- 1 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 IN THE HIGH COURT OF KARNATAKA AT DHARWAD DATED THIS THE 23RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 20885 OF 2013 (MV-) C/W MISCELLANEOUS FIRST APPEAL NO. 20886 OF 2013 IN MFA No. 20885/2013 BETWEEN: 1. THE DIVISIONAL MANAGER, NATIONAL INS. CO. LTD. RAMDEV GALLI, NEAR KAVERI COLD DRINKS, BELGAUM NOW REP. BY ITS DEPUTY MANAGER REGIONAL OFFICE, HUBLI. …APPELLANT (BY SRI. RAJASHEKHAR S. ARANI, ADV) AND: 1. SHRI. BHIMSHI @ MUDAKAPPA S/O NAGAPPA KUCHANNAVAR AGE: 25 YEARS, OCC: AGIRUCLTURE, (NOW NIL), R/O: MALLUR TQ : SAUNDATTI, DIST : BELGAUM. 2. SOMAPPA DYAMAPPA KUBAR AGE: MAJOR, OCC: BUSINESS R/O: SAMPAGAON, TQ: BAILHONGAL DIST : BELGAUM. (OWNER OF VEHICLE NO. KA-24/6000) …RESPONDENTS (BY SRI. SANTOSH S HATTIKATAGI, ADV FOR R1, NOTICE TO R2 IS SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT 1988, AGAINST THE JUDGMENT AND AWARD DATED:23-08-2011 PASSED IN MVC NO.2078/2010 ON THE FILE OF SENIOR CIVIL JUDGE AND MEMBER, ADDL. MACT, BAILHONGAL, AWARDING THE COMPENSATION OF MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 RS.1,01,400/- WITH INTEREST AT THE RATE OF 6% P.A., SHALL BE DEPOSITED WITHIN SIX MONTHS FROM THE DATE OF THE ORDER. IN MFA NO. 20886/2013 BETWEEN: 1. THE DIVISIONAL MANAGER NATIONAL INSURANCE CO. LTD. RAMDEV GALLI, NEAR KAVERI COLD DRINKS, BELGAUM NOW REP. BY ITS DEPUTY MANAGER REGIONAL OFFICE HUBLI. ...APPELLANT (BY SRI. RAJASHEKHAR S ARANI, ADV) AND: 1. SHRI. RUDRAPPA S/O MAHADEVAPPA KATADAL AGE : 33 YEARS, OCC : AGRICULTURE NOW NIL R/O : MALLUR, TQ : SAUNDATTI DIST : BELGAUM. 2. SOMAPPA DYAMAPPA KUBAR AGE : MAJOR, OCC : BUSINESS R/O : SAMPAGAON, TQ. BAILHONGAL DIST : BELGAUM, (OWNER OF VEHICLE NO. KA-24/6000) ...RESPONDENTS (BY SRI. SANTOSH S HATTIKATAGI, ADV FOR R1, NOTICE TO R2 IS SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT 1988, AGAINST THE JUDGMENT AND AWARD DATED:23-08-2011 PASSED IN MVC NO.2079/2010 ON THE FILE OF SENIOR CIVIL JUDGE AND MEMBER, ADDL. MACT, BAILHONGAL, AWARDING THE COMPENSATION OF RS.65,700/-WITH INTEREST AT THE RATE OF 6% P.A., SHALL BE DEPOSITED WITHIN SIX MONTHS FROM THE DATE OF THE ORDER. THESE APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 CORAM: HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT 1. These appeals are arising out of a common judgment and award dated 23.08.2011 passed in MVC Nos.2078 of 2010 and 2079 of 2010 by the learned Senior Civil Judge and Additional MACT, Bailhongal (for short, ‘the Tribunal’). 2. Brief facts leading rise to the filing of these appeals are as follows: 3. On 31.08.2010, while the petitioners were travelling near Mekalmardi cross, Bailhongal Taluk, the driver of Tata-Ace vehicle, drove the same negligently while avoiding the herd of sheep which came across the road and lost the control over the vehicle and it turned turtle, thereby caused an accident. The petitioners sustained injuries in the road traffic accident and filed claim petitions under Section 166 of the Motor Vehicles Act, 1988 seeking - 4 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 compensation on account of the injuries sustained in the road traffic accident. 4. The owner of the offending vehicle filed a statement of objections denying the averments made in the claim petition and admitted that on 31.08.2010 at about 05.00 p.m., the petitioners were transporting vegetables in the offending goods vehicle. Hence, prays to dismiss the claim petition against the owner of the offending vehicle. 5. The insurance company filed a statement of objections denying the averments made in the claim petition and contented that the petitioners were travelling in a goods vehicle as paid passengers unauthorizedly. There is a breach of policy conditions. As such, the insurance company is not liable to indemnify the owner of the offending vehicle. Hence, prays to dismiss the claim petition against the Insurance Company. - 5 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 6. The Tribunal based on the pleadings of the parties framed the relevant issues. 