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HC-KAR

CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

IN THE HIGH COURT OF KARNATAKA AT DHARWAD

DATED THIS THE 23

RD

DAY OF SEPTEMBER, 2026

BEFORE

THE HON'BLE MRS JUSTICE K.G.SHANTHI

MISCELLANEOUS FIRST APPEAL NO. 100858 OF 2023 (MV-I)

C/W

MISCELLANEOUS FIRST APPEAL NO. 104499 OF 2023 (MV-I)

IN MFA No. 100858/2023

BETWEEN:

THE CHOLAMANDALAM M S GENERAL INSURANCE

COMPANY LTD.,

ISSUING OFFICE NO. 208,

CTS NO. 4818/9B,

NABBUWALE BUILDING,

BEHIND SP OFFICE,

BELAGAVI,

THROUGH ITS DIVISION OFFICE,

THE DIVISIONAL MANAGER, 1

ST

FLOOR,

KALBURGI SQUARE,

DESHPANDE NAGAR,

HUBBALLI-580029,

NOW REPRESENTED BY ITS AUTHORISED SIGNATORY.

…APPELLANT

(BY SRI. SUBHASH J. BADDI, ADVOCATE)

AND:

1. KUMAR IMTIYAZ

S/O. MUGUTSAB ASUNDI,

AGE: 23 YEARS,

OCC: COOLIE/HAMALI(NOW NIL)

R/O. SAMPGAON,

TQ: BAILHONGAL,

DIST: BELAGAVI-591125.

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CNR: KAHC020021132023

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MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

2. SHRI. IMRANKHAN

S/O. NADIRKHAN PATHAN

AGE: MAJOR,

OCC: BUSINESS,

R/O. SAMPGAON,

TQ: BAILHONGAL,

DIST: BELAGAVI-591125.

…RESPONDENTS

(BY SRI. HANAMANT R. LATUR, ADVOCATE)

THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR

VEHICLE ACT, 1988, PRAYING TO CALL THE RECORDS, HEAR T HE

PARTIES, AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING

ASIDE THE JUDGMENT AND AWARD DATED 01.10.2022 PASSED BY

SENIOR CIVIL JUDGE AND ADDL. MACT, BAILHONGAL IN MVC

NO.2160/2019, WITH COST IN THE INTEREST OF JUSTICE AND

EQUITY.

IN MFA NO. 104499/2023

BETWEEN:

KUMAR IMTIYAZ S/O. MUGUTSAB ASUNDI

AGE: 24 YEARS,

OCC: COOLIE/HAMALI, NOW NIL,

R/O. SAMPGAON,

TQ: BAILHONGAL,

DIST: BELAGAVI,

PIN-591125.

...APPELLANT

(BY SRI. HANAMANT R. LATUR, ADVOCATE)

AND:

1. SHRI. IMRANKHAN

S/O. NADIRKHAN PATHAN

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

AGE: 50 YEARS,

OCC: BUSINESS,

R/O: SAMPAGAON,

TQ: BAILHONGAL,

DIST: BELAGAVI,

PIN: 591125.

2. CHALAMANDALAM

M. S. GENERAL INSURANCE COMPANY LTD.,

ISSUING OFFICE NO.208,

CTS NO.4818/9B,

NABBUWALE BUILDING,

BEHIND SP OFFICE,

BELAGAVI,

THROUGH ITS DIVISION OFFICE,

DIVISIONAL MANAGER,

1

ST

FLOOR,

KALBURGI SQUARE,

DESHPANDE NAGAR,

HUBLI-580029,

TQ: HUBLI, DIST: DHARWAD.

...RESPONDENTS

(NOTICE TO R1 IS SERVED;

BY SRI. SUBHASH J. BADDI, ADVOCATE FOR R2)

THIS MFA IS FILED UNDER SECTION 173 (1) OF MOTOR

VEHICLES ACT, 1988, PRAYING TO, ENHANCE THE

COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD

PASSED BY THE COURT OF SENIOR CIVIL JUDGE AND ADDL.

MACT, BAILHONGAL, IN MVC, BAILHONGAL, MVC NO.2160/2019

DATED 01-10-2022, IN THE INTEREST OF JUSTICE AND EQUIT Y.

THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY,

JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MRS JUSTICE K.G.SHANTHI

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

ORAL JUDGMENT

Aggrieved by the judgment and award dated 01.10.202 2

in MVC No.2160/2019 passed by the Senior Civil Judg e and

Additional MACT, Bailhongal

1

, the respondent No.2/Insurance

Company before the Tribunal filed an appeal in MFA

No.100858/2023 challenging the liability fixed by the Tribunal

on the Insurance Company to deposit compensation aw ard, and

the petitioner before the Tribunal filed an appeal in MFA

No.104499/2023 seeking for enhancement of compensat ion.

2. Parties are hereinafter referred to as per their ranks

before the Tribunal for the sake of convenience.

3. Brief facts of the case are that on 14.12.2018 at

about 2.00 p.m. the petitioner along with two other s was

proceeding towards Sampgaon village from Hirebagewa di in

407 Goods Vehicle bearing registration No.KA-26/605 5

2

loaded

with soybeans. The said goods vehicle was driven by

respondent No.1 in a very high speed, rash and negl igent

manner so as to endanger human life. When they reac hed near

Maradinaglapur cross on Bailhongal – Belagavi road, tried to

1

For short, ‘the Tribunal’

2

For short, ‘goods vehicle’

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

avoid collision against the motorcycle coming from opposite

direction, and lost his control over the vehicle and fell down by

the side of the road. Due to this impact, the petit ioner

sustained grievous injuries and he was shifted to the hospital

for treatment.

4. The petitioner contended that prior to the accident

he was hale and healthy and earning Rs.10,000/- per month

and Rs.100/- daily batta by working as hamal/coolie in the said

goods vehicle and maintaining his family. Due to the accidental

injuries, the petitioner suffered permanent physical disability

and lost his earning capacity. The petitioner has spent huge

amount towards medical expenses. Accordingly, the p etitioner

filed petition claiming compensation before the Tribunal.

5. After filing of the petition, notice have been issued

to the respondents. Respondent No.1 remained absent and

placed ex-parte.

6. Respondent No.2 has appeared through his counsel

and filed objections to the claim petition contending that, the

claim petition filed by the petitioner is against law, evidence

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

and procedure. He denied the age, income and occupa tion of

the petitioner and also injuries sustained, treatment taken,

medical expenses incurred and the manner of acciden t. He

further contended that, the accident was caused due to the

negligence of the rider of the motorcycle coming fr om the

opposite side and there is no fault on the part of the driver of

the goods vehicle.

Respondent No.2 specifically contended that the petitioner

was traveling as an unauthorized passenger in the said vehicle,

as he was not working as a coolie/hamal in the said vehicle and

his entry in the said vehicle itself is violations of the terms and

conditions of the policy.

It was further contended that two vehicles were involved

in the accident. Since the accident involved is of composite

negligence on the part of both the goods vehicle an d the

motorcycle, the insurer and insured of both vehicle s are

necessary parties to the petition. Therefore, the petition is bad

for non – joinder of necessary parties.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

It was further contended that the driver of the goo ds

vehicle was not holding a valid and effective driving license as

on the date of the accident. It was also contended that the

liability, if any, of respondent No.2/Insurance Company would

arise only upon the claimant proving the involvemen t of the

goods vehicle in the accident, the validity and legality of the

permit of the said vehicle, the validity of the driving license of

its driver, the lawful ownership of the vehicle, and the existence

and validity of R.C. Book. It was further contended that the

liability of respondent No.2 is subject to the term s, and

conditions and limitations of the policy on insurance, if any,

issued in favour of the lawful owner of the vehicle, and subject

to the provisions of the MV Act and the Rules frame d

thereunder. Hence, prayed for dismissing the claim petition.

7. Before the Tribunal, the petitioner himself examined

as PW1 and one witness examined as PW2 and got mark ed 15

documents as Exs.P.1 to P.15. On behalf of responde nt No.2,

one witness has been examined as RW1 and got marked Ex.R1-

insurance policy.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

8. On hearing the argument, the Tribunal allowed the

claim petition in part by awarding compensation to the

petitioner under the following heads:

Sl.

No.

Heads Amount in Rs.

