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2025 Supreme(Kar) 619

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH 
R. DEVDAS, K. V. ARAVIND, JJ.
Mahesh Parasharam Majagaonkar – Appellant
Versus 
Shamarao Bhalachandra Khot, Since Died By His Lrs- Sharad, (S/o. Shamarao Khot) and Anr. – Respondents
Miscellaneous First Appeal No.102000 of 2015 (MV-I) 
Decided On : 10-06-2025

Advocates Appeared:
For the Appellant :Sri. Yash R. Nadakarni, Advocate for Sri. Vitthal S. Teli, Advocate
For the Respondent:Sri. G.N. Raichur, Advocate.

Court held that absence of documentary evidence for income necessitates using notional income, whereas the insurer's liability persists despite challenges to the driver's license.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Appeal against award of compensation - Appellant sustained grievous injuries in a motorcycle accident caused by a TATA Ace Rickshaw - The Tribunal awarded compensation of Rs.3,79,780/- which was contested for enhancement. The court modified the awarded amount to Rs.4,07,380/-, recalculating notional income based on guidelines and assessed loss of earnings accordingly. (Paras 2-24)

(B) Compensation assessment - In absence of documentary evidence supporting declared income, the court determined notional income at Rs.7,000/- based on prevailing standards. The functional disability was assessed without solid medical proof connecting it to loss of income. (Paras 14-17)

(C) Liability - Court held that absence of valid driving licence of the driver does not exempt the insurer from liability to pay compensation, adhering to the 'pay and recover' principle. (Paras 22-22)

Facts of the case:
The appellant was involved in an accident on 03.03.2013 with a TATA Ace Rickshaw, resulting in severe injuries and incurred medical costs exceeding Rs.2,50,000/-. The claim petition sought Rs.20,00,000/- but the Tribunal granted Rs.3,79,780/- as compensation.

Findings of Court:
Compensation enhanced to Rs.4,07,380/- reflecting inputs from the accident circumstances, medical reports, and established norms.

Issues: The key issues included income assessment and determination of compensation adequacy under relevant heads.

Ratio Decidendi: The court rationalized the income calculation using guidelines for notional compensation and examined the evidence's sufficiency regarding disabilities affecting earning capacity.

Result: Appeal allowed in part; award modified from Rs.3,79,780/- to Rs.4,07,380/-.

Table of Content
1. details of the accident and initial compensation claim. (Para 3 , 4 , 5 , 6 , 7)
2. arguments for enhanced compensation based on disability. (Para 8 , 9)
3. defense on behalf of the insurer regarding liability. (Para 10 , 11)
4. assessment of income and notional compensation calculation. (Para 14 , 15)
5. court's evaluation of functional disability evidence. (Para 16 , 17)
6. recalculation of loss of earnings during laid-up period. (Para 18 , 19)
7. assessment of notional income and disability. (Para 20)
8. total compensation re-evaluation. (Para 21)
9. final findings and legal principles regarding insurance liability. (Para 22 , 23)
10. final order and conclusions drawn from the case. (Para 24)

JUDGMENT :

(K.V. ARAVIND, J.)

Heard Sri Yash R. Nadakarni, learned counsel for Sri Vitthal S. Teli, learned counsel for the appellant-petitioner and Sri G.N. Raichur, learned counsel for respondent No.2.

2. The present appeal is filed by the appellant- petitioner, being aggrieved by the judgment and award dated 16.04.2015 passed in MVC No.1134/2013 on the file of the Court of the IV Additional District and Sessions Judge and Motor Accidents Claims Tribunal, Belagavi (hereinafter referred to as 'the Tribunal'). The appeal is directed against the quantum of compensation awarded and is filed seeking enhancement thereof.

3. The case of the appellant is that on 03.03.2013, at about 9:00 p.m., while he was proceeding from Peeranwadi towards his native village, Karle, on his Hero Honda motorcycle bearing Registration No.KA-22/W-8938, a TATA Ace Rickshaw bearing Registration No.KA-22/N-7109 came from the opposite direction in a rash and negligent manner and collided with his motorcycle. As a result of the said impact, the appellant sustained grievous injuries and was admitted as an inpatient at KLE Hospital, Belagavi, where he underwent surgery and incurred medical expenses exceeding Rs.2,50,000/-.

4. The appellant filed a petition under Section 166 of the MOTOR VEHICLES ACT , 1988 (for short, ‘the MV Act ’), seeking compensation on account of the injuries sustained in the alleged accident. It was contended that he was engaged in electrical work and earning Rs.10,000/- per month. The claim petition was filed seeking compensation of Rs.20,00,000/-.

5. Upon service of notice, the respondents entered appearance through their respective counsel and filed their statement of objections, denying the material allegations made in the petition, including the age, income and occupation of the petitioner. It was specifically contended that the alleged accident did not occur due to the fault or negligence of the driver of the offending TATA Ace Rickshaw.

6. The petitioner examined 2 witnesses and got marked 15 documents as exhibits in support of his case. On the other hand, the respondents examined 3 witnesses and produced 3 documents, which were marked as exhibits.

7. The Tribunal, upon consideration of the oral and documentary evidence on record, assessed the compensation at Rs.3,79,780/-, having taken the monthly income of the petitioner at Rs.6,000/- and the disability at 10%. The Tribunal awarded compensation under various heads, including loss of earnings during the laid-up period, pain and suffering, loss of amenities, medical expenses, food and nourishment, conveyance, and other incidental expenses.

8. Sri Yash R. Nadakarni, learned counsel for Sri Vittal S. Teli, learned counsel appearing for the appellant submits that in the absence of proof of established income, the Tribunal erred in not considering the notional income, which, as per prevailing standards, ought to have been taken at Rs.7,000/- per month. Learned counsel further submits that the appellant was a skilled electrical worker and due to the injuries sustained in the accident, has suffered functional disability. The assessment of 10% permanent functional disability by the Tribunal is, therefore, erroneous and contrary to the medical evidence on record.

9. It is further submitted that




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