- 1 - HC-KAR CNR: KAHC010281482017 NC: 2026:KHC:38144 MFA No. 2700 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 2700 OF 2017 (MV-D) BETWEEN: NATIONAL INSURANCE CO., LTD. KUMARANALLUR BRANCH KERALA STATE THROUGH ITS REGIONAL OFFICE, NATIONAL INSURANCE CO LTD REGIONAL OFFICE, # 144 SUBHARAM COMPLEX, M G ROAD, BANGALORE - 560001 REP BY ITS ASSISTANT MANAGER SMT REKHA S MENON. APPELLANT (BY SRI. ANUP SEETHARAMA RAO.,ADVOCATE) AND: SRI. NANJAIAH SINCE DECEASED REPRESENTED BY HIS LRS 1. SMT NAGAMMA AGED ABOUT 61 YEARS W/O LATE NANJAIAH 2. SRI NAGARAJU AGED ABOUT 43 YEARS S/O LATE NANJAIAH 3. SMT PUSHPA AGED ABOUT 29 YEARS S/O LATE NANJAIAH 4. SRI VENKATASWAMY AGED ABOUT 27 YEARS S/O LATE NANJAIAH Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010281482017 NC: 2026:KHC:38144 MFA No. 2700 of 2017 5. SMT MEGHA AGED ABOUT 23 YEARS D/O LATE NANJAIAH ALL ARE RESIDENTS REMAPURA AGARA HOBLI, YALANDURU TALUK CHAMRAJANAGAR DISTRICT. 6. SRI NAJNUDHEEN K MAJOR S/O SHAHUL HAMEED, RESIDING AT KUZHIKANDATHIE HOUSE, KUMARANALLURU KERALA STATE - 610101. (DRIVER). 8. MR MOHAMMED RAFEEQ C P MAJOR S/O MOHAMAD ALI, C/O NAJNUDHEEN K RESIDING AT KUZHIKANDATHIE HOUSE, KUMARANALLURU KERALA STATE 610101. (OWNER OF CAR NO KL-10/AF-9290). RESPONDENTS (BY SRI. VEERABHADRASWAMY.,ADVOCATE FOR R1 TO R5; V/O DTD 09.01.2024 NOTICE TO R6 AND R7 ARE HELD SUFFICIENT) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 29.12.2016 PASSED IN MVC NO.32/12 ON THE FILE OF THE SENIOR CIVIL JUDGE & CJM, CHAMARAJANAGAR, AWARDING COMPENSATION OF RS.13,71,000/- WITH INTEREST AT 6% P.A. FROM THE DATE OF PETITION TILL REALIZATION AND ETC,. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA - 3 - HC-KAR CNR: KAHC010281482017 NC: 2026:KHC:38144 MFA No. 2700 of 2017 ORAL JUDGMENT This appeal is filed by the insurance company under Section 173(1) of Motor Vehicles Act, 1988 challenging the judgment and award dated 29.12.2016 passed in MVC.No.32/2012 on the file of the learned Senior Civil Judge and CJM, Chamarajanagar (hereinafter referred as to 'Tribunal), seeking for reduction of compensation. 2. Heard the arguments of learned counsel for the appellant and learned counsel for respondent Nos.1 to 5. The ranks of the parties are retained as per Tribunal for the sake of convenience. 3. Rajasekhar @ Shekhar met with an accident on 22.01.2012 and died subsequently. His legal representatives have filed claim petition claiming compensation of Rs.40,30,000/-. The Tribunal considering the entire evidence on record granted an amount of Rs.13,71,000/- together with interest at the rate of 6% per annum from date of petition till realization and held that respondent Nos.2 and 3 are jointly and severally liable to pay the compensation and directed - 4 - HC-KAR CNR: KAHC010281482017 NC: 2026:KHC:38144 MFA No. 2700 of 2017 respondent No.3 to deposit the compensation amount within 60 days from the date of the order. Being aggrieved by the said order insurance company filed this appeal and mainly contented that the policy obtained by the appellant was cancelled on 26.04.2011 as the cheque issued by respondent No.2 was dishonoured, in the absence of subsisting policy they are not liable to be indemnify the owner of the vehicle. But the Tribunal erred in fastening the liability against them. Therefore, requested to set aside the order to an extent of their liability. 4. In the additional written statement filed by respondent No.3, it is contended that respondent No.2 has issued a cheque bearing No.335497 dated 19.04.2011 for Rs.13,991/- towards premium, he produced the cheque through his banker for encashment, it was returned with an endorsement as insufficient funds. The petitioner has not denied the dishonour of the cheque. Ex.R1 is the cheque, Ex.R2 is the bank endorsement. In Ex.R4, they have informed the appellant regarding the cancellation of policy on 26.04.2011. Accident occurred on 22.01.2012, and thus there was no policy in existence as on the date of accident and thus they are not - 5 - HC-KAR CNR: KAHC010281482017 NC: 2026:KHC:38144 MFA No. 2700 of 2017 liable to pay the compensation. Therefore, the insurance company is exonerated from paying the liability. Respondent Nos.1 and 2 are liable to pay the compensation. Accordingly, the following: ORDER i) The appeal is allowed; ii) Respondent No.3/insurance company is exonerated from paying the liability; iii) Respondent Nos.1 and 2/driver and owner are liable to pay the compensation; iv) The amount in deposit is to be transferred to the MACT and shall be refunded to respondent No.3/insurance company. Sd/- (P SREE SUDHA) JUDGE PNV List No.: 1 Sl No.: 47