- 1 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 16TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI MISCL. FIRST APPEAL NO.200454 OF 2019 (MV-D) C/W MISCL. FIRST APPEAL NO.200455 OF 2019 IN M.F.A.NO.200454 OF 2019 BETWEEN: THE RELIANCE GENERAL INS., PVT., LTD., R/BY DIVISIONAL MANAGER, CTS NO.472/474, V.A.KALBURGI SQUARE, DESAI CROSS, DESHPANDE NAGAR, HUBLI – 580 029. (NOW REPRESENTED BY AUTHORIZED SIGNATORY, HUBLI) …APPELLANT (BY SMT. PREETI PATIL MELKUNDI, ADVOCATE) AND: 1. GADARAVVA W/O KALINGAPPA GANI, AGE: 55 YEARS, OCC: H.H.WORK, 2. KALINGAPPA S/O TAMMANNA GANI, AGE: 57 YEARS, OCC: COOLIE, BOTH R/O: ARALADINNI, TQ: B.BAGEWADI, Digitally signed by RAMESH MATHAPATI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 DIST: VIJAYAPURA – 586 101. NOW RESIDING AT MUCHAKANDI, TQ: DIST: BAGALKOT – 587 101. 3. MURTUJ S/O HASANSAB BANAKAR, AGE: 37 YEARS, OCC: VEHICLE OF THE OWNER, R/O: AMINGADI, TQ: HUNAGUNDA, DIST: BAGALKOT – 587 101. …RESPONDENTS (BY SRI BASAVARAJ R. MATH, ADVOCATE FOR R1 AND R2; R3 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, PRAYING TO ALLOW THE ABOVE APPEAL BY SETTING ASIDE THE IMPUGNED COMMON JUDGMENT AND AWARD DATED 01.12.2018 IN M.V.C.NO.1186/2012 PASSED BY THE III ADDITIONAL SENIOR CIVIL JUDGE AND M.A.C.T., NO.XII AT VIJAYAPURA, IN THE INTEREST OF JUSTICE AND EQUITY. IN M.F.A.NO.200455 OF 2019 BETWEEN: THE RELIANCE GENERAL INS., PVT., LTD., R/BY DIVISIONAL MANAGER, CTS NO.472/474, V.A.KALBURGI SQUARE, DESAI CROSS, DESHPANDE NAGAR, HUBLI – 580 029. (NOW REPRESENTED BY AUTHORIZED SIGNATORY, HUBLI) …APPELLANT (BY SMT. PREETI PATIL MELKUNDI, ADVOCATE) - 3 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 AND: 1. KRISHNA S/O RAMASWAMI DHARAMAR, AGE: 26 YEARS, OCC: COOLIE, R/O: ARALADINNI, TQ: B.BAGEWADI, DIST: VIJAYAPURA NOW RESIDING AT MUCHAKANDI, TQ: DIST: BAGALKOT. 2. MURTUJ S/O HASANSAB BANAKAR, AGE: 37 YEARS, OCC: VEHICLE OF THE OWNER, R/O: AMINGADI, TQ: HUNAGUNDA, DIST: BAGALKOT – 587 101. …RESPONDENTS THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT, PRAYING TO ALLOW THE ABOVE APPEAL BY SETTING ASIDE THE IMPUGNED COMMON JUDGMENT AND AWARD DATED 01.12.2018 IN M.V.C.NO.1187/2012 PASSED BY THE III ADDITIONAL SENIOR CIVIL JUDGE AND M.A.C.T., NO.XII AT VIJAYAPUR, IN THE INTEREST OF JUSTICE AND EQUITY. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE RAVI V HOSMANI) Challenging common judgment and award dated 01.12.2018 passed by III Additional Senior Civil Judge and - 4 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 MACT- XII at Vijayapur, in MVC nos.1186/2012 and 1187/2012, these appeals are filed. 2. Smt. Preeti Patil Melkundi, learned counsel, submitted appeals were by insurer challenging award on limited grounds: firstly, about driver of insured auto rikshaw was not having valid and effective driving licence as on date of accident. Secondly, accident occurred when vehicle was plying beyond permit area, but tribunal straight away held insurer jointly and severally liable without any discussion or assigning reason and thirdly, tribunal had awarded interest at 9% per annum, which was excessive. Therefore, interference was warranted. 3. Sri Basavaraj R Math, learned counsel for claimants, on other hand, would submit, copy of Ex.R3 would indicate that driver of insured vehicle was having valid and effective driving licence, to cover accident in question. Insofar as violation of permit limit, it was submitted this Court in case of Durugamma V. S.G. Naresh & Others, reported in 2017 (1) AKR 67, held breach of said condition would at best invite fine and insurer cannot avoid liability. He also submitted interest awarded was just and proper and sought for dismissal. - 5 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 4. Heard learned counsel and perused impugned judgment and award. 5. From above since insurer is in appeal challenging award on liability and also rate of interest, points that arise for consideration are: i) Whether tribunal was justified in holding insurer liable to pay compensation? ii) Whether tribunal was justified in awarding interest at 9% per annum? 6. Point no.1: At outset, it is seen, tribunal considered grounds urged and negatived same. It took note of deposition of RWs.1 and 2 - RTOs of Bagalkote and Vijayapura respectively, RW.4 – AEE of PWD, Hungund and RW.5- Revenue Officer, Hungund Municipality, who deposed that distance between Alamatti and Hungund was 30-40 kms and radius area of Hungund municipality is 5.4 kms, to conclude that insurer had not established violation of permit condition. As per ratio laid down by this Court in Durugamma’s case (supra), violation may invite fine and insurer cannot avoid liability. Under such - 6 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 circumstances, it cannot be contended that tribunal has not assigned reasons for fastening liability on insurer. Further Ex.R3-licence would negative contention about non-possession of licence. Even contention that in judgment, cause title of judgment petition would show dismissal of claim petition against respondent no.1- insured and unless insured is held liable, insurer cannot be made liable, would also not stand to reason, as issuance of insurance policy is admitted. Therefore, point no.1 is answered in affirmative. 7. Point no.2: In view of decision of this Court in Shriram General Insurance Company Limited, Rajasthan vs. Smt.Laxmi and others reported in 2018 (4) AKR 808, wherein, it is held that rate of interest in a motor accident claims cannot be more than 6% in view of Section 30 of Code of Civil Procedure, claimant would be entitled for interest at 6% per annum on award amount from date of claim petition till deposit. Therefore, point no.2 is answered in negative. 8. Consequently, following: - 7 - HC-KAR NC: 2025:KHC-K:3103 MFA No. 200454 of 2019 C/W MFA No. 200455 of 2019 ORDER MFA no.200454/2019 insofar as reduction of interest on award amount is partly allowed. Interest awarded by tribunal at 9% per annum is reduced to 6% per annum on award amount from date of claim petition till deposit. MFA no.200455/2019 insofar as liability is dismissed. Amount in deposit is ordered to be transmitted to Tribunal for payment. Sd/- (RAVI V HOSMANI) JUDGE Psg* List No.: 1 Sl No.: 7 Ct;Vk