- 1 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR MISCELLANEOUS FIRST APPEAL No. 273 OF 2023 (MV-I) C/W MISCELLANEOUS FIRST APPEAL No. 272 OF 2023 (MV-I) IN MFA No. 273/2023 BETWEEN: 1. THE DIVISIONAL MANAGER UNITED INDIA INSURANCE CO., LTD., DIVISIONAL OFFICE No.34/3, MMK COMPLEX AKKAMAHAEVI ROAD P J EXTENSION DAVANAGERE-577 002. REP. BY ITS DIVISIONAL MANAGER SRI.T.NAGALINGACHARI …APPELLANT (BY SRI ANUP SEETHARAM RAO, ADVOCATE) AND: 1. SRI HANUMESH AGED ABOUT 25 YEARS S/O RAMAKRISHNAPPA R/AT VASANTHANAGARA VILLAGE HIRIYUR TALUK CHITRADURGA DISTRICT-577 598. Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 2. SRI SANNA MARIYAPPA AGED ABOUT 66 YEARS S/O SRI HANUMAPPA R/AT D.S.MALIGE VILLAGE AIMANGALAL HOBLI HIRIYUR TALUK CHITRADURGA DISTRICT-577 598 (OWNER OF TT No.16-T/8299-8300). 3. SRI P.SATISH MAJOR IN AGE S/O PAKEERAPPA R/AT THALAVATT VILLAGE AIMANGALAL HAOBLI HIRIYUR TALUK CHITRADURGA DISTRICT-577 598 (DRIVER OF TT NO.16-T/8299-8300). 4. THE MANAGER PRAGATI KRISHNA GRAMINS BANK METIKURUKE BRANCH HIRIYUR TALUK CHITRADURGA DISTRICT-577 598. …RESPONDENTS (BY SRI B PRAMOD, ADVOCATE FOR R2 SMT POORNIMA S, ADVOCATE FOR R4 R1 & R3 SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 28.10.2022 PASSED IN MVC No.471/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MACT, HIRIYUR, CHITRADURGA, AWARDING COMPENSATION OF RS.75,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL DEPOSIT. - 3 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 IN MFA No. 272/2023 BETWEEN: 1. THE DIVISIONAL MANAGER UNITED INDIA INSURANCE CO., LTD., DIVISIONAL OFFICE No.34/3, MMK COMPLEX AKKAMAHAEVI ROAD P J EXTENSION DAVANAGERE-577 002. REP. BY ITS DIVISIONAL MANAGER SRI.T.NAGALINGACHARI …APPELLANT (BY SRI ANUP SEETHARAM RAO, ADVOCATE) AND: 1. SRI RAMAIAH AGED ABOUT 38 YEARS S/O S VENKATAPPA RESIDENT OF VASANTHANAGARA VILLAGE HIRIYUR TALUK CHITRADURGA DISTRICT - 577 598. 2. SRI SANNA MARIYAPPA AGED ABOUT 66 YEARS S/O SRI HANUMAPPA RESIDING AT D .S MALIGE VILLAGE AIMANGALA HOBLI HIRIYUR TALUK CHITRADURGA DISTRICT – 577 598. (OWNER OF TT.NO. 16-T/8299-8300) 3. SRI P SATISH MAJOR IN AGE S/O PAKEERAPPA RESIDENT OF THALAVATTI VILLAGE AIMANGALA HOBLI HIRIYUR TALUK - 4 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 CHITRADURGA DISTRICT – 577 598. (OWNER OF TT.NO. 16-T/8299-8300) 4. THE MANAGER PRAGATI KRISHNA GRAMINA BANK METIKURKE BRANCH HIRIYUR TALUK CHITRADURGA DISTRICT - 577 598. ...RESPONDENTS (BY SRI B PRAMOD, ADVOCATE FOR R2 SMT. POORNIMA S, ADVOCATE FOR R4 R1 AND R3 SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 28.10.2022 PASSED IN MVC No.470/2016 ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC, HIRIYUR, CHITRADURGA, AWARDING COMPENSATION OF RS.1,00,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL THE DATE OF DEPOSIT. THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR ORAL JUDGMENT MFA No.272/2023 is filed by the Insurer challenging the judgment and award dated 28.10.2022 passed in MVC No.470/2016 by Senior Civil Judge and Additional MACT, Hiriyur. - 5 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 2. MFA No.273/2023 is filed by the Insurer challenging the judgment and award dated 28.10.2022 passed in MVC No.471/2016 by Senior Civil Judge and Additional MACT, Hiriyur. 3. Both MVC Nos.470/2016 and 471/2016 arises out of the same road and traffic accident took place on 17.02.2014. The respondents in both claim petitions are the same. The insurer who has been held liable to pay the compensation amount in both the claim petitions has challenged the same on the ground that premium has not been paid and insurance policy has not been insured. The Tribunal has recorded the evidence, assessed the compensation, and passed the impugned award. 4. In MVC No.470/2016, the Tribunal has assessed the compensation at Rs.1,00,000/- and directed the insurer who is respondent No.4 therein who is the appellant herein to pay the same along with interest at the rate of 6% per annum from the date of petition till realisation. - 6 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 5. In MVC No.471/2016, the Tribunal has assessed the compensation at Rs.75,000/- and directed the insurer -respondent No.4 –therein, who is the appellant herein to pay the said compensation amount with interest at the rate of 6%per annum from the date of petition till realisation. 