E
IN T}-IE HIGITI COURT OF KARNATAKA AT BA§\IGALORi£
.1
Dated: This the 2O"1da.y of November 2009.-.___
BEFORE O'O
THE HONBLE IVIR.JUS'I'ICE V.JAGA_NE_\?;}iX'E"E='iz3§N::'_'V'1' _
M.F.A.No.3666/2007' c/xv"
wLFJ&Nos366O,3664,3662;36§§;366@QOOZ
3670,3671.3672,367313674;3676;3677;_*f
3678 81 36E»3.1_/2007" (Y\./Dfl
BETWEEN:
DIVISIONAL MANAG1':>;R'; =
NATIONAL 1NsLIE?;A.Nc1«: gco'; ~-1_;'m;~. _
DIV'ISIONA.I_, ()x~'1«';.r;_;E.
CI--IIGATE RI M£5;z?;CAI\I'I"£1I,L«;,LB'U;.1,1):NG.
CHAMARAJAP;f*3'l"E3. _:DAVAN'_A_GE.
_ .. NOW~.REP::,_BY :»f1*s.__1:{_E:c;--1QNA1. MANAGER.
NA'FI'C'rNAL'?.{Nf3U'RANCE co. I..'I'D..
R5201(JN;é€;1;.A}o::Fi--cE:; SUI'3I---IARAM COMPLEX.
-1 44. M13; BAN(3A1,0R1::.
. .. API--'EI,I,ANT
COMMON
" . Esra AN KR1VS'1'-ilm SWAMY. ADV.)
m M:1-'?.~A;TS§C).3666/2007:
" K NAGf§N'I)RAPPA.
S/ O MARA.lr)P/«\.
NOW AGED ABOUT 32 YEARS,
OCC: AGRiCULTURf€.
R/ O K/~\N[--\KA'I'I'E VELLAG E.
CHI'I'RAI)URC1/\ TALLEK.
C Si--IiV..2%."='i.*L%;. 01+' PEETITION
TILL D23PosiT;* 1' V'
[N M.F.A:N'Q}3e§60'?;A«.._ . _
KNOW A\G%4ABQ'L:f1' YEARS.
R./O BUC_HHAV\}'AN£iHAI.I.Y VILLAGE.
C1?a:TmDU.RG.A' TALUK.
C SIilVA"~PMI1J_I_§'FHY.
' /0 ..c HANIDRASHEKARAPPA
_ MAJOR. OCC: OWNER OF BUS.
N-EAR AZAD 1\/111.1,. E3.D.ROAD.
CI+1ITE{;ADuRGA.
... RESPON D ENTS
{By fsa§:__°R P SOMASHEKARAWI. ADV. FOR R2.)
THIS MFA Fltfill) U/S ]73{l) OF MV ACT AGAINST
_ .. ;'i'i"*I 1:', J U DC': M ICNT AN D AVVARI.) DATES D: I (:5 / E 2 / 2006
PASSIZD iN MVC NO. 1333/2004 ON '1'}--[I5 FILI-E OF 'I'HE
CIVIL JUDGE {SRDN} & ADDL. MACT. CHiTRAI')URGA.
AWARDING COMPENSATION OF RS. 41.900/« WiTH
IN'I'l*3RES'I' 6% RA. FROM 'I'Hl§ I)/\'I'I§ OF I"'E'I'ITION
TILL DEPOSIT.
IN M. F.A.NC).3664/2007:
1 RAMANNA.
s/0 RANGAPPA.
NOW AGED ABOUT 43 YEAE.s_,
0cc:AGR1CU1.;mRE. V * ._ «
R/BO G()BANAHALLI VILLAGEIQ A.
CHITRADURGA. AWARD DA'I'ED 16/I2/06
B5-;.f's"sa:,.1> 1N"'Mj{/C N::>.z337/04 ON "'1'}---11»:«: 1-'£1.13 01+' THE
' «vC;'--1\"/11;"E'A.JUI)I>A.
AGE: MAJOR. OCC: OWNIIIR OF BUS.
R/O NEAR AZAD MILL. I3.I').ROAI_).
CHI'I'RAI)URGA.
