Very important point
Compensation payable under Section 163A of the Motor Vehicles Act, 1988 as per the structured formula basis is not in addition but in the alternative to the determination of the compensation on the principle of fault liability, after following the procedure prescribed under the Act.

Headnote:(i) Motor Vehicles Act, 1988—Section 163-A—Compensation as per structured formula basis—Is in the alternataive to determination of compensation on principle of fault liability and not in addition to determination of compensation on basis of fault liability.
       The contention that compensation payable under Section 163A is in addition to the determination of compensation on the basis of fault liability and thereafter it could be adjusted on the similar lines provided under Section 140 read with Section 141 or Section 162 cannot be accepted. The Legislature has specifically provided scheme of adjustment of compensation under Section 140 read with Section 141 and Section 162 if the claimants get compensation under the Act, while there is no such provisions under Section 163A. Addition or introduction of such scheme in provisions would be impermissible. (Para 17)
       The contention of the claimants that right to get compensation under Section 163A is additional to claim compensation on no fault liability is rejected for the following reasons: -
        (1) There is no specific provision in the Act to the effect that sue i compensation is in addition to the compensation payable under the Act. Wherever the Legislature wanted to provide additions 1 compensation, it has done so. [Sections 140 and 141]
        (2) In case where compensation is paid on no fault liability under sections 140 and 161 in case of “hit and run motor accidents’, the Legislature has provided adjustment or refund of the said compensation in case where compensation is detemined and payable under the award on the basis of fault liability under section 168 of the Act. There is no such procedure for refund or adjustment of compensation paid where the compensation is paid under Section 163A.
        (3) The words “under any other law for the time being in force” would certainly have different meaning from the words “under this Act” or “under any other provision of this Act”
        (4) In view of the non-obstante clause ‘notwithstanding anything contained in this Act’ the provisions of Section 163A would exclude determination of compensation on the principle of fault liability.
        (5) The procedure of giving compensation under Section 163A is inconsistent with the procedure prescribed for awarding compensation on fault liability. Under section 163A compensation is awarded without proof of any fault while for getting compensation on the basis of fault liability claimant is required to prove wrongful act, neglect or default of the owner of the vehicle or vehicle concerned.
        (6) Award of compensation under section 163A is on predetermined formula for payment of compensation to road accident victims and that formula itself is based on criteria similar to determining the compensation under section 168. The object was to avoid delay in determination of compensation. (Para 21)
       (ii) Motor Vehicles Act, 1988—Section 163-A—Compensation as per structured formula basis—Direction to Central Government for revision and appropriate correction of Second Sechedule by exercise of its power under Section 163-A(3). (Paras 23 to 25)

JUDGMENT

Shah, J.—Leave granted.

2. The common question involved in these appeals is whether the compensation payable under Section 163A of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the Act’) as per the structured formula basis is in addition or in the alternative to the determination of the compensation on the principle of fault liability, after following the procedure prescribed under the Act?

3. For convenience we would refer to few facts in Civil Appeal arising out of S.L.P. (Civil) No. 8742 of 1999 in which the judgment and order daated 4.8.98 passed by the High Court of Gujarat at Ahmedabad in FA No.2473 of 1996 is challenged. Petition claiming compensation of Rs.2,50,000/- was filed before the Claims Tribunal on the ground that one bus bearing registration No.G.J.3T 9815 met with an accident and Mayur, son of respondent Nos.1 and 2, aged about 6 years died as a result thereof. The claimants also filed an application under Section 163A of the Act for interim compensation on structured formula basis. The Insurance Company-appellant contended that as the bus was not insured with it, it was not liable to pay compensation. The Claims Tribunal granted the prayer of the respondents and directed the appellant to pay Rs.l,62,000/- to the respondents as interim compensation. The appellants preferred appeal before the High Court contending inter alia that in order to provide quicker relief to the accident victims. Section 163A was inserted and is not meant for interim compensation but is an alternative to the determination of compensation under Section 168. It was further contended that the application under Section 163A was a substantial application and not an interim application. The High Court by judgment and order dated 4.8.1998 held that the award under section 163A was an interim award and the claimants were entitled to proceed farther with determination of compensation under Section 168 of the Act. That order is under challenge.

4. For determining the question involved, the scheme for payment of compensation under the Act can be divided as under: -

(i) Section 140-For no-fault liability in case of death or disablement;

(ii) Section 161-In case of hit and run motor accidents, where the identity of the vehicle cannot be ascertained- compensation amount is Rs.25000/- in case of death and Rs. 12500/- in case of grievous hurt;

(iii) Section 163A-Special provisions as to payment of compensation on structured formula basis without establishing or proving any wrongful act or neglect or default of any person;

(iv) Section 168—Determination of compensation payable in pursuance of any right on the principle of fault liability.

4. Chapter XII provides for constitution of Claims Tribunals by the State Government for the purpose of adjudicating the claims for compensation and the procedure thereof. The Claims Tribunal is required to determine the application for payment of compensation either under section 140 or section 163A on the basis of no-fault liability and also on the basis of right to receive the compensation on the principle of fault liability on the basis of Law of Torts, as modified by the Fatal Accidents Act, 1855 read with Motor Vehicles Act, 1988.

6. For appreciating the rival contentions, it would be necessary to refer to the relevant provisions of the Sections 140 (Chapter X), 161, 162, 163A, 163B (Chapter XI) and 167 (Chapter XII) of the Act which are as under:

“140. Liability to pay compensation in certain cases on the principle of no fault.–

(1) Whether death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.

(2) The amount of compensation which shall be payable under sub-

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2001 Supreme(SC) 636

Cases Referred (4)