- 1 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD BENCH DATED THIS THE 10TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 22213 OF 2013 (MV-I) BETWEEN: NATIONAL INSURANCE CO.LTD., THE DIVISIONAL MANAGER, RAMDEV GALLI, BELGAUM TQ AND DISTRICT: BELGAUM RPTD.THROUGH ITS REGIONAL OFFICE, ARIHANT PLAZA, KUSUGAL ROAD, HUBLI, RPTD.BY ITS DEPUTY MANAGER. …APPELLANT (BY SMT. PREETI SHASHANK, ADVOCATE) AND: 1. SRI. AMINSAB S/O. RAJESABA BADAMI, AGED ABOUT 25 YEARS, OCC: ELECTRICAL MECHANIC, R/O.BADAMI, TQ: BADAMI, BAGALKOT DISTRICT. 2. SRI. SHEKAPPA S/O. NAGAPPA PUJAR, AGE: MAJOR, R/O.BADAMI, AMBEDKAR CIRCLE, TQ: BADAMI, DIST: BAGALKOT (OWNER OF AUTO RICKSHAW NO. KA-29/5713) …RESPONDENTS (BY SRI. SHARANU ELIGAR, ADVOCATE FOR R1; SERVICE ON R2 IS HELD SUFFICIENT) THIS MFA FILED U/SEC.173(1) OF MV ACT, 1988, PRAYING TO CALL FOR THE RECORDS CONNECTED WITH CASE MVC NO. 107/2008 ON THE FILE OF THE SENIOR CIVIL JUDGE AND MEMBER, MACT VIII, BADAMI, EXAMINE THE SAME AND SET ASIDE THE AWARD DATED 21.01.2013 AS AGAINST THE APPELLANT IN THE INTEREST OF JUSTICE. MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Date: 2025.09.17 15:46:06 +0530 - 2 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 THIS APPEAL, COMING ON FOR HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING: CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT This Miscellaneous First Appeal is filed by the Insurance Company, challenging the judgment and award dated 21.01.2013 passed in M.V.C.No.107/2008 by the learned Senior Civil Judge and Member, M.A.C.T.-VIII, Badami. 2. Brief facts, leading rise to the filing of this appeal are as follows: On 11.10.2007, the petitioner was travelling in an auto rickshaw bearing registration No.KA-29/5713 as a passenger. The driver of the auto rickshaw was driving the same at a high speed in a rash and negligent manner and lost control over it. As a result, the auto rickshaw toppled and the petitioner sustained a grievous injuries. Thus, the petitioner filed a claim petition under Section 166 of the M.V. Act seeking compensation for the injuries sustained in - 3 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 the road traffic accident. Accordingly, prays to allow the claim petition. 3. A notice was issued to the owner of the offending vehicle. Despite the service of notice, he remained unrepresented before the Tribunal and was placed exparte. 4. The Insurance Company filed a statement of objections denying the averments made in the claim petition, and contended that the driver of the offending vehicle did not possess a valid and effective driving license as of the date of the accident. Hence, there is a breach of policy conditions and the Insurance Company is not liable to pay the compensation as claimed by the petitioner. Hence, prays to dismiss the claim petition against the Insurance company. 5. The Tribunal, based on the pleadings of the parties, framed the relevant issues. - 4 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 6. The petitioner, to substantiate his case, examined himself as PW-1, and marked 46 documents as Exs.P-1 to P-46. In rebuttal, the officer of the Insurance Company was examined as RW-1, and marked two documents as Exs.R-1 and R-2. 7. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part vide judgment dated 21.01.2013 and awarded a compensation of Rs.16,000/- with interest at the rate of 6% p.a. and the Insurance Company was directed to deposit the compensation amount with accrued interest. 8. The Insurance Company, aggrieved by the judgment and award passed in M.V.C.No.107/2008, preferred this instant appeal. 9. Heard the arguments of the learned counsel for the Insurance Company and the learned counsel for the petitioner. - 5 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 10. A notice was served to the owner of the offending vehicle. Despite the service of notice, he remained unrepresented. 11. The learned counsel for the Insurance Company submits that the driver of the offending vehicle did not possess a valid and effective driving license as of the date of the accident. The owner entrusted the vehicle to the person, who did not possess a valid and effective driving license. Hence, there is a breach of policy conditions. The said aspect was not adequately considered by the Tribunal and committed an error in fastening the 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 as of the date of the accident, the vehicle was insured with the Insurance Company. As there was a contract between the Insurance Company and the owner, the insurance company is liable to indemnify the owner. He - 6 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 submits that if the driver of the offending vehicle did not possess a valid and effective driving license as of the date of the accident, the Tribunal should have directed the Insurance Company to deposit the compensation amount at the first instance and recover the same from the owner of the offending vehicle. Hence, on these grounds, he prays to dismiss the appeal. 13. Perused the records, and considered the submissions of the learned counsel for the parties. 14. The point that would arise for consideration is regarding the liability. 15. There is no dispute regarding the occurrence of the accident, and the injuries sustained by the petitioner in the road traffic accident. To prove the accident, the petitioner produced a charge sheet marked as Ex.P-8. The Tribunal, considering Ex.P-8, has rightly held that the accident occurred due to the rash and negligent driving of the driver of the offending Auto rickshaw. - 7 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 16. Regarding Liability: The Insurance Company has taken a specific defense before the Tribunal in the statement of objections that as of the date of the accident, the driver did not possess a valid and effective driving license. The owner of the offending vehicle was arrayed as respondent No.1 before the Tribunal. Despite the service of a notice, the owner did not appear before the Tribunal, and he was placed exparte. Further, a charge sheet is filed against the driver of the offending vehicle/Auto rickshaw for the offence punishable under Section 3 of the M.V. Act. The driver pleaded guilty before the appropriate Court. 17. From the perusal of the charge sheet, it clearly discloses that the driver of the offending Auto Rickshaw did not possess a valid and effective driving license as of the date of the accident. The Tribunal, without considering the said aspect, committed an error in fastening the liability on the Insurance Company. The said finding needs to be disturbed. The Tribunal should have dismissed the claim - 8 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 petition against the Insurance Company, on the contrary, allowed the claim petition. 18. Admittedly, as of the date of the accident, the offending vehicle was insured by the Insurance Company and the policy was in force. Although, there is a breach of policy conditions, however, there is a contract between the Insurance Company and the owner of the offending vehicle. The Insurance Company is bound to indemnify the owner at the first instance and recover the same from the owner. 19. Further, the Tribunal has held that the petitioner is entitled to the interest from the date of commencement of evidence, which is incorrect. Accordingly, the petitioner will be entitled to the interest from the date of the petition. 20. In view of the above discussion, I proceed to pass the following: ORDER (i) The Miscellaneous First Appeal is allowed in part. - 9 - HC-KAR NC: 2025:KHC-D:11695 MFA No. 22213 of 2013 (ii) The judgment and award dated 21.01.2013 passed in M.V.C.No.107/2008 by the learned Senior Civil Judge and Member, M.A.C.T.-VIII, Badami, against the Insurance Company is set aside. Consequently, the claim petition against the Insurance Company is dismissed. (iii) The respondent-owner offending vehicle is held liable to pay the compensation. However, the Insurance Company is directed to deposit the compensation amount with accrued interest within a period of two months from the date of receipt of a copy of this judgment, and recover the same from the owner of the offending vehicle in accordance with law. (iv) The office is directed to transmit the trial Court records and the amount in deposit to the Tribunal concerned, forthwith. Sd/- (ASHOK S. KINAGI) JUDGE NAA CT:ANB List No.: 1 Sl No.: 3