- 1 - HC-KAR NC: 2025:KHC-D:8948 MFA No. 101776 of 2015 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 18TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO.101776 OF 2015 (MV-I) BETWEEN: DIVISIONAL CONTROLLER, NWKRTC, SIRSI DIVISION, SIRSI, REPRESENTED BY ITS CHIEF LAW OFFICER, GOKUL ROAD, HUBBALLI. … APPELLANT (BY SRI S.S. KOLIWAD, ADVOCATE.) AND: 1. BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD., 107, 1ST FLOOR, CRYSTAL ARC, NEAR HOTEL ROOPA, BALMATH ROAD, MANGALORE-575 001. 2. MANJUNATH A. MALAGI, R/O: BEHIND MARIKAMBA TEMPLE, SIRSI, DIST: UTTARA KANNADA. 3. MARUTI S/O. TIRUKAPPA BHOVIWADDAR, AGE: 37 YEARS, OCC: COOLIE, R/O: HOSANAGAR, NEERNALLI, TQ: SIRSI, DIST: UTTARA KANNADA. … RESPONDENTS (BY SRI M.K. SOUDAGAR, ADVOCATE FOR R1; R2 AND R3 – NOTICE SERVED.) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF THE MOTOR VEHICLES ACT, 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 13.06.2011, PASSED IN MVC NO.103/2008, ON THE FILE OF THE FAST TRACK COURT, SIRSI, AT SIRSI AND ETC.,. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: MALLIKARJUN RUDRAYYA KALMATH Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Date: 2025.08.14 12:07:07 +0530 - 2 - HC-KAR NC: 2025:KHC-D:8948 MFA No. 101776 of 2015 ORAL JUDGMENT (PER: THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR) This appeal is filed by NWKRTC challenging the judgment and award dated 13.06.2011, passed by the Fast Track Court, Sirsi, in MVC No.103/2008, insofar as fastening liability on the appellant/NWKRTC. 2. Heard the arguments and perused the material placed before the Court. 3. In this case, the accident is caused due to rash and negligent driving of NWKRTC bus on 10.09.2007 and the bus was insured with the 1st respondent and as on the date of accident the insurance policy was in existence. The bus was taken on contract basis by NWKRTC and it was insured with the 1st respondent insurance company. The tribunal has fastened liability to pay compensation on NWKRTC on the premise that it has control over the vehicle and the driver. When this being the fact, whether NWKRTC is liable or 1st respondent insurance company is liable to pay compensation is squarely covered by the - 3 - HC-KAR NC: 2025:KHC-D:8948 MFA No. 101776 of 2015 judgment of the Hon’ble Supreme Court in the case of Uttar Pradesh State Road Transport Corporation vs. Kulsum and others, reported in (2011) 8 Supreme Court Cases 142, wherein at paragraph No.23 it is observed as under: “23. A critical examination thereof would show that the appellant and the owner had specifically agreed that the vehicle will be insured and a driver would be provided by owner of the vehicle but overall control, not only on the vehicle but also on the driver, would be that of the Corporation. Thus, the vehicle was given on hire by the owner of the vehicle together with its existing and running insurance policy. In view of the aforesaid terms and conditions, the Insurance Company cannot escape its liability to pay the amount of compensation.” 4. Therefore, the issue is squarely covered by the judgment of the Hon’ble Supreme Court as stated above. Therefore, the insurance company is liable to pay compensation, but not the NWKRTC. Therefore, the appeal filed by the NWKRTC is liable to be allowed. Hence, I proceed to pass the following: - 4 - HC-KAR NC: 2025:KHC-D:8948 MFA No. 101776 of 2015 ORDER i) The appeal is allowed. ii) The judgment and award dated 13.06.2011, passed by the Fast Track Court, Sirsi, in MVC No.103/2008, is modified holding that the 1st respondent insurance company shall pay compensation to the claimant. iii) The liability fastened by the tribunal on the appellant/NWKRTC is hereby set aside. iv) The amount in deposit, made by the appellant, shall be refunded to the appellant. v) No order as to costs. vi) Draw modified award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE MRK CT:BCK LIST NO.: 1 SL NO.: 35