IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF MARCH 2019 BEFORE THE HON’BLE MR. JUSTICE H. T. NARENDRA PRASAD M.F.A. No.2180 OF 2016 (MV) Between:
United India Insurance Co. Ltd., Regional Office, #18, 5th & 6th Floors, Krishibhavan, Hudson Circle, Bangalore – 560 001.
Represented by its Manager. …Appellant (By Sri Janardhan Reddy, Advocate) And:
1. Sri. Kudus, S/o Sri.Malik Pasha, Aged about 46 years, 2. Smt. Shanshada, W/o Sri.Kudus, Aged about 34 years, Both are R/at No.305, Near Government School Road, Sadaramangala, Kadugodi Plantation, Kadugodi, Bangalore – 560 067.
3. Sri.Bhuraram Pavar, S/o Sri.Keshramji Pavar, No.60, Subash Nagar, Bhattarahally, Bangalore – 560 049. … Respondents (By Sri. K.Vishwanath, Advocate for R1 & R2; R3 Served) This M.F.A. is filed under Section 173(1) of MV Act against the Judgment and Award dated 05.12.2015 passed in MVC No.2908/2014 on the file of the member, Principal MACT, Bengaluru, awarding compensation of Rs.5,00,000/- with interest at 9% P.A. from the date of petition till the realization.
This M.F.A. coming on for orders this day, the Court delivered the following:
JUDGMENT This appeal is filed by the Insurance Company challenging the judgment and award dated 05.12.2015 passed by the Member, Principal MACT, Bengaluru (SCCH-1) in MVC.No.2908/2014.
2. Brief facts of the case are that on 14.12.2013 at about 9.30 a.m. when the deceased Chand Pasha @ Musthan Pasha was proceeding in a bicycle as a pillion rider and the same was driven by its rider by name D.Krishna on the extreme left side on Sadaramangala village main road and he reached in front of J.P.Cement Godown, at that time the driver of a Tata-709 Tempo bearing registration No.KA-51-7340 came from opposite direction in a rash and negligent manner and dashed against the bicycle, due to which the deceased Chand Pasha @ Musthan Pasha and the rider fell down and right side back wheel of the said Tata-709 Tempo ran over the body of the deceased and the rider and they sustained grievous injuries all over the body. Immediately, after the accident both of them were shifted to NIMHANS hospital for treatment, but on the way to the said hospital, the deceased succumbed to fatal injuries.
3. Immediately the parents of the deceased Chand Pasha @ Musthan Pasha have filed a claim petition before MACT in MVC.No.2908/2014. To establish their case, they have examined one witness and marked 10 documents. On the other hand, the Insurance Company has examined one witness and got marked four documents. On appreciation of oral and documentary evidence, the Tribunal has awarded a compensation of Rs.5,00,000/- with interest @ 9%.
4. Being aggrieved by the same, the Insurance Company has filed this appeal.
5. Heard the learned counsel for the parties.
6. Sri Janardhan Reddy, learned counsel appearing for the Insurance Company submits that as on the date of accident, the offending vehicle bearing Reg.No.KA51-7340 has no permit. Hence, the Insurance Company is not liable to pay the compensation. He further contended that the interest awarded by the Tribunal @ 9% is on higher side and the same may be reduced @ 7%.
7. Per contra, learned counsel appearing for the claimants submits that in view of the law laid down by the Hon’ble Supreme Court in the case of Rani and Others Vs. National Insurance Company Limited and Others reported in (2018) 8 SCC 492 even though, the offending vehicle has no permit, the insurance company has to pay the compensation and recover the same from the owner of the vehicle. He further contended that the Tribunal has rightly awarded the interest @ 9% p.a. the owner is served but un represented.
8. It is not in dispute that due to the accident occurred on 14.12.2013, the deceased Chand Pasha died. At the time of accident he was aged about 15 years. Even though the offending vehicle was not having a valid permit, in view of the law laid down by the Hon’ble Supreme Court in the case of Rani and Others Vs. National Insurance Company Limited and Others reported in (2018) 8 SCC 492 (supra) the Insurance Company has to pay the compensation with liberty to recover the same from the owner.
9. In view of the above, liberty is reserved for the Insurance Company to recover the amount from the owner. In respect of interest is concerned, as per the guidelines issued by Reserve Bank of India, for the year 2014, on 29.10.2013, the interest rate has been fixed @ 7.75%. Accordingly, the interest awarded by the Tribunal has been modified from 9% to 7.75%.
10. Accordingly, the appeal is allowed in part.
The judgment and award dated 05.12.2015 passed by the Tribunal in MVC.No.2908/2014 is modified as follows:
The insurance company and the R.C. owner of the vehicle Tata 709 and Tempo bearing No.KA-51-7340 are jointly and severally liable to pay the award amount. However, insurance company is directed to deposit entire award amount with liberty to recover the same from owner of the vehicle KA-51-7340.
11. The amount in deposit before this Court shall be transferred to the concerned Tribunal.
12 The Insurance Company is directed to deposit the amount within six weeks from the date of receipt of a copy of this order. The Tribunal is directed to disburse the amount in terms of the award.
Sd/- JUDGE rv