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2026 Supreme(Online)(Kar) 24735

THE HIGH COURT OF KARNATAKA
P Sree Sudha, J
United India Insurance Co. Ltd. – Appellant
Versus
Lakshmi – Respondent
MFA No. 1898 of 2025|MFA No. 4687 of 2025



Advocates:
For the Appellants/Petitioners: H C Vrushabhendraiah, Sheshadri B T
For the Respondents: Sheshadri B T, K S Chandrashekar, H C Vrushabhendraiah

Under Section 167 of the Motor Vehicles Act, 1988, a claimant cannot pursue compensation for a motor accident under both the Motor Vehicles Act and the Employees' Compensation Act; opting for one forum and pursuing it to final judgment precludes initiating proceedings in the other.

Headnote:(A) Motor Vehicles Act, 1988 - Section 167 - Employees' Compensation Act, 1923 - Section 2(d) - Election of remedies - Compensation claim for motor accident - Claimants opted for the Employees' Compensation Act, pursued the claim to a final judgment on merits, and subsequently filed a petition under the Motor Vehicles Act after the initial claim was dismissed - The principle of election of remedies under Section 167 of the Motor Vehicles Act precludes a claimant from pursuing claims under both enactments - Having elected to proceed under the Employees' Compensation Act, the claimant is barred from invoking the jurisdiction of the Motor Accidents Claims Tribunal once the matter has been adjudicated on merits. (Paras 14, 15)

Facts of the case:
Claimants are daughters of the deceased who met with an accident in 2017. Initially, the claimants filed a claim under the Employees' Compensation Act, which was dismissed on merits. Subsequently, they filed a claim petition under the Motor Vehicles Act, which was allowed by the Tribunal. The Insurance Company challenged this award, arguing that the claimants are barred by the principle of election of remedies under Section 167 of the Act.

Findings of Court:
the court found that by pursuing the claim under the Employees' Compensation Act until a final judgment on merits, the claimants exercised their election of remedies. Therefore, they are precluded from filing a subsequent claim for the same incident under the Motor Vehicles Act, irrespective of the outcome of the first claim.

Issues: Whether the doctrine of election of remedies under Section 167 of the Motor Vehicles Act prevents a claimant from initiating a new claim petition under the Motor Vehicles Act after a failed attempt before the Commissioner for Workmen's Compensation.

Ratio Decidendi: Pursuant to Section 167 of the Motor Vehicles Act, a claimant cannot maintain claims under both the Motor Vehicles Act and the Employees' Compensation Act. Once a forum has been chosen and the proceedings have culminated in a judgment on the merits, the claimant is bound by that process and cannot circumvent the bar by filing a fresh petition in another forum.

Result: The appeal filed by the Insurance Company is allowed; the Tribunal's award is set aside. Consequently, the appeal for enhancement of compensation is dismissed.

Table of Content
1. overview of rival appeals against a motor accident compensation award. (Para 1 , 2 , 3)
2. arguments concerning dependency status and legal representation of claimants. (Para 4 , 5 , 6)
3. application of the doctrine of election of remedies regarding conflicting statutes. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. final outcome setting aside the lower court judgment. (Para 16)

CAV JUDGMENT

1. M.F.A. No.1898 of 2025 is filed by insurance company and M.F.A. No.4687 of 2025 is filed by the claimants against the judgment and award dated 16.12.2024 passed by the III Additional District and Sessions Court, Hassan, in MVC No.504 of 2022. One Kengamma, met with an accident on 26.06.2017 and died subsequently. Her daughters filed claim petition claiming compensation of Rs.30,00,000/-. The Tribunal, considering the entire evidence on record, granted compensation of Rs.11,38,000/- with interest at 6% per annum from the date of petition till realization.

2. Aggrieved by the said order, the insurance company has preferred M.F.A. No.1898 of 2025 mainly contending that, initially, a claim petition was filed under Workmen Compensation Act in ECA No.36 of 2018, before Principal Senior Civil Judge and Commissioner, Hassan by the husband of deceased Kengamma and respondent Nos.1 and 2 (claimants) herein. But, during the pendency of the proceedings, the husband died and respondent Nos.1 and 2 herein continued in the said proceedings before the ECA Court and it was dismissed on merits by the Commissioner for Workmen Compensation on 23.11.2021. The said judgment was challenged in MFA No.7032 of 2022 by the claimants, but later, they have withdrawn the appeal on 25.09.2023 on the ground that they have already agitating another claim petition in MVC No.504 of 2022. It is contended that the Tribunal has committed serious error in fastening liability on the insurance company. The Tribunal erred in holding that there was rash and negligence on the part of the driver of the lorry. During cross examination, the claimants admitted that they filed ECA petition before the Commissioner for Workmen Compensation and it was dismissed on merits. Challenging the dismissal order, the claimants preferred an appeal in MFA No.7032 of 2022 and the same was withdrawn by the claimants, but the said evidence was not considered by the Tribunal. It is further contended that the deceased was not a coolie/loader at the time of the accident and she was not an employee under the insured. As such, the insurance company need not indemnify the owner of the vehicle. The compensation granted by the Tribunal is improper, unjust and is on higher side. Thus, requested this Court to set aside the order of the Tribunal.

3. M.F.A. No.4687 of 2025 is filed by the claimants against the aforesaid judgment and award passed by the Tribunal, contending that the Tribunal has rightly held that accident occurred due to rash and negligent driving of the driver of the lorry bearing No.TN-43-D-1108. At the time of accident, Kengamma was hale and healthy. She was doing loading and unloading labour work earning Rs.18,000/- per month plus other bata(bonus). But, the Tribunal has taken her notional income only as Rs.10,510/- per month as per the notification of the Government of Karnataka and deducted one third towards her personal expenses. The grant of compensation under the heads loss of estate, consortium and general expenses is on lower side. As per the Exhibit P10, Kengamma was aged 47 years, but the Tribunal considered her age as 55 years and it is to be modified. Entire family was depending on her love and affection, support and earnings. Therefore, requested for enhancement of the compensation.

4. Learned counsel for the appellant-insurance company has relied upon judgment of this Court in the case of A. MANAVALAGAN VS. A.KRISHNAMURTHY AND OTHERS reported in ILR 2004 KAR 3268, wherein it was held that when legal heir is not a dependent on the deceased, the ques

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