- 1 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 17TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 102961 OF 2014 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 102960 OF 2014 MISCELLANEOUS FIRST APPEAL NO. 102962 OF 2014 IN MFA NO.102961/2014 BETWEEN: M/S. BAJAJ ALLIANZ GENERAL INSURANCE CO., LTD., BY ITS MANAGER, SEETHARAM COMPLEX, DOUBLE ROAD, BELLARY, NOW REP. BY ITS AUTHORIZED SIGNATORY, 4TH FLOOR, KALBURGI MANSION, LAMINGTON ROAD, BELLARY. …APPELLANT (BY SRI. S. K. KAYAKAMATH, ADV) AND: 1. SRI. T. GOVINDARAJULU S/O. LATE KAMMA T. YERRISWAMY @ YERRAPPA, AGED 35 YEARS, AGRICULTURIST, R/O. D.NO.191C, NARASAPURAM VILLAGE, BELUGUPPA MANDAL, KALYANDURGA, NOW R/AT KAKARLATHOTA, BELLARY. 2. 2a. HARIJANA ASADI YERRISWAMY S/O. THIMMAPPA, MAJOR, DRIVER-CUM- OWNER OF AUTO BEARING NO.AP-02/TA-4241, R/O. D.NO.1/381-1, BORAMPALLI VILLAGE, KALYANADURGA, A.P (DEAD) REP. BY HIS LEGAL HEIR: SMT. ASADI ANDANAMMA W/O. LATE HARIJANA ASADI YERRISWAMY, 28 YEARS, HOUSE WIFE. MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 3. T. RAJAGOPAL S/O. LATE KAMMA T.YERRISWAMY, @ YERRAPPA, 43 YEARS, AGRICULTURIST, R/O. PILLAPALLI VILLAGE, BRAHMHASAMURDRA MANDALAM, KALYANDURGA TALUK, A.P. …RESPONDENTS (BY SRI. S.M. KALWAD, ADV FOR R1; R2(A)-SERVED; NOTICE TO R3 IS HELD SUFFICIENT) THIS MFA IS FILED U/S 173(1) OF MV ACT, 1988, PRAYING TO, CALL THE RECORDS, HEAR THE PARTIES, AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 25.08.2014 BY THE III MOTOR ACCIDENT CLAIMS TRIBUNAL, BALLARI, IN MVC NO.283/2013, WITH COST IN THE INTEREST OF JUSTICE AND EQUITY. IN MFA NO.102960/2014 BETWEEN: M/S. BAJAJ ALLIANZ GENERAL INSURANCE CO., LTD., BY ITS MANAGER, SEETHARAM COMPLEX, DOUBLE ROAD, BELLARY, NOW REP. BY ITS AUTHORIZED SIGNATORY, 4TH FLOOR, KALBURGI MANSION, LAMINGTON ROAD, BELLARY. … APPELLANT (BY SRI. S. K. KAYAKAMATH, ADV) AND: 1. SMT. TALARI MAHALAKSHMI W/O. LATE T SURESH, 26 YEARS, HOUSE WIFE, 2. TALARI MAREPPA S/O. LATE T.HANUMAPPA, AGE: 59 YEARS, 3. SMT. TALARI PARVATHAMMA W/O. SRI. TALARI MAREPPA, 51 YEARS, HOUSEWIFE. - 3 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 ALL ARE R/O. R.T.C BUS-STAND, KALYAN DURGA TOWN, NOW R/AT GADANG STREET, COWL BAZAAR, BELLARY. 4. HARIJANA ASADI YERRISWAMY S/O. THIMMAPPA, SINCE DECEASED REP BY HIS LEGAL HEIR: SMT. ASADI ANDANAMMA W/O. LATE HARIJANA ASADI YERRISWAMY, 29 YEARS, HOUSE WIFE, R/O. D.NO.1/381-1, BORAMPALLI VILLAGE, KALYANADURG, A.P. 5. T.RAJAGOPAL S/O. LATE KAMMA T. YERRISWAMY @ YERRAPPA 44 YEARS, AGRICULTURIST, R/O. PILLAPALLI VILLAGE, BRAHMHASAMUDRA MANDALAM, KALYANDURGA TALUK, A.P. …RESPONDENTS (BY SRI. S M KALWAD, ADV FOR R1 TO R3; SRI. VEERESH S. GADDAD, ADV FOR R5; R4-SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT, PRAYING TO, CALL THE RECORDS, HEAR THE PARTIES, AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 25.08.2014 PASSED BY THE III MOTOR ACCIDENT CLAIMS TRIBUNAL, BALLARI IN MVC NO.282/2013, WITH COST IN THE INTEREST OF JUSTICE AND EQUITY. IN MFA NO.102962/2014 BETWEEN: 1. M/S. BAJAJ ALLIANZ GENERAL INSURANCE CO., LTD., BY ITS MANAGER, SEETHARAM COMPLEX, DOUBLE ROAD, BELLARY, NOW REP. BY ITS AUTHORIZED SIGNATORY, 4TH FLOOR, KALBURGI MANSION, LAMINGTON ROAD, HUBBALLI. … APPELLANT (BY SRI. S K KAYAKAMATH, ADV) - 4 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 AND: 1. T GOVINDARAJULU S/O LATE KAMMA T YERRISWAMY @ YERRAPPA, AGED 36 YEARS, OCC: AGRICULTURIST, 2. C. MUKAMBIKA W/O C. VENKATESHALU D/O LATE KAMMA T. YERRISWAMY @ YERRAPPA, AGE 41 YEARS 3. A. LAKSHMIDEVI W/O A VENKATESHULU D/O LATE KAMMA T.YERRISWAMY @ YERAPPA, 39 YEARS, R/O. D.NO.191C, NARASAPURAM VILLAGE, BELUGUPPA MANDAL, KALYANDURGA, NOW R/AT KAKARLATHALA, BELLARY. 4. 