1 2026:CGHC:22754 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 926 of 2020 National Insurance Company Limited, Through Its Divisional Manager, Divisional Office - Above Canra Bank, Vyapar Vihar Road, Bilaspur, District - Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh ... Appellant Versus 1 - Philmon Kujur, S/o Bandhiya Kujur, Aged About 50 Years Uraon By Caste, R/o - Putukela, Tahsil - Kunkuri, District - Jashpur Chhattisgarh., District : Jashpur, Chhattisgarh 2 - Smt. Goroti Kujur, W/o Philmon Kujur, Aged About 48 Years Uraon By Caste, R/o - Putukela, Tahsil - Kunkuri, District - Jashpur Chhattisgarh., District : Jashpur, Chhattisgarh 3 - Shailendra Paswan, S/o Rajendra Paswan, Aged About 33 Years R/o - Biharigarh, Police Station - Bhagwanpur, District - Vaishali (Bihar) (Driver), District : Vaishali, Bihar 4 - Vishvjeet Kumar Singh, S/o Devendra Prasad Singh, Aged About 46 Years R/o - Dhanushi Anchal Lalganj, District - Vaishali Hajipur, (Bihar) (Owner), District : Vaishali, Bihar ... Respondents [Cause-title taken from Case Information System (CIS)] ------------------------------------------------------------------------------------------------ For Appellant : Mr. Dashrath Gupta, Advocate For Respondent : Mr. JK Saxena, Advocate ------------------------------------------------------------------------------------------------ Single Bench: Hon'ble Shri Justice Sanjay K. Agrawal (Order on Board) 14.05.2026 1. This appeal under Section 173 of the Motor Vehicles Act, 1988 (for short the “Act of 1988”) has been preferred by the appellant- Insurance Company challenging the impugned award dt. 20.12.2019, whereby SAIFAN KHAN Digitally signed by SAIFAN KHAN 2 learned Claims Tribunal has awarded a total sum of Rs.7,50,400/- as compensation to the claimants and liability to pay compensation has been fastened upon the insurance company alongwith penal interest of 12%. 2. Learned counsel for the appellant would submit that learned Claims tribunal is absolutely unjustified in fastening the liability to pay compensation upon the insurance company, as on the date of accident, the offending vehicle was being plied without having valid and effective fitness certificate and, therefore, the Insurance Company is not liable to pay the compensation to the claimants. He would also submits that learned Claims Tribunal has further wrongly applied penal interest @ 12% on them. Thus, the instant appeal be allowed and impugned award is liable to be set aside. 3. On the other hand, learned counsel appearing for the respondent supported the impugned award and prays for dismissal of this appeal. 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. In the case at hand, a careful perusal of the record would show that though a half-hearted plea has been taken by the Insurance Company in their written statement with regard to the offending vehicle being plied without having valid and effective fitness certificate on the date of accident, but TK Gadhiwal, Officer of the Insurance Company has only stated that on account of non-production of the fitness 3 certificate the same could not be examined/enquired into and, except this, there is no evidence available on record to show that the offending vehicle was being plied without having valid and effective fitness certificate on the date of accident. As such, learned Claims Tribunal is absolutely justified in fastening the liability to pay compensation upon the insurance company, as the question of offending vehicle not having valid fitness certificate on the date of accident could not be proved by the insurance company. I do not find any illegality or perversity in the said findings of the learned Claims Tribunal, as the same is based on evidence available on record. However, so far as penal interest @ 12% is concerned, the finding to that extend is set aside and the same is reduced to 6% simple interest. Rest of the conditions of the impugned award shall remain intact. 6. In that view of the matter, the instant appeal stands disposed of and the impugned award is modified to the extent as indicated herein- above. sd/- (Sanjay K. Agrawal) Judge s@if