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2025 Supreme(Chh) 552

HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J. 
IFFCO Tokiyo General Insurance Company Limited - Appellant
Versus
Peel Singh Yadav S/o Late Shri Tetkuram Yadav
MAC No. 986 of 2018, MAC No. 982 of 2018, MAC No. 987 of 2018, MAC No. 988 of 2018, MAC No. 990 of 2018
Decided On : 17-07-2025

Advocates Appeared:
For the Appellant :Mr. P. R. Patankar, Advocate
For Claimants :Ms. Vidhi Matlani, Advocate on behalf of Mr. Sanjay Agrawal, Advocate

The court established that compensation for minors in motor accident claims must be just and reasonable, emphasizing the insurer's initial liability to pay despite policy breaches, allowing for subsequent recovery from the owner.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor Accident Claims - Appeals against compensation awarded by Claims Tribunal - Common accident involving multiple minors in a tractor-trolley - Court enhanced compensation from Rs.2,55,000/- to Rs.5,00,000/- considering age, loss of dependency, and application of multiplier - Insurance Company's liability discussed regarding policy breaches and excess passengers. (Paras 3, 17, 28, 27)

(B) Insurance Policy - Liability - The insurer is initially liable to pay the compensation to claimants despite non-fulfillment of certain policy conditions, with a right to recover from the owner later. (Paras 21, 28)

Facts of the case:
The appeals arise from an accident on 17.10.2015 where multiple students travelling in an overloaded tractor-trolley sustained injuries, resulting in fatalities. Claims were filed by parents seeking compensation.

Findings of Court:
Compensation of Rs.5,00,000/- awarded for each child, inclusive of dependency loss and conventional heads, with a further clarification on the insurer's liability for initial payment.

Issues: The main issues included calculating appropriate compensation for minor victims and the insurer's liability in light of policy breaches.

Ratio Decidendi: The court determined compensation must reflect just damages and the insurer temporarily liable despite breaches, underlining the pay and recover doctrine.

Result: Cross-appeals allowed in part with enhanced compensation.

Table of Content
1. appeals concerning the same accident are grouped. (Para 1 , 2 , 3)
2. fatal accident involving minors and compensation claims. (Para 4 , 5)
3. insurance liability contested by driver and insurer. (Para 6 , 7)
4. assessment of compensation based on age and loss of dependency. (Para 8 , 15 , 18)
5. claims for enhanced compensation supported by case law. (Para 10 , 11)
6. support for legal principles of passenger safety and insurance conditions. (Para 17 , 20 , 21)
7. insurance company directed to pay and recover. (Para 22 , 23)
8. doctrine of pay and recover considered. (Para 24 , 27)
9. final orders regarding compensation payment and recovery. (Para 28 , 29 , 30)

JUDGMENT :

Amitendra Kishore Prasad, J.

1. As all the five appeals arise out of same accident and common question is involved in it, therefore, they have been clubbed together, heard together and being disposed of by this common judgment.

2. Challenge in all these appeals is to the award dated 13.12.2017 passed by the learned Additional Motor Accident Claims Tribunal, Raipur, District Raipur (C.G.) (hereinafter referred to as 'Claims Tribunal') in Claim Case Nos.193/2016, 190/2016, 189/2016, 192/2016 and 191/2016, respectively whereby learned Claims Tribunal allowed claim application of the claimants in part, awarded Rs.2,55,000/- as total compensation in each claim applications and fastened the liability for payment of compensation to the non-applicants therein jointly and severally.

3. It is an admitted fact that after issuance of notice, the claimants have preferred five cross-appeals for enhancement of amount of compensation awarded by learned Claims Tribunal.

4. Brief facts of these appeals, in a nutshell, are that, on 17.10.2015 at about 12.30 PM, Fageshwar Yadav, Ku. Bharti, Ku. Punni Dhruw, Girjashankar Sahu and Ku. Khushi Sahu along with other students of the School were going to Sonai-Rupai Temple in Tractor bearing registration No.CG-04/HK/5789 and Trolley bearing registration No.CG-04/HX/5157 (hereinafter referred to as ‘offending vehicle’). When they reached Village Gunderdehi, the offending vehicle turned turtle in slope on account of rash and negligent driving of non-applicant No.1, due to which 5 children, namely Fageshwar Yadav, Ku. Bharti, Ku. Punni Dhruw, Girjashankar Sahu and Ku. Khushi Sahu fell down and sustained injuries and later, succumbed to the injuries suffered by them.

5. The parents of the deceased children filed claim applications on account of untimely death of their children namely Fageshwar Yadav, Ku. Bharti, Ku. Punni Dhruw, Girjashankar Sahu and Ku. Khushi Sahu being Claim Case Nos.193/2016, 190/2016, 189/2016, 192/2016 and 191/2016, respectively seeking compensation of Rs.26,50,000/- in each claim cases under different heads.

6. Non-applicant No.1/driver-cum-owner of the offending vehicle filed his written statement and denied the averments made in the claim petition and pleaded that on the date of accident, the offending vehicle was being insured with the Insurance Company, as such, the liability, if any would be fastened upon the Insurance Company.

7. The Insurance Company has filed its separate written statement denying the fact of accident and pleaded that on the date of the alleged accident, the offending vehicle was not insured with the Insurance Company, as such, the insurance Company is not liable for any amount of compensation. It is further pleaded that the trolley bearing registration No.CG-04/HK/5157 was not permitted to carry any passengers, and no insurance premium was paid for covering the risk of any such passenger. Hence, Insurance Company cannot be held liable for any compensation arising from the death of persons travelling on the said trolley. It is also pleaded that the owner of the trolley did not possess a valid permit or fitness certificate for carrying passengers, nor was he authorized to operate the said offending vehicle as a transport vehicle for passengers. It has been lastly pleaded the Insurance Com

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