- 1 - NC: 2025:KHC:16089 MFA No. 8684 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF APRIL, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI MISCELLANEOUS FIRST APPEAL NO.8684 OF 2016(MV-I) BETWEEN: NATIONAL INSURANCE COMPANY LIMITED, NO. 1576, 1ST FLOOR, V.V. ROAD, MANDYA CITY-571 401. BY ITS DIVISIONAL OFFICER, REPRESENTED BY ITS MANAGER. …APPELLANT (BY SRI. RENUKA H.R., ADVOCATE) AND: 1. MAHESH S/O. NAGAIAH, AGED ABOUT 26 YEARS, R/AT. HOSABUDANURU VILLAGE, HALEBUDANURU POST, MANDYA TALUK AND DISTRICT-571 401. 2. S.P. MAHESH, S/O. C. PUTTASWAMY, ADULT, R/AT. SOMANAHALLI, MADDUR TALUK, MANDYA DISTRICT-571 428. (POLICY HOLDER). 3. MADUKARA, S/O. CHANDRAPPA, ADULT, R/AT. 3RD CROSS, DIVISION NO.1, CHANNEGOWDA BADAVANE, MADDUR TOWN, MANDYA DISTRICT-571 428. (OWNER/DRIVER OF VEHICLE) …RESPONDENTS Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:16089 MFA No. 8684 of 2016 (BY SMT. ASHA B.L. ADVOCATE FOR SRI. G.M. ANANDA, ADVOCATE FOR R1; BY SRI. S.P.MAHESH SD, ADVOCATE FOR R2; BY SRI. MADUKARA SD, ADVOCATE FOR R3.) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED19.08.2016 PASSED IN MVC NO.96/2011 ON THE FILE OF THE II ADDITIONAL SENIOR CIVIL JUDGE AND MACT, MANDYA, AWARDING COMPENSATION OF RS.25,000/- WITH INTEREST AT 9% PER ANNUM FROM THE DATE OF PETITION TILL THE DATE OF DEPOSIT. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL JUDGMENT Aggrieved by the award passed in M.V.C.No.96/2011 dated 19.08.2016 by the II Addl. Senior Civil Judge and MACT, Mandya, the appellant/Insurance company is before this Court questioning the liability. 2. It is the case of the claimant that on 09.03.2010 when the claimant was riding his bike along with the pillion rider, near tender coconut market yard, Madduru, at around 7.00 pm., a goods auto came in a rash and negligent manner from the opposite direction and dashed against his bike. As a result the claimant along with the pillion rider fell down and both of them were shifted to General Hospital, Madduru, where - 3 - NC: 2025:KHC:16089 MFA No. 8684 of 2016 he took treatment as inpatient for a day and later shifted to General Hospital, Mandya. Due to the accident, he had sustained injuries. 3. It is the case of the appellant/Insurance Company that the driver of the offending vehicle was not having valid driving licence to drive the goods auto. He was having the licence to drive two wheeler. In support of their case, they had marked Ex.R2, but the Tribunal had fixed the liability on the insurance company holding that the insurance company has failed to adduce the evidence. Learned counsel has drawn the attention of the Court to para No.18 of the order and also to Ex.R2 and submits that the insurance company is not liable to pay the compensation. 4. Learned counsel appearing for the claimant/ respondent No.1 submits that whether he is having a driving license or not, the claimant being a third-party to the insurance policy, he is entitled for the compensation. 5. Though notice is served on respondent Nos.2 and 3, no Vakalath is filed on their behalf. - 4 - NC: 2025:KHC:16089 MFA No. 8684 of 2016 6. Having heard the learned counsels on either side, perused the material on record. Ex.R2 discloses that he is having a driving license to drive a two wheeler and the offending vehicle is a goods auto. In the light of the law laid down in the case of National Insurance Co. Ltd. Vs. Swaran Singh and others1 as the driver is not having the driving license, the principle of pay and recover will apply and the insurance company is liable to pay the compensation and recover the same from the owner of the vehicle. The Tribunal without appreciating Ex.R2 had held that the insurance company is liable to pay the compensation. 7. Accordingly, the appeal of the appellant/Insurance Company is partly allowed and the insurance company shall pay the compensation amount and recover the same from the owner of the vehicle. i. The amount in deposit shall be forthwith transmitted to the Tribunal. 1 AIR 2004 SUPREME COURT 1531 - 5 - NC: 2025:KHC:16089 MFA No. 8684 of 2016 ii. The appellant/Insurance company shall pay the amount and recover the same from the owner of the vehicle. iii. The apportionment of the amount shall be as per the order passed by the Tribunal. iv. The appellant - Insurance Company shall deposit the remaining amount, if any, within a period of eight weeks from the date of receipt of copy of the judgment. On such deposit, the claimant is entitled to withdraw the entire amount without furnishing any security. v. No costs. vi. Pending miscellaneous petitions, if any, shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN List No.: 2 Sl No.: 49