Date of filing:03.04.2018 & 06.04.2018

                                                   Date of Disposal:17.03.2023

BEFORE THE KARNATAKA STATE CONSUMR DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED: 17^th Day of March 2023

PRESENT

HON’BLE Mr. JUSTICE HULUVADI G. RAMESH: PRESIDENT

Mr K. B. SANGANNANAVAR: JUDICIAL MEMBER

Mrs DIVYASHREE M: LADY MEMBER

APPEAL NOs.514/2018 and 537/2018

C O M M O N O R D E R

BY HON’BLE Mr. JUSTICE HULUVADI G RAMESH : PRESIDENT

1. These two appeals are filed under Section 15 of Consumer Protection Act, 1986, one by OP and another by complainant in CC/11/2016, aggrieved by the order dated 13.01.2016 passed by District Consumer Disputes Redressal Forum, Vijayapur (for short District Forum/Commission and the parties arrayed as in the consumer complaint)
2. The brief facts of the case are: complainant being the owner of Honda Car insured with OP Company under the policy bearing No.OG-14-1717-1801-00010228 covering the period from 27.03.2014 till 26.03.2015.  On 25.04.2014 the said car met with an accident near Basavan Kudachi bypass road within the limit of Belagavi City. A Criminal Case came to be logged before Belagavi North Traffic Police Station under Crime No.90/2014. The M.V. Inspector inspected the vehicle and issued M.V.Report.  The complainant got repaired his vehicle and submitted claim petition to OP, but OP Company repudiated the claim of the complainant.  Hence professed deficiency in service on the part of OP Company and filed consumer complaint before the Forum below.  Upon service of notice, OP appeared through learned counsel and contested the matter.  OP in its version contended that the complainant had intimated the said accident on 06.05.2014 to OP. As per condition No.1 of the policy of insurance issued to the complainant the complainant was required to inform the OP immediately after the occurrence of the accident.  But the complainant has failed and neglected to inform the OP, regarding the accident immediately.  Further contended that they repudiated of the claim of the complainant as the vehicle was not registered on the date of accident as per Motor Vehicle Act.  Thus sought for dismissal of the complaint with compensatory costs of Rs.10,000/-.  The Forum below after holding enquiry recorded reasons in favour of complainant, holding that though the vehicle was not registered at the time of accident which is violation of terms and conditions of policy, the insurance company is liable to pay on non-standard basis.  The Forum below also relied upon the decisions reported in CJP 2017 NC, Delhi, wherein held – claim cannot be rejected on account of vehicle not possession a valid permit on the date of accident. Thereby allowed the complaint in part and directed OP to pay as per the estimated loss assessed by the surveyor to the tune of Rs.60,650/- along with interest @ 09% p.a. from the date of filing of the complaint i.e., 13.10.2016.  Further directed to pay Rs.5,000/- towards mental agony and Rs.3,000/- towards litigation cost within 02 months failing which the amount of Rs.60,650/- shall carry interest @ 12% from the date of filing of complaint i.e., 13.01.2016 till realization.

3. Aggrieved by the said Order, these two appeals are filed, one by complainant in Appeal No.537/2018 seeking enhancement of award granted by Forum below from Rs.60,650/- to Rs.5,50,00/- with litigation cost of Rs.25,000/- and another by OP in Appeal No.514/2018 on the ground that, impugned order is contrary to law and facts since the complainant used the vehicle on a public road without any registration which is not only an offence punishable under Section 192 of Motor Vehicle Act, but as well as fundamental breach of terms and conditions of the policy of insurance and is liable to be set aside.

4. Commission heard learned counsels and perused the impugned order passed by Forum below in CC/11/2016, dated 13.01.2016.  Now Commission has to decide whether impugned order passed by the Forum below is contrary to facts and law as appealed by OP and whether the enhancement of award required as appealed by complainant?

5. Learned counsel for OP/Appellant in A/514/2018 relied upon the decision of the Hon’ble Apex Court in Civil Appeal no.5887 of 2021 wherein held –

“……. when an insurable incident that potentially results in liability occurs, there should be no fundamental breach of the conditions contained in the contract of insurance.  Therefore, on the date of theft, the vehicle had been driven/used without a valid registration, amounting to a clear violation of Sections 39 and 192 of the Motor Vehicles Act, 1988.  This results in a fundamental breach of the terms and conditions of the policy, as held by this Court in Narinder Singh v. New India Assurance Co. Ltd., entitling the insurer to repudiate the policy.”

      Also relied on the decision of Hon’ble Apex Court in Civil Appeal No.8463 of 2014 (Arising out of Special Leave Petition (Civil) No.26308 of 2013) wherein in para-14 held-

“……. Nothing has been brought on record by the appellant to show that before or after 11.01.2006, when the period of temporary registration expired, the appellant, owner of the vehicle either applied for permanent registration as contemplated under Section 39 of the Act or made any application for extension of period as temporary registration on the ground of some special reasons.  In our view, therefore, using a vehicle on the public road without any registration is not only an offence punishable under Section 192 of Motor Vehicles Act but also a fundamental breach of the terms and conditions of the policy contract.”

6. We have gone through the ratios laid down by the Hon’ble Apex Court.  The facts that are to be noted herein the case on hand are the Honda Car which is owned by the complainant granted with temporary registration from 05.03.2015 to 04.04.2014.  The accident took place on 25.04.2014 i.e., after the expiry date of temporary registration.  As per Section 39 of M.V. act –

     No person shall drive any motor vehicle and no owner of a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place unless the vehicle is registered in accordance with this Chapter and the certificate of registration of the vehicle has not been suspended or cancelled and the vehicle carries a registration mark displayed in the prescribed manner.

     Provided that nothing in this section shall apply to a motor vehicle in possession of a dealer subject to such conditions as may be prescribed by the Central Government

     Thus the complainant had used the vehicle on a public road without any Registration which is not only an offence punishable under Section 192 of Motor Vehicle Act, but as well as fundamental breach of terms and conditions of the policy of insurance. Further as per the observation enumerate in Civil Appeal No.8463 of 2014 it is made clear that complainant/owner of the vehicle after expiry of temporary registration has to apply for permanent registration as contemplated under Section 39 of the Act or made any application for extension of period  as temporary registration on the ground of some special reasons. But in the present case, nothing on record is placed by complainant/owner of the vehicle to show that he had applied for permanent registration as nor for extension of period as temporary registration. As such learned counsel for OP was right in contending that the Forum below wrongly held OP jointly and severally liable to pay the award passed.   The Forum below without considering these vital aspects scantily relied upon the decision reported in CPJ 2017 NC, Delhi and passed the impugned order which in our view is contrary to law and facts and does call for an interference of this Commission.  Accordingly, Commission proceed to allow A/514/2018 filed by OP.   Consequently set aside the order dated 13.01.2016 passed in CC/11/2016 by District Consumer Disputes Redressal Forum, Vijayapur and as a result dismissed the complaint with no order as to cost.  The A/537/2018 filed by complainant is hereby dismissed.

7. The Amount in deposit is directed to be transferred to Appellant in A/514/2018 with proper identification by his advocate.

8. Send a copy of this Order to the District Commission and parties to the appeal.

Lady Member                              Judicial Member                             President

*GGH*