- 1 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 14TH DAY OF AUGUST 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 103382 OF 2018 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 102693 OF 2018 IN MFA NO.103382 OF 2018: BETWEEN: THE DIVISIONAL MANAGER NATIONAL INSURANCE CO LTD., GSR TOWERS, PARVATHI NAGAR, SIRUGUPPA MAIN ROAD, BALLARI-583101, BEARING POLICY NO.610301/31/14/630000142 13, VALID FROM 04.03.2015 TO 03/03/2016, NOW REP BY AUTHORISED SIGNATORY ADMINISTRATIVE OFFICER. …APPELLANT (BY SRI. GANGADHAR S. HOSAKERI, ADV) AND: 1. SRI. HULUGAPPA S/O. SHEKARAPPA AGE: 40 YEARS, OCC: DRIVER IN KSRTC R/O: 26TH WARD AMBABHAVANI NEAR PKS COLONY, SIRAGUPPA TOWN, BALLARI DISTRICT. 2. AYUB KHAN S/O. BHUGAR KHAN AGE: 42 YEARS, DRIVER OF THE LORRY BEARING REG NO.RJ-04 GA-4587, R/O. AALAMSAR, THE CHOHTAN, BARMER DISTRICT, RAJASTHAN. 3. SMT. MANJU DEVI W/O. GAUTAM CHAND, AGE: 47 YEARS, OWNER OF LORRY BEARING REG.NO.RJ-04, GA-4587, R/O. JAIN NYAYI NOHRA KE GALI, BARMER,RAJASTHAN-344001. 4. THE MANAGER SBI GENERAL INSURANCE CO., "NATRAJ" 101, 201 AND 301, JUNCTION OF WESTERN EXPRESS HIGH AND ANDHERI KURLA ROAD, MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Date: 2025.09.10 12:25:47 +0530 - 2 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 ANDHERI (EAST), MUMBAI-400069, POLICY NO.0000000001100832-02 VALID FROM 01.07.2015 TO 30.06.2016. 5. BYLAPPA S/O. HANUMANTHAIAH AGE: 50 YEARS, DRIVER OF BUS BEARING NO. KA-01 D-8545, R/O. D NO.2407, SHANTHI NAGAR, ASK PALYA, TUMKUR. 6. ABHISHEK V. KUTTE AGE: 43 YEARS, OWNER OF THE BUS BEARING NO.KA 01 D-8545, R/O. AVK COMPLEX, NEAR BHAVANI TYRES, KALASIPALYAM, BENGALURU-02. …RESPONDENTS (BY SRI. MANJUNATH JADAI, ADV FOR R1; SRI. SUBHASH J.BADDI, ADV FOR R4; NOTICE TO R2 AND R3 ARE SERVED; NOTICE TO R5 AND R6 ARE HELD SUFFICIENT) THIS MFA IS FILED U/SEC.173 OF MV ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 31.05.2018 PASSED IN MVC NO.30/2016 ON THE FILE OF MEMBER, MOTOR ACCIDENT CLAIMS TRIBUNAL, BALLARI, AWARDING COMPENSATION OF RS.3,20,000/- WITH INTEREST AT 8% P.A. FROM THE DATE OF PETITION TILL ITS REALISATION. IN MFA NO.102693 OF 2018: BETWEEN: 1. SRI. HULUGAPPA S/O. SRI. SHEKARAPPA AGE: 40 YEARS, OCC: KSRTC DRIVER, R/O. 26TH WARD, AMBABHAVANI, NEAR PKS COLONY, SIRUGUPPA TOWN, BALLARI DISTRICT. …APPELLANT (BY SRI. MANJUNATH JADAI, ADV) AND: 1. AYUB KHAN S/O. BHUGAR KHAN AGE: 42 YEARS, DRIVER OF LORRY BEARING NO. RJ-04/A-4587, R/O. ALAMAR THE CHOHAN, DIST. BARMER -344001, RAJASHTAN STATE. - 3 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 2. SMT. MANJU DEVI W/O. SRI. GAUTAM CHAND AGE: 47 YEARS, OWNER OF LORRY BEARING NO. RJ-04/A-4587, R/O. JAIN NYAYI NOHRA KE GALLI, DIST. BARMER -344001, RAJASTHAN STATE. 3. THE MANAGER, SBI GENERAL INSURANCE CO.LTD., "NATRAJ "101, 201 & 301, JUNCTION OF WESTERN EXPRESS, HIGH & ANDHERI KURLA-ROAD, ANDHERI (EAST), MUMBAI-400069. 4. SRI. BYLAPPA S/O. SRI. HANUMANTAHIAH AGE: 50 YEARS, DRIVER OF THE BUS BEARING NO. KA-01/D-8545, R/O. D.NO.2407, SHANTHI NAGAR, ASK PALYA, TUMAKURU-572101. 5. SRI. ABHISHEK V. KUTTE AGE: 43 YEARS, OWNER OF BUS BEARING NO. KA-01/D-8545, R/O. AVK COMPLEX, NEAR BHAVANI TYRES, KALASIPALYAM, BENGALURU-560002. 6. THE DIVISIONAL MANAGER NATIONAL INSURANCE CO. LTD., GSR TOWERS PARVATHI NAGAR, SIRUGUPPA MAIN ROAD, BALLARI-583101. …RESPONDENTS (BY SRI. SUBHASH J. BADDI, ADV FOR R3, SRI. GANGADHAR S. HOSAKERI, ADV FOR R6, NOTICE TO R1, R2, R4 & R5 ARE DISPENSED WITH) THIS MFA IS FILED U/S.173 (1) OF MV ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED 31.05.2018 PASSED IN MVC NO.30/2016 ON THE FILE OF THE MEMBER, MOTOR ACCIDENT CLAIMS TRIBUNAL-III, BALLARI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THESE APPEALS COMING ON FOR FINAL HEARING AND ADMISSION RESPECTIVELY, THIS DAY, THE JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI) The National Insurance Co. Ltd. has filed an appeal in M.F.A.No.103382/2018 challenging the liability and the claimant has filed the appeal in M.F.A.No.102693/2018, challenging the quantum of compensation awarded by the judgment and award dated 31.05.2018 passed in M.V.C.No.30/2016 by the M.A.C.T.