The Branch Manager Vs Sri Anand S/O Nagappa Muragod — Motor Accident Claims | Karnataka HC (2025)

The Branch Manager Vs Sri Anand S/O Nagappa Muragod — Motor Accident Claims | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal allowed and the Tribunal's award in MVC No.2471/2011 dated 28.11.2016 modified: insurer (appellant) to pay compensation with liberty to recover it from respondent Nos. 1 and 2 in appropriate proceedings; interest reduced to 6% per annum; amounts deposited by the appellant to be transmitted to the Tribunal; copy of judgment to be sent back to the Tribunal with TCR.

Issue for consideration

Whether the appellant insurance company is liable to pay compensation when the driver of the offending tractor-trailer had no valid and effective driving licence. +1 more

Court's answer

The orders passed in the connected MFAs (MFA Nos. 100149 and 100150 of 2017) are applicable to the facts of this case, and this appeal is disposed of on the same terms.

Ratio / Principle

Respondent Nos. 1 and 2 (the owners) are held liable to pay compensation; respondent No. 3, the insurer, shall pay the compensation with liberty to recover the same from respondent Nos. 1 and 2 in appropriate proceedings.

Key takeaways

The rate of interest awarded by the Tribunal is reduced to 6% per annum.ratio¶ORDER (iv)
The impugned judgment and award passed in MVC No.2471/2011 dated 28.11.2016 by the Senior Civil Judge and Addl. MACT, Saundatti is modified, the appeal being allowed.ratio¶ORDER (ii)

Detailed headnote1 paragraphs

Motor Accident Claims — Appeal under S.173(1) Motor Vehicles Act by insurer (United India Insurance Co. Ltd.) against award in MVC No.2471/2011 (Senior Civil Judge and Addl. MACT, Saundatti, dated 28.11.2016) contesting liability and interest where the driver of the offending tractor-trailer had no valid and effective driving licence. Following the coordinate Bench common judgment dated 04.02.2021 in MFA Nos. 100149 and 100150 of 2017 (The Divisional Manager v. Smt. Laxmi), which itself rested on New India Assurance Co. Ltd., Bijapur v. Yallavva, 2020(2) AKR 484, the High Court disposed of the appeal on the same terms: respondent Nos. 1 and 2 (owners) held liable; the insurer directed to pay the compensation with liberty to recover the same from them in appropriate proceedings (pay-and-recover); rate of interest reduced to 6% per annum; amounts deposited by the appellant to be transmitted to the Tribunal. Appeal allowed. (Umesh M Adiga, J., Dharwad Bench, 07-04-2025.)

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NC: 2025:KHC-D:6103 MFA No. 101158 of 2017

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 7^TH DAY OF APRIL, 2025

BEFORE

THE HON'BLE MR. JUSTICE UMESH M ADIGA

MISCELLANEOUS FIRST APPEAL NO. 101158 OF 2017 (MV-I)

BETWEEN:

THE BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD., BRANCH OFFICE KATAGI BUILDING, 1ST FLOOR, KACHERI ROAD, JAMAKHANDI, DIST: BAGALKOT, REPRESENTED THROUGH ITS DIVISIONAL OFFICE, MARUTI GALLI, BELAGAVI. REP. BY ITS DIVISIONAL MANAGER.

…APPELLANT

(BY SRI. NAGANAGOUDA R. KUPPELUR, ADVOCATE)

Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench

AND:

SRI. ANAND S/O. NAGAPPA MURAGOD, AGE 33 YEARS, OCC: NOW NIL, (AGRI. COOLIE), R/O. MUNAVALLI, TQ: SAUNDATTI AND DT. BELAGAVI.

SRI. SURESH, S/O. BHEEMAPPA KABBUR, AGE MAJOR, OCC: AGRICULTURE/BUSINESS, R/O. RANGAPURA, TQ: GOKAK, DIST: BELAGAVI. (OWNER OF THE TRACTOR TRAILER).

