The Insurer cannot evade liability for compensation due to permit violations that do not constitute a fundamental statutory infraction.

JUDGMENT :

C.M. Poonacha, J.

The present appeal is filed by the owner challenging the judgment and award dated 21.08.2012 passed in MVC.No.921/2010 by the II Additional Senior Civil Judge and VI Additional MACT, Davanagere.1 Hereinafter referred as 'Tribunal'

2. For the sake of convenience, the parties herein are referred as per their rank before the Tribunal.

3. The Tribunal by this judgment and award dated 21.08.2012 has allowed the claim petition filed by the claimant and awarded compensation of a sum of Rs. 4,19,000/- together with interest at 6% per annum. However, the liability to pay the compensation has been fastened on the owner of the vehicle, who was Respondent No.2 before the Tribunal. Being aggrieved, the present appeal is filed by the owner.

4. The sole contention urged by the learned counsel for the appellant/owner is that the Tribunal has fastened the liability on the owner to pay the compensation, due to the fact that the vehicle was plying at the place, where he did not have permit to operate and hence it was held that there was violation of the permit condition and the Insurer was exonerated from the liability of payment of the compensation awarded. He further submits that the said finding is erroneous and that even though there is a violation of the permit condition, the compensation is required to be fastened on the Insurer. In support of his contention he relies on a decision of the Division Bench judgments of this Court in the case of Rehana Begum v. New India Assurance Company Limited., judgment dated 27.07.2021 passed in MFA No.5960/2015 C/W 706/2013 And United India Insurance Company Limited v. Sandhya, judgment dated 7.06.2019 passed in MFA No.102428/2017(MV) .

5. Per contra, learned counsel for the respondent/Insurer submits that the finding of the Tribunal fastening the liability on the owner is just and proper. In support of his contention he relies on a Division Bench judgment of this Court in the case of Syedzaheer @ Sayyed Jahiruddin Bokhari v. Puttamadamma, dated 07.12.2023 passed in MFA No.5745/2016 C/W MFA No. 4811/2016.

6. The submissions made by both the learned counsels have been considered and the material on record have been perused including the records of the Tribunal. The question that arises for consideration is 'whether the finding of the Tribunal exonerating the Insurer from the liability to pay the compensation is just and proper?

7. It is forthcoming from the material on record that the accident occurred when the Insured bus was plying from Davanagere to Kukkuvada Road. The evidence of RW.2 and RW.3 discloses that the owner did not have the permit to ply on the said road.

8. Having regard to the material on record it is clear that the insured bus had a permit. However, it was plying on the route where it was not permitted to be used. A similar question arose before the co-ordinate Bench of this Court in the case of Durugamma v. S.G.Naresh And Others, 2017 (1) AKR 67 wherein after referring to various judgments as also after referring to Section 207 of the Motor Vehicles Act and this Court held that the liability to pay the compensation is on the Insurer.

9. A Division Bench of this Court in the case of Rehana Begum has after noticing various judgments, held that plying of the vehicles outside the permitted zone does not amount to fundamental statutory infraction and that the Insurer cannot be absolved of its liability to pay the compensation.

10. Further a Division Bench of this Court in the case of United India Insurance Company Limited has noticed the co-ordinate judgment of this Court in the case of Durugamma and as well as other judgments has held as follows:

17. It is held in Durugamma's case stated supra that, "there are different kinds of contravention of the permit, one of which is relating to the route on which or the area in which the vehicle may be used. The purpose for which the vehicle may be used is distinguishable from the terms and conditions of the permit. At last, the rout