Disposed

Lokesh v. Nayan Chimanlal Khonda

Karnataka HC5 Jul 2024MFA/242/2019

Case brief

AI extract

What is this about?

Two claimants appealed enhancement and the Tribunal's decision to place liability on the vehicle owner because the lorry driver had no valid driving licence. Relying on a Full Bench ruling, the court held the insurer must pay compensation first, recovering it from the owner in the same proceedings.

What did the court decide?

Insurer directed to pay tribunal-awarded compensation with interest at 6% p.a. within three months and recover from owner in same proceedings.

Lokesh Vs Nayan Chimanlal Khonda — Insurance | Karnataka HC (2024)

¶1

¶2

NC: 2024:KHC:26492 MFA No. 242 of 2019 C/W MFA No. 243 of 2019

¶3

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶4

DATED THIS THE 5^TH DAY OF JULY, 2024

¶5

BEFORE

¶6

THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR MISCELLANEOUS FIRST APPEAL NO. 242 OF 2019 (MV-I)

¶7

C/W

¶8

MISCELLANEOUS FIRST APPEAL NO. 243 OF 2019 (MV-I)

¶9

IN MISCELLANEOUS FIRST APPEAL NO. 242 OF 2019:

¶10

BETWEEN:

¶11

LOKESH S/O RANGASHAMAIAH NOW AGED ABOUT 27 YEARS R/AT THIGALARAPALYA KALARI POST, KASABA HOBLI, MAGADI TALUK RAMANAGARA DISTRICT-562 120.

¶12

…APPELLANT

¶13

(BY SRI. RANGEGOWDA N.R., ADVOCATE)

¶14

Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA

¶15

AND:

¶16

NAYAN CHIMANLAL KHONDA FATHER NAME NOT KNOWN AGED MAJOR R/AT NO.11/12, BGTA COMPOUND REHNAL VILLAGE PURNA VILLA, TAL BHIWANDI THANE DISTRICT MAHARASTRA STATE-421 501.

¶17

THE MANAGER ICICI LOMBARD MOTOR INSURANCE COMPANY LTD, NO.89, II FLOOR SVR COMPLEX , MADIVALA

¶18

2 - NC: 2024:KHC:26492 MFA No. 242 of 2019 C/W MFA No. 243 of 2019

¶19

HOSUR MAIN ROAD BANGALORE-560 068.

¶20

…RESPONDENTS

¶21

(BY SRI. B. PRADEEP, ADVOCATE FOR R2; V/O DATED 19.12.2023 NOTICE TO R1 IS H/S; R1 SERVED AND UNREPRESENTED)

¶22

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 05/06/2017, PASSED IN MVC NO.4096/2016, ON THE FILE OF THE MEMBER, PRINCIPAL MACT, AND CHIEF JUDGE, COURT OF SMALL CAUSES, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

¶23

IN MISCELLANEOUS FIRST APPEAL NO. 243 OF 2019:

¶24

BETWEEN:

¶25

RANGASHAMAIAH S/O LATE NARAYANAIAH NOW AGED ABOUT 59 YEARS R/AT THIGALARAPALYA KALARI POST, KASABA HOBLI MAGADI TALUK, RAMANAGARA DISTRICT.

¶26

…APPELLANT

¶27

(BY SRI. RANGEGOWDA N.R., ADVOCATE)

¶28

AND:

¶29

NAYAN CHIMANLAL KHONDA FATHER NAME NOT KNOWN AGED MAJOR R/AT NO.11/12, BGTA COMPOUND REHNAL VILLAGE, PURNA VILLA TAL BHIWANDI, THANE DISTRICT MAHARASTRA STATE-421 501.

¶30

THE MANAGER ICICI LOMBARD MOTOR INSURANCE COMPANY LTD, NO.89, II FLOOR SVR COMPLEX, MADIVALA HOSUR MAIN ROAD BANGALORE-560 068.