4a. HARIJANA ASADI YERRISWAMY S/O THIMMAPPA SINCE DECEASED REP BY HIS LEGAL HEIR: SMT. ASADI ANDANAMMA W/O LATE. HARIJANA ASADI YERRISWAMY, 29 YEARS, HOUSE WIFE, R/O. D.NO.1/381-1, BORAMPALLI VILLAGE, KALYANADURGA, A.P 5. T RAJAGOPAL S/O LATE KAMMA T YERRISWAMY @ YERRAPPA 44 YEARS, AGRICULTURIST, R/O. PILLAPALLI VILLAGE, BRAHMHASAMUDRA MANDALAM, KALYANDURGA TQ, AP. …RESPONDENTS (BY SRI. S M KALWAD, ADV FOR R1 TO R3, NOTICE TO R4(A) IS SERVED & R5 IS HELD SUFFICIENT) THIS MFA IS FILED U/S 173(1) OF MV ACT, PRAYING TO, CALL THE RECORDS, HEAR THE PARTIES, AND ALLOW THE APPEAL AS PRAYED FOR BY SETTING ASIDE THE IMPUGNED JUDGMENT AND AWARD DATED 25.08.2014 PASSED BY THE III MOTOR ACCIDENT CLAIMS TRIBUNAL, BALLARI IN MVC NO.621/2013, WITH COST IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, THE JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI ORAL JUDGMENT 1. These Appeals are filed by the insurance company challenging the liability saddled on it by the Tribunal vide common judgment and awards dated 25.08.2014 passed in M.V.C. Nos.282, 283 and 621 of 2013 by the learned III MACT, Bellary. 2. Brief facts leading rise to the filing of these appeals are as follows: 3. The petitioners have filed the claim petitions contending that they met with an accident and sustained injuries on 16.12.2011, while they were proceeding on the motorcycle and the accident occurred due to the rash and negligent driving by the driver of the auto-rickshaw bearing Registration No.AP-02/TA-4241, which came from the opposite direction and dashed to the motorcycle. Hence, they - 6 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 filed the claim petitions seeking compensation, and accordingly they pray to allow the claim petitions. 4. The owner cum driver of the offending vehicle died during the pendency of the claim petitions. His legal representatives were brought on record. Despite the service of notice, they remained unrepresented and were placed ex parte. 5. The insurance company filed a statement of objections denying the averments made in the claim petitions and contended that the driver of the offending vehicle did not possess a valid and effective driving licence as of the date of the accident. There is a violation of policy conditions. Hence, prays to dismiss the claim petitions against the insurance company. 6. The Tribunal clubbed all the claim petitions and based on the pleadings of the parties, framed separate relevant issues. - 7 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 7. The petitioners, to substantiate their case, the petitioner No.1 in MVC No.282 of 2013 was examined as PW-1, and the petitioners in MVC No.283 of 2013 and 621 of 2013 were examined themselves as PW-2 and PW-4, examined the doctor as PW-3, and marked 13 documents as exhibits P-1 to P-13. 8. In rebuttal, the officer of the insurance company was examined as RW-1, and marked 10 documents as Ex.R-1 to Ex.R10. 9. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petitions in part vide common judgment dated 25.08.2014 and awarded a compensation of ₹6,67,000/- in MVC No.282 of 2013, ₹4,49,800/- in MVC No.283 of 2013 and ₹2,30,000/- in MVC No.621 of 2013 and held that the owner cum driver, and insurance company of the offending vehicle are jointly and severally liable to pay the compensation amount to the petitioners and - 8 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 directed the insurance company to deposit the compensation amount. 10. Aggrieved by the impugned common judgment and award, the insurance company has filed these appeals. 11. Heard the arguments of the learned counsel for the insurance company. 12. The learned counsel for the insurance company submits that the driver of the offending vehicle did not posses a valid and effective driving licence as of the date of the accident. He submits that the Tribunal committed an error in fastening the liability jointly and severally. He submits that the Tribunal should have fastened the liability on the owner cum driver of the offending vehicle. Hence, on these grounds, he prays to allow the appeal. 13. Perused the records and considered the submissions of the learned counsel for the insurance company. - 9 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 14. The point that would arise for consideration is regarding the liability. 15. There is no dispute regarding the occurrence of the accident and injuries sustained by the petitioners in a road traffic accident. The petitioners, to prove that the accident occurred due to the negligence of the driver of the offending vehicle, produced a chargesheet marked as EX.P-8. 