-III, Ballari. 2. Brief facts, leading rise to the filing of these appeals are as follows: 3. The claimant was a passenger, along with others in a bus bearing registration No.KA-01/D-8545 on 06.08.2015 from Ballari towards Bengaluru. He met with an accident, due to the rash and negligent driving by the driver of the lorry bearing registration No.RJ-04/GA-4587, insured with the State Bank of India General Insurance Company, and sustained grievous injuries. A Charge sheet was filed against the drivers of both, the bus and the lorry. - 5 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 4. The owner of the lorry bearing registration No.RJ-04/GA-4587, the driver and the owner of the bus bearing registration No.KA-01/D-8545, despite service of notice, remained unrepresented, and they were placed exparte. 5. SBI General Insurance Co. i.e., the insurance of lorry bearing Reg.No.D4/4A-4587 filed a statement of objections denying allegations made in the claim petition. It is contended that the driver of the lorry did not possess a valid and effective driving licence as of the date of the accident and contended that the lorry had not permit to ply on the road and accordingly prayed to dismiss the claim petition against SBI General Insurance Co. Ltd. 6. National Insurance Co. Ltd. i.e., the insurance of the bus bearing Reg.No.KA-01/D-8545 filed a statement of objections denying the averments made in the claim petition and contended that there is no negligence on the part of the driver of the bus. It is the driver of the lorry - 6 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 who dashed to the Government vehicle and stopped the lorry thus, the bus invariably dashed to the lorry. Hence, prays to dismiss the claim petition against National Insurance Co. Ltd. 7. The Tribunal, based on the pleadings of the parties, framed the relevant issues. 8. The claimant, to substantiate his case, examined himself as PW-1, and marked 20 documents as Exs.P-1 to P-27. The Administrative Officer of the National Insurance Co. Ltd., was examined as RW-1, concerned ARTO was examined as RW-3, and 7 documents were marked as Exs.R-1 to R-5, R-8 and R-9. SBI General Insurance Co. Ltd., examined its Legal Officer as RW-2, and marked 2 documents as Exs.R-6 and R-7. 9. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part vide judgment dated 31.05.2018 and awarded a compensation of Rs.3,20,000/- with interest at the rate of - 7 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 8% p.a. from the date of the petition till realization, and directed National Insurance Co. Ltd. and SBI General Insurance Co. Ltd to pay the compensation and both insurance were directed to deposit the award amount in the ratio of 60:40 within 90 days from the date of the judgment. Aggrieved by the judgment and award passed by the Tribunal, National Insurance Co. Ltd., has filed the appeal in M.F.A.No.103382/2018, and the claimant has filed the appeal in M.F.A.No.102693/2018. 10. Heard the arguments of the learned counsel for claimant, and learned counsel for the insurance companies. 11. Learned counsel for National Insurance co. Ltd., submits that the driver of the bus did not possess valid and effective driving licence as of the date of the accident. The bus was driven by a person who did not possess a valid and effective driving licence. Thus, there is a violation of policy conditions. He submits that the driving - 8 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 licence was expired as of the date of the accident. The Tribunal, without considering the said aspect, has committed an error in fastening the liability on the insurer of the Bus. To buttress his arguments, he placed reliance on the judgment of the Hon’ble Apex Court in the case of Mahaveer vs. The Branch Manager, United India Insurance Co. Ltd. and others1. Hence, he submits that the judgment and award passed by the Tribunal against the National Insurance Co. Ltd. be set aside and the claim petition filed by the claimant against the National Insurance Co. Ltd. be dismissed. Hence, on these grounds, he prays to allow the appeal filed by the National Insurance Co. Ltd., and dismiss the appeal filed by the claimant. 