The absence of a valid certificate of fitness for a transport vehicle constitutes a fundamental breach of insurance policy conditions, entitling the insurer to recover compensation paid to third-party victims from the owner and driver under the 'pay and recover' principle.

1. As above captioned appeals arise out of same accident that occurred on 11.12.2013, they are being heard and disposed of by this common judgment.

2. MAC No. 379/2017 and MAC No. 380/2017 have been preferred by the appellants/claimants seeking enhancement of compensation against the award dated 31.08.2016 passed by the 2nd Additional Motor Accident Claims Tribunal, District Durg, Chhattisgarh in Claim Case No. 76/2015 and Claim Case No. 77/2015, whereby total compensation of Rs. 11,97,648/- and Rs. 8,14,000/- respectively was awarded for the death of Ajay Kumar Yadav & Shyamlal Yadav, along with interest @ 6% per annum from the date of application till realization, fastening the liability upon non-applicant No. 3 – National Insurance Company Limited.

Likewise, MAC No. 1608/2016 and MAC No. 1609/2016 have been preferred by the appellant/Insurance Company challenging the validity and legality of the impugned award with regard to the fastening of liability to pay the compensation upon it.

3. As per averments made in the claim petition, on 11.12.2013, the deceased Ajay Kumar Yadav (MAC No.380/2017) and Shyamlal Yadav (MAC No.379/2017) had gone separately on their respective bicycles to distribute milk. At about 7:45 p.m. to 8:00 p.m., while they were returning to their homes on their bicycles, proceeding on the left side of the road, on the Ahivara–Kumhari Road, the vehicle - 407 bearing registration No. CG-08-B-1403 (hereinafter referred to as “the offending vehicle”), driven by Non-applicant No. 01/Nandlal Sahu, came at a high speed. It is alleged that the said vehicle was being driven in a rash and negligent manner and dashed the bicycles of the deceased Ajay Kumar Yadav and Shyamlal Yadav, and in that event, both sustained grievous and fatal injuries and fell on the road. They were immediately taken to the District Hospital, Durg for medical treatment. However, during the course of treatment, the attending doctors declared Ajay Kumar Yadav and Shyamlal Yadav dead. At the time of accident, the offending vehicle was owned by non-applicant No.2 – Tribhuvan Pandey and insured with non-applicant No.3 – National Insurance Company Limited. As per the claim petition, deceased Ajay Kumar Yadav was a mason and dairy worker, aged about 28 years and was earning Rs.7,500/- per month, whereas, deceased Shyamlal Yadav was also a mason, aged about 17 years and was earning Rs.6,000/- per month.

4. On claim petition being filed by the claimants under Section 166 of the Motor Vehicles Act seeking compensation to the tune of Rs.22,61,600/- (in case of deceased Ajay Kumar Yadav) and Rs.21,24,000/- (in case of deceased Shyamlal Yadav), the Tribunal, considering the evidence led by the parties, passed an award as mentioned in paragraph 2 of this judgment. Being aggrieved with the impugned award, the claimants have filed separate appeals for enhancement. Similarly, non-applicant No.3/insurance company has also filed these appeals against the impugned award with regard to fastening of liability upon it.

5. Learned counsel for the appellants/claimants submits that the learned Tribunal has wrongly assessed the monthly income of the deceased persons at Rs.4,500/- per month. The deceased Ajay Kumar Yadav was a mason and a dairy worker, and was earning Rs.7,500/- per month, whereas, deceased Shyamlal Yadav was also a mason, and was earning Rs.6,000/- per month. As such, looking to the nature of their work, their monthly income deserves to be increased suitably. He furt