UNITED INDIA INSURANCE CO LTD v. HARISH RAL

(BY SRI.V.S. HEGDE., ADVOCATE FOR R1: NOTICE TO R2 & R3 ARE SERVED AND UNREPRESENTED) …RESPONDENTS THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 02/04/2018, PASSED IN MVC NO.513/2015, ON THE FILE OF THE ADDITIONAL SENIOR CIVIL JUDGE AND ADDITIONAL MACT, UDUPI, AWARDING COMPENSATION OF RS.1,75,000/-. THE INTEREST AT THE RATE OF 9% PER ANNUM IS AWARDED ON SUM OF RS.1,60,000/- ONLY, FROM THE DATE OF PETITION TILL REALIZATION. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE H.T. NARENDRA PRASAD ORAL JUDGMENT

1. This appeal under Section 173(1) of Motor Vehicles Act, 1988 (hereinafter referred to as ‘the Act’) has been filed by the Insurance Company challenging by the judgment dated 02.04.2018 passed by MACT, Udupi, in MVC No.513/2015.

2. Facts giving rise to the filing of the appeal briefly stated are that on 21.02.2015 when the claimant was walking by the side of the road from Padubidri towards - 3 - NC: 2024:KHC:39523 MFA No. 6220 of 2018 Hejamadi, near Mahalingeshwara Temple, at that time, autorickshaw bearing registration No.KA-20-C-9810 being driven by its driver at a high speed and in a rash and negligent manner, dashed to the vehicle of the claimant. As a result of the aforesaid accident, the claimant sustained grievous injuries and was hospitalized.

3. The claimant filed a petition under Section 166 of the Act, seeking compensation. It was pleaded that he spent significant amount towards medical expenses, conveyance charges and other related costs. It was further pleaded that the accident occurred solely on account of rash and negligent driving of the offending vehicle by its driver.

4. Upon service of notice, the respondents appeared through counsel and only respondent Nos.1 and 2 filed written statements denying the averments made in the claim petition. - 4 - NC: 2024:KHC:39523 MFA No. 6220 of 2018

5. On the basis of the pleadings of the parties, the Claims Tribunal framed the issues and thereafter, recorded the evidence. The Tribunal, by impugned judgment and award has partly allowed the claim petition and held that the claimant is entitled to a compensation of Rs.175,000/- along with interest at the rate of 9% p.a. and directed the Insurance Company to deposit the compensation amount along with interest. Being aggrieved, the present appeal has been filed.

6. The learned counsel for the Insurance Company has contended that the driver of the offending vehicle was not having valid driving licence as on the date of the accident. The driver was having driving licence to drive LMV (Non- transport) and he was driving the transport vehicle. Since the insured has violated the policy conditions, the Insurance Company is not liable to pay compensation. The Tribunal is not justified in fastening the liability on the Insurance Company. Further, he contended that in view of the Division Bench decision of this Court in the case of - 5 - NC: 2024:KHC:39523 MFA No. 6220 of 2018 MS..JOYEETA BOSE AND OTHERS –V- VENKATESHAN.V AND OTHERS (MFA 5896/2018 AND CONNECTED MATTERS DISPOSED OF ON 24.8.2020), the rate of interest awarded by the Tribunal at 9% p.a. on the compensation amount is on the higher side. Hence, he sought for allowing the appeal.

7. The learned counsel for the claimant has contended that even though the driver of the offending vehicle was having driving licence to drive LMV (Non-transport) and he was driving the transport vehicle, as per the decision of the Apex Court in the case of MUKUND DEWANGAN vs. ORIENTAL INSURANCE COMPANY LIMITED reported in (2017) 14 SCC 663, wherein it is held that a person holding driving licence to drive LMV (Non-Transport) can also drive transport vehicle, the unladen weight of which does not exceed 7500 kgs, the Insurance Company is liable to pay compensation to the claimant. Therefore, the Tribunal has rightly fastened the liability on the Insurance Company. Hence, he sought for dismissal of the appeal. - 6 - NC: 2024:KHC:39523 MFA No. 6220 of 2018

8. Heard the learned counsel for the parties and perused the judgment and award of the Tribunal.

9. It is not in dispute that claimant sustained injuries in a road traffic accident occurred on 21.02.2015 due to rash and negligent driving of autorickshaw bearing No.KA-20-C- 9810 by its driver.

10. As on the date of the accident, the driver of the offending vehicle was having driving licence to drive LMV (Non-transport), but he was driving the transport vehicle. As per the decision of the Apex Court in the case of MUKUND DEWANGAN (supra), if a person is holding driving licence to drive LMV (Non-Transport), he can also drive transport vehicle wherein the unladen weight of the vehicle does not exceed 7500 kgs. The unladen weight of the vehicle involved in the accident is less than 7500 kgs.

11. In view of the above decision of the Apex Court, this Court is of the opinion that the driver of the offending vehicle was having valid driving licence as on the date of - 7 - NC: 2024:KHC:39523 MFA No. 6220 of 2018 the accident. Hence, the Insurance Company is liable to pay compensation. The Tribunal has rightly fastened the liability on the Insurance Company. There is no error in the said finding of the Tribunal.

12. However, the rate of interest awarded by the Tribunal at 9% p.a. on the compensation amount appears to be on the higher side. Hence, in view of judgment of the Division Bench of this Court in the case of ‘MS.JOYEETA BOSE’ (supra), the compensation amount shall carry interest at 6% per annum.

13. In the result, the following order is passed: ORDER a) The appeal is allowed in part. b) The judgment of the Claims Tribunal is modified. c) The claimant is entitled to total compensation as awarded by the Tribunal. d) The compensation amount shall carry interest at 6% p.a. e) The Insurance Company is directed to deposit the compensation amount along with interest @ 6% p.a. from the date of filing of the claim - 8 - NC: 2024:KHC:39523 MFA No. 6220 of 2018 petition till the date of realization, within a period of six weeks from the date of receipt of copy of this judgment. f) The amount in deposit before this court is ordered to be transferred to the Tribunal forthwith. Sd/- (H.T. NARENDRA PRASAD) JUDGE DM List No.: 1 Sl No.: 34