Karnataka HC Lets Insurer File Late Accident-Claim Defence After Document Delay, Applying Read-Down CPC Rule And Requiring ₹5,000 Costs

Respondent No. 1 filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for injuries sustained in a road accident.

The petitioner-insurer did not file its written statement within time, explaining that it was awaiting completion of an investigation and collection of documents.

It applied to file the statement belatedly; the claimant did not oppose the application, subject to costs.

The Tribunal rejected it, relying on the amended Order VIII Rule 1 of the Code of Civil Procedure, 1908 (CPC).

The insurer challenged that order under Article 227 of the Constitution.

Section 166 of the Motor Vehicles Act, 1988 provides for claims for compensation arising from motor-vehicle accidents.

The Court considered Order VIII Rule 1 of the CPC, as amended in Karnataka by Section 4 of the Code of Civil Procedure (Karnataka Amendment) Act, 2024.

Relying on Basavaraj S. v. State of Karnataka, W.P. No. 8032 of 2026 connected with W.P. No. 9372 of 2026 (decided 28 July 2026), it noted that the amended provisions had been read down: the prescribed consequences for delay do not wholly exclude judicial discretion in exceptional cases where refusal would cause grave miscarriage of justice.

That discretion is to be exercised only in strict accordance with the stated principles and upon recording reasons demonstrating exceptional and compelling circumstances.

The insurer explained that the delay arose because the matter was under investigation and it received the written statement only after the limitation period had expired; the Court accepted that the failure to file in time was not intentional.

The claimant did not oppose permission, requesting only costs.

Applying the approach in Basavaraj S., the Court held that the Tribunal had erred in rejecting the application and that the insurer had shown sufficient cause for the delay.

It allowed I.A. No. 1, subject to the insurer paying costs of ₹5,000 to the claimant before the Tribunal by the next hearing date, and directed that the written statement be taken on record.