1 2026:CGHC:21388 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 906 of 2019 1 - The New India Insurance Company Limited Korba Through Manager District- Korba, Chhattisgarh. ... Appellant versus 1 - Smt. Ramvati Widow Late Harbhajan Singh Gond Aged About 38 Years R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh., 2 - Dharmendra Singh S/o Late Harbhajan Singh Gond Aged About 19 Years R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh., 3 - Sunil Singh S/o Late Harbhajan Singh Gond Aged About 17 Years Minor Through Natural Guardian Mother Ramvati Widow Late Harbhajan Singh Gond, R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh., 4 - Ku. Sangeeta D/o Late Harbhajan Singh Gond Aged About 15 Years Minor Through Natural Guardian Mother Ramvati Widow Late Harbhajan Singh Gond, R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh., 5 - Ku. Anita D/o Late Harbhajan Singh Gond Aged About 13 Years Minor Through Natural Guardian Mother Ramvati Widow Late Harbhajan Singh Gond, R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh., 6 - Aakash S/o Late Harbhajan Singh Gond Aged About 8 Years Minor Through Natural Guardian Mother Ramvati Widow Late Harbhajan Singh Gond, R/o Village Kandamar, Sajapahad, Tehsil Manendragarh, District- Koria, Chhattisgarh..............(Claiments), 7 - Udaibahadur S/o Manbahadur Aged About 46 Years R/o Village Bazarpara, Koria- Kalri, Thana Chirmiri, District- Koria, Chhattisgarh..................(Driver), KRISHNA KUMAR BARVE Digitally signed by KRISHNA KUMAR BARVE Date: 2026.05.08 14:33:27 +0530 2 8 - Trilochan Singh S/o Late Tejpal Singh Babra Aged About 45 Years Resident- Namnakala, Ring Road, Ambikapur, District- Sarguja, Chhattisgarh..............(Owner) ... Respondent(s) For Appellant : Mr. Sudhir Agrawal, Advocate. For Respondents No.1 to 6 : Mr. Hemant Kumar Agrawal, Advocate. For respondents No.7 & 8 : None though served. (Single Bench) Hon'ble Shri Justice Sanjay K. Agrawal Order On Board 07/05/2026 1. The appellant/Insurance Company has preferred this Appeal under Section 173 of the Motor Vehicles Act, 1988 (for short ‘the Act, 1988’) calling in question the legality, validity and correctness of the award dated 26.2.2019 passed by the 1st Additional Motor Accident Claims Tribunal, Manendragarh, District Koriya (for short ‘the Claims Tribunal’) in Claim Case No.103/2014 by which liability to pay compensation of Rs.5,74,000/- has been fastened on the respondents. 2. Mr. Sudhir Agrawal, learned counsel for the appellant/ insurance company would submit that admittedly, the driver of the vehicle did not have valid and effective driving licence to drive the offending vehicle, which was admitted by the driver and, therefore, it will be a case of pay and recover in the light of decision of the Supreme Court in the matter of National Insurance Co. Ltd. Vs. Swaran Singh and Others1. 1 (2004) 3 SCC 297 3 3. On the other hand, Mr. Hemant Kumar Agrawal, learned counsel for respondents No.1 to 6/claimants would submit that just and proper compensation has not been awarded and the principle of pay and recover would apply. He would also submit that he has filed Cross-Objection/Appeal on behalf of the claimants. 4. I have heard learned counsel for the parties, considered their rival submissions made herein-above and went through the records with utmost circumspection. 5. The Insurance Company has taken a plea in para-10 of the written statement that the driver did not have valid and effective driving licence to drive the offending vehicle, however, Udai Bahadur, driver of the offending vehicle has clearly admitted in para-4 of his evidence that he did not have valid and effective driving licence to drive the offending vehicle and thereafter owner of the offending vehicle namely, Trilochan Singh has also stated in his evidence that on the date of the accident, his driver did not have valid and effective driving licence. Even otherwise, witness of the Insurance Company namely, Ekta Gupta has also stated that driving licence of the driver was renewed only up to 20.8.2012 and thereafter it was renewed on 18.1.2013. As such, the driver did not have valid and effective driving licence from 21.8.2012 to 17.1.2013 and meanwhile, the accident occurred on 11.11.2012. Thus it is quite vivid that the driver of the offending vehicle did not have valid and effecting driving licence to drive the vehicle, and the Claims Tribunal has erred 4 in not applying the principle of pay and recover as held by the Supreme Court in the matter of Swaran Singh (Supra). Considering the entire facts situation of the case, it is held that principle of pay and recover would apply in the present case. Cross-objection/appeal 6. After hearing learned counsel for the parties and after going through the record, considering the facts and circumstances of the case and that present is a death case, it would be appropriate to enhance award amount. As such, the claimants will be entitled for the following compensation as computed by this Court:- Sr. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court 1. Income of deceased Rs.4,000/-pm Rs.4,646/- pm (as per minimum wages) 2. Yearly income Rs.48,000/- Rs.55,752/- pa 3. Future prospects - 25%, Rs.55,752 +13,938/- = Rs.69,690/- 4. Deduction ¼ for 6 claimants Rs.(48,000 - 12,000) = Rs.36,000/- ¼, Rs.69,690 – 17,423 = Rs.52,267/- 5. Multiplier 14, Rs.36,000 x 14 = Rs.5,04,000/- 14, Rs.52,267 x 14 = Rs.7,31,738 6. Loss of dependency Rs.5,04,000/- Rs.7,31,738/- 7. Funeral expenses Rs.15,000/- Rs.15,000/- 8. Loss of estate Rs.15,000/- Rs.15,000/- 9. Consortium Rs.40,000/- Rs.40,000 x 6 = Rs.2,40,000/- Total Rs.5,74,000/- Rs.10,01,738/- 5 7. In view of the aforesaid analysis, the amount of compensation of ₹5,74,000/- awarded by the Claims Tribunal is enhanced to ₹10,01,738/- . Hence, after deducting the amount of ₹5,74,000/- , the claimants are held to be entitled to an additional amount of 4,27,738/- ₹ . The respondent/Insurance Company is directed to first pay the enhanced amount of compensation to the claimants within a period of 45 days from the date of receipt of a copy of this order and thereafter recover the same from the owner of the offending vehicle. The additional amount of compensation shall carry interest @ 7% per annum from the date of filing of claim application before the Tribunal till its realization. Rest of the conditions of the impugned award shall remain intact. 8. For the foregoing, the Appeal preferred by the Insurance Company is partly allowed and cross-objections/appeal preferred by the claimants is allowed to the extent indicated above. Sd/- (Sanjay K. Agrawal) Judge Barve