12. Per contra, the learned counsel for claimant submits that the compensation awarded by the Tribunal is on the lower side. He submits that in the event, this Court comes to the conclusion that the driver of the bus did not 1 SLP (Civil) No.11757/2025 disposed of on 24.04.2025 - 9 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 possess a valid and effective driving licence as of the date of the accident, the National Insurance Co. Ltd. be directed to pay the compensation amount at first instance and recover the same from the owner of the bus. To buttress his arguments, he placed reliance on the judgment of Full Bench of the Hon’ble Apex Court in the case of the New India Assurance Co. Ltd., Bijapur vs. Yallavva w/o Yamanappa Dharanakeri2. Hence, on these grounds, he prays to dismiss the appeal filed by the National Insurance Co. Ltd., and allow the appeal filed by the claimant. 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 and the quantum. 2 (2020) 2 AKR 484 - 10 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 Regarding liability: 15. There is no dispute that the accident occurred between the bus and lorry, and the claimant sustained the grievous injuries. The claimant, to prove that the accident occurred due to a rash and negligent driving of both the vehicles, produced a charge sheet marked as Ex.P-7, which discloses that the charge sheet was filed against both the drivers i.e., the driver of bus and the lorry. Thus, the claimant has proved that the accident occurred due to the rash and negligent driving by the drivers of both lorry and bus. 16. National Insurance Co. Ltd. has taken a specific defence in a statement of objections contending that the driver of the bus did not possess a valid and effective driving licence as of the date of the accident. The bus was driven by the person who did not possess a valid and effective driving licence. Thus, there is a violation of policy conditions. The said aspect was not considered by - 11 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 the Tribunal, and it committed an error in fastening liability on National Insurance Co. Ltd. The licence of the driver of a bus was not renewed. The Division Bench of this Court in the case of Nagappa @ Nagaraja and others vs. Ravi Kupaluru and others3. Paragraph No.24 thereof is reproduced herein below: “24. Applying the aforesaid decision to the instant case, it is noted that the driver of the offending vehicle had the licence to drive a non-transport vehicle for the period from 24.07.1998 to 23.07.2018. He also had the authorization to drive a transport vehicle for the period from 03.02.2009 up to 02.02.2012. The licence to drive a non-transport vehicle was renewed on 02.06.2012. It is in the interregnum i.e., on 05.04.2012 the accident occurred. Could it be inferred that the breach in the policy condition was so fundamental so as to have resulted in the driver of the offending vehicle causing the accident? We do not think so. This is not a case where the driver of the offending vehicle did not possess any licence at all to drive any vehicle; neither is it a case where the driver of the offending vehicle did not possess an authorization (transport endorsement) to drive a 3 M.F.A.No.103680/2015 disposed of on 08.02.2019 - 12 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 heavy goods vehicle at all (which is the offending lorry in the instant case). This is a case where the authorization to drive such a transport vehicle had expired on 02.02.2012 and it was subsequently renewed on 02.06.2012 i.e., four months later. But on the date of the accident that is on 05.04.2012, he had not got his licence renewed. This is a case of a non- renewal of a license and not a case of not possessing a license to drive a heavy goods vehicle. A non-renewal o f