Partly allowed¶78

The Divisional Manager v. Sri. Nataraju

Karnataka HC8 Jan 2026MFA/7092/2018

Case brief

AI extract

What is this about?

MFA Nos. 7092-7094/2018 (MV-I), High Court of Karnataka, C.M. Poonacha J., 08.01.2026; New India Assurance Co. Ltd. v. Nataraju, Master N Chinthan and Priya; liability of insurer where driver/rider holds only a Learner's Licence; reliance on National Insurance Co. Ltd. v. Swaran Singh (2004 ACJ 1); interest reduced from 8% p.a. to 7% p.a.; awards in MVC Nos. 272, 273, 274 of 2016, Principal Judge, Court of Small Causes, MACT, Mysuru; appeals filed under S.173(1) MV Act; partly allowed; deposit directed to be transmitted to Tribunal.

What did the court decide?

Appeals allowed in part: interest payable under the Tribunal's awards reduced from 8% p.a. to 7% p.a.; the judgment and awards otherwise unaltered; the amount deposited by the appellant to be transmitted to the Tribunal for disbursement in terms of the award. ¶78

The Divisional Manager Vs Sri. Nataraju — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

¶78

Issue for consideration

Whether the insurer is liable to pay the compensation awarded when the rider of the vehicle possessed only a Learner's Licence. +1 more

¶64

Court's answer

On the authority of the Supreme Court's decision in National Insurance Co. Ltd. v. Swaran Singh (finding (viii): a vehicle driven at the time of accident by a person holding a learner's licence makes the insurance company liable to satisfy the decree), a person holding a Learner's Licence is duly licensed; accordingly the Tribunal's finding on the insurer's liability is not erroneous and does not warrant interference by this Court.

¶72-73

Ratio / Principle

Taking judicial notice of the interest awarded towards Fixed Deposits, the rate of interest awarded by the Tribunal is re-assessed from 8% p.a. to 7% p.a.; the impugned judgment and awards stand modified only to that extent and remain unaltered in all other respects.

¶75

Detailed headnote1 paragraphs

Motor Accident Claims - Insurer's appeals under S.173(1) MV Act against MACT, Mysuru awards in MVC Nos. 272, 273 and 274 of 2016 (Rs.30,000/-, Rs.1,00,000/- and Rs.1,10,000/- with 8% p.a. interest) - Ground that the rider held only a Learner's Licence and hence the insurer was not liable - Held, following the Supreme Court in National Insurance Co. Ltd. v. Swaran Singh (2004 ACJ 1), that a person driving on a Learner's Licence is duly licensed and the insurer is liable to satisfy the award; the Tribunal's finding did not warrant interference - Contention that 8% p.a. interest was excessive upheld in part: taking judicial notice of Fixed Deposit rates, interest re-assessed at 7% p.a.; awards otherwise unaltered - Appeals allowed in part; amount deposited to be transmitted to the Tribunal for disbursement.

¶1

¶2

NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶3

HC-KAR

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF JANUARY, 2026

¶5

BEFORE

¶6

THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 7092 OF 2018 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 7093 OF 2018 (MV-I) MISCELLANEOUS FIRST APPEAL NO. 7094 OF 2018 (MV-I)

¶7

IN MFA No. 7092/2018

¶8

BETWEEN:

¶9

THE DIVISIONAL MANAGER NEW INDIA ASSURANCE CO. LTD., J.L.B. ROAD, NEAR CHAMUNDIPURAM CIRCLE, MYSURU, THROUGH ITS REGIONAL OFFICE, MAHALAKSHMI CHAMBERS, M.G. ROAD, BENGALURU-560 001, REP. BY ITS DEPUTY MANAGER.

¶10

…APPELLANT

¶11

Digitally signed by NIRMALA DEVI

¶12

Location: HIGH COURT OF KARNATAKA

¶13

(BY SRI. SEETHA RAMA RAO B C .,ADVOCATE)

¶14

AND:

¶15

SRI. NATARAJU AGED ABOUT 41 YEARS, S/O. PUTTABUDI, RESIDING AT NO. 776, 4TH BLOCK, UDBUR VILLAGE, JAYAPURA HOBLI, MYSURU TALUK AND DISTRICT.

¶16

SRI. T. H. SWAMY AGED ABOUT 27 YEARS, S/O. HONNAIAH, TALLURU VILLAGE, JAYAPURA HOBLI,

¶17

¶18

NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶19

HC-KAR

¶20

MYSURU TALUK AND DISTRICT, (OWNER CUM RIDER OF MOTOR CYCLE NO. KA.09/HD-363)

¶21

…RESPONDENTS

¶22

(BY SRI. H.V. BHANUPRAKASH, ADVOCATE FOR R1 SRI. A.M. VIJAY, ADVOCATE FOR R2)

¶23

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 11/04/2018, PASSED IN MVC NO.272/2016, ON THE FILE OF THE PRINCIPAL JUDGE, COURT OF SMALL CAUSES, MACT, MYSURU, AWARDING COMPENSATION OF RS.30,000/-.

¶24

IN MFA NO. 7093/2018

¶25

BETWEEN:

¶26

THE DIVISIONAL MANAGER NEW INDIA ASSURANCE CO LTD., J.L.B.ROAD, NEAR CHAMUNDIPURAM CIRCLE MYSURU THROUGH ITS REGIONAL OFFICE MAHALAKSHMI CHAMBERS M.G.ROAD, BENGALURU - 560 001 REP BY ITS DEPUTY MANAGER.