1 Pain and suffering 40,000/-

2 Medical expenses 1,23,620/-

3 Diet food nourishment,

attendant and conveyance

charges

16,000/-

4 Loss of future earning capacity

due to permanent disability

8,88,300/-

5 Loss of income during laid up

period

23,500/-

6 Towards loss of amenities and

enjoyment in life

23,500/-

TOTAL 11,14,920/-

9. The Tribunal held that respondents No.1 and 2 are

jointly and severally liable to pay compensation to the

petitioner and further directed the respondent No.2 to deposit

the compensation amount within 30 days.

10. Aggrieved by the same, the Insurance Company as

well as the petitioner preferred these appeals.

11. Sri. H. R. Latur, learned counsel appearing for the

petitioner argued that the doctor assessed the disability to the

extent of 70% to the whole body, but the Tribunal has assessed

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

the disability to the extent of 35%. It is argued t hat the

petitioner has sustained head injury with displaced fracture of

occipital clavarium with acute epidural hematoma al ong with

left occipital with pneumocephauls with right front al scalp

hematoma with fracture of lateral wall of right maxillary sinus

with hemosinus with deviated nasal septum with grade-I diffuse

exonal injury with subarachnoid haemorrhage with ac ute

subdural haemorrhage, but the Tribunal assessed the disability

on lower side which should be considered to the extent of 70%.

12. It is further argued that the Tribunal has awarded

meager compensation under the heads of “pain and su fferings”,

“food, nourishment, attendant and conveyance charge s”, “loss

of amenities” and “loss of income during laid up pe riod”.

Further argued that the Tribunal has not added 40% of the

income of the injured towards future prospects. Acc ordingly,

prays for enhancement of the compensation.

13. Sri. Subhash J. Baddi, learned counsel appearing for

the Insurance Company argued that the petitioner wa s

travelling with others in a goods vehicle from Hirebagewadi to

Sampgaon which met with an accident and the petitio ner

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HC-KAR

CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

sustained fracture of skull bones and also fracture of facial

bones as per Ex.P4 and Ex.P5. It is argued that PW2 - the

doctor, who is not a treated doctor, has assessed the disability

without following the guidelines issued by the Authority from

time to time and wrongly assessed the disability to the extent

of 70% which is exorbitant.

14. Further it is argued that the Tribunal assessed the

functional disability to the extent of 35% and awar ded

compensation which is exorbitant, and also awarded higher

compensation under different heads which should be modified

and reduced.

15. It is argued that the Tribunal has not appreciated

Ex.R1-insurance policy, wherein it reflects that the insured has

not paid any premium to cover the risk of the clean er/hamali

so, the Insurance Company is not liable to indemnif y the

petitioner on account of the injuries sustained by him. Further

it is argued that Tribunal has erred in fastening the liability

against the Insurance Company.

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HC-KAR

CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

16. It is argued that the petitioner has produced the

medical bills to the tune of Rs.1,03,890/-, but the Tribunal has

awarded compensation of Rs.1,23,620/- under the hea d of

“medical expenses” without any basis.

17. Learned counsel for the Insurance Company relied

upon the judgment passed by the Hon’ble Apex Court in case of

National Insurance Company Limited v. Prembai Patel

and Others

3

.

18. Further, he also relied upon the judgments passed

by the Co-Ordinate Bench of this Court in case of

Hanumanthappa v. Shivakumar and Others

4

, Sriram

General Insurance Company Limited v. Muthuraj and

Others

5

and Ashok A. R. and Others v. Ganesh K.R. and

Others

6

.

19. Heard the arguments. Perused the materials

available on record. The points that would arise fo r

consideration by this Court are as follows:

3

MANU/SC/0295/2005

4

MANU/KA/1144/2015

5

MANU/KA/0804/2022

6

MANU/KA/0981/2011

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HC-KAR

CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

(i) Whether the petitioner proves that the

compensation awarded by the Tribunal is

inadequate and it deserves to be modified?

(ii) Whether the Tribunal is justified in fixing the

liability on respondent No.2/Insurance

Company to pay the compensation?

(iii) What order?

20. Points framed by this Court for consideration are

answered as follows:

Point No.(i) : Partly in the affirmative.

Point No.(ii) : In the affirmative.

Point No.(iii): As per the final order, for the

following:

21. Regarding Point No.(i): It is not in dispute that

on 14.12.2018 at about 02.00 p.m. the petitioner wa s

travelling in a goods vehicle which was loaded with soyabeans.

