IMPORTANT POINT
Benefit of amendment of Section 166(3) of Motor Vehicles Act, 1988 whereby limitation for filing claim petition has been taken away is to be extended to cases where the dispute as to whether claim petition having been filed beyond period of twelve months of accident were pending consideration either before the Tribunal, High Court or Supreme Court.

JUDGMENT

N.P. Singh, J.-Leave granted.

2. The appellant while going on road on 4.12.1990 became victim of an accident, because of the rash and negligent driving of the scooter by respondent No. 1 (hereinafter referred to as the respondent ). The appellant suffered serious injuries and was admitted in Badwah Hospital, the same day. On 7.12.1990 he was shifted to M.Y. Hospital, Indore and was treated as an indoor patient till 27.9.1991. Because of the accident the appellant became permanently disabled, as his left leg above thigh and hip had been fractured. He also lost his services as a Driver. The claim petition for compensation was filed before the Additional Motor Accident Claims Tribunal, Badwah (hereinafter referred to as the Tribunal ) on 7.12.1991 along with an application for condonation of delay which was of four days only. The Tribunal by its order dated 18.11.1993 condoned the delay in filing the claim petition. The validity of the said order was challenged by the respondent before the High Court of Madhya Pradesh at Jabalpur. The High Court by its order dated 31.7.1995 set aside the order of the Tribunal aforesaid condoning the delay saying that in view of sub-section (3) of Section 166 of the Motor Vehicles Act, 1983 (hereinafter referred to as the Act ) the power of condonation by the Tribunal has been withdrawn and any claim must be filed within the period prescribed therein. The High Court further observed that by prescribing the fixed period for filing the petition for claim, the intention was that the sword of liability of paying compensation in respect of accident caused by motor vehicle should not be permitted to hover on the head of the person owning the said vehicle and person driving such vehicle. It was also pointed out that the position was different under the Motor Vehicles Act, 1939 in which sub-section (3) of Section 110-A although prescribed a period of six months for filing an application for compensation from the date of the accident, but vested power in Tribunal to entertain such application even after the expiry of the said period of six months, if the Tribunal was satisfied that the claimant was prevented by sufficient cause from making the application in time.

3. Sub-section (3) of Section 110-A of the Motor Vehicles Act, 1939 provided:

"No application for such compensation shall be entertained unless it is made within six months of the occurrence of the accident:

Provided that the Claims Tribunal may entertain the application after the expiry of the said period of six months if it is satisfied that the applicant was prevented by sufficient cause from making the application in time."

4. The Act which repealed the earlier Motor Vehicles Act of 1939 came in force w.e.f. 1.7.1989. The new Act prescribed a period of limitation for filing the claim petition in sub-section (3) of Section 166. Said sub-section provided:

"No application for such compensation shall be entertained unless it is made within six months of the occurrence of the accident.

Provided that the Claims Tribunal may entertain the application after the expiry of the said period of six months but not later than twelve months, if it is satisfied that the applicant was prevented by sufficient cause from making the application in time."

5. According to the High Court, as proviso to sub-section (3) of Section 166 of the Act said that Claims Tribunal may entertain the application after the expiry of the said period of six months but not later than twelve months , any application filed beyond the period of twelve months from the date of the accident cannot be entertained as no discretion had been left with the Tribunal to consider the circumstances because of which the application for claim could not be filed within the period of twelve months of the occurrence of the accident.

6. Before the scope of sub-section (3) of Section 166 of the Act is examined, it may be pointed out that the aforesaid sub-section (3) of Section 166 of the