RESPONxDEN;T_'S
(By Sri R P SOMASl'"IIEKARAlAl'-I. ADV. FOR I22_.;I"'"- 4' ;_. A'
THIS MFA FILED U/S 173(1) OF Ix/I_'V~A(::fffI'..AO:A«IN:3fiI*'
'I'l~-{E JUDGMENT AND AwA.:IéI5""I')A*II«:II)
PASSED IN MVC f\s'O.1385/04'b'ON:1'.,_;'I'§--fli££JTIEIIOIS,VQI?"L.Lj'E*:Ii§fi:,_
CIVIL JUDGE (SRDN). I"I_I3'E"}..L.MI5xC'I'. 'CIA-IIITIQIIILIORGAI
AWARDING A cOMPE;I\IsA'I*IO_I\I OF 'RS,'3;50O;{~ WITH
INTEREST AT 6% FROM 'TI'fII13v'V"II.)_A'i'EC 'OI? "'PE'I"lTlOI\J
TILL DEPOSIT. ' I V'
IN M.E'.A,I\}UL.3E§£§S«/20¢?-IV_ . '
I. GURURAIJA--R1EfDD_Yj' "
S /O r;ONA.I>I2.ARVI;OI)Y.
. ., AGI~:'I_)..,ABO'IIT'-41 YEARS.
AR/O TAYA£)i'"~IQNI vII,I,AOI::.
%--.';IAC:.AI.uR 'rAI,uK_.
" -- II/A1.. MURTHY.
* S/'_-C)_ CHANDRASIVIEKARAI-JPA.
,AOIs:; MAJOR, OCC: OWNER OF' BUS.
R/'O NEAR AZAD MILL. B.D.ROAD.
" _ GHITRADURGA.
RESPOND[£N'l'S
"C{I3yA'srI R I>sOIvIAsI-II~:I' I>}: THE
C'IVIL ;I"I:--IjI:Ié (SR.DN}. AI)DL.MAC'I'._ CHI'I'RADURGA.
AVVAFEDlI'~3C A [_COMPEl\lSATION OF RS.2.500/-- 'WITH
IN'FI3;I:{_IIf,S'I' AT 6% I-'.A. FROM Tl"-IE DI'-\'I'E OI' I-'E'I"ITION
_'1'I"I;_I. Ij)I+3POSI"I'.
IN IVI.F.A.I\I'O.367O/2007:
I PR1-\'I'HAP.
S/O §\1AGI£%\1I)I'2J\I"E3A
ACIIa:I:> AI3oII'I' :4 YISI'-\I-{S.
8
INTICRESY' AT 6% PA. FROM TI'--I 171 DATE OF PIC'I'ITlO'N
'I'l}.,L DEPOSIT.
IN M.F.A.NO.3673/2007:
1 SHIVAKUMAR.
S/O SIDDAPPA.
NOW AGED ABOUT 37 YEARS.
occ; PAIN'i'ER. :
R/O IN FRONT OF s'1'AD1L{M. ' "
CHHRADURGA. I f"*
2 C s1--11vA MURTI--IY, _
s/0 CHANDRASI-"lEKARAP*PA.
AGE: MAJOR. occ: OWNER or BUS;
R/O NEAR AzA'D..V_MI1.!;'. 811;» .;R(jA_D. " '
cH1TRADURcA';~..T'._'--
. RE£SPON£) ENTS
{By sgfifi 'P SfoMA'§I-;1_§KA}LA1A.fifADV. 1:0 R R2.}
A":*'}_1I':3MFA"1:f1'u~:_i__:»--.__i3;'S 173(1) 09' EVIV AC1' AGAIE\IS'I'
'1'1«-15: JU1;)GIv:1«:N1' *--._AN~1':> AWARD I')ATI£I') 16/ 12 /06
PA;s.sI~:i) EN M'VC_i§I__Q,.I9l/O5 ON 1*;--11~: FILE OF THE CIVIL
1:'-(.sR.DN}. ADIi)L.MAC'}', C}---EITRADURGA.
'_ COMPENSA'I'IOi\1 or Rs.4.6.e300/» wm--1
"1N'*IA*E:RE:S--'E'j_ AT 5% 1'./-\. FROM 'm_£+: DATE or PETITION
'1'i"LI. I_')£:PO's1T.
" IN-M.r5'.A.No.3674/2007:
I KRISHNA.
5/ O THIPPERU DRAPPA.
AGED ABOUT 32 YEARS.
OCC: PAINTER.
R/O IBUDIDANAGARA.
