SMT.SHEETAL W/O SHANKAR SAWANT vs AJIT ANAND PAWAR

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MFA No. 100681 of 2020




IN THE HIGH COURT OF KARNATAKA AT DHARWAD


TH
DATED THIS THE 6 DAY OF NOVEMBER, 2026

BEFORE

THE HON'BLE MRS JUSTICE USHARANI

MISCELLANEOUS FIRST APPEAL NO. 100681 OF 2020

(MV-D)

BETWEEN:

1. SMT. SHEETAL W/O SHANKAR SAWANT
AGE: 45 YEARS,
OCC: HOUSEHOLD WORK,
R/O: TURMURI,
TQ AND DIST: BELAGAVI,
PIN CODE: 590001.

2.
KUMAR OMKAR S/O SHANKAR SAWANT
AGE: 14 YEARS, OCC: STUDENT,
R/O: TURMURI,
TQ AND DIST: BELAGAVI,
PIN CODE: 590001.

(SINCE APPELLANT NO.2 IS MINOR,
REPRESENTED BY
HIS MOTHER APPELLANT NO.1.)
…APPELLANTS











Digitally
signed by
YASHAVANT
NARAYANKAR
Date:
2026.11.07
12:47:26
+0530
YASHAVANT
NARAYANKAR

(BY SRI. UMESH C AINAPUR, ADVOCATE)
AND:

1. AJIT ANAND PAWAR
AGE: MAJOR,
OCC: BUSINESS,
R/O: 1841, BHANDARWADI,

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MFA No. 100681 of 2020


DABHOL, TQ: DOBHOL,
DIST: RATNAGIRI,
STATE: MAHARASHTRA,
PIN CODE: 413307.

(OWNER OF THE TEMPO TRAVELLER
BEARING REG.NO.MH.08/E-9010)

2. THE DIVISIONAL MANAGER
NEW INDIA ASSURANCE COMPANY LTD.,
CLUB ROAD,
BELAGAVI-590006,

(POLICY NO.17060231160100005558,
VALID FROM 16/08/2016 TO 15/08/2017)
…RESPONDENTS
(SMT. PREETHI SHASHANK, SHASHANK HEDGE
AND AASMA N.M., ADVS. FOR R2)

THIS MFA IS FILED U/S.173(1) OF MOTOR VEHICLES
ACT, PRAYING TO, MODIFY THE JUDGMENT AND AWARD
DATED 10.10.2019 PASSED BY THE COURT OF THE X ADDL.
DISTRICT AND MEMBER OF ADDL. M.A.C.T. BELAGAVI IN MVC
NO. 2132/2017 AND GRANT THE COMPENSATION AS PRAYED
BY THE APPELLANTS HEREIN IN THE INTEREST OF JUSTICE
AND ANY OTHER RELIEFS MAY KINDLY BE GRANTED.
THIS APPEAL HAVING BEEN HEARD AND RESERVED ON

02.11.2026 COMING ON FOR PRONOUNCEMENT OF JUDGMENT,
THIS DAY, THE COURT PRONOUNCED THE FOLLOWING :
CORAM: HON'BLE MRS JUSTICE USHARANI

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MFA No. 100681 of 2020


CAV JUDGMENT
This appeal has been filed by the claimants under Section
173(1) of Motor Vehicles Act, 1988 (for short ‘the M.V.Act’)
seeking enhancement of compensation awarded in MVC No.
2132/2017 vide judgment and award dated 10.10.2019 by X-
Additional District and Sessions Judge and Member of
Additional M.A.C.T., Belagavi (hereinafter referred as ‘Tribunal’
for short). The parties are referred as per their rank before the
Tribunal.

2. There is no dispute with regard to the occurrence of
accident and death of pillion rider. Further, there is also no
dispute with regard to the fact that a tempo traveler bearing
registration No.MH-08/E-9010 had no valid permit at the time
of accident, thereby violated policy conditions and hence,
respondent No.2-insurance company is not liable to indemnify
the insured-respondent No.1. Accordingly, liability was fixed on
respondent No.1 and respondent No.2 was directed to pay the
compensation awarded and thereafter, recover the same from
respondent No.1.

3. The Tribunal, after considering the oral and
documentary evidence produced by the parties, held that, in

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MFA No. 100681 of 2020


view of the judgment in United India Insurance Co. Ltd Vs.
1
Sunil Kumar and another it is not open for the insurer to
raise any defence of negligence on the part of
deceased/claimants and proceeded to award compensation as
follows:
Amount awarded
Sl. No. Heads of compensation
by the Tribunal
1. Loss of dependency ₹4,56,000/-
2. Loss of estate ₹2,500/-
3. Funeral expenses ₹2,000/-
Total ₹4,60,500/-

4. The learned counsel for the claimants contended
that the Tribunal, without considering the documents produced,
awarded meager compensation of ₹4,60,500/- with interest at
the rate of 6% per annum. The deceased was a brilliant student
and hence the Tribunal ought to have fixed her income at
₹15,000/- per month and awarded compensation of
₹1,00,00,000/-.

