RELIANCE GENERAL INSURANCE COMPANY LTD vs ARJUN BALA B

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020



IN THE HIGH COURT OF KARNATAKA AT BENGALURU


TH
DATED THIS THE 28 DAY OF SEPTEMBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE S RACHAIAH

MISCELLANEOUS FIRST APPEAL NO. 3953 OF 2020

(MV-I)

C/W

MISCELLANEOUS FIRST APPEAL NO. 4811 OF 2021

(MV-I)



IN MFA No. 3953/2020



BETWEEN:



1. RELIANCE GENERAL INSURANCE

COMPANY LTD.,

NO.28, CENTENARY BUILDING,

Digitally
signed by
SUSHMA
LAKSHMI B
S
Location:
High Court of
Karnataka
TH
EAST WING, 5 FLOOR,
NEAWR CITY BANK, M.G. ROAD,

BANGALORE – 560 001.
REPRESNETED BY ITS MANAGER.

…APPELLANT
(BY SRI. ASHOK N. PATIL., ADVOCATE)

AND:

1. ARJUN BALA B.,

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


S/O BALASUBRAMANIAN,
AGED ABOUT 29 YEARS,
R/O NO 9-25,
ANNUPANDY SOUTH STREET,
MADURAI
TAMILNADU STATE – 625 009.

2. SRI. MURALI C.,
S/O CHINNAPULLAI,
AGED MAJOR,
NO.166, RAMAGONDANAHALLI,
WHITE FIELD,
BANGALORE – 560 066.
(R.C. OWNER OF BUS
REG NO.KA-54-9995)

…RESPONDENTS
(R1 AND R2 ARE SERVED AND UNREPRESENTED)
----
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 20.12.2019, PASSED IN
MVC.NO.4843/2016, ON THE FILE OF THE VII ADDITIONAL
SMALL CAUSES JUDGE AND A.C.M.M., MEMBER, M.A.C.T.-3 AT
BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION.

IN MFA NO. 4811/2021

BETWEEN:

1. SRI. ARJUN BALA B.,
S/O BALASUBRAMANIAN,
AGED ABOUT 29 YEARS,,
R/O NO.9-25,
ANNUPPANDY SOUTH STREET,
MADURAI,
TAMIL NADU STATE – 625 009.
...APPELLANT
(BY SRI. VIJAY KUMAR T., ADVOCATE)

AND:

1. THE MANAGER,
RELIANCE GIC. LTD.,
NO.28 CENTENARY BUIDLING,
TH
EAST WING, 5 FLOOR,
NEAR CITY BANK, M. G. ROAD,
BENGALURU – 560 001.

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


2. SRI. MURALI C.,
S/O CHINNAPULLAI,
AGED MAJOR,
R/O NO.166,
RAMAGONDANAHALLI,
WHITE FIELD,
BENGALURU – 560 066.

...RESPONDENTS
(BY SRI. ASHOK N. PATIL., ADVOCATE FOR R1;
R2 IS SERVED AND UNREPRESENTED)
----
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST
THE JUDGMENT AND AWARD DATED 20.12.2019, PASSED
IN MVC.NO.4843/2016, ON THE FILE OF THE VII
ADDITIONAL S.C.J. AND A.C.M.M., MEMBER, M.A.C.T.-3 AT
BENGALURU, PARTLY ALLOWING THE CLAIM PETITION
FOR COMPENSATION AND SEEKING ENHANCEMENT OF
COMPENSATION.

THESE APPEALS ARE, COMING ON FOR HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S RACHAIAH

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


ORAL JUDGMENT


1. Miscellaneous First Appeal No.3953/2020 has been filed
by the appellant / Insurance Company seeking to set aside the
judgment and award dated 20.12.2019 passed in MVC
No.4843/2016 by the Motor Accident Claims Tribunal, Court of
Small Causes, Bengaluru (for short, ‘Tribunal’).

