UNITED INDIA INSURANCE CO. LTD., vs SRI. MALLIKARJUN

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HC-KAR
NC: 2026:KHC-D:16803
MFA No. 100572 of 2020


CNR: KAHC020051082020



IN THE HIGH COURT OF KARNATAKA AT DHARWAD


TH
DATED THIS THE 9 DAY OF OCTOBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE RAGHAVENDRA SEETHARAM SRIVATSA

MISCELLANEOUS FIRST APPEAL NO. 100572 OF 2020 (MV-I)

BETWEEN:

UNITED INDIA INSURANCE CO. LTD.,
THE DIVISIONAL MANAGER,
BELAGAVI D.O. AT SEETHA SMRUTHI,
MARUTI GALLI, BELAGAVI,
REPRESENTED BY ITS DIVISIONAL MANAGER.



…APPELLANT
(BY SMT. PREETI SHASHANK AND SRI. SHASHANK S. HEDGE,
ADVOCATES)

AND:
1. SRI. MALLIKARJUN S/O. APPANNA GURAV,
AGE: 44 YEARS, OCC: PRIVATE SERVICE, NOW NIL,
R/O. DONWAD, TQ: CHIKKODI,
DIST: BELAGAVI, PINCODE: 591201.






2. MRS. SUSHILA DHAKAPPA LIMBIGID,
AT/POST: HALATTI, CHIKKODI TALUKA,
BELAGAVI DISTRICT, PINCODE: 591201
…RESPONDENTS
(BY SRI. SHARAD M. PATIL, ADVOCATE FOR R1;
SRI. SANTOSH S. HATTIKATAGI, ADVOCATE FOR R2)

THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR
VEHICLES ACT, 1988, AGAINST THE JUDGMENT AND AWARD DATED
07.09.2019 PASSED IN MVC NO.1047/2018 ON THE FILE OF THE V
ADDL. DISTRICT AND SESSIONS JUDGE AND MACT VI, BELAGAVI,
AWARDING COMPENSATION OF RS.5,29,520/- WITH INTEREST AT
9% P.A. AND ETC.

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

CORAM: HON'BLE MR. JUSTICE RAGHAVENDRA SEETHARAM SRIVATSA

BHARATHI
H M


Digitally signed by
BHARATHI H M
Location: high court of
karnataka, dharwad
bench
Date: 2026.10.29
14:42:10 +0530

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HC-KAR
NC: 2026:KHC-D:16803
MFA No. 100572 of 2020


CNR: KAHC020051082020


ORAL JUDGMENT



1. This appeal is filed by insurance company being
aggrieved by the judgment and award dated 07.09.2019
passed by the Motor Accident Claims Tribunal-VI,
1
Belagavi in MVC No.1047/2018. By the said judgment
and award, the Tribunal partly allowed the claim petition
filed by respondent No.1 herein and directed payment of
compensation of Rs.5,29,520/- with interest at the rate of
9% p.a.


2. The facts, in brief, culminating the present
appeal are as follows :

2.1 Respondent No.1 was proceeding on a
motorcycle bearing No.KA-23/Y-5725 on 26.04.2018 at
about 01:15 p.m. on Chikkodi-Belagavi Road in
Chikkodi town. At that time, the offending tractor
bearing No.MH-09/AL-8579 came from Belagavi road

1
Hereinafter referred to as ‘Tribunal’

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NC: 2026:KHC-D:16803
MFA No. 100572 of 2020


CNR: KAHC020051082020


side in a rash and negligent manner and hit the
motorcycle.

2.2 As a result of the collision, the respondent No.1
sustained injuries. He was admitted in the hospital from
26.04.2018 up to 30.05.2018.

2.3 The police have registered a case against the
driver of the tractor.

2.4 Respondent No.1 - claimant was aged 42 years
at the time of accident and he was earning Rs.13,535/-
per month.

2.5 The respondent No.1-claimant claimed that he
suffered permanent disability because of the injuries
suffered at the accident.