6. Heard learned counsel for appellants in both cases, learned counsels for respondent No.2 –owner and respondent No.4 –Banker. 7. Learned counsel for the appellant in both cases submits that vehicle of respondent No.1 i.e. Tractor Trailer bearing Regn.No.KA-16-T-8299 was hypothecated with respondent No.4 – Pragati Krishna Grameena Bank. The appellant / insurer who was respondent No.4 before the Tribunal has not received any premium for issue of insurance policy to the said tractor -tailor. RW.2 – Bank Manager’s evidence does not indicate any sending of premium amount to the insurance company. The owner has not produced any documents to indicate that he got - 7 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 DD from the Bank and paid it to the insurance company and got issued insurance policy. The computerised bank statement, Ex.R1 only indicate that a sum of Rs.5,832/- has been debited to the account of the owner and for what purpose the said amount has been debited and where it has been sent and for what purpose has not been stated either by the RW.1/owner or RW.2/Bank Manager. In the absence of any policy, the liability saddled on the insurer requires to be set-aside. 8. Learned counsel for owner of vehicle i.e., respondent No.2 contends that premium amount has been deducted from his account and therefore, the owner is not liable to pay the compensation amount. 9. Learned counsel for respondent No.4-Banker submits that the vehicle involved in the accident was hypothecated to the bank as the owner respondent No.2 has availed loan and even though the premium amount is deducted from the account of owner, the amount has not been sent to the insurance company. - 8 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 10. Considering the grounds urged in both cases, a common point arises for consideration: i) Whether the Tribunal has erred in saddling the liability on the appellant -insurer in the absence of receipt of premium and the issue of Insurance policy. The said point is answered in the affirmative for the following reasons. 11. Respondent No.2 is the owner of the tractor and trailer bearing registration No.KA-16/T-8299-8300. It is not in dispute that the said tractor and trailor has been hypothecated to respondent No.4 -Bank. The manager of respondent No.4 has been examined as R.W.2. On perusal of the said evidence, it does not indicate any sending of the premium amount to the insurance company. The owner of the vehicle has been examined as R.W.1 and his evidence indicates that premium has been deducted from his account. It is for the owner of the vehicle to prove that - 9 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 the premium is paid for issue of insurance policy and policy has been issued. The evidence on record does not established that the premium has been paid to the insurance company and policy has been issued. In the absence of any insurance policy, the Tribunal has erred in saddling the liability on the appellant –insurer. Since the vehicle is not insured, the owner is liable to pay the compensation awarded by the Tribunal to the claimants along with interest. What is the liability of the Bank cannot be considered in this claim petition and it is separate cause of action for the owner against the Banker. The owner is that liberty to take any suitable action or to initiate suitable proceedings against the banker, claiming any damages. In view of the above, award passed by the Tribunal in both claim petitions saddling the liability on the appellant -insurer requires to be set aside. 12. Accordingly, the following - 10 - HC-KAR NC: 2026:KHC:28860 MFA No. 273 of 2023 C/W MFA No. 272 of 2023 ORDER i) Both appeals are allowed. ii) The liability saddled on the appellant –insurer in the judgment and award dated 28.10.2022 passed in MVC Nos.470/2016 and 471/2016 by Senior Civil Judge and Additional M.A.C.T, Hiriyur is set aside. iii) The statutory deposit and compensation amount deposited by the appellant –insurer shall be released to the appellant –insurer. Sd/- (SHIVASHANKAR AMARANNAVAR) JUDGE DSP List No.: 1 Sl No.: 48