Karnataka High Court
Legal Manager vs Sujith Kumar Mahapatra on 4 July, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
-1-
NC: 2024:KHC:25694
MFA No. 1176 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
MISCELLANEOUS FIRST APPEAL NO. 1176 OF 2019 (MV-I)
BETWEEN:
LEGAL MANAGER
BHARATHI AXA GIC LTD.,
PRIDE QUADRA NO.30,2ND FLOOR,
HEBBAL ROAD, BANGALORE-24
NOW R/AT BHARATHI AXA GIC LTD.,
HOSTO CENTRE, 1ST FLOOR, NO.43,
MILLERS ROAD, VASANTH NAGAR,
OPP IMPERIAL HOTEL,
BANGALORE-560052.
...APPELLANT
(BY SRI. PRADEEP B., ADVOCATE)
AND:
1. SUJITH KUMAR MAHAPATRA
S/O RABINDRANATH MAHAPATRA,
NOW AGED ABOUT 39 YEARS,
R/AT NO.151, CKB LAYOUT,
Digitally signed by B OPP HOME TOWN, MARATHAHALLI,
K
MAHENDRAKUMAR BANGALORE-37.
Location: HIGH
COURT OF
KARNATAKA 2. THE PARTNER M/S STAR LOGISTICS
NO.10, 2ND MAIN, YADAVGIRI,
MYSORE-570 020.
...RESPONDENTS
(BY SRI. K T GURUDEV PRASAD, ADVOCATE FOR R1;
V/O/DATED: 12.12.2023 NOTICE TO R2 IS D/W)
THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE
JUDGMENT AND AWARD DATED 07.07.2018 PASSED IN MVC
NO.3594/2014 ON THE FILE OF THE 5TH ADDITIONAL SMALL
CAUSES JUDGE XXIV ACMM, MEMBER, MACT, BENGALURU
(SCCH-20), AWARDING COMPENSATION OF RS.2,16,000/- WITH
-2-
NC: 2024:KHC:25694
MFA No. 1176 of 2019
INTEREST AT 9P.A. FROM THE DATE OF PETITION TILL ITS
REALIZATION.LIMITATION KEPT OPEN.C.F. SUFFICIENT.
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, THE
COURT DELIVERED THE FOLLOWING:
JUDGMENT
This appeal under Section 173(1) of the Motor Vehicles Act
challenges the judgment and award dated 7.7.2018 passed by the
V Additional Small Causes Judge and XXIV Additional Chief
Metropolitan Magistrate, Member & MACT, Mayo Hall Unit,
Bengaluru (SCCH-20) in MVC No.3594/2014.
2. The claimant sustained injuries in a road traffic
accident on 27.07.2014 and subsequently filed a claim petition
under Section 166 of the Indian Motor Vehicles Act, 1989, seeking
just and proper compensation. The Tribunal awarded a total
compensation of Rs.2,16,000/- with interest at the rate of 9% per
annum. The Insurance Company is appealing, challenging the
quantum and the liability to pay the compensation.
3. Heard the learned counsel for the parties, and perused
the trial court records.
4. On 27.7.2014, when the claimant was riding a
motorcycle, a concrete mixer lorry driven by its driver in a rash and
negligent manner collided with the claimant's motorcycle. As a
result, the claimant fell and sustained grievous injuries.
NC: 2024:KHC:25694
5. The claimant having sustained accidental injuries on
27.07.2014 is not disputed, and due to the accident, he suffered
permanent disablement and is unable to lead a normal life as
before. The compensation awarded by the Tribunal is just and
proper. On the date of the accident, the driver of the concrete mixer
lorry did not possess a valid driving license to drive the vehicle.
6. The Full Bench of this Court in the case of New India
Assurance Company Limited vs. Yallavva W/o Yamanappa,
reported in 2020 (2) AKR 484, ruled:
"iv) Thus, in a case where Section 149(2)(b) applies
and the insurance company successfully establishes that the
policy is void, the insurer is not absolved of its liability to
satisfy the judgment or award as rights or obligations would
flow even from a policy which is void vis-à-vis a third party. In
such a case, the insurer is not completely absolved of its
liability; the insured would have to satisfy the award vis-à-vis
the third party and recover from the insured the amount paid
to the third party and may also have a right to seek damages
from the insured."
7. In view of what is elucidated by the full bench of this
court, the insurance company cannot absolve its liability to pay the
compensation awarded to the claimant initially but can recover the
same from the owner of the vehicle in question in the very same
proceedings. Therefore, the impugned judgment and award passed
by the Tribunal are modified as follows:
8. The appellant insurance company is liable to pay the
compensation amount of Rs.2,16,000/- with interest at the rate of
NC: 2024:KHC:25694
6% p.a. to the respondent No.1-claimant initially and recover the
same from respondent No. 2 - the owner of the vehicle in the same
proceedings , in accordance with the law. However, the Tribunal
awarded interest at the rate of 9% p.a., which is exorbitant and is
reduced to 6% p.a.
9. The compensation amount with accrued interest at the
rate of 6% p.a. is to be deposited by the insurance company within
a period of three months from the date of receipt of a certified copy
of this order.
10. The statutory deposit as well as the amount in deposit
before this court to be transmitted to the Tribunal concerned.
11. To this extent, the impugned judgment and award
stand modified.
Sd/-
JUDGE
HR