2.6 The respondent No.1-claimant filed a claim
petition before the Tribunal seeking compensation of
₹32,00,000/-.

2.7 Upon service of notice, the owner of the vehicle
who is respondent No.2 herein filed objections denying

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HC-KAR
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MFA No. 100572 of 2020


CNR: KAHC020051082020


the averments made in the claim petition and any
liability to pay compensation.

2.8 The present appellant-insurance company also
filed objections and denied liability. It was contended
that the driver of the tractor did not hold a valid driving
licence. Therefore, the terms and conditions of the
policy had been violated and the insurance company
had no liability to pay the compensation.

2.9 After framing issues and taking evidence, the
Tribunal passed the impugned judgment and award.


3. I have heard Smt. Preeti Shashank and Sri
Shashank S. Hedge, learned counsel for appellant and Sri
Sharad M. Patil, learned counsel for respondent No.1.


4. Issue No.2 formulated by the Tribunal was
“Whether the respondent No.2 proves that the respondent
No.1 has violated the terms and conditions of the
insurance policy?” While answering the said issue, the
Tribunal has held that the owner of the vehicle has

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MFA No. 100572 of 2020


CNR: KAHC020051082020


violated the terms and conditions of the insurance policy
by giving the tractor to a driver who was not having a
driving licence. Despite the same, the Tribunal proceeded
to hold that the owner of the vehicle and the insurance
company are jointly and severally liable to pay the
compensation to the claimant-respondent No.1 herein.
However, the Tribunal deducted 25% of the amount
calculated by it as the total compensation in view of the
fact that the driver did not hold a driving licence. There is
no rationale for such deduction.


5. It is seen that the Tribunal has erroneously held
that the insurance company is also jointly and severally
liable to pay the compensation along with the owner of
the vehicle. Having found that the owner of the vehicle
had violated the terms and conditions of the policy by
giving the tractor to a person who did not have a valid
driving licence, the Tribunal was not justified in holding
the insurance company liable.

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MFA No. 100572 of 2020


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6. Although the insurance company is not liable
stricto sensu
, in view of the judgments of the Hon'ble
Supreme Court in National Insurance Co. Ltd. Vs.
2
Swaran Singh and others and also the judgment in
Shamanna and another vs. The Divisional Manager,
3
Oriental Insurance Co. Ltd. and others , it is just and
necessary to modify the award of the Tribunal directing
that the insurance company shall satisfy the award and
recover the same from the owner of the vehicle.


7. Learned counsel for the appellant-insurance
company contends that the interest granted by the
Tribunal at the rate of 9% per annum is unjustified in
view of the judgment of this Court.


8. In view of the Division Bench judgment of this
Court in Ms. Joyeeta Bose and Others vs.

2
(2004) 3 SCC 297
3

AIR 2018 SC 3726

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HC-KAR
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MFA No. 100572 of 2020


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4
Venkateshan V. and Others the interest so awarded
by the Tribunal is reduced from 9% per annum to 6% per
annum.


9. In the light of the aforesaid discussion, the
following order is made:
ORDER

(i) The appeal is partly allowed.

(ii) The judgment and award dated 07.09.2019
passed by the Motor Accident Claims Tribunal-
VI, Belgavi in MVC No.1047/2018 is modified to
the extent that the appellant-insurance
company shall pay the awarded compensation
amount to the claimant in the first instance and
then recover the same from the owner of the
vehicle.


(iii) The interest awarded by the Tribunal is reduced
from 9% per annum to 6% per annum.


4

MFA No.5896/2018 c/w MFA Nos.4444/2018 and 4659/2018(MV),

decided on 24.08.2020

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HC-KAR
NC: 2026:KHC-D:16803
MFA No. 100572 of 2020


CNR: KAHC020051082020



(iv) The amount deposited before this Court is
ordered to be transferred to the Tribunal.



Sd/-
(RAGHAVENDRA SEETHARAM SRIVATSA)
JUDGE



NAA
CT:SD
LIST NO.: 1 SL NO.: 23