- 1 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 6268 OF 2017 (MV-I) BETWEEN: RELIANCE GENERAL INSURANCE COMPANY LIMITED, NO.28, EASY WING, 5TH FLOOR CENTENARY BUILDING, M.G. ROAD BENGALURU - 560 001, NOW REPRESENTED BY MANAGER LEGAL …APPELLANT (BY SRI. ASHOK N. PATIL, ADVOCATE) AND: 1. SMT. LAKSHMI W/O M. BALAIAH AGED ABOUT 35 YEARS C/O VENKATAKOTAIAH AT NO.1567, SALBRITI 1ST RC DODDATHOGURU, ELECTRONIC CITY BENGALURU - 560 068. PERMANENT ADDRESS:NO.5-293B KOTCHERLA, GUNTUR ANDHRA PRADESH - 522 647. 2. MR. K.N. KUMAR S/O NAGASUNDARA MURTHY K.N, NO.18, 1ST 'A' MAIN ROAD Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 MOHAN KUMAR NAGAR MATHIKERE, YESHWANTHAPURA BENGALURU. 3. MR. ANIL KUMAR S/O HANUMANTHAIAH R/A 3RD, 8TH MAIN 4TH CROSS, OPP V. CHANGAMMA TEMPLE MALLASANDRA, T.D. HALLI BENGALURU. …RESPONDENTS (R1 TO R3 SERVED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 05.06.2017 PASSED IN MVC NO.42/2014 ON THE FILE OF THE XXII ADDITIONAL SMALL CAUSES JUDGE, & XX ACMM, MEMBER, MACT, BENGALURU, (SCCH-24), AWARDING COMPENSATION OF Rs.1,63,250/- WITH INTEREST @ 8% P.A. FROM THE DATE OF PETITION TILL DEPOSIT. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA ORAL JUDGMENT Learned counsel for the appellant is present. 2. In spite of service of notice, learned counsel for the respondents did not turn up and set ex-parte. - 3 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 3. This appeal is filed by the appellant/insurance company under Section 173(1) of Motor Vehicles Act, 1988 challenging the judgment and award dated 05.06.2017 passed in MVC No.42/2014 on the file of the XXII Additional Small Causes Judge and XX ACMM & Member MACT, Bengaluru. 4. Heard the arguments of learned counsel for the appellant. The ranks of the parties are retained as per Tribunal for the sake of convenience. 5. The petitioner/injured met with an accident on 05.11.2013 and filed petition before the Tribunal for compensation of Rs.7,00,000/-. The Tribunal considering the entire evidence on record granted an amount of Rs.1,63,250/- with interest at the rate of 8% p.a., from the date of filing the petition till the date of deposit. The Tribunal was held that respondent Nos.1 and 2 are jointly and severally liable to pay the compensation and directed respondent No.1/insurance company to deposit the compensation amount with interest. 6. Being aggrieved by the said order, this appeal is filed and mainly contended that the appellant/insurance - 4 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 company examined RW.1, an officer of the insurance company and produced Ex.R.2/charge sheet, which clearly shows that the driver of the vehicle did not possess a valid driving licence at the time of the accident. The police charge-sheeted the driver and owner of the vehicle for the offences punishable under Sections 279 and 338 of the IPC and Section 3(1) read with Sections 181, 5 and 180 of the Motor Vehicles Act. The driver of the vehicle did not have a valid and effective driving licence at the time of the accident, the owner had willfully entrusted the transport vehicle to his driver who has no valid and effective driving licence. Thus, the owner violated the terms and conditions of the insurance policy and the appellant/insurance company is not liable to pay the compensation. Therefore, the Tribunal erred in fastening the liability on the appellant/insurance company. Hence, the appellant/insurance company requested to set aside the judgment and award passed by the Tribunal. 7. Learned counsel for the appellant/insurance company mainly contended that the driver of the vehicle has no valid driving licence at the time of accident. As per the law laid - 5 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 down by the Hon’ble Supreme Court in the case of Pappu and Ors Vs. Vinod Kumar Lamba and Another1, this Court finds it reasonable to invoke the principle of ‘pay and recovery’. Therefore, the insurance company is directed to deposit Rs.1,63,250/- with interest at the rate of 6% p.a., within one month from the date of the order. 8. In the result, the following order is passed: ORDER i. The appeal is allowed in part. ii. The judgment and award dated 05.06.2017 passed in MVC No.42/2014 on the file of the XXII Additional Small Causes Judge and XX ACMM & Member MACT, Bengaluru, is modified. iii. The appellant/Insurance Company is directed to deposit Rs.1,63,250/- with 1 2018 (3) SCC 308 - 6 - HC-KAR CNR: KAHC010381742017 NC: 2026:KHC:42525 MFA No. 6268 of 2017 interest at the rate of 6% within one month from the date of this order. iv. On such deposit, petitioner/claimant is permitted to withdraw the entire amount along with interest accrued on the same. v. Insurance company is at liberty to recover the same from the owner of the vehicle by due process of law. vi. The amount in deposit is to be transferred to MACT. Sd/- (P SREE SUDHA) JUDGE AMA List No.: 1 Sl No.: 59