(MAC Nos.1074/2020 & 1033/2020) 2026:CGHC:27578 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 1074 of 2020 {Arising out of award dated 12-3-2020 passed by the Motor Accident Claims Tribunal, Bilaspur in MACT No.192/2019} 1. Jyoti Jangade, W/o Late Chandra Prakash Jangade @ Chanchal Jangade, aged about 25 years. 2. Samar Jangade, S/o Late Chandra Prakash Jangade @ Chanchal Jangade, aged about 5 years. 3. Pranita Jangade, D/o Late Chandra Prakash Jangade @ Chanchal Jangade, aged about 7 years. 4. Saukhi Lal Jangade, S/o Late Durga Prasad Jangade, aged about 60 years. 5. Savitri Jangade, W/o Saukhi Lal Jangade, aged about 57 years. Appellant No.2 to 3 is minor through legal Guardian Mother Jyoti Jangade, W/o Late Chandra Prakash Jangade @ Chanchal Jangade. All are R/o Mary Mai Mandir Road, Magarpara Chowk, Bilaspur. Hall Mukam – Koni, Thana Koni, District Bilaspur (Chhattisgarh). (Claimants) --- Appellants versus 1. Ravindra Bothra, W/o Rakesh Kumar Jain, aged about 28 years, R/o Kalyanpur, Post Kalyanpur, Thana Gadwa (Jharkhand). Probable Address Station Road, Neharu Nagar, Thana Neharu Nagar, Raipur, District Raipur (Chhattisgarh). (Driver of the offending vehicle Swift Desire Car C.G.No.04/K.Z./ 4843). (Driver) 2. Chandra Prakash Bothra, S/o Bhikham Chand Bothra, aged about 55 years, R/o Kalikapara Station Road, Indira Gandhi Ward, Raipur, District Raipur (Chhattisgarh). SISTA SOMAYAJULU Digitally signed by SISTA SOMAYAJULU Date: 2026.07.04 17:06:06 +0530 (MAC Nos.1074/2020 & 1033/2020) (Owner of the offending vehicle Swift Desire Car C.G.No.04/K.Z./ 4843). (Owner) 3. Branch Manager, S.B.I. General Insurance Company Limited, Branch Office, Rama Port, 2nd Floor, Vyapara Vihar Main Road, Bilaspur, Tahsil & District Bilaspur (Chhattisgarh). Probable Address Divisional Office S.B.I. Above Main Branch, T.T. Nagar, New Market, Bhopal (M.P.). (Insurer of the offending vehicle Swift Desire Car C.G.No. 04/K.Z./ 4843). (Insurer) --- Respondents AND MAC No. 1033 of 2020 {Arising out of award dated 12-3-2020 passed by the Motor Accident Claims Tribunal, Bilaspur in MACT No.192/2019} SBI General Insurance Company Limited, Through Branch Office, II Floor, Rama Port, Vyapar Vihar Main Road, Bilaspur, Tehsil & District Bilaspur, Chhattisgarh. Zonal Office Address – Above SBI Main Branch, T.T. Nagar, New Market, Bhopal (M.P.) (Non-Applicant No.3) --- Appellant Versus 1. Jyoti Jangde, Wd/o Late Shri Chandra Prakash Jangde @ Chanchal Jangde, Aged about 25 years 2. Samar Jangde, S/o Late Shri Chandra Prakash Jangde @ Chanchal Jangde, Aged about 5 years 3. Praneeta Jangde, Wd/o Late Shri Chandra Prakash Jangde @ Chanchal Jandge, Aged about 7 years 4. Saokhilal Jangde, S/o Late Shri Durgaprasad Jangde, Aged about 60 years 5. Savitri Jangde, W/o Shri Saokhilal Jangde, Aged about 57 years Respondent No.2 & 3 are minors are represented by their natural guardian Mother Jyoti Jangde, Wd/o Late Shri Chandra Prakash Jangde @ Chanchal Jangde (MAC Nos.1074/2020 & 1033/2020) All R/o Mari Maai Mandir Road, Magarpara Chowk, Bilaspur. Presently residing at Koni, Thana Koni, District Bilaspur, Chhattisgarh. (Claimants) 6. Ravindra Bothra, S/o Rakesh Kumar Jain, Aged about 28 years, R/o Kalyanpur, Post Kalyanpur, Thana Gadwa, District Gadwa, Jharkhand. Present Address Station Road, Nehru Nagar, Thana Nehru Nagar, Raipur, District Raipur, Chhattisgarh (Driver) 7. Chandra Prakash Bothra, S/o Bhikhamchand Bothra, Aged about 55 years, R/o Kalika Para, Station Road, Indira Gandhi Ward, Raipur, District Raipur, Chhattisgarh (Owner) --- Respondents For Claimants : Mr. Arjun Lal Singroul, Advocate. For Insurance Company : Mr. Utsav Mahiswar, Advocate. Single Bench:- Hon'ble Shri Justice Sanjay K. Agrawal Judgment on Board 03/07/2026 1. Since both the above titled appeals, filed in terms of Section 173 of the Motor Vehicles Act, 1988 (for short, ‘the MV Act’), arise out of a common award dated 12-3-2020 passed by the Motor Accident Claims Tribunal, Bilaspur in MACT No.192/2019 and since common questions of facts and law are involved in both these appeals, they have been clubbed together, heard together and are being disposed of by this common judgment. 