7. The petitioners examined themselves as PW-1 and PW-2 and marked 68 documents as Exhibits P-1 to P- 68. 8. Respondent No.1 produced the xerox copy of the insurance policy pertaining to the offending vehicle and also the driving license of the driver of the offending vehicle. The respondents have not laid any oral evidence. 9. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petitions in part with costs and awarded compensation of ₹1,01,400/- in MVC No.2078 of 2010 and ₹65,700/- in MVC No.2079 of 2010 and directed the insurance company to deposit the compensation amount with accrued interest. - 6 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 10. The Insurance Company aggrieved by the impugned judgment and award filed these appeals. 11. Heard the learned counsel for the insurance company and also the learned counsel for the petitioners. 12. Learned counsel for the insurance company submits that the petitioners were traveling in the offending goods vehicle as paid passengers unauthorisedly. Thus, there is violation of policy conditions. Hence, on this ground, he prays to allow the appeals. 13. Per contra, the learned counsel for the petitioners submits that if there is any violation of the policy conditions, as the policy of insurance was valid as of the date of accident, the insurance company should indemnify the owner against the third party and should pay the compensation amount at the first instance and then proceed to recover the same from the owner of the said vehicle. To buttress his arguments, he has placed reliance on the judgment - 7 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 of the Full Bench of this Court in the case of New India Assurance Company Limited vs. vs Yallavva and another, reported in ILR 2020 KAR 2239. Hence, on these grounds, he prays to dismiss the appeal. 14. Perused the records and considered the submissions of the learned counsel for the parties. 15. There is no dispute regarding the occurrence of accident, sustaining of injuries by the petitioners in the said road traffic accident and that the accident occurred due to the rash and negligent driving by the driver of the offending vehicle. The petitioners have produced a copy of the charge-sheet marked as Exhibit P-7, which discloses that the accident occurred due to rash and negligent driving by the driver of the offending vehicle. 16. The insurance company has taken a specific defence in the statement of objections contending that the - 8 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 petitioners were travelling in the offending vehicle as paid passengers unauthorisedly. Hence, there is a breach of policy conditions. 17. It is pertinent to note that though the insurance company has taken a specific defence in the statement of objections that the petitioners were travelling as paid passengers unauthorisedly, the said aspect has been denied by PW-1 during the cross- examination. Neither the owner, nor the insurance company has led any rebuttal evidence. In the absence of rebuttal evidence, the Tribunal was justified in recording its findings that the petitioners were travelling along with the goods and rightly fastened the liability jointly and severally on the owner and insurance company of the offending vehicle. 18. I do not find any error in the impugned judgment and award. - 9 - HC-KAR NC: 2025:KHC-D:12908 MFA No. 20885 of 2013 C/W MFA No. 20886 of 2013 19. Accordingly, I proceed to pass the following order: ORDER (i) The Miscellaneous First Appeals are dismissed. (ii) The impugned judgment and award passed by the Tribunal is hereby confirmed. (iii) The Registry is directed to transmit the amounts in deposit and the Trial Court Records to the Tribunal forthwith. Sd/- (ASHOK S. KINAGI) JUDGE RK List No.: 1 Sl No.: 6