16. The insurance company has contended that the driver of the offending vehicle did not possess a valid and effective driving license as of the date of the accident. The insurance company has issued a notice to the owner cum driver of the offending vehicle, calling upon the driver cum owner to furnish a copy of the driving licence. 17. To show that the insurance company has taken steps, it has produced a copy of the notice marked as Exhibit R-3. Despite issuing a notice, the driver of the - 10 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 offending vehicle neither replied to the legal notice, nor furnished the driving license. Thus, the insurance company has taken all the steps to secure the driving licence of the owner cum driver of the offending vehicle. The said aspect was not adequately considered by the Tribunal, and committed an error in fastening the liability jointly and severally. 18. The owner cum driver was a party to the proceedings, and he died during the pendency of the claim petitions. His legal representatives were brought on record. Although, a notice was served to the legal representatives of the deceased owner cum driver of the offending vehicle, they did not appeal before the tribunal. 19. Therefore, an adverse inference has to be drawn for the non-production of the driving licence under Section 114(g) of the Indian Evidence Act. The Tribunal, instead of drawing an adverse inference - 11 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 against the owner cum driver of the offending vehicle, has committed an error in fastening the liability jointly and severally. 20. Further, the Tribunal has not assigned any reasons for fastening the liability jointly and severally. Hence, the findings recorded by the Tribunal regarding fastening of liability on the insurance company is liable to be set aside. 21. Though, as of the date of the accident, the vehicle was insured with the insurance company, as observed above, the offending vehicle was driven by a person who did not possess a valid and effective driving licence to drive the offending vehicle, therefore, there is a breach of policy conditions. As such, the insurance company is not liable to pay the compensation amount. 22. Admittedly, as of the date of the accident, the vehicle was duly insured with the insurance company. In view - 12 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 of the proposition of law laid down by the Full Bench of this Court in the case of New India Assurance Company Limited, Bijapur, by its Divisional Manager, vs. Yallavva and another, reported in ILR 2020 KAR 2239, wherein this Court has held that in case there is any breach of policy conditions, the insurance company is bound to indemnify the owner and deposit the compensation amount first and then, proceed to recover the same from the owner of the offending vehicle. 23. 23. At the cost of repetition, it has to be stated here that the policy of insurance was in force as of the date of the accident. The insurance company should pay the compensation amount at first instance, and then proceed to recover the same from the owner of the offending vehicle. 24. Considering the proposition of law laid down by the Full Bench of this Court in the case of New India - 13 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 Assurance Company Limited (referred to supra), I proceed to pass the following order: ORDER (i) The Miscellaneous First Appeals are allowed. (ii) The impugned judgments and awards dated 25.08.2014 passed in MVC Nos.282, 283 and 621 of 2013 are set aside against the insurance company, and the claim petitions against the insurance company are dismissed. (iii) However, the insurance company is directed to deposit the entire compensation amount with accrued interest within 8 weeks from the date of receipt of a copy of this judgment and thereafter, proceed to recover the same from the owner cum driver of the offending vehicle, in accordance with law. - 14 - HC-KAR NC: 2025:KHC-D:12341 MFA No. 102961 of 2014 C/W MFA No. 102960 of 2014 MFA No. 102962 of 2014 (iv) The amount in deposit and the TCRs are ordered to be transmitted to the Tribunal, forthwith. Sd/- (ASHOK S. KINAGI) JUDGE SKS CT: BSB List No.: 1 Sl No.: 13