The 'pay and recover' principle remains operative against insurers in third-party claims even if terms of the insurance policy are breached, provided the existence of the insurance contract is established, subject to the insurer recovering such amounts from the insured.

MFA No. 468 of 2023
C/W MFA No. 296 of 2023
MFA No. 820 of 2023
Reserved on : 17.03.2026
Pronounced on : 05.06.2026

IN MFA No. 468/2023
BETWEEN:
1. RELIANCE GENERAL INSURANCE COMPANY LIMITED, EAST WING, 5TH FLOOR,
No.28, CENTENARY BUILDING, M. G. ROAD, BENGALURU - 560 001.
NOW REP. BY MANAGER LEGAL.
…APPELLANT (BY SRI ASHOK N. PATIL, ADVOCATE)

AND:
1. NARASIMHAPPA, S/O. LATE MUNI VENKATARAMAPPA,
AGED ABOUT 44 YEARS, OCC: MASON,

R/AT: CHADURLAHALLI VILLAGE, KAMMADIKE SOMENAHALLI HOBLI
GUDIBANDE TALUK, CHIKKABALLAPURA DISTRICT - 562 101.
2. VENKATAMMA D/O. LATE GANGAPPA,
RESIDENT OF NASTHIMMANAHALLI VILLAGE, KETHINAHALLI POST,
CHIKKABALLAPURA TALUK AND DISTRICT.
…RESPONDENTS (BY SRI LATUR SURESH MAHALINGAPPA, ADVOCATE
FOR C/R1; SRI KARTHIK B.Y., ADVOCATE FOR R2)

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED 03.11.2022 PASSED IN MVC No.5566/2018 ON THE FILE OF THE MACT, BENGALURU CITY, (SCCH-4), AWARDING COMPENSATION OF RS.15,97,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL REALIZATION.

IN MFA No. 296/2023
BETWEEN:
1. SRI NARASIMHAPPA S/O LATE MUNI VENKATARAMAPPA,
AGED ABOUT 42 YEARS, R/AT CHADURLAHALLI VILLAGE,
KAMMADIKE SOMENHALLI HOBLI, GUDIBANDE TALUK,
CHIKKABALLAPURA DISTRICT - 562 101.
...APPELLANT
(BY SRI LATUR SURESH MAHALINGAPPA, ADVOCATE)

AND:
1. SMT. VENKATAMMA, D/O. LATE GANGAPPA,
R/O NASTHIMMANAHALLI VILLAGE, KETHINAHALI POST,
CHIKKABALLAPUR TALUK, CHIKKABALLAPUR DISTRICT - 562 101.
2. THE MANAGER, M/S. RELIANCE GENERAL INSURANCE
COMPANY LIMITED, No.28/5, CENTENARY BUILDING,
EAST-WING, M.G.ROAD, BENGALURU - 560 001.
...RESPONDENTS (BY SRI. KARTHIK B.Y., ADVOCATE FOR R1;
SRI ASHOK N. PTAIL, ADVOCATE FOR R2)

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 03.11.2022 PASSED IN MVC No.5566/2018 ON THE FILE OF THE MEMBER, MACT, XVIII ADDITIONAL JUDGE, COURT OF SMALL CAUSES, BENGALURU SCCH-4, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

IN MFA No. 820/2023
BETWEEN:
1. SMT. VENKATAMMA, W/O. LATE GANGAPPA,
AGED ABOUT 80 YEARS, RESIDING AT NASTHIMMANAHALLI VILLAGE,
KETHINAHALLI POST, CHICKBALLAPUR TALUK AND
DISTRICT - 562 101.
...APPELLANT (BY SRI. KARTHIK B.Y., ADVOCATE)

AND:
1. SRI NARASIMHAPPA, S/O LATE MUNI VENKATARAMAPPA,
AGED ABOUT 42 YEARS, RESIDING AT CHADURLAHALLI VILLAGE,
KAMMADIKE SOMENHALLI HOBLI, GUDIBANDE TALUK,
CHICKBALLAPUR DISTRICT - 562 101.
2. THE MANAGER RELIANCE GENERAL INSURANCE
COMPANY LTD., No.28/5, CENTENARY BUILDING
EAST WING, M. G. ROAD, BENGALURU.
...RESPONDENTS
(BY SRI. LATUR SURESH MAHALINGAPPA, ADVOCATE FOR C/R1; SRI ASHOK N. PATIL, ADVOCATE FOR R2)

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 03.11.2022 PASSED IN MVC No.5566/2018 ON THE FILE OF THE XVII ADDITIONAL JUDGE, COURT OF SMALL CAUSES, BENGALURU SCCH-4 AWARDING COMPENSATION OF RS.15.97,000/- WITH INTEREST AT 6 PERCENT P.A. FROM THE DATE OF PETITION TILL THE REALIZATION FROM THE RESPONDENTS.

THESE APPEALS HAVING BEEN HEARD AND RESERVED FOR ORDERS, COMING ON FOR PRONOUNCEMENT THIS DAY, K.V. ARAVIND J., DELIVERED THE FOLLOWING:-
CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and
HON'BLE MR. JUSTICE K. V. ARAVIND

C.A.V. JUDGMENT

(PER: HON'BLE MR. JUSTICE K. V. ARAVIND)

Heard Sri Ashok N. Patil, learned counsel for the insurer, Sri Karthik B.Y., learned counsel for the owner of the vehicle/insured and Sri Suresh M. Lathur, learned counsel appearing for the claimant.

These Miscellaneous First Appeals arise out of a common judgment and award dated 03.11.2022 passed in MVC No.5566/2018 by the Motor Accident Claims Tribunal, Bengaluru City (for short 'Tribunal').

2.1 MFA No.468/2023 is filed by the insurer disputing the quantum of compensation as well as the direction to pay and recover. MFA No.820/2023 is filed by the owner of the vehicle, questioning the impugned judgment insofar as it directs pay and recovery. MFA No.296/2023 is filed by the claimant seeking enhancement of compensation.

2.2 Since all these