Disposed¶49

New India Assurance Co. Ltd. v. Sri Venkataramu

Karnataka HC10 Jun 2026MFA/4334/2013

Case brief

AI extract

What is this about?

New India Assurance MFA No.4334 of 2013 Karnataka HC Bengaluru; Section 173(1) Motor Vehicles Act 1988 appeal; MVC No.53/2011 MACT & Senior Civil Judge Nanjangud award dated 02.02.2013; fatal accident 04.11.2010, deceased Madamma; no valid driving licence on date of accident (DL 04.06.2005 to 03.06.2010, renewed after expiry); pay and recovery principle; Pappu v. Vinod Kumar Lamba (2018) 3 SCC 208; compensation Rs.1,26,500/- with 6% interest; claim Rs.7,70,000/-; insurer to deposit and recover from owner; Hon'ble Mrs. Justice P Sree Sudha; appeal disposed off on 10.06.2026.

What did the court decide?

Appeal disposed off with the above observations: the Insurance Company to deposit the awarded amount and recover it from the owner of the vehicle by due process of law (pay and recovery). ¶49

New India Assurance Co. Ltd. Vs Sri Venkataramu — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Appeal disposed off with the above observations: the Insurance Company to deposit the awarded amount and recover it from the owner of the vehicle by due process of law (pay and recovery).

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Issue for consideration

Whether the Insurance Company was liable under the policy where the rider held no valid driving licence as on the date of the accident (04.11.2010), the licence having expired on 03.06.2010 and been renewed only thereafter — and if liable, whether on pay-and-recovery terms rather than outright exoneration.

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Court's answer

Finding that there was no valid driving licence as on the date of the accident, the Court held it just and reasonable to invoke the principle of pay and recovery (as per Pappu v. Vinod Kumar Lamba, (2018) 3 SCC 208) instead of exonerating the insurer.

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Ratio / Principle

The appellant-Insurance Company was directed to deposit the compensation amount, with liberty to recover the same from the owner of the vehicle by due process of law.

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Detailed headnote1 paragraphs

MFA (MV) No.4334 of 2013, High Court of Karnataka at Bengaluru, decided 10.06.2026 by Hon'ble Mrs. Justice P Sree Sudha (oral judgment). Insurer's appeal under Section 173(1) of the Motor Vehicles Act, 1988 against the judgment and award dated 02.02.2013 of the MACT & Senior Civil Judge, Nanjangud in MVC No.53/2011, which awarded Rs.1,26,500/- with interest at 6% for the death of Madamma in an accident of 04.11.2010 (claimants: two daughters and two daughters-in-law; claim of Rs.7,70,000/-). The insurer contended that the rider's driving licence was effective only from 04.06.2005 to 03.06.2010, so there was no valid licence on the date of accident, the licence having been renewed only after expiry, and sought exoneration; the RTO was examined for the insurer. Invoking Pappu and Others vs. Vinod Kumar Lamba and Another, (2018) 3 SCC 208, the Court held it just and reasonable to apply the principle of pay and recovery: the Insurance Company to deposit the amount with liberty to recover it from the owner of the vehicle by due process of law. Appeal stood disposed off.

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NC: 2026:KHC:27819 MFA No. 4334 of 2013

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10^TH DAY OF JUNE, 2026

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BEFORE

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THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO.4334 OF 2013 (MV)

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BETWEEN:

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NEW INDIA ASSURANCE CO., LTD BO-5, 3^RD CROSS, R.P.ROAD LAYOUT NANJANGUD REPRESENTING NEW INDIA ASSURANCE CO LTD., M G ROAD BENGALURU

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…APPELLANT

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(BY SRI. R.JAIPRAKASH, ADVOCATE)

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AND:

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Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA

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SRI.VENKATARAMU S/O VENKATACHALAIAH AGED ABOUT 59 YEARS SECRETARY, KUDLA GRAMA PANCHAYAT GULLAHALLI VILLAGE & HOBLI NANJANGUD TALUK

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SMT. MAHADEVAMMA AGED ABOUT 34 YEARS

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SMT.CHIKKAHENNAMMA AGED ABOUT 42 YEARS

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SMT.SAKAMMA AGED ABOUT 47 YEARS

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NC: 2026:KHC:27819 MFA No. 4334 of 2013

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HC-KAR

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SMT.MAHADEVAMMA AGED ABOUT 42 YEARS

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ALL ARE R/AT CHAMALAPURA HUNDI KASABA HOBLI NANJANGUD TALUK

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…RESPONDENTS

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(BY SRI. G B MANJUNATHA, ADVOCATE FOR R1, SRI.MANJUNATH N.D., ADVOCATE FOR R.3 AND R.5; R.2 AND R.4 ARE SERVED AND UNREPRESENTED)

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THIS MFA IS FILED U/SEC.173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 2.2.2013 PASSED IN MVC NO.53/2011 ON THE FILE OF THE MACT AND SENIOR CIVIL JUDGE, NANJANGUD, AWARDING COMPENSATION OF RS.1,26,500/- WITH INTEREST OF 6% P.A. FROM THE DATE OF PETITION TILL ITS PAYMENT AND ETC.

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THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA

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ORAL JUDGMENT

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Notice to respondent Nos.2 and 4 is served, but they

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did not turn up and placed ex-parte .

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Learned counsel for respondent Nos.3 and 5 is absent.

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NC: 2026:KHC:27819 MFA No. 4334 of 2013

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HC-KAR

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Heard the arguments of appellant's counsel.

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As the matter is of the year 2013, this Court proceeded to dictate the matter.

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This appeal is filed by the appellant/New India Assurance Company Limited, under Section 173(1) of Motor Vehicles Act, 1988, challenging the judgment and award dated 02.02.2013 passed

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MVC No.53/2011 by MACT & Civil Judge (Senior Division) Nanjangud.

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Madamma met with an accident on 04.11.2010 and sustained fatal injuries and succumbed to the injuries. Claimant Nos.2 and 4 are the daughters of the deceased and claimant Nos.1 and 3 are the daughter-in-laws of the deceased. They filed claim petition claiming compensation of Rs.7,70,000/- with interest. After considering the entire evidence on record, the Tribunal has granted an amount of Rs.1,26,500/- along with interest at the rate of 6% p.m.

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4 - NC: 2026:KHC:27819 MFA No. 4334 of 2013

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HC-KAR

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Aggrieved by the said award, the Insurance

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Company has preferred this appeal and mainly contended that the accident occurred on 04.11.2010 and the rider has got DL effective from 04.06.2005 to 03.06.2010. As on the date of accident, there was no valid driving licence. The Tribunal ought to have exonerated the appellants from any liability, however, it is erred in foisting the liability on the Insurance Company. The driving licence was renewed five months after its expiry i.e., 30 days after the expiry of the Driving Licence. It is contrary to the law. Therefore, requested the Court to exonerate them and set-aside the order.

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The Insurance Company has also examined the RTO on their behalf. In view of the citation reported in the case of Pappu and Others vs. Vinod Kumar Lamba and Another reported in (2018) 3 SCC 208 , this Court finds it just and reasonable to invoke the principle of pay and recovery as it is a case of no Driving Licence as on the date of accident. Therefore, this Court finds that it is just

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NC: 2026:KHC:27819 MFA No. 4334 of 2013

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HC-KAR

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and reasonable to direct the appellant - Insurance

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Company to deposit the amount and they are at liberty to recover the same from the owner of the vehicle by due process of law.

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With these above observations, the appeal stands

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