The respondent No.1 was the driver of the said good s vehicle

which met with an accident. The police have investigated the

matter and filed a charge sheet against the driver of the goods

vehicle. In this regard, the petitioner has produce d the

documents before the Tribunal which were marked as Exs.P1 to

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

Ex.P7. Further, the wound certificate marked at Ex.P4 reflects

that the petitioner who was travelling in a goods v ehicle

sustained injuries.

22. According to the Insurance Company, the petitioner

was not an employee under the respondent No.1 and a lso not

paid any additional premium covering the risk of th e

employees.

23. It is also not in dispute that the petitioner has

sustained injuries in the accident. PW2 the doctor in his

evidence deposed that he assessed the disability of the

petitioner. Ex.P12 discharge summary reflects that the

petitioner has taken treatment as an inpatient from 14.12.2018

to 29.12.2018 for the injuries sustained in the accident. As per

the discharge summary, the petitioner was diagnosed for the

head injury with displaced fracture occipital calvarium with

acute epidural hematoma along the left occipital wi th

pneumocephalux with right frontal scalp hematoma wi th

fracture of lateral wall of right maxillary sinus with hemosinus

with deviated nasal septum with grade I diffuse axonal injury

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

with subarachnoid haemorrhage with acute subdural

haemorrhage.

24. Ex.P4 the wound certificate issued by BIMS

Hospital, Belagavi reflects that the petitioner was treated as an

inpatient from 14.12.2018 and discharged on the same day and

taken treatment at Vijaya Hospital Belagavi. PW2 th e doctor

assessed the disability of the petitioner for the said injuries.

25. It is an undisputed fact that the petitioner was

treated conservatively. Further, PW2 assessed the disability of

the petitioner on 17.01.2022 i.e., after four years from the date

of the accident. The disability certificate is marked as Ex.P13.

In the said disability certificate, the doctor has explained the

treatment undergone by the petitioner at different hospitals.

The doctor has further stated that, at the time of assessment of

disability, the petitioner complained of headache and reduced

hearing in left ear. It is also stated by the doctor that there is a

risk of seizures, which can be life threatening and assessed the

disability to the extent of 70% to the whole body.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

26. The petitioner had produced the documents i.e.,

hospital bills, MRI report, MRI scan, discharge summary etc.,

but there is no material evidence to show that he has continued

the treatment for long time till he met PW2 doctor who

assessed the disability.

27. By looking into the injuries sustained by the

petitioner, the Tribunal has rightly assessed the disability to the

extent of 35% to the whole body.

28. The accident occurred in the year 2018. Since there

is no proof of income of the petitioner, the Tribunal has rightly

assessed the notional income at Rs.11,750/- per month as

per the guidelines issued by the Karnataka State Legal Services

Authority.

29. At the time of accident, the petitioner was aged

about 20 years. So, the Tribunal has rightly applied multiplier

of “18” in view of the law laid down by the Hon’ble Apex Court

in case Sarla Verma and others V. Delhi Transport

Corporation and another

7

.

7

2009 ACJ 1298

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

30. By considering all these factors, the Tribunal has

rightly awarded compensation of Rs.8,88,300/-, under the

head of “future loss of income” which does not call for any

interference by this Court.

31. By looking into the hospitalization and injuries

sustained by the petitioner, this Court is of the opinion that it is

reasonable to enhance the compensation under the he ad of

“pain and sufferings” from Rs.40,000/- to Rs.60,000/-.

32. By looking into the medical documents produced by

the petitioner, the Tribunal has rightly awarded compensation

of Rs.1,23,620/- under the head of “medical expenses”, which

does not call for any interference.

33. The Tribunal has awarded compensation of

Rs.16,000/- under the head of “diet, food, nourishm ent,

attendant and conveyance charges” and Rs.23,500/- t owards

“loss of amenities and enjoyment in life”. This Court is of the

opinion that it is reasonable to enhance the same t o

Rs.25,000/- and Rs.40,000/- respectively.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

34. The petitioner has taken long treatment for the

injuries sustained by him in the accident. At least four months

time is required for him to recover and start the routine work.

Hence, this Court is of the opinion that it is just and reasonable

to award compensation of Rs.47,000/- (Rs.11,750 X 4) under

the head of “loss of income during laid up period”. In all

compensation is awarded under the following heads:

Sl.

No.

Heads

Amount in

Rs.

