was treated as an inpatient from

22.01.2015 to 30.01.2015 and once again on 3.8.2015 to

11.08.2015 i.e., for a total period of 18 days. Having regard to the fact that the claimant has sustained fracture of both bones of the right forearm and having regard to the nature of avocation of the claimant, it is just and proper that the disability of the claimant be reassessed as 15%.

¶9Having regard to the aforementioned, the compensation is reassessed as follows:

9.1 Keeping in mind the nature of injuries sustained and the period of treatment, the compensation awarded by the Tribunal towards pain and suffering as well as future medical expenses is not interfered with;

9.2 It has been noticed that the claimant has produced medical bills in a sum of `44,073/-. Accordingly, medical expenses is re-assessed in a sum of `45,000/-;

9.3 Having regard to the nature of injuries sustained and period of treatment, the laid-up period has been taken by the Tribunal as 6 months and accordingly the loss of income during laid up period is reassessed as (`9000/-x6)= `54,000/- as against `42,000/- awarded by the Tribunal;

9.4 Having regard to the period of treatment, the compensation towards food, nourishment, attendant charges and conveyance is reassessed as `18,000/-;

9.5 Keeping in mind the nature of injuries and the resultant disability, the loss of amenities is reassessed as `40,000/- as against `20,000/- awarded by the Tribunal;

9.6 The compensation towards disability/loss of earning capacity is reassessed as (`9000/-x12x13x15%) `2,10,600/- as against `1,96,560/- awarded by Tribunal.

¶10In view of the aforementioned, the compensation is reassessed as follows:

Sl Heads Amount awarded by the Tribunal (`) Amount awarded by this Court (`) Pain and sufferings 45,000.00 45,000 Loss of earning during the laid-up period 42,000.00 54,000 Loss of future earning capacity 1,96,560.00 2,10,600 Medical expenses 52,073.00 45,000 Loss of amenities 20,000.00 40,000 Future medical expenses 12,000.00 12,000 Food & nourishment charges, conveyance charges and attendant charges 18,000

Total 3,67,633.00 4,24,600

¶11Hence, the claimant is entitled for enhanced compensation of (`4,24,600/- - `3,67,633/-)= `56,967/- rounded of as `57,000/-.

¶12Taking judicial notice on interest awarded towards fixed deposits, the interest to be paid at 7% on the enhanced amount.

¶13Having regard to the order dated 19.11.2024 in MFA. CROB 34/2020, the claimant is not entitled to interest for the delay period of 751 days.

¶14In view of the aforementioned, the following: ORDER

i) MFA No.3658/2017 is dismissed;

ii) MFA Crob.34/2020 is allowed in part;

iii) The judgment and award of the Tribunal dated

5.01.2017 passed in MVC No.255/2015 by the Court of the Senior Civil Judge and Additional Motor Vehicle Accident Claims Tribunal, Kundapura is modified only to the extent stated herein. In all other respects, the judgment and award of the Tribunal remains unaltered;

iv) The claimant is entitled to enhanced compensation of `57,000/- with interest at 7% per annum from the date of petition till its realization in addition to the compensation awarded by the Tribunal;

v) The appellant - insurer shall deposit the enhanced compensation together with accrued interest within a period of six weeks from the date of receipt of a copy of this judgment;

vi) After deposit, the entire enhanced compensation with accrued interest shall be disbursed to the claimant;

vii) The amount deposited by the appellant - insurer be transmitted to the Tribunal for disbursement to claimant;

viii) The Registry to draw the modified award accordingly;

ix) The Records be transmitted to the Tribunal forthwith;

x) No costs.

Sd/- (C.M. POONACHA) JUDGE

ND List No.: 1 Sl No.: 20