2. Miscellaneous First Appeal No.4811/2021 has been filed
by the claimant/appellant seeking enhancement of
compensation, being aggrieved by the judgment and award
dated 20.12.2019 passed in MVC No.4843/2016 by the Motor
Accident Claims Tribunal, Court of Small Causes, Bengaluru.
Brief facts of the case:

3. On 22.06.2016, at about 11.30 p.m., the appellant was
riding a motorcycle bearing registration No.TN-64-7999 from
Marathahalli to Channasandra. When he reached near
Columbia Asia Hospital at White Field Main Road, the driver of
the private bus bearing registration No.KA-53-9995 came from
the opposite direction, in a rash and negligent manner and
dashed against the motorcycle, as a result of which, the

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


appellant fell down and sustained grievous injuries and he was
shifted to the hospital for treatment. Thereafter, the appellant
approached the Tribunal by filing the claim petition seeking
compensation. The Tribunal, upon consideration of the material
on record, awarded the compensation of Rs.3,89,420/- along
with interest at 9% per annum from the date of petition till the
date of deposit.

In MFA.No.3953/2020


4. Heard Sri Ashok N Patil, learned counsel for appellant.
Respondent Nos.1 and 2 are served, but remain unrepresented.

5. The submission of the learned counsel for the appellant is
that the Tribunal has awarded exorbitant compensation. It is
further submitted that the officials, who were examined as
RWs.1 and 2, produced the permit as per Ex.R2, which clearly
indicates that the bus had no permit and the permit was issued
only on 02.01.2017 and the bus has violated the terms and
conditions of the policy.

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020



6. It is further submitted that if the vehicle is plied without a
valid permit or in violation of permit conditions, as per Section
149(2) of the Indian Motor Vehicles Act, the Insurance
Company is not liable to pay any compensation.

7. In addition to the grounds urged in respect of liability,
learned counsel for the appellant further submitted that the
quantum of compensation awarded is exorbitant and it has to
be re-determined in accordance with law. Therefore, the
appeal may be allowed and the award has to be set aside.
Having said thus, learned counsel for the appellant prays to
allow the appeal.

8. Respondent Nos.1 and 2 are served, but they remain
unrepresented.
In MFA.No.4811/2021


9. Heard Sri Vijay Kumar T, learned counsel for appellant
and Sri Ashok N. Patil, learned counsel for respondent No.1.
Respondent No.2 is served, but remains unrepresented.

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020



10. The submission of the learned counsel for the appellant is
that the Tribunal has failed to award proper compensation
under the head of pain and suffering. In fact, the injured has
sustained fractures to the pelvic bones, i.e., (a) displacement of
left hemipelvis; (b) fracture of sacral bone; (c) fracture of L5;
(d) blunt injury to the pelvis. The Tribunal ought to have
awarded compensation by taking into consideration proper
income and also the disability of 15% to the whole body. In
fact, the injured was working as a Quality Assurance Engineer
at M/s Galaxy and Solutions and he was earning Rs.46,000/-
per month. However, the Tribunal has committed an error of
taking the income of Rs.7,500/- per month, which needs to be
enhanced. Having said thus, learned counsel for the appellant
prays to allow the appeal.

11. Per contra , learned counsel representing the respondent
No.1 – Insurance Company vehemently submitted that the
Tribunal in fact awarded the compensation which is on the
higher side and also fixed the liability on the Insurance
Company even though there was no valid permit for the
vehicle. Therefore, the appeal is required to be dismissed.

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


Having said thus, learned counsel for the respondent No.1
prays to dismiss the appeal.

12. Having heard learned counsel for the respective parties
and also on perusal of the findings of the Tribunal, the
appellant filed the appeal MFA.No.4811/2021 seeking
enhancement of compensation on the ground that the appellant
had sustained several injuries. However, the Tribunal ought to
have considered the disability of 15% to the whole body
instead of 5% to the whole body and Rs.46,000/- income
should have been considered, considering the nature of work
which was being carried out by the appellant.

