Reliance General Insurance vs Ramakka
2021 Latest Caselaw 71 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 4TH DAY OF JANUARY, 2021

                         BEFORE

      THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

                M.F.A.NO.748 OF 2019 (MV-I)

BETWEEN

RELIANCE GENERAL INSURANCE
COMPANY LIMITED
EAST WING, 5TH FLOOR
NO.28, CENTENARY BUILDING
M.G. ROAD
BENGALURU - 560 001
NOW REPRESENTED BY
MANAGER LEGAL
                                              ...APPELLANT
(BY SRI. ASHOK N. PATIL, ADVOCATE)

AND

1.      RAMAKKA
        W/O RAMAKRISHNAPPA B.M.
        AGED ABOUT 68 YEARS
        R/AT GANDHINAGAR
        YALAHANKA
        BENGALURU

2.      LOKESH S/O VALLEPU
        NO.107, 3/1, HOSABEEDI
        YALAHANKA, BENGALURU NORTH
        BENGALURU - 560 064
                                          ...RESPONDENTS

      THIS APPEAL IS FILED UNDER SECTIION 173(1) OF THE MV
ACT AGAINST THE JUDGMENT AND AWARD DATED 29.08.2018
PASSED IN MVC NO.4257/2016 ON THE FILE OF THE 2ND
ADDITIONAL JUDGE & XXVIII ACMM, COURT OF SMALL CAUSES,
MACT, BENGALURU (SCCH-13), AWARDING COMPENSATION OF
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RS.3,17,591/- WITH INTEREST AT 6% P.A. FROM THE DATE OF
PETITION TILL THE DEPOSIT.

     THIS APPEAL COMING ON FOR ORDERS, THIS DAY, THE
COURT DELIVERED THE FOLLOWING:


                         JUDGMENT

This appeal by the Insurance Company is directed

against the impugned judgment and award dated 29.08.2018

passed by the Motor Vehicles Accident Claims Tribunal,

Bengaluru in MVC No.4257/2016, whereby the Tribunal has

allowed the claim petition filed by respondent No.1-claimant

and awarded compensation in a sum of Rs.3,17,591/- together

with interest at 6% p.a. towards injuries sustained by the

claimant in a road traffic accident that occurred on 02.05.2016.

2. By the impugned judgment and award, the

Tribunal allowed the claim petition and directed the Insurance

Company to pay compensation in favour of the claimant by

reserving liberty in favour of the Insurance Company to

recover the compensation from respondent No.2-Owner by

invoking the principle of 'Pay and Recover'.

3. I have heard learned counsel for the appellant

and perused the material on record.

4. In addition to re-iterating the various grounds and

contentions urged in the memorandum of appeal and referring

to the material on record, learned counsel for the appellant

submits that the Tribunal committed an error in directing the

Insurance Company to pay compensation in favour of the

claimant without appreciating that the Driver/Owner of the

offending vehicle did not possess a valid Driving Licence as

on the date of the accident. It is submitted that the Tribunal

has not correctly and properly appreciated the material on

record resulting in the erroneous impugned judgment and

award passed by the Tribunal which warrants interference by

this Court.

5. The question with regard to the liability of the

Insurance Company to pay compensation in favour of the

claimant in the first instance by reserving liberty in favour of

the Insurance Company to recover the same from the owner

by invoking the principle of 'Pay and Recover' if there was

breach of terms and conditions of the Insurance Policy

including absence of valid and effective Driving Licence is no

longer res-integra in the light of the decision of 'New India

Assurance Company Limited, Bijapur Vs. Yallavva &

Another', - ILR 2020 KAR 2239.

6. Under these circumstances, I am of the

considered opinion that the Tribunal was justified in allowing

the claim petition directing the Insurance Company to pay

compensation by reserving liberty to recover the same from

the Owner by invoking the principle of 'Pay and Recover'.

Under these circumstances, I do not find any merit in

the appeal. Accordingly, the same is hereby dismissed.

The amount in deposit is directed to be transferred to

the Tribunal for disbursement.

Sd/-

JUDGE

Mds.