High Court Orders Insurance to Pay ₹2.5L

Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 04.08.2026

Parties: Appellant Bhagdan Singh Chouhan (vehicle owner) vs. Claimants Tejram Sao, Geeta Bai, Govind Sidar, and Respondent No.4 Cholamandalam M.S. General Insurance Company Limited (through its Branch Manager).
Nature: Appeal under Section 173 of the Motor Vehicles Act, 1988 against award dated 15.02.2019 by 1st Additional Motor Accident Claims Tribunal, Raigarh (Claim Case No. 50/2018) granting ₹5,00,000 compensation with interest to claimants.
Allegations: Appellant argued driver lacked valid licence; liability should rest on insurer, not owner. Respondent insurer defended tribunal award.
Findings: Tribunal correctly found vehicle driven by Govind Sidar without a valid licence; evidence from criminal case documents and witness Til Sai (NAW‑2) supported this. No evidence presented by owner to rebut.
Legal Observation: Tribunal failed to apply Supreme Court’s “pay‑and‑recover” principle (National Insurance Co. Ltd. v. Swaran Singh, 2004) which requires insurer to pay compensation first and then recover from owner/driver.

The appeal is dismissed.
The award is modified: Owner has already paid 50% (₹2,50,000); the remaining 50% (₹2,50,000) is directed to be paid by Cholamandalam M.S. General Insurance Company Limited to the claimants.
The insurer is entitled to recover the amount from the owner and driver in accordance with the “pay‑and‑recover” principle.
No costs awarded to any party.

Topics: Motor Accident Compensation, Insurance Liability