Motor Vehicle Act. Vehicle insured but without valid fitness certificate. Insurer is not liable. However ‘pay and recover’ is applicable. Karnataka High Court.

Malleshi vs Hafiza Begum and another. MFA.CROB 200013/2018 & MFA 201596 decided on 6 November 2020.

Judgment Link: http://judgmenthck.kar.nic.in/judgmentsdsp/bitstream/123456789/349004/1/MFACROB200013-18-06-11-2020.pdf

Relevant paragraph: 20. Further, the Full Bench of this Court in the case of New India Assurance Company Limited v. Yellavva W/o Yamanappa Dharanakeri and  another  [2020 (2) AKR 484 was pleased to lay down the guidelines regarding ‘pay and recovery’. It is the law laid down that even in case of Insurance Companies are having regard to Section 149(1) R/w Section 149(7) of the  M.V.Act  whenever  a  case   falls   under   Section 149(2)(a) of the M.V.Act and the same is successfully established or proved by the insurer, but, it is the duty of the insurer to satisfy the judgments and awards against person insured in respect of third party risks even in case of infraction is proved as defence taken by the Insurance Companies. Therefore, in the present case also the lorry bearing Reg.No.KA-28/A- 5775 was not having valid fitness certificate as on the date of accident and certainly it can be said that it is an infraction but indisputably the said lorry is insured with the appellant/Insurance Company. Therefore, in view of this the appellant/Insurance Company shall pay first the compensation and satisfy the claim then recover it from the owner of the said lorry.

Compiled by S. Basavaraj, Advocate, Daksha Legal.