- 1 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD BENCH DATED THIS THE 9TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 102038 OF 2015 (MV-I) BETWEEN: UNITED INDIA INSURANCE CO. LTD., THE DIVISIONAL MANAGER STATION ROAD, HOSPET, R/BY ITS DIVISIONAL MANAGER …APPELLANT (BY SRI. SHASHANK HEGDE, ADVOCATE) AND: 1. SOMU @ SOMANNA S/O. PENNAYYA AGED ABOUT: 34 YEARS, OCC: COOLIE, R/O: JAMBUNATHA ROAD, 24TH WARD, HOSAPETE TALUK, BALLARI DISTRICT. 2. C. VENKATESH S/O. CHINNAPPA AGED ABOUT: 43 YEARS, R/O: MEHABOOB NAGAR, HOSAPETE TALUK, BALLARI DISTRICT, (DRIVER OF MAHENDRA JEEP BEARING REG.NO.KA-35/A-0994) 3. THE PARTNER M/S K. A. ENTERPRISES POPULAR COMPLEX, BALLARI ROAD, OPP: PATEL HIGH SCHOOL, C. VENKATESH S/O. CHINNAPPA AGED ABOUT: 43 YEARS, OCC: DRIVER, R/O: MEHABOOB NAGAR, HOSAPETE TALUK, BALLARI DISTRICT, (OWNER OF MAHENDRA JEEP BEARING REG.NO.KA-35/A-0994) …RESPONDENTS (BY SRI. SRINIVAS B. NAIK, ADVOCATE FOR R1; R2 & R3 ARE SERVED) MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Date: 2025.09.12 16:37:56 +0530 - 2 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 THIS MFA FILED U/S.173(1) OF M.V ACT, 1988, PRAYING TO CALL FOR THE RECORDS CONNECTED WITH MVC NO.622/2014 ON THE FILE OF THE COURT OF SENIOR CIVIL JUDGE AND JMFC., AT HOSAPETE EXAMINE THE SAME AND AWARD DATED 09.02.2015 IS REQUIRES TO BE SET ASIDE AS AGAINST THE APPELLANT IN THE INTEREST OF JUSTICE. THIS APPEAL, COMING ON FOR ADMISSION THIS DAY, THE COURT DELIVERED THE FOLLOWING: CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT This Appeal is filed under Section 173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘M.V.Act,’ for short) by the Insurance Company, challenging the judgment and award dated 09.02.2015 passed in MVC No.622/2014 by the learned Principal Senior Civil Judge & JMFC, Hosapete. 2. Brief facts leading rise to the filing of this appeal, are as follows: 3. On 22.01.2013, the petitioner was travelling in a Jeep bearing Reg.No.KA-35/A-0994. At that time, the Driver of the said Jeep drove same in a rash and negligent manner. Due to which, the offending vehicle dashed against - 3 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 the iron cross bar and met with an accident. As a result, the petitioner has sustained grievous injuries. Hence, the petitioner filed a claim petition under Section 166 of the M.V.Act claiming a compensation for the injuries sustained by him in a road traffic accident. Accordingly, prays to allow the claim petition. 4. A Notices were issued to the driver and owner of the offending vehicle. Despite the service of a notice, they remained absent, and were placed ex-parte. 5. The Insurance Company filed a statement of objections denying the averments made in the claim petition. It is contended that the petitioner was travelling in the offending vehicle as unauthorised passenger. It is contended that the driver of the offending vehicle did not possess a valid and effective driving license as of the date of the accident. It is contended that the said vehicle was not meant to carry the passengers. There is breach of the policy - 4 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 conditions. Hence, prays to dismiss the claim petition against the Insurance Company. 6. The Tribunal, based on the pleadings of the parties, framed the relevant issues. 7. The petitioner, to substantiate his case, examined himself as P.W.1, and marked 41 documents as Exs.P1 to P41. On the other hand, the Insurance Company has not lead any oral evidence, however, marked 1 document as Ex.R1. 8. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part vide judgment dated 09.02.2015 and awarded a compensation of Rs.57,726/- with interest at the rate of 9% p.a. from the date of the petition till its realization, and directed the Insurance Company to deposit the compensation amount. - 5 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 9. The Insurance Company, aggrieved by the judgment and award passed in MVC No.622/2014, filed this Miscellaneous First Appeal. 10. Heard the arguments of the learned counsel for the Insurance Company, and the learned counsel for the petitioner. 11. Learned counsel for the Insurance Company submits that the petitioner was travelling as an unauthorized passenger in the offending vehicle. The said vehicle is not used to carry the passengers. Thus, there is a violation of the policy conditions, and the Insurance Company is not liable to pay the compensation amount to the petitioner. She submits that the Tribunal has committed an error in fastening liability on the Insurance Company. Hence, on these grounds, she prays to allow the appeal. 12. Per contra, the learned counsel for the petitioner submits that although there is a violation of the policy conditions, this court can direct the Insurance Company to - 6 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 pay the compensation to the petitioner at the first instance and recover the same from the owner of the offending vehicle. Hence, he prays to dispose of the appeal. 13. Perused the records, and considered the submission of the learned counsel for the parties. 14. The point, that would arise for my consideration is regarding the liability. 15. There is no dispute regarding the occurrence of the accident, and also that the petitioner sustained injuries in the road traffic accident. To prove that the accident occurred due to the rash and negligent driving of the driver of the offending vehicle, the petitioner has produced a charge sheet marked as Ex. P2 which is filed against the driver of the offending Jeep. Regarding Liability: 16. The Insurance Company has taken a specific defense in the statement of objections that the petitioner - 7 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 and others were travelling in the offending vehicle as unauthorized passengers. The said vehicle is not used to carry the passengers. The petitioner was travelling in the offending vehicle as unauthorised passenger, and there is a breach of the policy conditions. Admittedly, as of the date of the accident, the offending vehicle was insured with the Insurance Company. If there is a breach of the policy conditions, the Insurance Company can pay the compensation amount to the petitioner at the first instance and recover the same from the owner of the vehicle. This aspect has been overlooked by the Tribunal, and committed an error in fastening the liability on the Insurance Company. 17. In view of the above discussion, I proceed to pass the following: ORDER i) The Appeal is allowed. ii) The judgment and award dated 09.02.2015 passed in MVC No.622/2014 by the learned - 8 - HC-KAR NC: 2025:KHC-D:11659 MFA No. 102038 of 2015 Principal Senior Civil Judge & JMFC, Hosapete, is hereby set aside. iii) The claim petition against the Insurance Company is dismissed. However, the Insurance Company is directed to deposit the compensation amount and recover the same from the owner of the offending vehicle. iv) The Tribunal records, and the amount in deposit, if any, shall be transmitted to the Tribunal concerned, forthwith. Sd/- (ASHOK S. KINAGI) JUDGE MBS CT:ANB List No.: 1 Sl No.: 29