- 1 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 5086 OF 2013 (MV) BETWEEN: NATIONAL INSURANCE CO. LTD., II FLOOR, YASHORAM CHAMBERS, RATHNAGIRI ROAD, CHIKMAGALUR NOW REP. BY ITS REGIONAL MANAGER, NATIONAL INSURANCE CO. LTD., REGIONAL OFFICE, SUBHARAM COMPLEX, 44, M.G. ROAD, BANGALORE-560001. …APPELLANT (BY SRI. A. N. KRISHNA SWAMY, ADVOCATE) AND: 1. LAKSHMANA S/O SOMABOVI, NOW AGED ABOUT 41 YEARS, OCC: COOLIE, R/O BARGENAHALLI VILLAGE, LAKKAVALLI HOBLI, TARIKERE TALUK, C/O RAMACHANDRA NAIKA, SEEGEHATTI, O.T. ROAD, SHIMOGA-577431. 2. B.K. UMAPATHI S/O KEMPAIAH, NOW AGED ABOUT 45 YEARS, R/O BARGENAHALLI VILLAGE, LAKKAVALLI HOBLI, TARIKERE TALUK-577431. 3. R.A. KUMAR S/O ASHWATHAIAH, NOW AGED ABOUT 35 YEARS, Digitally signed by LUCYGRACE Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 R/O SALEBORANAHALLI, RANGENAHALLI VILLAGE, LAKKAVALLI HOBLI, TARIKERE TQ-577431. …RESPONDENTS (BY SRI. SHIVAKUMAR N, ADVOCATE FOR R1; SRI. S. V. PRAKASH, ADVOCATE FOR R2; R-3 SERVED) THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLE ACT, PRAYING TO CALL FOR RECORDS AND SET ASIDE THE JUDGMENT AND AWARD DATED 20TH APRIL 2013 PASSED BY THE COURT OF THE DISTRICT JUDGE, MACT II, I FAST TRACK COURT, SHIMOGA, IN MVC NO.785/2010 AND TO PASS SUCH OTHER ORDER OR ORDERS AS THIS HON’BLE COURT DEEMS FIT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, INCLUDING THE COSTS, IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 11.08.2026 AND COMING ON FOR ‘PRONOUNCEMENT OF JUDGMENT’, THIS DAY, THE COURT DELIVERED THE FOLLOWING: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA CAV JUDGMENT This appeal is filed by the appellant/Insurance Company under Section 173(1) of Motor Vehicles Act, 1988, for setting aside the judgment and award dated - 3 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 20.04.2013 passed in MVC No.785/2010 on the District Judge, AMACT II, I Fast Track court, Shimoga 2. Heard the arguments of the learned counsel for the appellant and learned counsel for respondents. The ranks of the parties are retained as per tribunal for the sake of convenience. 3. Injured claimant met with an accident on 29.01.2009 and filed claim petition claiming compensation of Rs.7,00,000/-. The Tribunal considering the entire evidence on record granted an amount of Rs.1,06,634/- along with interest at the rate of 6% p.a,. from the date of petition till deposit and Insurance company was directed to deposit the amount within 30 days. 4. Aggrieved by the said order, National Insurance Company Ltd. preferred this appeal and mainly contended that the first respondent filed claim petition contending that on 29.01.2009, he went to the land of Venkatesha of Gurupura, in tractor and trailer bearing Reg.No.KA-18/T- - 4 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 7577 and 7578 to load the soil. Due to the rash and negligence of the driver of the tractor and trailer he sustained injuries. Insurance Company contended that the policy issued by them is a miscellaneous and special type of vehicle's policy and driver did not possess transport endorsement to drive the tractor and trailer combination which is held to be a transport vehicle. But the tribunal erred in fastening the liability against them. The tribunal ought to have decided whether the risk of the employee carried in a tractor and trailer is required to be covered or not. The driver of the tractor and trailer should have driving license to drive the transport vehicle. The Tribunal has not stated that there is any relationship of master and servant between injured and respondent no.2. The liability of the insurer deserves to be restricted to the provisions of WC Act, as per the citation reported in 2005 ACJ 1323 SC between National Insurance Co., Ltd. Vs Prembai Patel and others. Therefore, requested the court to set aside the order. - 5 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 5. Heard the arguments of both sides. 6. Petitioner stated that he was working under the first respondent as a loader and unloader. On 29.01.2009, they went to the land of Venkatesha of Gurupura in tractor and trailer bearing Reg.No.KA-18/T-7577 and 7578 to load the soil. After loading the soil, they sat on the soil, but the driver of the tractor driven it in a rash and negligent manner. As a result, the vehicle toppled on the road and they sustained grevious injuries. They served notices to respondent NoS.1 to 3. Respondent No.1 is owner, respondent No.2 is driver and respondent No.3 is the insurer. Respondent Nos.1 and 2 stated that the driver of the vehicle is having a valid and effective driving licence and the policy was in existence whereas respondent No.3 stated that driver has no valid driving licence and the claim petition is to be dismissed. 