IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
B.A. PATIL, J.
THE DIVISIONAL MANAGER, UNITED INDIA, INSURANCE CO. LTD., REP. BY DIVISIONAL MANAGER - APPELLANT
Vs.
SMT. JAYAMMA W/O HANUMANTHAPPA NYAMATHI & ORS. - RESPONDENTS
Miscellaneous First Appeal No.23097 of 2012 (Mv)
Decided On : 25-01-2018
In the facts and circumstances of the case, plying the autorickshaw a few kilometres beyond the permit limits doesn't amount to fundamental breach of the terms of the policy. The said alleged violation finds no place in Section 149(2) of the Act. Therefore, the defence of the Insurer that the vehicle in question had been driven beyond the territorial limits of Ranebennur amounts to violation of the permit condition, is not acceptable.
The terms and conditions attached to each type of permit cannot be construed as the purpose for the permit. 'Purpose' and 'the terms of conditions' are two different aspects. The Legislature in its wisdom thought it fit to restrict the defence available under Section 149(2)(a)(i)(c) of the Act 'for a purpose not allowed by the permit' and not for 'violation of any terms and conditions of the permit'. For example, if a vehicle holding goods carriage permit is carrying passengers or vice-versa. Then, it can be held that the vehicle holding goods carriage permit is being used for a purpose not allowed by the permit. The breach of conditions of the permit would by itself cannot be characterised as the purpose not allowed in the permit.
Even as could be seen from the written statement filed by the insurer, at paragraph 9, he has specifically contended that permit given to the autorickshaw bearing registration No.KA.27/A.1891 is to ply within 10 kms from the city limits of Ranebennur. But the owner of autorickshaw had taken away the said autorickshaw 22 kms away from Ranebennur limits. There is difference between two aspect. First one, there is no permit at all to ply the vehicle and the second one is, there is permit but has gone beyond the limit. In the first one, it is a fundamental breach and on proof, the insurer can avoid the liability. With respect to the second, city permit to a particular distance is fixed because large number of such vehicles are operated in the State to the detriment of public interest. Another aspect is that the State has to see that the ownership and control of the material resources are so distributed as best serve the common good and there should not be concentration. In that light, a breach only invites criminal penalty, as such, it is not so fundamental to say there us breach of policy condition. Appeal dismissed.
1. The present appeal has been preferred by the appellant-insurer challenging the judgment and award dated 25.05.2012 passed by the Additional Senior Civil Judge and Additional Motor Accident Claims Tribunal, Ranebennur, in MVC No.390 of 2010.
2. Heard. Though the appeal is listed for admission, with consent of the learned counsel appearing for the parties, it is taken up for final disposal.
3. The facts leading to the case are that on 15.03.2010 at about 11.00 a.m. one Hanumanthappa and members of his family were travelling in an autorickshaw bearing registration No.KA.27/A-1891 from Kuppelur to Kodiyal Hospeth for Darshan of Lord Durgadevi. When the said auto was so proceeding on Kuppelur-Holeanveri road, the driver drove the autorickshaw rashly and negligently and when it came near Lingadahalli cross, he lost control over the vehicle and the vehicle went into a pothole and then dashed against a dog and then went to left side of the road and toppled down. As a result of the said impact, Hanumanthappa sustained grievous injuries and on the way to Government Hospital, Ranebennur, he succumbed to the injuries. It is contended that after the post mortem, they took the dead body to their native place by hiring a vehicle and spent Rs.30,000/- for performing the funeral and final obsequies. It was further contended that the deceased was an agriculturist and was earning more than Rs.50,000/- per month. Because of the sudden death of Hanumanthappa, they have lost the bread earner and as such the wife, daughters, son and father of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as the ‘Act’ for short).
In pursuance of the notice, the respondents appeared and filed statement of objections. Respondent No.1, by denying the contents of the petition, contended that the vehicle was insured with respondent No.2 and the policy was in force as on the date of the accident and the driver was holding a valid and effective driving licence as on the date of the accident. On these grounds he prayed for dismissal of the petition.
Respondent No.2 in its objections denied the contents of the petition. It is contended that the alleged accident took place solely due to the rash and negligent act of the deceased himself. It is contended that the said vehicle had plied out of the territorial area and as such there is breach of policy condition, the insurer is not liable to pay any compensation. On these grounds, it prayed for dismissal of the petition.
On the basis of the above pleadings, the Tribunal framed the following issues:
1. Whether the petitioner proves that the deceased sustained injuries in the accident on 15.03.2010 and died as stated in the petition?
2. Whether the petitioner is entitled for compensation? If so what is the quantum and from whom?
3. What order or Award?
The petitioners, in order to prove their case, got examined petitioner No.4 as PW-1 and one more witness came to be examined as PW-2 and got marked the documents as Exs.P-1 to P-18. On behalf of the respondents, official of the insurer was examined as RW-1 and got marked the documents as Exs.R-1 to R-3.
The Tribunal, after hearing the parties to the lis, passed the impugned judgment and award, awarding compensation of Rs.7,44,000/- with interest at 6% per annum from the date of petition till its realization holding both the respondents jointly and severally liable to pay the compensation. But however, directed the second respondent to deposit the compensation with interest.
Assailing the aforesaid judgment and award, the insurer is before this Court.
4. I have heard Sri A.G. Jadhav, learned counsel appearing for the appellant-insurer and Sri Aravind D. Kulkarni, learned counsel for respondent Nos.1 to 6- claimants.
5. The main grounds urged by the learned counsel for the appellant is that the Tribunal has misapplied the law and the decision of the Apex Court and thereby by violating the existing law, has fastened the li
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