Karnataka High Court
The Divisional Manager vs Mariswamy S/O Kattaiah Swamy on 2 April, 2024
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NC: 2024:KHC-D:6024
MFA No. 24574 of 2012
C/W MFA No. 24573 of 2012
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 2ND DAY OF APRIL, 2024
BEFORE
THE HON'BLE MR JUSTICE VIJAYKUMAR A.PATIL
MISCELLANEOUS FIRST APPEAL NO. 24574 OF 2012 (MV)
C/W
MISCELLANEOUS FIRST APPEAL NO. 24573 OF 2012
IN MFA NO. 24574/2012
BETWEEN:
THE DIVISIONAL MANAGER,
NEW INDIA ASSURANCE CO. LTD,
BELLARY,
REPRESENTED BY
THE NEW INDIA ASSURANCE CO. LTD,
REGIONAL OFFICE, 2ND FLOOR,
SRINATH COMPLEX,
NEW COTTONMARKET, HUBLI.
...APPELLANT
Digitally
signed by (BY SRI. S. S. KOLIWAD, ADVOCATE)
ROHAN
HADIMANI T
Location: AND:
HIGH
COURT OF
KARNATAKA
1. SMT. SHAKUNTALAMMA
W/O. MARISWAMY,
AGE: 31 YEARS, OCC: HOUSE WIFE,
R/O.12TH WARD,
TEKKALAKOTE,
SIRUGUPPA TALUK,
DIST: BELLARY.
2. SHANKAR S/O. BAJJANNA,
AGE: MAJOR,OCC: DRIVER,
LORRY NO.TN-36/6598,
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MFA No. 24574 of 2012
C/W MFA No. 24573 of 2012
R/O. T. BUDIHAL VILLAGE,
GOPICHANNAPPA STREET,
BELLARY DISTRICT.
3. K. RAMASWAMY
S/O. K. ANJINEYULU,
AGE: MAJOR, OCC: BUSINESS,
D.NO.41, W.NO.8,
GOPICHANNAPPA STREET,
BELLARY DISTRICT.
...RESPONDENTS
(BY SRI. MANJUNATH G. PATIL, ADV. FOR R1;
NOTICE TO R2 & R3 SERVED)
THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S.173(1) OF
MOTOR VEHICLES ACT, 1988, PRAYING TO CALL FOR THE RECORDS
CONNECTED WITH AWARD AND JUDGMENT MADE IN MVC
NO.1313/2011 ON THE FILE OF THE COURT MOTOR ACCIDENT
CLAIMS TRIBUNAL-XII, AT-BELLARY, EXAMINE THE SAME AND SET
ASIDE THE AWARD DATED 12-07-2012 IN THE INTEREST OF
JUSTICE.
IN MFA NO.24573/ 2012
BETWEEN:
THE DIVISIONAL MANAGER,
NEW INDIA ASSURANCE CO. LTD,
BELLARY, REPRESENTED BY
THE NEW INDIA ASSURANCE CO. LTD,
REGIONAL OFFICE, 2ND FLOOR,
SRINATH COMPLEX,
NEW COTTONMARKET, HUBLI.
...APPELLANT
(BY SRI. S. S. KOLIWADI, ADVOCATE)
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NC: 2024:KHC-D:6024
MFA No. 24574 of 2012
C/W MFA No. 24573 of 2012
AND:
1. SRI. MARISWAMY
S/O. KATTAIAH SWAMY,
AGE: 36 YEARS,
OCC: POOJARI WORK,
R/O.12TH WARD,
TEKKALAKOTE,
SIRUGUPPA TALUK,
DIST: BELLARY.
2. SHANKAR S/O. BAJJANNA,
AGE: MAJOR,O CC: DRIVER,
LORRY NO.TN-36/6598,
R/O. T. BUDIHAL VILLAGE,
GOPICHANNAPPA STREET,
BELLARY DISTRICT.
3. K. RAMASWAMY S/O. K. ANJINEYULU,
AGE: MAJOR, OCC: BUSINESS,
D.NO.41, W.NO.8,
GOPICHANNAPPA STREET,
BELLARY DISTRICT.
...RESPONDENTS
(BY SRI. MANJUNATH G. PATIL, ADV. FOR R1;
NOTICE TO R2 & R3 SERVED)
THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S.173(1) OF
MOTOR VEHICLES ACT, 1988, PRAYING TO CALL FOR THE RECORDS
CONNECTED WITH AWARD AND JUDGMENT MADE IN MVC
NO.1312/2011 ON THE FILE OF THE COURT MOTOR ACCIDENT
CLAIMS TRIBUNAL-XII, AT-BELLARY, EXAMINE THE SAME AND SET
ASIDE THE AWARD DATED 12-07-2012 IN THE INTEREST OF
JUSTICE.
THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
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MFA No. 24574 of 2012
C/W MFA No. 24573 of 2012
JUDGMENT
Though these appeals are listed for admission, with the
consent of learned counsel for the parties, they are taken up
for final disposal.
2. MFA.No.24573/2012 is arising out of the
MVC.No.1312/2011 and MFA.No.24574/2012 is arising out of
the MVC.No.1313/2011. These appeals are filed by the
Insurance Company challenging the judgment and award
dated 12.07.2012 passed in the above said MVC numbers by
the Motor Accident Claims Tribunal-XII, Ballary (for short,
'Tribunal').
3. Heard Sri.S.S.Koliwad, learned counsel appearing
for the appellant/Insurance Company and Sri.Manjunath
G.Patil, learned counsel appearing for the claimants.
4. Learned counsel appearing for the
appellant/Insurance Company submits that these appeals
have been filed by the Insurance Company challenging the
impugned judgment and award of the Tribunal insofar as the
direction to the Insurance Company to pay the compensation
NC: 2024:KHC-D:6024
amount to the claimants and recover the same from the
owner of the offending lorry. He further submits that,
admittedly, as on the date of the accident, the driver of the
offending lorry was not having a valid and effective driving
licence to drive the same. Hence, it is a clear violation of the
terms and conditions of the policy, hence, he seeks to allow
the appeal by modifying the impugned judgment to the
extent that the direction to the Insurance Company to pay
the compensation amount and recover the same from the
owner of the offending lorry. He further submits that the
Tribunal has erred in awarding interest on compensation at
the rate of 8% per annum, hence, he seeks to modify the
same by reducing it to 6% per annum. Thus, he seeks to
allow the appeals.
5. Per contra, learned counsel appearing for the
claimants supports the impugned judgment and award of the
Tribunal and submits that the appeal required to be
dismissed at the threshold in view of the law laid down by
the Hon'ble Apex Court in the case of SHAMANNA AND
ANOTHER Vs. DIVISIONAL MANAGER ORIENTAL
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INSURANCE COMPANY LIMITED AND OTHERS1. Thus,
he seeks to dismiss the appeals.
6. I have heard the arguments of the learned
counsel appearing for the appellant/Insurance Company and
the learned counsel appearing for the claimants/injured.
Perused the material available on record.
7. It is not in dispute that both the claimants met
with a road accident on 30.04.2011 and sustained grievous
injuries. The Tribunal considering the evidence available on
record, allowed the claim petitions in part and awarded total
compensation of Rs.1,35,000/- in MVC.No.1312/2011 and
Rs.1,17,000/- in MVC.No.1313/2011 along with interest at
the rate of 8% per annum from the date of the petitions till
realization of the amount and held the Insurance Company
to pay the compensation amount and recover the same from
the owner of the offending vehicle. Insofar as the contention
of the Insurance Company that the Tribunal has erred in
directing the Insurance Company to pay the compensation
(2018) 9 SCC 650
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amount and recover the same from the owner of the
offending lorry is concerned, the said issue is no more res
integra in view of the decision of the Hon'ble Apex Court in
the case of SHAMANNA AND ANOTHER supra, wherein it is
clearly held that in case of violation of terms and conditions
of the policy on the ground of not possessing driving licence,
the Insurance Company shall pay the compensation initially
and they are at liberty to recover the same from the owner
of the offending vehicle. In view of the enunciation of law
laid down in the case referred supra, the contention of the
appellant/Insurance Company with regard to pay and
recover is held against them.
8. Insofar as the award of interest by the Tribunal is
concerned, this Court taking note of the present rate of
interest being paid by the nationalized banks, modify the
interest rate at 6% per annum as against 8% per annum
awarded by the Tribunal. It is held that the claimants are
entitled to an interest at the rate of 6% per annum on the
entire compensation amount.
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9. Insofar as the award of compensation by the
Tribunal on all the other heads in both the cases is
concerned, the same is unaltered. Accordingly, both the
appeals are allowed in part by holding that the Insurance
Company liable to pay the entire compensation amount to
the claimants in both the cases along with accrued interest
within a period of six weeks from the date of receipt of
certified copy of this judgment and liberty is reserved to the
Insurance Company to recover the said amount from the
owner of the offending lorry.
10. Registry to transmit the records, if any, to the
Tribunal forthwith.
11. Draw modified award accordingly
Sd/-
JUDGE
RH
Ct-an