CIAAIITRADURGA TOWN.
ll)
TI-IIS MFA I~"l.L,i£I) U/S 173(1) OE Ivrv ACT AGAINST
THE JUDGMENT AND AWARD DATED:l6/I2/2006
PASSED IN MVC NC). E96/2005 ON TI---IE E*'lL£~Z Oi§'_ 'Iérg-II~:
CIVIL JUDGES {SRDN} es: ADDL. IVIACT. CI-II1jRA:j{5I§G.A-IV.
AWARDING COMPENSATION OF RS. 27,50.Q}'~ -
INTEREST @ 6% PA FROM THE DATE'*--GI«fy..pETITI0N" 1'
TELL DEPOSIT.
EN M.F.A.NO.3677/2007:
1 MARAPPA. "
S/O DDDDA 'l"I_IIIPI'AIA_%-.§._A' _
AGED AE0uTv34V.yEA'Rs.V ,
R/O KANAMADAGLI. I--<UvD;I,IG--IIIv*II'AL--IIK,
NOW R/AT JDGIMATT'I"RDAD., " V _ '
NEAR 'I'H'IPPE3lT-:ZAlVI".I'»'1}'x T'ENIPLE:.,
CH1TRAD;.LjfRG-A. g .
2 CEIEIIVAV _ -- '
.5/D C:IIAI-I'D.RAsI#:I.EI«g_ARA_PPA.
AGE: MAJOR; QC-Ci OWNER OF BUS,
R/D, NEAR_A2;.AD...IvII1.I., B.D.ROAD.
' 'I I_cII_I'I_*mDUI2GA.
RESPONDENTS
‘ ,.”I’E3yTE;I’;RfI~>. jSO_MASHI£KARAlAH es: SR1 M J AI\/IARNATIIA.
w.ADVs.j~IiDR’jR:I.)
AMFA HLED U/S I73{I] OF MV ACT AGAENST
THE _ JUI’)GMEN’T AND AWARD DA’TE3I) 16/12/O6
‘PASSED IN MVC NO.197/O5 ON THIS FILE 01* THE) CIVIL
“‘..’;III’I)GI«: (SR.DN}. ADI)L.MAC’l’. CHITRADURGA,
AWARDING A COMPENSATION OF 125.4000/M WITH
lE\§TI€RI*ZST AT 6% I5′.A. FROM THE IT)ATE OF PETITION
TILI. IDEPOSIT.
IN M.F.A.NO.3678/2007:
I KAMPLESPIWARA SWAMY.
S /O TI-IIIJI->I;SwAMY.
AGED ABOUT 42 YEARS.
R/O HULIKERE3 VILLAGE.
KUDLIGI TALUK.
2 C SHIVA MURTHY. I
S/OCIJANDRASHEK/XRAPPA1._ ‘ , –
AGE: MAJOR. OCC: O’J\_/N~.F3R OI! BUS, ‘ ”
R/O NEAR AZAD iVII1,L,VO’I3,.D.ROAD’.-. ” I ”
CHITRADURGA_.
V RESPONI)f:;N’I’S
[Ey SI-1 R SHASHlDl~IARA’§
SR1 R P SOMASI~I_EKA_R’AIAIiI. A[)V._ I«’OI>2,_R2.)
THl_S. I;-733) OEIVIV ACT AGAINST
THE TIU:)VOIs/I’E_IV\I’I*”” IAw’AR:I)° DATEI”): 16/12/2006
I>ASS’EIjV IAN’vOIIyfI\ZO€.NO<.:.'a§=§)2,/2065 ON THE I'II-I+: OI' TIIE
CIvIL";,IIIOOEI ADDL. MEMBER, MAC'I'.
CHI"I'I2A'DIIROA;' _AIIIIAR_'1.3II\IO COMIDENSATION OE RS.
291500/* 'vJ1'§'I;I"INTEREST 6% RA. FROM TI-~-IE DATE
O.E:IJIa:<IfII*IOI\I 'I'II;I;"I)I%:POSIT.
' L.I'I\:..I\a.«E.AI\2vO';3.6SI /2007:
* .1. iII€I'ES'II;
V_SI’OIi’SIDOALINOAPPA.
.. ROW AGED ABOUT 33 YEARS.
-R/O SONDEKERE VILLAGE.
HIRIYUR.
C SHIVA MURTHY.
S/O CHANDRASHEKARAPPA.