2. The Insurance Company has preferred MAC No.1033/2020 questioning the award fastening liability upon it, whereas the claimants have preferred MAC No.1074/2020 seeking enhancement of the awarded amount. Page 4 of 6 (MAC Nos.1074/2020 & 1033/2020) 3. Mr. Arjun Lal Singroul, learned counsel appearing on behalf of the claimants, would submit that the Insurance Company has rightly been fastened liability and just and proper compensation has not been awarded. 4. Mr. Utsav Mahiswar, learned counsel appearing on behalf of the Insurance Company, would submit that the insurance policy has been exclusive, therefore, the Insurance Company is not liable to pay the compensation. 5. I have heard learned counsel for the parties and considered their rival submissions made herein-above and also gone through the record with utmost circumspection. 6. The Supreme Court in the matter of New India Assurance Co. Ltd. v. Rula and others1 held that the ground that the cheque through which premium was paid was dishonoured, would not affect the rights of the third party which had accrued on the issuance of the policy on the date on which the accident took place, and observed in paragraph 13 as under: - “13. This decision, which is a three-Judge Bench decision, squarely covers the present case also. The subsequent cancellation of the insurance policy in the instant case on the ground that the cheque through which premium was paid was dishonoured, would not affect the rights of the third party which had accrued on the issuance of the policy on the date on which the accident took place. If, on the date of accident, there was a policy of insurance in respect of the vehicle in question, the third party would have a claim against the Insurance Company and the owner of the vehicle would have to be indemnified in respect of the claim of that party. Subsequent cancellation of the insurance policy on the ground 1 (2000) 3 SCC 195 (MAC Nos.1074/2020 & 1033/2020) of non-payment of premium would not affect the rights already accrued in favour of the third party.” 7. The aforesaid decision in Rula’s case (supra) has subsequently been followed with approval by their Lordships of the Supreme Court in the matter of United India Insurance Company Limited v. Laxmamma and others2. 8. In that view of the matter, this Court is of the considered opinion that the Insurance Company has rightly been fastened liability and the principle of pay and recover has also rightly been applied. Consequently, the principle of pay and recover is maintained and it is held that the Insurance Company is liable to pay the amount of compensation. Accordingly, the appeal filed by the Insurance Company (MAC No.1033/2020) is dismissed. 9. So far as the appeal filed by the claimants (MAC No.1074/2020) is concerned, this Court is computing the compensation as below:- S. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court/New Calculation 1. Income ₹ 3,10,710/- per annum ₹ 3,10,710/- per annum 2. Future Prospect (+) 40% i.e. ₹ 1,24,284/-; ₹ 3,10,710 + 1,24,284 = ₹ 4,34,994/- Round off ₹ 4,35,000/- (+) 40% i.e. ₹ 1,24,284/-; ₹ 3,10,710 + 1,24,284 = ₹ 4,34,994/- Round off ₹ 4,35,000/- 3. Deduction (-) 1/3 = ₹ 1,45,000/- ₹ 4,35,000 – 1,45,000 = ₹ 2,90,000/- (-) ¼ = ₹ 1,08,750/- ₹ 4,35,000 – 1,08,750 = ₹ 3,26,250/- 4. Multiplier (x) 16 = ₹ 46,40,000/- (x) 16 = ₹ 52,20,000/- 5. Loss of Estate ₹ 15,000/- ₹ 18,000/- 6. Funeral Expenses ₹ 15,000/- ₹ 18,000/- 7. Loss of ₹ 40,000/- ₹ 44,000/- x 5 = ₹ 2 (2012) 5 SCC 234 (MAC Nos.1074/2020 & 1033/2020) Consortium 2,20,000/- Total ₹ 47,10,000/- ₹ 54,76,000/- 10. In view of the aforesaid analysis, the amount of compensation of ₹ 47,10,000/- awarded by the Claims Tribunal is enhanced to ₹ 54,76,000/-. Hence, after deducting the amount of ₹ 47,10,000/-, the claimants are held entitled for an additional amount of ₹ 7,66,000/-. The concerned respondent is directed to deposit the amount of compensation as enhanced by this Court within a period of 45 days from the date of receipt of a copy of this order. The additional amount of compensation shall carry interest @ 6% per annum from the date of filing of claim application before the Tribunal i.e. 6-2-2019 till its realisation. Rest of the conditions of the impugned award shall remain intact. 11. Accordingly, the appeal filed on behalf of the claimants is allowed in part and the impugned award is modified to the extent as indicated herein-above, whereas the appeal filed on behalf of the Insurance Company is dismissed. Sd/- (Sanjay K. Agrawal) Judge Soma