the licence is totally different from the case of non- possession of the licence or driving a vehicle on being disqualified. In the latter two cases, the Insurance Company may have to be exonerated of its liability if the aforesaid reasons had a nexus with the occurrence of the accident as that is precisely what has been stated in the defences of the insurer under Section 149(2) of the Act. But insofar as non-renewal of a licence is concerned or absence of a transport endorsement to drive a particular transport vehicle but otherwise having a license to drive such a vehicle i.e., a non-transport vehicle, it cannot be equated to a case of non-possession of a licence or a case where a driver who was disqualified from driving the vehicle drove the same. It is only in the latter two cases where the insurer can avoid its liability.” 17. Admittedly, in the instant case, the driver of the bus held a licence to drive the vehicle. The driver of the - 13 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 bus was qualified to drive the said bus. Further, the licence had lapsed as of the date of the accident. Thus, this is not a fundamental breach, but which is at the most minor and could not absolve insurance Company’s liability to make the payment of compensation amount. Thus, the Tribunal was justified in saddling the liability on the National Insurance Co. Ltd. Hence, in view of the same the appeal filed by National Insurance Co. Ltd. is liable to be dismissed. Regarding quantum of compensation: 18. The Tribunal, considering the nature of injuries sustained by the claimant, has awarded a compensation of Rs.3,20,000/-. The claimant has not examined the doctor to prove the disability. However, the claimant has produced a wound certificate at Ex.P-8 which discloses that he has suffered a permanent disability, and further, the claimant was admitted to hospital as an inpatient for ten days, and he remained absent for 144 days. - 14 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 Considering the entire evidence on record, this Court re- assesses the compensation under the following heads: Sl. No. Heads of compensation Compensation awarded in Rs. By the Tribunal By this Court 1 Pain and suffering 40,000/- 60,000/- 2 Loss of income during laid up period 30,000/- 79,000/- 3 Attendant charges and other incidental expenditure 30,000/- 30,000/- 4 Medical and Traveling Expenditure 75,000/- 75,000/- 5 Future Medical Expenses 15,000/- 15,000/- 6 Ugly scars 5,000/- 5,000/- 7 Loss of Amenities and Comfort 50,000/- 50,000/- 8 Loss of Amenities and comfort 75,000/- 75,000/- Total : 3,20,000/- 3,89,000/- Compensation enhanced by: 69,000/- 19. Thus in all, the claimant is entitled to a total compensation of Rs.3,89,000/- as against Rs.3,20,000/- i.e., enhanced compensation of Rs.69,000/-. 20. In view of the above discussion, I proceed to pass the following order: ORDER (i) M.F.A.No.103382/2018 filed by the National Insurance Co. Ltd. is hereby dismissed. - 15 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 (ii) M.F.A.No.102693/2018 filed by the claimant is hereby allowed in part. (iii) The judgment and award dated 31.05.2018 passed in M.V.C.No.30/2016 by the M.A.C.T.- III, Ballari is modified. (iv) The claimant is entitled to an enhanced compensation of Rs.69,000/- with interest at 6% p.a. from the date of the petition till its realisation. (v) The respondents- SBI General Insurance Co. Ltd and National Insurance Co. Ltd. are liable to pay the compensation in the ratio of 60:40 with accrued interest to the claimant. (vi) Both the insurance companies are directed to deposit the compensation amount with accrued interest within a period of eight weeks from the date of receipt of a copy of this judgment. - 16 - HC-KAR NC: 2025:KHC-D:10316 MFA No. 103382 of 2018 C/W MFA No. 102693 of 2018 (vii) The amount in the deposit is ordered to be transmitted to the Tribunal. (viii) The Office is directed to transmit the records to the Tribunal forthwith. Sd/- (ASHOK S. KINAGI) JUDGE NAA CT: BSB List No.: 1 Sl No.: 16