Compensation under Section 163-A of the Motor Vehicles Act applies retroactively, allowing beneficiaries of past accidents to claim updated compensation amounts.

JUDGMENT :

SANJAY K. AGRAWAL, J.

1. The appellant/claimant had preferred application under Section 163-A of the Motor Vehicles Act, 1988 (for brevity “Act of 1988”) before the 2^nd Motor Accident Claims Tribunal, Rajnandgaon, Chhattisgarh (for brevity “Claims Tribunal”) claiming compensation to the extent of Rs.90,40,000/- along with 18% interest against respondents herein alleging the monthly income of the deceased to be Rs.12,000/- per month.

2. The claimants before the Claims Tribunal has stated that deceased Chintanand, who was the son of the appellant herein, was driving the offending vehicle/truck bearing Registration No. CG – 08/AL – 1757 and on account of mechanical failure of break, the accident was occurred, wherein the Insurance Company/respondent No.2 herein has taken a plea that the deceased was in the state of intoxication while driving the offending vehicle/truck and, therefore, it was being plied in breach of terms and condition of the insurance policy and, as such, the claimant is not entitled for compensation. Before the Claims Tribunal, it could not be proved by the respondents herein that the offending vehicle was being plied in breach of terms and condition of the insurance policy, however, the Claims Tribunal has dismissed the claim application of the claimant citing that the yearly income of the deceased was Rs.2,40,000/- which is more than income provided under Section 163-A of the Act of 1988, i.e. Rs.40,000/-, against which this appeal has been preferred.

3. Mr. G.S. Rajput, learned counsel for the appellant/claimant, would submit that in view of the Notification dated 22^nd May, 2018, issued by the Government of India (Ministry of Road Transport and Highways) in death cases in the Second Schedule of Section 163-A of the Act of 1988, the family of the deceased would be entitled for total compensation of Rs.5,00,000/- and in support of his submission he would rely upon the decision of the Supreme Court in the matter of New India Assuarance Co. Ltd. v. Urmila Halder, [2024 SCC OnLine SC 4983] in which it has been held that the Notification dated 22^nd May, 2018 would also apply to the accident occurred prior to the issuance of the said notification and in the instant case the accident was occurred on 25.01.2018.

4. Mr. H.B. Agrawal, learned Senior Advocate, would submit that the income of the deceased was Rs.2,40,000/- which is more than income provided under Section 163-A of the Act of 1988, i.e., Rs.40,000/-, therefore, the Claims Tribunal has rightly dismissed the claim application of the appellant herein and the instant appeal also deserves to be dismissed.

5. I have heard learned counsel for the parties, considered their rival submissions made herein-above and gone through the records meticulously.

6. In the case of Deepal Girishbhai Soni and others v. United India Insurance Co. Ltd., Baroda, [(2004) 5 SCC 385] the Supreme Court has held that jurisdiction of Motor Accident Claims Tribunal under Section 163-A of the Act of 1988 can be invoked, if the annual income of a person is Rs.40,000/- per annum and observed as under:-

“67. We, therefore, are of the opinion that Kodala 2001 ACJ 827 (SC), has correctly been decided. However, we do not agree with the findings in Kodala (supra) that if a person invokes provisions of Section 163-A , the annual income of Rs.40,000/- per annum shall be treated as a cap. In our opinion, the proceeding under Section 163-A being a social security provision, providing for a distinct scheme, only those whose annual income is upto Rs.40,000/- can take the benefit thereof. All other claims are required to be determined in terms of Chapter XII of the Act.”

7. This Court in the case of The New India Assurance Company Limited v. S