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2020 DIGILAW 1576 (KAR)

New India Assurance Company Ltd. v. Wahid Ali

2020-08-18

S.R.KRISHNA KUMAR

body2020
JUDGMENT : S.R. KRISHNA KUMAR, J. 1. This appeal by the Insurance Company is directed against the impugned judgment and award passed by the II Addl. Civil Judge (Sr. Dn.) and MACT-XI, Ballari (for short 'the Tribunal') in M.V.C. No. 940/2006 whereby the Tribunal awarded compensation in a sum of Rs.2,61,000/- together with interest at 6% p.a. in favour of the claimant towards sustained by him in a road traffic accident that occurred 09.08.2006. 2. I have heard the learned counsel for the insurance company and the learned counsel for the claimant and perused the material on record. 3. Learned counsel for the insurance company submits that the Tribunal committed an error in allowing the claim petition filed by the claimant. In this context, it is submitted that the Tribunal committed an error in fastening the liability to pay compensation upon the Insurance Company without appreciating that the driver of the offending vehicle did not possess a valid and effective driving licence and as such, the insurance company deserves to be absolved of its liability to pay compensation. Further, learned counsel submits that there was breach of the permit conditions and the insurance company deserves to be absolved of its liability on this ground also. Lastly it is contended that the quantum of compensation awarded by the Tribunal is excessive and the same deserves to be reduced by this Court. 4. Per contra, learned counsel for the respondents would support the impugned judgment and award. 5. Insofar as the quantum of compensation is concerned, the Tribunal while dealing with issue No.4 has taken into account all the relevant factors and has come to the correct conclusion that the claimants were entitled to a sum of Rs.2,61,000/-. The said compensation awarded by the Tribunal cannot be said to be unjust, unfair or improper nor can the impugned judgment and award said to be suffering from any illegality or perversity that warrants interference by this Court in the present appeal. 6. The said compensation awarded by the Tribunal cannot be said to be unjust, unfair or improper nor can the impugned judgment and award said to be suffering from any illegality or perversity that warrants interference by this Court in the present appeal. 6. Insofar as the contention urged on behalf of the insurance company that there was breach of terms and conditions of the insurance policy since the driver of the vehicle did not possess a valid and effective driving licence and that there was breach of permit conditions, in the light of the decision of the Hon'ble Full Bench of this Court in the case of New India Assurance Company vs. Yallavva, (2020) 2 KCCR 1405 (FB), it would be just, proper and appropriate to modify the impugned judgment and award thereby directing the Insurance Company to pay compensation in favour of the claimant by reserving liberty in its favour to recover the same from the owner of the vehicle. The impugned judgment and award passed by the tribunal is accordingly modified. 7. In the result, I pass the following order: ORDER: (a) The appeal is partly allowed. (b) The impugned judgment and award is hereby modified. (c) The insurance company is directed to pay the entire compensation together with interest as awarded by the Tribunal in favour of the claimant. (d) Liberty is reserved in favour of the insurance company to pay the compensation and recover the same from the owner of the insured vehicle. (e) Amount in deposit be transmitted to the Tribunal for disbursement (f) Registry to send back with trial Court records.