¶27

...APPELLANT

¶28

(BY SRI. SEETHA RAMA RAO B C .,ADVOCATE)

¶29

AND:

¶30

MASTER N CHINTHAN AGED ABOUT 5 YEARS S/O SRI NATARAJU R/AT NO.776, 4TH BLOCK, UDBUR VILLAGE, JAYAPURA HOBLI MYSURU TALUK & DISTRICT BEING MINOR, REP BY HIS FATHER SRI P NATARAJU

¶31

SRI T H SWAMY AGED ABOUT 27 YEARS, S/O HONNAIAH TALLURU VILLAGE,

¶32

¶33

NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶34

HC-KAR

¶35

JAYAPURA HOBLI MYSURU TALUK & DISTRICT (OWNER-CUM-RIDER OF MOTOR CYCLE NO.KA.09/HD-363)

¶36

...RESPONDENTS

¶37

(BY SRI. H.V. BHANU PRAKASH., ADVOCATE FOR R1 SRI. A.M. VIJAY, ADVOCATE FOR R2)

¶38

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 11/04/2018, PASSED IN MVC NO.273/2016, ON THE FILE OF THE PRINCIPAL JUDGE, COURT OF SMALL CAUSES AND MACT, MYSURU, AWARDING COMPENSATION OF RS.1,00,000/-.

¶39

IN MFA NO. 7094/2018

BETWEEN:

...APPELLANT

(BY SRI. SEETHA RAMA RAO B C .,ADVOCATE)

¶44

AND:

¶45

SMT. PRIYA AGED ABOUT 32 YEARS, W/O. SRI. NATARAJU, RESIDING AT NO. 776, 4TH BLOCK, UDBUR VILLAGE, JAYAPURA HOBLI, MYSURU TALUK AND DISTRICT.

¶46

SRI. T. H. SWAMY AGED ABOUT 27 YEARS, S/O. HONNAIAH, TALLURU VILLAGE,

¶47

¶48

NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶49

HC-KAR

¶50

JAYAPURA HOBLI, MYSURU TALUK AND DISTRICT, (OWNER-CUM-RIDER OF MOTOR CYCLE NO. KA.09/HD-363)

¶51

...RESPONDENTS

¶52

(BY SRI. H.V. BHANU PRAKASH.,ADVOCATE FOR R1 SRI. A.M. VIJAY, ADVOCATE FOR R2)

¶53

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 11.04.2018 PASSED IN MVC NO.274/2016 ON THE FILE OF THE PRINCIPAL JUDGE, COURT OF SMALL CAUSES, SENIOR CIVIL JUDGE, MACT, MYSURU, AWARDING COMPENSATION OF RS.1,10,000/- WITHIN 30 DAYS FROM THE DATE OF AWARD.

¶54

THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

¶55

CORAM: HON'BLE MR. JUSTICE C.M. POONACHA

¶56

ORAL JUDGMENT

¶57

The present appeals are filed calling in question the judgment and awards dated 11.04.2018 passed by the Principal Judge, Court of Small Causes, Senior Civil Judge, MACT, Mysuru¹ , in MVC Nos.272, 273 and 274 of 2016, whereunder

¶58

the Tribunal has allowed the claim petitions and awarded a compensation, the details of which are as under:

¶59

i) MVC No.272/2016 30,000/ii) MVC No.273/2016 1,00,000/iii) MVC No.274/2016 `1,10,000/-

¶60

1 hereinafter referred to as 'Tribunal'

¶61

5 - NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶62

HC-KAR

¶63

The said compensation was ordered to be paid together with interest at 8% p.a., from the date of petition till date of realization.

¶64

The primary ground urged by the appellant - insurer in the above appeals is that the rider of the vehicle having possessed only a Learner's Licence, the insurer is not liable to pay the compensation awarded.

¶65

It is forthcoming that the Tribunal has referred to the judgment of Hon'ble Supreme Court in the case of National Insurance Co.Ltd., v. Swaran Singh² to hold that a person holding a Learner's Licence is also duly licenced. The relevant portion of the judgment in the case of Swaran Singh¹

¶66

is as under:

¶67

"110. The summary of our findings to the various issues as raised in these petitions is as follows: (i) ……………… …………..

¶68

(viii) If a vehicle at the time of accident was driven by a person having a learner's licence, the insurance companies would be liable to satisfy the decree."

¶69

2 (2004 ACJ 1)

¶70

6 - NC: 2026:KHC:1086 MFA No. 7092 of 2018 C/W MFA No. 7093 of 2018 MFA No. 7094 of 2018

¶71

HC-KAR

¶72

In view of the same, the finding of the Tribunal

¶73

cannot be held to the erroneous warranting interference by this Court in the present appeals.

¶74

The other contention urged by the appellant is that the rate of interest awarded at 8% p.a., is excessive.

¶75

Taking judicial notice of the interest awarded towards Fixed Deposits, the rate of interest awarded by the Tribunal is re-assessed at 7% p.a.

¶76

The impugned judgment and awards of the Tribunal

¶77

are modified only to the extent of holding that the interest payable shall be 7% p.a. The said judgment and awards of the Tribunal in all other respects remains unaltered.

¶78

The appeals are accordingly, allowed in part to the aforesaid extent.

¶79

The amount deposited by the appellant in the above appeals be transmitted to the Tribunal for disbursement in terms of the award of the Tribunal.

¶80

Sd/(C.M. POONACHA) JUDGE

¶81

ND/List No.: 1 Sl No.: 62

The Divisional Manager v. Sri. Nataraju

Case brief

What is this about?

What did the court decide?

The Divisional Manager v. Sri. Nataraju

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

Sri. Raju Vs Shwetha N

Smt. Shashirekha Jagadeesh Vs Rathna Prakash

Dr Ganesh J Raikar Vs the State of Karnataka

Chanukya v N @ Chanukya Vs Iffco Tokio General Insurance Co. Ltd.

National Insurance Company Ltd. Vs Igneshamma

Chandrashekar Vs Anbalagan G