1 Loss of future income 8,88,300/-

2 Towards pain and sufferings. 60,000/-

3 Loss of income during laid up

period

47,000/-

4 Towards medical expenses 1,23,620/-

5 Towards loss of amenities 40,000/-

6 Diet, food, nourishment,

attendant and conveyance

charges

25,000/-

TOTAL 11,83,920/-

35. Accordingly, the point No.(i) is answered partly in

the affirmative and the petitioner is entitled to r eceive

compensation of Rs.11,83,920/- as against Rs.11,14,920/- as

awarded by the Tribunal.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

36. Regarding point No.(ii): The next question that

arises for consideration is with regard to the liability of the

Insurance Company to pay the compensation awarded t o the

petitioner.

37. Ex.R1 is the Insurance Policy. The relevant portion

of Ex.R1 is extracted as under:

“Driver Clause: Any person including insured

provided that a person driving holds an effective

driving license at the time of the accident and is

not disqualified from holding or obtaining such a

license. Provided also that the person holding an

effective learner’s license may also drive the

vehicle and that such a person satisfies the

requirements of Rule 3 of the Central Motor

Vehicles Rules 1989.

Limits of liability: Under Section II-1(i) of the

Policy – Death or bodily injury such amount as is

necessary to meet the requirements of the Motor

Vehicles Act, 1988. Under Section II-1(ii) of the

Policy – Damage to Third Party Property –

Rs.7,50,000.00 P.A. Cover for Owner Cum Driver

Under Section IV (CSI) – Rs.2,00,000.00.

Deduction Under Section 1: Rs.500

Additional compulsory deductibles under

Section 1 Rs.0

Additional Imposed deductibles under

Section 1 Rs.0

Subject to I.M.T. Endt. Nos. and

Memorandum:21,40

Coverage Under this policy is subject to realization

of premium cheque(s). In case of dishonour of

cheque (s), no separate intimation will be given

and the policy stands cancelled from inception.”

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CNR: KAHC020021132023

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MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

38. RW1, who is an officer of the Insurance Company,

has admitted in his cross examination that, as per the policy,

ten persons were permitted to travel in the vehicle. When the

Insurance Company has collected the premium, it can not now

deny its liability to pay compensation to the petit ioner,

particularly when the petitioner was one among the persons

permitted to travel in the said vehicle. Therefore, there are no

valid grounds for the Insurance Company to deny its liability to

pay compensation to the petitioner.

39. With the above discussion, this Court is of the

opinion that the contention raised by the learned counsel for

the Insurance Company that the Insurance Company is not

liable to pay the compensation or the Insurance Com pany is

having only limited liability to pay the compensation, is not

sustainable.

40. The Tribunal is justified in fixing liability on

respondent No.2. Accordingly, point No.(ii) is answered in the

affirmative.

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CNR: KAHC020021132023

NC: 2026:KHC-D:15859

MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

41. Accordingly, point No.(ii) is answered in the

affirmative.

42. Regarding point No.(iii): In view of the findings

on points No.(i) and (ii), this Court proceeds to p ass the

following:

ORDER

(i) The appeal filed by the Insurance Company

in MFA No.100858/2023 is hereby

dismissed.

(ii) The appeal filed by the petitioner in MFA

No.104499/2023 is hereby allowed in

part.

(iii) The impugned judgment and award passed

by the Tribunal is modified. The petitioner

entitled to receive compensation of

Rs.11,83,920/- as against Rs.11,14,920/-

awarded by the Tribunal.

(iv) The enhanced compensation amount shall

carry interest at the rate of 6% per annum

from the date of petition till the date of

payment. excluding the period of delay of

233 days in filing the appeal, as per the

order dated 23.09.2026.

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MFA No. 100858 of 2023

C/W MFA No. 104499 of 2023

(v) Respondents No.1 and 2 are jointly and

severally liable to pay the compensation to

the petitioner.

(vi) Respondent No.2 being the Insurer is

directed to deposit the enhanced

compensation amount with accrued interest

before the Tribunal within a period of six

weeks from the date of receipt of certified

copy of this judgment.

(vii) Draw modified award accordingly.

(viii) Registry to transmit the Trial Court Records

forthwith.

(ix)

In view of disposal of this appeal, pending

applications, if any, do not survive for

consideration and the same are accordingly

disposed of.

(K.G.SHANTHI)

JUDGE

SMM

List No.: 1 Sl No.: 26