¶31

…RESPONDENTS

¶32

3 - NC: 2024:KHC:26492 MFA No. 242 of 2019 C/W MFA No. 243 of 2019

¶33

(BY SRI. A.N. KRISHNA SWAMY, ADVOCATE FOR R2; V/O DATED 19.12.2023 NOTICE TO R1 IS H/S; R1 SERVED AND UNREPRESENTED)

¶34

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 05/06/2017, PASSED IN MVC NO.4097/2016, ON THE FILE OF THE MEMBER, PRINCIPAL MACT, AND CHIEF JUDGE, COURT OF SMALL CAUSES, BENGALURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

¶35

THESE APPEALS, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT DELIVERED THE FOLLOWING:

¶36

JUDGMENT

¶37

These appeals arise from the judgment and award dated 05.06.2017 in MVC No. 4097/2016 and MVC No. 4096/2016, passed by the Member, Prl. Motor Accident Claims Tribunal, and Chief Judge, Court of Small Causes, Bengaluru.

¶38

The claimants filed petitions under Section 166 of the Motor Vehicles Act, seeking just and proper compensation for injuries sustained in a road traffic accident that occurred on 09.04.2014. The Tribunal awarded a total compensation of Rs.40,000/- to the claimant in MVC No. 4096/2016, and Rs.15,000/- to the claimant in MVC No. 4097/2016, with interest at the rate of 9% per annum from the date of petition until realization. However, the Tribunal fastened the liability to pay the compensation on the owner of the offending vehicle (a lorry) on the grounds that the lorry driver did not possess a valid driving license on the date of the accident.

¶39

4 - NC: 2024:KHC:26492 MFA No. 242 of 2019 C/W MFA No. 243 of 2019

¶40

The claimants have appealed, seeking enhancement of the compensation and contesting the liability placed on the owner of the offending vehicle to pay the compensation.

¶41

Heard the learned counsel for the parties and perused the Trial Court records.

¶42

It is undisputed that the lorry driver did not have a valid driving license to operate the offending vehicle at the time of the accident. However, the Full Bench of this Court in New India Assurance Company Limited vs. Yallavva W/o Yamanappa, reported in 2020 (2) AKR 484, held:

¶43

"iv) Thus, in a case where Section 149(2)(b) applies and the insurance company successfully establishes that the policy is void, the insurer is not absolved of its liability to satisfy the judgment or award as rights or obligations would flow even from a policy which is void vis-à-vis a third party. In such a case, the insurer is not completely absolved of its liability; the insured would have to satisfy the award vis-à-vis the third party and recover from the insured the amount paid to the third party and may also have a right to seek damages from the insured."

¶44

In light of the Full Bench ruling, the Insurance Company cannot fully absolve itself of liability to pay the compensation awarded to the claimant in the first instance. However, the insurer retains the right to recover the amount from the owner of the vehicle in the same proceedings. Therefore, the Insurance Company is held liable to pay the compensation upfront and recover it from the owner of the vehicle in the same proceedings.

¶45

5 - NC: 2024:KHC:26492 MFA No. 242 of 2019 C/W MFA No. 243 of 2019

¶46

7. The appeals are disposed of.

¶47

The Insurance Company is liable to pay the compensation amount in both the appeals with interest at 6% p.a. to the claimants initially, and recover the same from the owner of the offending vehicle in the same proceedings, in accordance with the law.

¶48

The compensation amount, with accrued interest at the rate of 6% p.a., is to be deposited by the Insurance Company within a period of three months from the date of receipt of a certified copy of this order.

¶49

To this extent the impugned judgment and award stands modified.

¶50

The compensation amount, as ordered by the Tribunal, remain unaltered.

¶51

Sd/(HEMANT CHANDANGOUDAR) JUDGE

¶52

Lokesh v. Nayan Chimanlal Khonda

Case brief

What is this about?

What did the court decide?

Lokesh v. Nayan Chimanlal Khonda

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Sri Srinivasa Gowda Vs the Principal Secretary to the

S P Chandrashekargowda Vs Sri Shashikanth Pande

Smt Mayavvagouli Vs Reliance General Insurance Company Ltd.

Jayappa Vs G T Halesha

The Divisional Controller Vs Harisha

The National Insurance Co. Ltd. Vs Damu Gowda