5. Per contra , the learned counsel for the Respondent
No.2-Insurance Company relied on the judgments of this Court
in the cases of Shriram General Insurance Company

1

4 (2017) ACC 692 SC; 2017 SCC online SC 1443

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MFA No. 100681 of 2020


2
Limited Vs. Smt. Laxmi and others and Joyeeta Bose Vs.
3
Venkateshan V and contended that in both the cases, Court
has held that MACT is not legally justified in awarding interest
at the rate of more than 6% per annum and Court has to
advert to Section 34 of Code of Civil Procedure, 1908.

6. Heard the learned counsels for both the parties and
perused the records.

7. The only question that arises for consideration is:
‘Whether judgment and award in 2132/2017 dated
10.10.2019 passed by the Tribunal warrants
interference?’

8. At the outset, it is important to note here that this
claim petition has been filed under Section 163-A of M.V. Act.
Hence, it is relevant to refer the judgment of Hon'ble Apex
Court in the case of Ram Murthi and others v. Punjab State
4
Electricity Board , wherein Hon'ble Apex Court extended the
benefits of Section 164 of M.V.Act to the claimants even though
the accident had occurred on 12.04.1994 i.e., prior to the
substitution of the said provision. The said provision provides

2
2019 AAC 918 (Kar); MFA 103557/2016.
3
MFA 5896/2018 c/w MFA 4444/2018 and MFA 4659/2018.
4
Civil Appeal No.7143/2022

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MFA No. 100681 of 2020


compensation of ₹5,00,000/- in case of death and ₹2,50,000/-
in case of grievous injuries. The relevant portion of the said
judgment is reproduced herein below:
“7. The provisions of Section 140 which formed a
part of Chapter 10 of the Motor Vehicles Act, 1988
were omitted by Act 32 of 2019. Simultaneously,
Chapter 11 was substituted of which Section 164
provides for payment of compensation in the case of
death in the amount of Rs.5 lakhs and in the case
grievous hurt of Rs.2.5 Lakhs.
8. We are inclined to give the appellants the benefit
of the beneficial provisions which have been enacted
by Parliament. Hence, in modification of the order of
the High Court, we direct that the appellants shall be
entitled to an amount of Rs.5 Lakhs as
compensation. However, if the amount of
Rs.50,000/- which has been awarded by the High
Court has already been paid over, the balance (or
the entirety of Rs.5 Lakhs if no amount has been
paid) shall be paid over to the appellants by 30
November 2022.”

9. Further, the division bench of this Court in the case
5
of Smt. Pratima and others Vs. Mr. Thalkin Ahamed and
Coordinate Bench of this High Court in the cases of Laxmi Vs.
6 7
Durgappa , Siddhappa Vs. Mohan , Babu Vs. Mallikarjun

5
MFA No. 101145/2021 (Dharwad bench)
6
MFA 105085/2023 (Dharwad bench)

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MFA No. 100681 of 2020


8 9
S Ramadurg , Santosh Vs. Mahesh and Others have
followed the above mentioned judgement of the Hon’ble Apex
Court. Hence, applying the above principles laid down in the
case of (noted supra) , I opine that since the
Ram murthi
pillion rider of the motorcycle bearing registration No.MH-
08/AH-6989 died in an accident, her legal heirs i.e., the
claimants herein are entitled for compensation of ₹5,00,000/-.

10. With regard to interest claimed by the claimants, it
is important to refer here the case of Puttamma and others
10
Vs. K.L. Narayana Reddy and Another , wherein the
Hon'ble Supreme Court has held that relevant factors such as
inflation, changes in the economy and the policy being adopted
by the Reserve Bank of India are required to be considered
while awarding interest. Further, a Co-ordinate Bench of this
Court in United India Insurance Company Vs. Malyadari
11
M , has opined that awarding interest at the rate of 9% per
annum is more appropriate in cases involving death and serious
injuries. Accordingly, the enhanced compensation shall also

7
MFA 102650/2014 (Dharwad bench)
8
MFA 101086/2021 (Dharwad bench)
9
MFA 100028/2022 (Dharwad bench)
10
(2013)15 SCC 45
11
MFA 3895/2018 (Bengaluru bench)

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MFA No. 100681 of 2020


carry interest at the rate of 9% per annum from the date of
petition till realization.

11. In light of the above, question raised herein is
answered in the affirmative and I proceed to pass following:
ORDER

(i) The MFA No. 100681/2020 is partly allowed .

(ii) Consequently, the judgment and award dated
10.10.2019 in MVC No. 2132/2017 passed by X-
Additional District and Sessions Judge and Member
of Additional M.A.C.T., Belagavi is modified and
claimants are entitled to a global compensation of
₹5,00,000/- with interest at the rate of 9% per
annum from the date of petition till realization,
excluding the period of delay.

(iii) The respondent No.2-Insurance Company shall
deposit the enhanced compensation, together with
accrued interest, before the jurisdictional Tribunal
within a period of eight weeks from the date of
receipt of a certified copy of this judgment and is

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MFA No. 100681 of 2020


at liberty to recover the same from respondent
No.1.

(iv) Registry to draw modified award accordingly.


SD/-
(USHARANI)
JUDGE



YAN
CT:CNB