7. The tribunal observed that the policy covers the risk of the driver and also the risk of the third party. The - 6 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 two senior managers stated that policy covers the risk of driver and also the risk of the third party. But it does not cover the risk of loader and unloader and tractor is used for purpose other than the agricultural activities. But the Tribunal held that the Insurance Company is liable to pay compensation and accordingly directed respondent no.3 to deposit the amount. 8. Learned counsel for the appellant relied upon a citation reported in (2005) 6 SCC 172 in case of National Insurance Co. Ltd, Vs Prembai Patel and Others in which it was held; “S. 147(1)(b) and proviso (i) thereto Death of or personal injury caused to workman in motor accident arising out of and in course of employment Liability of insurance company under S. 147 Contractual extension of liability - Permissibility Held, liability of insurance company under S. 147 is confined to that arising under S. 4, Workmen's Compensation Act, 1923 However, it is permissible for owner/employer to take out such a policy whereunder entire liability in respect of death of or personal injury to any such employee, as described in sub-clauses (a), (b) or (c) of proviso (i) to S. 147(1)(b), may be fastened upon the insurance company and insurance company may become liable to satisfy entire award under S. 166, 1988 Act For this purpose, owner/employer must take a policy of that particular kind, for which he may be required to pay additional premium, and policy must clearly show, with a clause to that - 7 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 effect, that liability of insurance company is not limited to that provided under the 1923 Act- Where policy mentions "a policy for Act Liability" or "Act Liability", liability of insurance company, as in the present case, would be limited to that arising under the 1923 Act Appellant Insurance Company given liberty to recover amount paid in excess of liability under 1923 Act to dependants of victim, from respondent owner/employer Labout Law-workmen’s Compensation Act, 1923, S.4.” 9. Learned counsel for the respondent No.2 relied upon citation reported in AIR 2006 SCC 577 in case of National insurance co., Ltd., Vs. Mastan and others in which it was held that the claimant is having an option to proceed in any of the acts, i.e, under Workman Compensation Act or under Motor Vehicles Act. But he cannot proceed in both the acts. He also relied upon citation in Civil Appeal No.12567/2024 between Mohammed Masood Vs The New India Assurance Co. Ltd., in which they relied upon the casein Mastan & Anr (Supra). Learned counsel for the respondent filed the copy of the order in MVC- No.281/2010 dated 03.10.2023, passed - 8 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 by the Senior Civil Jduge, Bangalore after remanding the matter for fresh Disposal in MFA No.10212/2012 dated 10.10.2022 regarding other claimants who met with an accident on 29.01.2009 and stated that Insurance company deposited the compensation amount and complied the orders in the said case. But this appeal was preferred way back in the year 2013. As such, it was continued by the Insurance Company without compliance of the payment of amount. 10. As the Insurance Company has not challenged the award of the tribunal in MVC No.281/2010 and deposited the amount, their contention in this appeal, which is arising out of the same accident is devoid of merits. In the result appeal is dismissed. Insurance company is directed to deposit compensation of Rs.1,06,634/- along with interest at a rate of 6% p.a., within one month from the date of the order. - 9 - HC-KAR CNR: KAHC010169102013 NC: 2026:KHC:49052 MFA No. 5086 of 2013 On such deposit, claimant is permitted to withdraw the entire amount along with interest accrued on the same. Sd/- (P SREE SUDHA) JUDGE AKV List No.: 19 Sl No.: 1 CT;SI