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2026 Supreme(Online)(Kar) 12018
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 17TH DAY OF MARCH, 2026
BEFORE THE HON'BLE MR. JUSTICE B. MURALIDHARA PAI
MISCELLANEOUS FIRST APPEAL NO. 100182 OF 2015 (MV)
THE DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. LTD., ENKEY COMPLEX, KESHWAPUR, HUBLI. NOW REPRESENTED BY ITS DEPUTY MANAGER, THE ORIENTAL INSURANCE CO. LTD., REGIONAL OFFICE, I L I A N M D I N F G LO T O O R N , R S A U O M D A . N H G U A B L L A I - C 5 O 80 M 0 P 2 L 0 E .X , …APPELLANT
BY SRI. M.Y. KATAGI, ADVOCATE
AND:
1. MALLAPPA S/O ALLAPPA HANASI, AGE: 53 YEARS, OCC: AGRICULTURE, R/O: CHARANTIMATH GARDEN, DHARWAD. DYNLCKDD11 A o AO i Ha A g c : S t RU R 1 A i e a Ht N 5 A :R tR a i : A 2 Y l A o W T 4 lV 0 y An T 0 O A 2 A :N A s + D6 FH Ni K K g .0 0 I A T B n A 5 G 3 e E R 3 H . d N20 3 b C y
2. A R M YA G / A O L E L L : : L A A H M P P . P A N U A J O R O S . R R 3 / , 2 A O 0 O O M , C D R A C , A R : G J U B O N T U D A I S G A S I S A N H E R E I , R S P S L S O H , E T T , T D A H N A A R V W A A R D . (OWNER OF BAJAJ DISCOVER MOTOR CYCLE BEARING REG.NO.KA-25/EH-5377)…RESPONDENTS
BY SRI. B.V. SOMAPUR, ADVOCATE FOR R1; NOTICE SERVED R2
Sd/-
(B. MURALIDHARA PAI)
JUDGE
THIS MFA IS FILED UNDER SECTION 173(1) OF MOTOR VEHICLES ACT 1988, PRAYING TO SET ASIDE THE JUDGMENT AND AWARD DATED 17.10.2014 PASSED IN THE COURT OF FAST TRACK AND ADDL. M.A.C.T. DHARWAD, AT DHARWAD IN MVC NO.1006/2012 IN THE INTEREST OF JUSTICE AND EQUITY.
THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
ORAL JUDGMENT
(PER: THE HON'BLE MR. JUSTICE B. MURALIDHARA PAI)
This appeal has been preferred by the insurer of the motorcycle bearing registration No. KA-25-EH-5377, seeking to set aside the judgment and award dated 17.10.2014 rendered in MVC No.1006/2012.
The claimant namely Sri Mallappa maintained a petition in MVC No.1006/2012 under Section 166 of the Motor Vehicles Act, seeking compensation of Rs.10,00,000/- for the injuries sustained by him in a road traffic accident occurred on 10.08.2012.
The case of the claimant is that on 10.08.2012 at about 12.00 noon, when he was going on his bicycle, near Ayappa Temple in Manikanth Nagar, Dharwad, he suffered a road traffic accident attributable to the rash and negligent riding of the motorcycle bearing No. KA-25-EH-5377, resulting in grievous injuries. In view of the same, he maintained the petition seeking compensation from the owner and insurer of the offending vehicle.
On service of notice, Respondent No.2 appeared before the Tribunal and contested the petition. Thereafter, the Tribunal decided the claim petition on merits of the case. The Tribunal attributed negligence to the rider of the motorcycle in question and allowed the claim petition in part holding that the claimant is entitled for compensation of Rs.1,29,646/- together with interest at the rate of 8% per annum from the date of petition till its deposit.
The claimant has accepted the award passed by the Tribunal.
Respondent No.2 has challenged the impugned award only one the ground that the Tribunal committed grave error in fastening liability of satisfying the award on them, i.e, the insurer, in spite of ample evidence to show breach of policy condition.
Sri M.Y.Katagi, learned Counsel for Insurer, vehemently submitted that rider of the motorcycle in question was not holding a driving licence as on the date of accident and thereby the insured committed breach of policy condition. He further submitted that though the Tribunal held that rider of offending vehicle was not holding a driving license, yet directed the insurer to pay the compensation and recover the same from the insured, ignoring Sections 149(5) and 149(7) of the Motor Vehicles Act and as such, impugned judgment and award is liable to be set aside, which has resulted in miscarriage of justice.
Per contra, learned Counsel for Claimant supported the finding recorded by the Tribunal and submitted that even if the contention of the insurer is accepted, they are liable to pay the award amount at first instance under ‘Pay and Recover’ principle and the insurer has not made out any valid ground to interfere or modify the impugned judgment and award.
Thus, the short point for determination by this Court is whether the Tribunal erred in directing the insurer to satisfy the award at first instance under the Pay and Recover Principle and recover the same from the insured.
As noted above, the Tribunal, while deciding the claim petition, held that the claimant met with a road traffic accident on 10.8.2012 at about 12.00 noon, near Ayyappa Temple in Manikanth Nagar, Dharwad, on account of negligence attributable to rider of motorcycle bearing No. KA-25-EH-5377 and as a result, he sustained injuries. Pursuant to the same, the Tribunal considered other materials placed on record and awarded a total compensation of Rs.1,29,446/- to the claimant together with interest at the rate of 8% per annum.
The main contention of the insurer before the Tribunal was that rider of the offending vehicle was not holding a valid and effective driving license as on the date of the accident, thereby the insured violated the terms and condition
