Allowed

M/S Bharti Axa General Insurance Company Ltd., v. Shiva Kumar

Karnataka HC13 Jun 2023MFA/6443/2012

Case brief

AI extract

What is this about?

The High Court allowed an appeal filed by the insurer against a Motor Accident Claims Tribunal judgment. The court held that since the premium cheque was dishonoured and the policy cancelled before the accident, no valid insurance contract existed, rendering the insurer non-liable.

What did the court decide?

The judgment and award of the Tribunal are set aside. Respondent No.2/owner is directed to pay compensation to Respondent No.1. Amount in deposit refunded to the appellant.

M/S Bharti Axa General Insurance Company Ltd., Vs… — Motor Accident Claims | Karnataka HC (2023)

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NC: 2023:KHC:20325 MFA No. 6443 of 2012

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 13^TH DAY OF JUNE, 2023

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BEFORE

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THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 6443 OF 2012 (MV)

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BETWEEN:

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M/S BHARTI AXA GENERAL INSURANCE COMPANY LTD., PRIDE QUADRA BUILDING, NO.30, 2ND FLOOR, HEBBAL ROAD, BANGALORE - 560 024.

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…APPELLANT

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(BY SRI. B PRADEEP, ADVOCATE)

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AND:

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Digitally signed by PAVITHRA B Location: HIGH COURT OF KARNATAKA

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SHIVA KUMAR, S/O NANJAPPA, NOW AGED ABOUT 26 YEARS, R/A ADARSH NAGAR, ARASINAKUNTE VILLAGE, NELAMANGALA TALUK - 562 123. 2. MR. NEHAL AHMED RAJA, R/A A.F. DALABHAI NAGAR, KATHOR TALUKA KAMRAEJ, DISTRICT SURAT, GUJARAT - 562 123.

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…RESPONDENTS

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(BY SRI. KALYAN R, ADVOCATE FOR R1;

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VIDE ORDER DATED 27.07.2015, SERVICE OF NOTICE HELD SUFFICIENT IN RESPECT OF R2)

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THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.01.2012 PASSED IN MVC

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NC: 2023:KHC:20325 MFA No. 6443 of 2012

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NO.260/2011 ON THE FILE OF THE 14TH ADDITIONAL JUDGE, MACT, COURT OF SMALL CAUSES, BENGALURU, AWARDING A COMPENSATION OF RS.1,60,400/- WITH INTEREST @ 6% P.A. FROM THE DATE OF PETITION TILL PAYMENT.

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THIS APPEAL, COMING ON FOR HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING:

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JUDGMENT

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This appeal is filed by the appellant/insurance

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company seeking to set aside the judgment and award

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dated 24.01.2012 passed in MVC No.260/2011 by the Motor Accident Claims Tribunal, Court of Small Causes, Bengaluru City (SCCH.10).

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2. Brief facts of the case are that:

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On 06.02.2010 at about 11.30 a.m., the petitioner

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was proceeding in the motorcycle bearing Reg.No.KA-04EQ-7425 as a rider from Tumkur-Bangalore NH Road, when he reached near BML Petrol Bunk, at that time, a lorry bearing Reg.No.GJ-19-T-3631 driven by its driver in a rash and negligent manner and with high speed suddenly turned the vehicle to the right side and hit the motorcycle and caused the accident. Due to the impact,

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NC: 2023:KHC:20325 MFA No. 6443 of 2012

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the petitioner fell down and sustained grievous injuries on his body. Therefore, the petitioner has filed the claim petition, seeking compensation.

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Heard the arguments of learned counsel for the

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appellant and the learned counsel for the respondents and perused the records.

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Learned counsel for the appellant submitted

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that the cheque with regard to payment of premium was bounced. As such, as on the date of accident, there was no valid insurance coverage to indemnify the owner of the lorry and therefore, the liability fixed on the appellantinsurance company is not correct. Hence, it is liable to be set aside.

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On the other hand, learned counsel for respondents justified the judgment and award passed by the Tribunal.

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NC: 2023:KHC:20325 MFA No. 6443 of 2012

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In the present case, the accident was occurred on 06.12.2010 at 11.30 a.m. Respondent No.2/owner had paid the premium amount of Rs.15,656/- by way of cheque bearing No.395219 dated 17.08.2010. The said cheque was presented to the Bank (Ex.R2) and it was returned with endorsement as 'funds insufficient' and thereafter, the appellant has cancelled the insurance policy. When considering the date of accident and cheque with regard to payment of premium, it is seen that there is a gap of nearly four months. Therefore, soon after the cheque is presented, it was dishonoured and immediately the appellant has issued intimation of cancellation. Then also, respondent No.2/owner has not paid the premium amount. Therefore, when the cheque is bounced and premium was not paid, then there would not be any contract of insurance and the appellant is not liable to pay compensation to the respondent No.1/claimant. Therefore, on this ground the appellant is not liable to pay compensation. But respondent No.2/owner is liable to pay compensation to respondent No.1/claimant. Hence, the

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NC: 2023:KHC:20325 MFA No. 6443 of 2012

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appeal filed by the insurance company is liable to be allowed. Accordingly, the judgment and award passed by the Tribunal is hereby set aside.

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Accordingly, I proceed to pass the following:

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ORDER

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i. The appeal is allowed .

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ii. The judgment and award dated 24.01.2012 passed in MVC No.260/2011 by the Motor Accident Claims Tribunal, Court of Small Causes, Bengaluru City (SCCH.10) is hereby set aside.

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iii. Respondent No.2/owner shall pay compensation to respondent No.1/claimant.

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iv. Amount in deposit shall be refunded to the appellant/Insurance Company.

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v. Registry is directed to return the Trial Court Records to the Tribunal, along with certified copy of the order forthwith without any delay.

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SSD

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Sd/JUDGE

M/S Bharti Axa General Insurance Company Ltd., v. Shiva Kumar

Case brief

What is this about?

What did the court decide?

M/S Bharti Axa General Insurance Company Ltd., v. Shiva Kumar

Case brief

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What did the court decide?

What the court decided

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