Authority: High Court of Chhattisgarh, Bilaspur
Order Date: 05 October 2026
Case Overview
- Appellant: Oriental Insurance Company Limited (through authorized signatory Deputy Manager, Legal Hub, Bilaspur) appealed under Section 173 of the Motor Vehicles Act, 1988 against the award dated 24 February 2023 in Motor Accident Claims Case No. 610/2021.
- Respondents: Tukaram Sahu (deceased’s family members) and Rajaram Bisnoi, owner‑cum‑driver of the offending truck; the latter was found not to hold a valid permit and fitness certificate at the time of the accident on 12 February 2021 that caused the death of Virendra Sahu.
- The Claims Tribunal had awarded Rs 12,23,840 as compensation under Section 166 of the Act and directed the insurer to pay the amount first and then recover it from respondent No. 5 (Rajaram Bisnoi).
- The insurer argued that the “pay and recover” direction was untenable because the lack of a valid permit constituted a breach of policy conditions, and therefore the insurer should not be required to pay before recovery.
Final Outcome
- The Court, relying on the Supreme Court precedent in Amrit Paul Singh & Anr. v. Tata AIG General Insurance Co. Ltd., held that the “pay and recover” direction is legally sound.
- The appeal was dismissed as devoid of merit, and the original award of Rs 12,23,840 remains enforceable against the insurer with the right to recover from the driver‑owner.
Topics: Court Judgment, Motor Accident Compensation, Insurance Liability