- 1 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 102586 OF 2016 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 101648 OF 2016 IN MFA NO. 102586 OF 2016: BETWEEN: SRI. ASHOK S/O HANMANTAPPA BANDRAM, AGE: 25 YEARS, OCC: NIL, R/O: MALLAPUR, POST: NESARGI, TQ: BAILHONGAL, DIST: BELAGAVI. … APPELLANT (BY SRI. SANJAY S. KATAGERI, ADVOCATE) AND: 1. SHRI UMESH V. SANVIRAPPANAVAR, AGE: MAJOR, OCC: BUSINESS, R/O: NAGNUR, TQ: BAILHONGAL, DIST: BELAGAVI, (OWNER OF THE TRACTOR BEARING NO.AP-21/K-2354). 2. THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE COMPANY LTD., CLUB ROAD, BELAGAVI. … RESPONDENTS (BY SRI. S.S. KOLIWAD, ADVOCATE FOR R2; R1-SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988, PRAYING TO MODIFY THE JUDGMENT AND AWARD DATED 02.02.2016 PASSED IN MVC NO.2621/2012 ON THE FILE OF THE Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 LEARNED II-ADDITIONAL DISTRICT JUDGE AND ADDL. MACT-III, BELAGAVI. IN MFA NO. 101648 OF 2016: BETWEEN: THE DIVISIONAL MANAGER, ORIENTAL INSURANCE COMPANY LTD., CLUB ROAD, BELAGAVI, REPRESENTED THROUGH REGIONAL OFFICE, SUMANGALA COMPLEX, IIND FLOOR, STATION ROAD, HUBBALLI, REP. BY ITS DEPUTY MANAGER. … APPELLANT (BY SRI. SHARNAPPA S. KOLIWAD, ADVOCATE) AND: 1. SRI. ASHOK S/O HANMANTAPPA BANDRAM, AGED ABOUT 26 YEARS, OCC: NIL, R/O: MALLAPUR, POST: NESARGI, TQ: BAILHONGAL, DIST: BELAGAVI. 2. SHRI UMESH V. SANVIRAPPANAVAR, AGE: MAJOR, OCC: BUSINESS, R/O: NAGNUR, TQ: BAILHONGAL, DIST: BELAGAVI, (OWNER OF MAHINDRA TRACTOR BEARING NO.AP-21/K-2354). … RESPONDENTS (BY SRI. SANJAY S. KATAGERI, ADVOCATE FOR R1; R2-SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 02.02.2016 PASSED IN MVC NO.2621/2012 ON THE FILE OF THE II- ADDITIONAL DISTRICT JUDGE, BELAGAVI. THESE APPEALS, COMING ON FOR ADMISSION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 ORAL JUDGMENT (PER: THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR) Though these appeals are listed for admission, but with consent of both the learned counsel appearing for the parties, the matters are taken up for final hearing. 2. MFA No.102586 of 2016 is filed by the claimant challenging the judgment and award dated 02.02.2016 passed in MVC No.2621/2012 on the file of II Additional District Judge, Belagavi1, seeking enhancement of compensation. 3. Whereas, MFA No.101648 of 2016 is filed by the Insurance Company challenging the judgment and award dated 02.02.2016 passed in MVC No.2621/2012 on the file of II Additional District Judge, Belagavi, questioning the liability fastened on it to pay compensation as well as prays to reduce the quantum of compensation. 1 (hereinafter referred to as ‘the Tribunal’ for short) - 4 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 4. It is the case of claimant that on 06.05.2012 at about 10.00 a.m., on Ankalgi-Nesargi road of Mallapur village the claimant was standing by the side of the road at that time, the driver of tractor bearing Reg.No.AP-21/ K-2354 has started the same suddenly in a rash and negligent manner and dashed against the claimant and caused accident. Due to the said impact, the claimant had sustained injuries. 5. Upon the claim petition filed by the claimant, the Tribunal awarded compensation of Rs.2,80,991.38/- (Rs.2,81,000/-) along with interest at the rate of 6% p.a. from the date of petition till payment by fastening liability on the Insurance Company to pay compensation. 6. The grounds urged and submission made by the counsel for the Insurance Company that the tractor and tailor was taken on hire basis. Therefore, there is violation of conditions of insurance policy. Hence, the Insurance Company is not liable to pay compensation. - 5 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 7. On the other hand, learned counsel for the claimant justified the judgment and award passed by the Tribunal and prays to dismiss the appeal filed by the Insurance Company and prays to enhancement of compensation. 8. Upon perusal of the complaint, FIR and charge sheet, it is proved in unequivocal terms that the tractor was used for rent purpose for transporting manure/dung. Therefore, the tractor was used for hire and reward purpose, which is in violation of conditions of insurance policy. Therefore, the Insurance Company is not liable to pay compensation. REGARDING PAY AND RECOVERY: 9. In the present case, the claimant is third party to the tractor bearing Reg.No.AP-21/K-2354. The tractor in question involved in the accident is covered under Kisan Package Policy and it was entitled to be used only for agricultural purpose and not for hire and reward purpose. - 6 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 In the instant case, the owner of the tractor used the vehicle for hire purpose i.e. to transport manure/animal dung to other place, thereby the owner has violated the terms and conditions of insurance policy. Thus, the owner of the tractor has breached the conditions of insurance policy as per Section 149(1) & (2) of the MV Act. Hence, the insurance company is not liable to pay compensation. However, considering the principle of law laid down by the Hon’ble Supreme Court in the cases of PAPPU AND OTHERS VS. VINOD KUMAR LAMBA AND ANOTHER2; NATIONAL INSURANCE COMPANY LIMITED VS. SWARAN SINGH AND OTHERS3 and also as per the Full bench decision of this Court in the case of NEW INDIA ASSURANCE COMPANY LIMITED VS. YELLAVVA AND ANOTHER4, the insurance company at the first instance shall pay compensation to the claimant and then recover the same from the owner of the tractor. Hence, respondent No.2/Insurance Company is directed to pay 2 (2018) 3 SCC 208 3 (2004) 3 SCC 297 4 2020 ACJ 2560 - 7 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 compensation at fist instance and then recover it from respondent No.1/owner of tractor bearing Reg.No.AP- 21/K-2354 as per law. Therefore, appeal filed by the Insurance Company in MFA No.101648/2016 is liable to be allowed in part. 10. So far as quantum of compensation is concerned, the Tribunal has correctly assessed documentary evidence and awarded compensation. Hence, there is no need to modification of compensation. Therefore, the appeal filed by the claimant in MFA No.102586/2016 is liable to be dismissed. 11. In the result, I proceed to pass the following: ORDER i. The appeal filed by the claimant in MFA No.102586/2016 is dismissed. ii. The appeal filed by the Insurance Company in MFA No.101648/2016 is allowed-in-part. - 8 - HC-KAR NC: 2025:KHC-D:8141 MFA No. 102586 of 2016 C/W MFA No. 101648 of 2016 iii. While maintaining the quantum of compensation, the judgment and award dated 02.02.2016 passed in MVC No.2621/2012 on the file of II Additional District Judge, Belagavi, stands modified only to the extent that the Insurance Company shall pay compensation to the claimant at first instance, then recover the same from owner of the tractor and trailer as per law. iv. Amount in deposit made by the Insurance Company in MFA No.101648/2016 shall be transmitted to the Tribunal. v. No order as to costs. In view of disposal of the appeal, pending IAs’, if any, shall stand disposed of. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE SRA CT:BCK LIST NO.: 1 SL NO.: 44