13. On going through the findings of the Tribunal, it makes
clear that the Tribunal has considered the income of Rs.7,500/-
per month as notional income. However, it should have been
Rs.9,500/- per month as per the guidelines of Karnataka State
Legal Services Authority. Even the disability ought to have
been enhanced on proper assessment of injuries sustained.
Therefore, 10% disability to the whole body is considered on
perusal of the nature of injuries sustained as per the

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


documents. Hence, the loss of future income is to be
calculated as under:
9500 x 12 x 17 x 10% = Rs.1,93,800/-
i) Pain and agony is also required to be enhanced
considering the nature of injuries. Therefore, Rs.30,000/- is
added and a sum of Rs.40,000/- is awarded under the head of
pain and agony.
ii) Loss of amenities also has to be enhanced from
Rs.10,000/- to Rs.30,000/-. The laid-up period is to be
calculated considering the income of Rs.9,500/- for a period of
3 months.
iii) Attendant charges is also required to be enhanced
considering the number of days the appellant had undergone
treatment. Therefore, it has to be enhanced from Rs.3,000/- to
Rs.12,000/-.

14. Consequently, the award of the Tribunal is modified and
the claimant / appellant would be entitled to the compensation
as under:-

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020




Award amount
Sl.
Particulars
(in Rupees)
No.
Tribunal This Court
01 Loss of future income 76,500 1,93,800
02 Pain and agony 10,000 40,000
03 Medical expenses 2,70,919 2,70,919
04 Loss of amenities and 10,000 30,000
nutritious food
05 Attendant charges and 3,000 12,000
conveyance
06 Loss of income during 4,000 28,500
laid-up period
07 Future medical expenses 15,000 15,000
TOTAL 3,89,419
5,90,219
Rounded off to
3,89,420

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020



15. As regards the appeal in MFA.No.3953/2020, learned
counsel for the appellant – Insurance Company submitted that
the vehicle was plying without permit and the same is not
permissible under Section 149(2) of the Motor Vehicles Act.


16. On going through the documents available on record and
also evidence of the parties, no doubt, valid permit was not
there when the offending vehicle met with an accident. The
Tribunal opined that if such a vehicle is used only for the
permitted purpose and the accident occurs when the permit or
fitness certificate ceased to exist, it amounts to a technical
violation only, which will not entitle the insurer to disown the
liability to third parties. The aforesaid finding of the Tribunal,
in my considered view, is not proper. It is appropriate to fix the
liability on the owner of the offending vehicle. Accordingly, the
Insurance Company shall pay the entire compensation awarded
to the claimant and shall be at liberty to recover the same from
the owner of the vehicle, in accordance with law.

17. In the light of the observations made above, I proceed to
pass the following:-

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020


ORDER

i) Miscellaneous First Appeal No.3953/2020 filed by the
appellant - Insurance Company is allowed in part.

ii) The judgment and award dated 20.12.2019 passed in
M.V.C.No.4843/2016 by the Motor Accident Claims
Tribunal, Court of Small Causes, Bengaluru, is modified.

iii) The appellant herein is liable to pay the entire
compensation and recover the same from the respondent
No.2 – owner of the vehicle.

iv) The Registry is directed to transmit the records to the
Trial Court forthwith for necessary compliance.

v) Miscellaneous First Appeal No.4811/2021 filed by the
claimant / appellant is allowed in part.

vi) The judgment and award dated 20.12.2019 passed in
M.V.C.No.4843/2016 by the Motor Accident Claims
Tribunal, Court of Small Causes, Bengaluru, is modified,
granting compensation of Rs.5,90,219/- (Rupees Five
Lakhs Ninety Thousand Two Hundred and Nineteen only)
as against Rs.3,89,420/- awarded by the Tribunal.

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HC-KAR
NC: 2026:KHC:53715
MFA No. 3953 of 2020
C/W MFA No. 4811 of 2021


CNR: KAHC010140682020



vii) The claimant is entitled to entire compensation of
Rs.5,90,219/- with interest at the rate of 6% per annum
from the date of the petition till realization.

viii) The entire compensation amount shall be deposited by
the respondent – Insurance Company within a period of
eight weeks from the date of receipt of the certified copy
of this judgment.

ix) The Tribunal is directed to release the amount as ordered
in the operative portion of the order in
MVC.No.4843/2016 in favour of the claimant, on proper
identification.

x) The Registry is directed to transmit the records along with
the statutory deposit to the Tribunal forthwith for
necessary compliance.


Sd/-
(S RACHAIAH)
JUDGE

BSS
List No.: 1 Sl No.: 35