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2025 Supreme(Kar) 2158

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
S.G.PANDIT, GEETHA K.B., JJ.
Reliance General Insurance Company Ltd., Through Its Divisional Manager, Represented By Its Authorized Signatory – Appellant
Versus
Smt. Kamlamma @ Kamalavva, D/o. Yallavva Hosamani, Since Deceased By Her Lrs.- Kadappa Kamalavva Hosamani – Respondents
Miscellaneous First Appeal No. 104712 of 2023 (MV-D) C/W Miscellaneous First Appeal No. 101238 of 2024
Decided On : 04-12-2025

Advocates Appeared:
Sri. G.N. Raichur, Advocate, Sri. Hanumanth R. Lathur, Advocate, Smt. Roopa S. Bellikatti, Advocate, Sri. Iranagouda K. Kabbur, Advocate.

The court established that the deceased was not negligent in the accident and recalibrated the income for compensation to Rs.30,000, leading to a total compensation of Rs.43,61,000.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173(1) - Appeals filed by insurer challenging negligence and quantum of compensation; claimants seeking enhanced compensation. (Paras 2, 12, 19)

(B) Negligence - Court found no contributory negligence on the part of deceased, ruling that accident was due to the negligence of the other vehicle. (Paras 20, 21)

(C) Income determination - Tribunal initially assessed income of the deceased at Rs.40,000/- which was criticized; recalculated to Rs.30,000/- based on various evidences after consideration. (Paras 25, 26)

(D) Compensation awarded - Final total compensation enhanced to Rs.43,61,000/- with interest at 6% p.a. (Paras 27, 28)

Facts of the case:
The claimants, mother and sister of deceased Mahadev, pursued compensation for his accidental death involving a car collision. The deceased was 26 years old with ongoing doctoral studies and a teaching income of Rs.14,000/- per month.

Findings of Court:
The Tribunal incorrectly assessed income; compensation recalculated reflecting dependency principles.

Issues: Main issues revolved around negligence attribution and appropriate income determination for compensation calculation.

Ratio Decidendi: The court emphasized the need to accurately assess income and determined no negligence on part of the deceased.

Result: Appeals allowed in part; compensation modified to Rs.43,61,000/-.

Table of Content
1. challenge to previous judgment and awards. (Para 1 , 2)
2. background of the deceased's life and accident details. (Para 4 , 5 , 6)
3. responses and objections from the respondents. (Para 7 , 8 , 9)
4. presentation of evidence and hearing of arguments. (Para 10 , 11)
5. argument summaries by both sides. (Para 12 , 13)
6. counsel arguments regarding negligence and income. (Para 14 , 15)
7. points for consideration by the court. (Para 17 , 18)
8. court's analysis of negligence and income. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25)
9. calculation of compensation awarded. (Para 26)
10. final orders and conclusions of the court. (Para 27 , 28)

JUDGMENT :

GEETHA K.B., J.

Both these appeals are filed challenging the judgment and award dated 01.09.2023 passed in MVC No.576/2021 on the file of III Additional Senior Civil Judge and Additional MACT, Dharwad (for short, ‘Tribunal’).

2. MFA No.104712/2023 is filed by the insurer challenging negligence and quantum of compensation and MFA No.101238/2024 is filed by the claimants praying for enhancement of compensation under Section 173 (1) of Motor Vehicles Act, 1988 (for short, ‘Act’).

3. The parties would be referred with their rankings as they were before the Tribunal for convenience and clarity.

4. The claimants who are the mother and unmarried sister of deceased Mahadev have filed the claim petition in respect of accidental death of Mahadev that had taken place on 03.04.2021 at 01.35 p.m. involving car bearing Reg.No.MH-09/BB-1883 and car bearing Reg.No.MH-03/BE-3860 at Ankola-Yallapur road.

5. The case of claimants is that deceased Mahadev was driving the car bearing No.MH-09/BB-1883 and was coming from Dharmastala towards Ankola with his colleagues in that car; at that time, the car bearing No.MH- 03/BE-3860 came from opposite side, dashed against the car and caused the accident, which resulted in the death of Mahadev. It is the contention of claimants that deceased was aged about 26 years, a bright student and was pursuing his PhD, after completion of his Post-graduation in English; he was also teaching English grammar classes and earning Rs..30,000/- per month.

6. It is further contended that the deceased has also passed SET exam, which is a qualifying exam to get appointment at Government Degree College or any Aided Degree College. He was also having agricultural lands and hence claimed compensation.

7. On receipt of notice, respondent No.2 appeared through its counsel and filed objection statement, wherein it contended that the accident happened due to rash and negligent driving of the deceased and thus it is not liable to pay compensation. There is no negligence on the driver of car bearing No.MH-03/BE-3860-respondent No.1; further he has violated the insurance policy conditions and driver drove the vehicle carelessly without having effective driving licence. Hence, prayed for dismissal of petition.

8. Respondents No.3 and 4 being the RC holder of car and policy holder of car respectively have admitted the contention taken in the petition and they contended that their vehicle is validly insured with respondent No.5 and hence, prayed for dismissal of the petition.

9. Respondent No.5 appeared through its counsel and filed objection statement, wherein it has taken contention that the car bearing No.MH-09/BB-1883 was duly insured with it as on the date of accident. Respondents No.3 and 4 have violated the policy conditions and not informed about the accident. There was no negligence on the part of deceased and thus it is not liable to pay compensation.

10. On behalf of claimants, claimant No.2 was examined as P.W.1 apart from examining two witnesses as P.W.2 and P.W.3 and got marked Exs.P.1 to P.44 before the Tribunal. On behalf of respondents, R.W.1 and R.W.2 are examined apart from marking Exs.R.1 to R.3 before the Tribunal.

11. After recording evidence of both sides and hearing arguments of both sides, the Tribunal came to the conclusion that the accident happened due to rash and negli

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