SMT. PARAVVA, W/O. BASAVANNI NINGANUR, AGE MAJOR, OCC: AGRICULTURE/HOUSEHOLD WORKS,

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NC: 2025:KHC-D:6103 MFA No. 101158 of 2017

R/O. PALABHAVI, TQ: RAIBAG, DIST:BELAGAVI. (OWNER OF THE HINDUSTAN TRACTOR TRAILER).

…RESPONDENTS

(BY SRI. GURURAJ R. TURAMARI, ADV. FOR R1;

SRI. Y. LAKSHMIKANT REDDY, ADV. FOR R2 & R3)

THIS MISCELLANEOUS FIRST APPEAL IS FILED U/S.173(1) OF MOTOR VEHICLES ACT, PRAYING TO CALL FOR THE RECORDS CONNECTED WITH AWARD AND JUDGMENT MADE IN MVC NO.2471/2011 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. MACT SAUNDATTI AND SET ASIDE THE AWARD DATED 28.11.2016 IN THE INTEREST OF JUSTICE.

THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

ORAL JUDGMENT

(PER: THE HON'BLE MR. JUSTICE UMESH M ADIGA)

Heard the learned counsel for both sides.

This appeal is filed by the insurance

company/respondent No.3 in MVC No.2471/2011 against the judgment and award dated 28.11.2016 by the Senior

Civil Judge and Addl.MACT, Saundatti (for short, ‘the

Tribunal’), challenging its liability to pay compensation.

The parties are referred to as per their rankings

before the Tribunal.

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As per the contents of the impugned judgment

it appears that three cases were lodged by different claimants to claim compensation, namely, MVC No.558/2011, MVC No.710/2013, along with the present MVC.

Learned counsel for both sides submits that the judgment and award passed in MVC No.558/2011 and MVC No.710/2013 were challenged before this Court in the case of The Divisioinal Manager Vs.Smt.Laxmi in MFA No.100149/2017, clubbed with MFA No.100150/2017. Both appeals were disposed of by a common judgment passed by the Coordinate Bench of this Court on 04.02.2021, in which it was held that the insurance company shall pay compensation with a liberty to recover

the same from the owner of the vehicle. The rate of interest was also modified from 9% to 6% per annum. It is further submitted that in this appeal, the appellant/insurance company challenges its liability to pay compensation as well as the rate of interest. The appellant

4 - NC: 2025:KHC-D:6103 MFA No. 101158 of 2017

contends that the driver of the offending tractor-trailer had no valid and effective driving licence and therefore the respondent/insurer is not liable to pay compensation. However, considering this contention, the Coordinate Bench in the aforementioned judgment held that the owner is liable and, referring to the judgment in the case

of New India Assurance Co.Ltd., Bijapur Vs.Yallavva W/o. Yamanappa Dharanakeri and another reported in 2020(2) AKR 484, directed the insurer to pay the compensation, with the right to recover the same. This appeal can be disposed of on the same terms.

All the three cases referred above were tried together and disposed of by the Tribunal. Two claimants in the two cases referred above preferred appeals in the above two MFAs. Hence order passed in the said two MFAs are also applicable to facts of this case. In the same line this appeal shall also to be disposed. Accordingly, this Court passed the following:

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ORDER

i. Appeal is allowed.

ii. The impugned judgment and award passed in MVC No.2471/2011 dated 28.11.2016 by the Senior Civil Judge and Addl.MACT, Saundatti is modified.

iii. Respondent Nos. 1 and 2 are held liable to pay compensation. Respondent No.3, being the insurer, shall pay the said amount of compensation, with liberty to recover the same from respondent Nos. 1 and 2 in appropriate proceedings.

iv. The rate of interest awarded by the Tribunal is reduced to 6% per annum.

v. Any amount deposited by the appellant shall be transmitted to the Tribunal.

vi. Send back copy of this Judgment to the Tribunal with TCR.

Sd/(UMESH M ADIGA) JUDGE

KGK /CT-AN /List No.: 1 Sl No.: 18