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2026 Supreme(Online)(Kar) 27555

THE HIGH COURT OF KARNATAKA
P Sree Sudha, J
Hussain – Appellant
Versus
Thammannappa N. C. – Respondent
MFA No. 6925 of 2016 | MFA No. 6926 of 2016



Advocates:
For the Appellants/Petitioners: Sunitha B. H., Suresh M. Latur
For the Respondents: Mallikarjunareddy N. A., A. N. Krishna Swamy, S. A. Khadri

In motor accident compensation cases where the driver lacks a valid license, the 'pay and recovery' principle allows the insurer to be directed to pay the award to the claimant and subsequently recover the amount from the vehicle owner.

Headnote:The appellants filed appeals under S. 173(1) of the Motor Vehicles Act, 1988, challenging the quantum of compensation awarded by the Motor Accident Claims Tribunal in two claim petitions. The appellants, working as masons, sustained injuries in a motor vehicle accident and sought enhancement of compensation. The Court held that in the absence of income proof, regional legal services authority charts should be used to determine notional income and that the 'pay and recovery' principle applies when the driver lacks a valid license. The main issues addressed were the appropriateness of the compensation amount, the determination of notional income, and the liability of the insurer in cases involving invalid driving licenses. The Court reasoned that disability percentages must be logically applied and future prospects should be included for serious disability. Relying on the precedent set by the Supreme Court, the Court allowed the 'pay and recovery' mechanism to ensure the claimant receives immediate relief while protecting the insurer's right to recover from the owner. The appeals are allowed in part and the compensation amount is enhanced, with the respondent-insurer directed to pay the amount and recover it from the owner.

Table of Content
1. appellate courts may review tribunal awards when compensation is deemed inadequate. (Para 1 , 2 , 3)
2. determination of compensation based on notional income and assessed physical disability. (Para 4 , 5 , 6 , 7)
3. the 'pay and recovery' principle applies to settle claims despite invalid driving licenses. (Para 8)

ORAL COMMON JUDGMENT

IN MFA NO.6925/2016

This appeal is filed by the appellant/claimant under Section 173(1) of Motor Vehicles Act, 1988 challenging the common judgment and award dated 25.04.2016 passed in MVC Nos.1866/2015 and 1867/2015. However, MFA No.6925/2016 is filed against the award passed in MVC No.1866/2015 by the III Additional Senior Civil Judge, Court of Small Causes, Bangalore, seeking enhancement of the compensation.

2. Heard the arguments of learned counsel for the appellant and learned counsel for the respondents. The ranks of the parties are retained as per Tribunal for the sake of convenience.

3. The petitioner/injured claimant met with an accident on 25.03.2015 and filed the claim petition before the Tribunal for compensation of Rs.10,00,000/-. The Tribunal considering the entire evidence on record granted an amount of Rs.3,20,000/- with interest at the rate of 9% p.a., from the date of filing the petition till the date of deposit. Being aggrieved by the said order, he preferred this appeal and mainly contended that the Tribunal has awarded meagre compensation under the other heads. The petitioner/injured was aged 20 years and was working as a mason, earning Rs.18,000/- per month. The petitioner sustained disability to the extent of 38% to the right lower limb and 19% to the whole body. But the Tribunal has taken the disability at 12%. Therefore, requested for enhancement of the compensation and also the rate of interest.

4. Though the petitioner/injured claimant stated that he was earning Rs.18,000/- per month, he has not filed any income proof. As he met with an accident in the year 2015, his notional income is to be taken as Rs.9,000/- per month, as per the chart prepared by the Karnataka State Legal Services Authority. The petitioner/injured was aged 20 years and the relevant multiplier is '18'. Ex.P.4 is the wound certificate, which shows that the petitioner sustained the following injury:

"Laceration over right forearm and fracture of right tibia."

5. The petitioner examined the doctor as PW.3, who is an orthopedic surgeon. He stated that the petitioner had sustained fracture of right tibia. On examination, he found that there was pain, limping, wasting of (right) thigh and diffuse swelling of (right) leg and foot. As per the recent X-ray, there was united fracture. He assessed the disability of the right lower limb at 38% and that of the whole body at 19%. He further stated that as the petitioner was working as a Mason, it is difficult for him to do any other manual or physical work. This Court finds it reasonable to take 1/3rd of 38% i.e., 13% disability, for the purpose of calculating the loss of future earning capacity. Accordingly, the loss of future earning capacity comes to Rs.2,52,720/- (9,000x12x18x13%). The petitioner/injured was hospitalized as an inpatient for a period of four days. Considering the nature of injuries, period of hospitalization, his occupation and other relevant factors, this Court finds it reasonable to grant an amount of Rs.50,000/- towards pain and suffering, Rs.30,000/- towards loss of amenities and Rs.30,000/- towards transportation, extra nourishment and attendant charges. The petitioner might not have attended any other work at least for a period of three months. Therefore, Rs.27,000/- (9,000x3) is to be granted under the head loss of income during the laid-up period. The Tribunal has already granted Rs.5,000/- towards medical expenses and Rs.25,000/- towards loss of marriage prospects and the said amounts are confirmed.

6. Thus in all, compensation awarded by this Court is as below:

Sl.Nos. Particulars Amount in Rs.
1. Towards pain an

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