Jeevan S/O. Nagaraj Mattihalli Vs Nagaraj Alias… — Motor Accident Claims | Karnataka HC (2026)

Jeevan S/O. Nagaraj Mattihalli Vs Nagaraj Alias… — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Appeal allowed in part: the Insurance Company (respondent No.2) shall pay the compensation and recover the same from the owner of the vehicle; the entire amount carries interest at 6% per annum from the date of petition till realization; respondent No.2 shall deposit the entire amount within eight weeks of receipt of copy of the judgment, after which the claimant may withdraw the entire amount without furnishing any security; Registry to send certified copy forthwith; no costs; pending miscellaneous petitions closed.

Issue for consideration

Whether, notwithstanding the Tribunal's finding that the driver did not possess a valid driving licence, the 'pay and recovery' principle ought to have been applied, directing the Insurance Company to first satisfy the award and recover it from the owner

Court's answer

Applying the Supreme Court decision in National Insurance Co. Ltd. v. Swaran Singh and Others, the principle of pay and recover will apply despite the absence of a valid driving licence; the Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle

Ratio / Principle

The entire amount shall carry interest at 6% per annum from the date of petition till the date of realization

Detailed headnote1 paragraphs

Motor Vehicles Act, 1988, S.173(1) – Miscellaneous First Appeal (MV-I) by the claimant against Tribunal award in MVC No.333/2018 which fastened liability on the owner of the Tata Magic vehicle (Reg. No.KA-27/A-7504) on the ground that the driver did not possess a valid driving licence at the time of the accident. Held: following the Hon'ble Apex Court in National Insurance Co. Ltd. v. Swaran Singh and Others (AIR 2004 SC 1531), the principle of 'pay and recover' will apply; the Insurance Company (Shriram General Insurance Co. Ltd.) is liable to pay the compensation and recover the same from the owner. Appeal allowed in part; interest at 6% per annum from date of petition till realization; insurer to deposit within eight weeks; claimant entitled to withdraw without security.

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NC: 2026:KHC-D:2119 MFA No. 100149 of 2023

HC-KAR

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 11^TH DAY OF FEBRUARY, 2026

BEFORE

THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

MISCELLANEOUS FIRST APPEAL NO.100149 OF 2023 (MV-I)

BETWEEN:

JEEVAN S/O. NAGARAJ MATTIHALLI, AGE. 07 YEARS, OCC. STUDENT, R/O. SOMANAHALLI VILLAGE, POST. TAVARAGI, TQ. HIREKERUR, DIST. HAVERI, MINOR GUARDIAN REPTD BY HIS NATURAL FATHER SRI. NAGARAJ S/O. SHEKHAPPA MATTIHALLI, AGE. 40 YEARS, OCC. AGRICULTURIST, R/O. SOMANAHALLI VILLAGE, POST. TAVARAGI, TQ. HIREKERUR, DIST. HAVERI.

…APPELLANT

(BY SRI. CHANDRASHEKHAR M.HOSAMANI, ADVOCATE)

Digitally signed byYASHAVANT YASHAVANT NARAYANKAR NARAYANKAR Date: 2026.02.18 10:44:50 +0530

AND:

NAGARAJ @ NAGAPPA S/O. BASAPPA NINGAVVANAVAR, AGE. 44 YEARS, OCC. BUSINESS, R/O. H.NO.29, NEAR ISHWAR TEMPLE, NULAGERI VILLAGE, POST. KALAGOUDA, TQ. HIREKERUR-581111, DIST. HAVERI.

(OWNER OF TATA MAGIC VEHICLE BEARING REG. NO.KA-27/A-7504)

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NC: 2026:KHC-D:2119 MFA No. 100149 of 2023

HC-KAR

SHRIRAM GENERAL INSURANCE CO. LTD., R/O. 12 V A KALABURGI HALLMARK BUILDING, DESAI CROSS, PINTO ROAD, HUBBALLI-580 029, (INSURER OF TATA MAGIC VEHICLE BEARING REG. NO.KA-27/A-7504) POLICY NO.10003/31/17/260063 VALID FROM 13.09.2016 TO 12.09.2017.

…RESPONDENTS

(BY SRI. NAGARAJ C.KOLLOORI, ADVOCATE FOR R2; SERVICE OF NOTICE TO R1 HELD SUFFICIENT)

THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 173 (1) OF MOTOR VEHICLES ACT, 1988, PRAYING TO ALLOW THIS APPEAL BY ENHANCING THE COMPENSATION BY MODIFYING THE JUDGMENT AND AWARD DATED 03.01.2020 PASSED IN MVC NO.333/2018 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL, HIREKERUR, IN THE INTEREST OF JUSTICE AND EQUITY.

THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

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NC: 2026:KHC-D:2119 MFA No. 100149 of 2023

HC-KAR

ORAL JUDGMENT

Aggrieved by the order dated 03.01.2020 passed in MVC No.333/2018 by the Senior Civil Judge & AMACT., Hirekerur (hereinafter referred to as ‘the Tribunal’, for short), the claimant is before this Court.

Learned counsel appearing for the claimant submits that, the claimant is aggrieved only with respect to the issue of liability, as the Tribunal has fastened the liability on the owner of the vehicle on the ground that the driver did not possess a valid driving licence at the time of the accident. Hence, it is respectfully submitted that, notwithstanding the said finding, the principle of “pay and recovery” ought to have been applied, directing the Insurance Company to first satisfy the award and thereafter, recover the same from the owner of the vehicle in accordance with law.

Learned counsel appearing for the respondent No.2/Insurance Company submits that, the liability is rightly fixed on the owner of the vehicle.

4 - NC: 2026:KHC-D:2119 MFA No. 100149 of 2023

HC-KAR

Having heard the learned counsels on either side, perused the material on record. Considering the judgment of the Hon'ble Apex Court in NATIONAL INSURANCE CO. LTD. V. SWARAN SINGH AND OTHERS¹ , the principle of pay and recover will apply. The Insurance Company is liable to pay the compensation and recover the same from the owner of the vehicle.

Accordingly, the miscellaneous first appeal is

allowed in part and the Insurance Company shall pay the compensation and recover the same from the owner of the vehicle.

i. The entire amount shall carry interest at 6% per annum from the date of petition till the date of realization.

ii. The respondent No.2- Insurance Company shall deposit the entire amount within a period of eight weeks from the date of receipt of copy of the judgment and recover the same from the owner of the vehicle. On such deposit, the claimant is entitled

1 AIR 2004 SC 1531

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NC: 2026:KHC-D:2119 MFA No. 100149 of 2023

HC-KAR

to withdraw the entire amount without furnishing any security.

iii. The Registry is directed to send the certified copy of the order passed by this Court forthwith without any delay.

iv. No costs.

v. Pending miscellaneous petitions, if any, shall stand closed.

Sd/JUSTICE LALITHA KANNEGANTI

RH CT: UMD List No.: 2 Sl No.: 34