AGE): MAJOR, OCC: OVVNER OF BUS.
R / O NEAR AZAD MILL. B.D.ROAD.
CHITRADURGA.
RESPONDENTS
[By Sri R P SOMASHiiKA.RA.I.A}*I. AI’)V. 1*” OR R2.)
[3
Company is not liable to pay the e()n1pe:nsati()i’1. It is
theref(:)re contended that once the policy is-:. eaneelled.
the company will not be liable to pay
4. The facts of the case are D()’t”‘..iu1’1′:di~Spt1i€~7 K b
and therefore it is not iiectessafiry to’ “tth:ro-Ltgiiq
but suffice to say that. riQw_ the q–tieetiori tfh.atv”‘req1i’:ire\;:
to be considered is as the liability zégepetrt. of
the ease. The trib’Li__h”21.1 while. vée.hVs:i’c}.eri’ng the Iiabiiity
aspect: has obVserved_._i.I_1:’ pic11*§1 £3261″ judgment. that
the Vté’heq’ue1f,iss’ié:e’d the ijwriei’ of the vehicle was
dish(5r10L1.1’ed– vartd_:it;..__ii’5;._protluced at Ex.R} bearing
Ciate 27.5.(_)4V_..’-e11’i1vdthe memoi’amc1Lii11 of cheques
Lmipai-d isstied b’y”Ca1ia1’a Bank is at E2x.R2. The
=pt_).}iey was cancelled stibseqtieiit. to the
t”:heque:~ _hf;tviI1g been diS110I1()1,1f'(;’d. In other words.
AA t5h€3..i’?].:;}L1I’aI1(1€ poiiey that is produced at EXLR7 and
i’ “¥?8u5indit:ate that as on the date of the a.(::eiC1ent.. the
fipoliey was in force and Subsequentiy it was cancelled.
3»
5’/,-/’
I:
I4
5. The tribunal Iaking_-.3; n_ote oi’ the above facts
and also relying on the judgment. of the Apex C,’-otlrt
reported in 2008 ACJ page 360 has
appellant. insurance Company would be lial3lep=t:(:5C’
the compensation as t.he ;lnst.irance .yp.ol’icy_V’was”1
cancelled subsequent to the da’t_e”o_f t.helyar:cid’eni; on’
the ground of non payi”11ehJy’oi” prelm_i_u’1n: ‘l;lvierei'()re.
the tribunal l1aVll’lgl’Cgal'(lAll.()”J[l?C lva’wpla.id down by the
Apex Court and al’ter’l~quo’tiing .-‘::ele.\f{z1_i:i~t’ observation
has put the lia;b1i’lityi1._on=’ythe Company. The
po1″t,i–oi1 ._t.hat: by the tribunal also needs
to be €iX{Z¢l”pl@El l1’ei’eupi’i_;:ie1*:
subsetltient cancellation of the
policy in the instant: case on
ground that the cheque through
premium was paid was
z”f7llSl’lOI]0L1I’€?Cl, would not affect the rights
of the third party which had accrued on
the issuance of the policy on the date of
which the accident took place, if on the
date of accident. the.re. was a policy of
insurarice in respect of the vehicle in
question. the third party would have a
e
claim against the ll'”iSi.1I”cLil'”i(..’C Conipanye-“r.
and the owner of the vehicle would
to be indemnified in res_pe(ft of
of that party. Subsequent Cancell.at’,_i_o’:t1
insurance policy on t,he.;Jgi’ou’1id’x_of’
payment of premiuni would V’ ‘
rights already in Al’a\z_ou_if
third party.”
6. In View ‘o.f:7the-_ asforesajirl'”position in law,
the Insui’anCe.’-Comp-‘a1’1yiieahntit its liability as
the paijty following the
policy beiiigv.isst§aed.<a'ri(i it being found to be in force
as on"th"e date' th_.e""a'iteidei1t and as such. third
pai"tyLwou}d'l1ave'*a claim ag€:lil'1Sl the insurance
9'
" VftTeh'erefo1"e. liability put on the Insurance
C~ompva11§k:'~"eannot. be faulted. but at the same time,
..sinee'v—-"tl1e policy was cancelled following the
';_id*ishonour of cheque issued by the owner towards
'ipremium, the lnsuiance Company will have to be
given liberty to recover the compensation amount
St-
N 5