Judges : M.B.SHAH,D.P.MOHAPATRA
Oriental Insurance Co. - Appellant
Versus
Hansraj bhai - Respondent
Case No : C.A. No. 2568 of 2001
Decided On : 04/04/2001
Advocates Appeared :
For the Petitioner:-- For the Respondent:---
COMPENSATION - MOTOR VEHICLES ACT - S.163A, S.168 - The court addressed the question of whether the compensation payable under S.163A of the Motor Vehicles Act, 1988 is in addition or in the alternative to the determination of the compensation on the principle of fault liability. The court held that the compensation payable under S.163A is in alternative to the determination of compensation on the basis of fault liability. The court analyzed the legislative history, the scheme for payment of compensation under the Act, and the specific language used in different sections to arrive at this conclusion.
1. Leave granted.
2. The common question involved in these appeals is whether the compensation payable under S.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 dated 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 S.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. 1,62,000/- 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, S.163A was inserted and is not meant for interim compensation but is an alternative to the determination of compensation under S.168. It was further contended that the application under S.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 S.163A was an interim Award and the claimants were entitled to proceed further with determination of compensation under S.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) S.140 - For no-fault liability in case of death or disablement;
(ii) S.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) S.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) S.168 - Determination of compensation payable in pursuance of any right on the principle of fault liability.
5. 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 S.140 or S.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 S.140 (Chapter X), 161, 162, 163A, 163B (Chapter IX) 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-s. (1) in respect of the death of any person shall be a fixed sum of fifty thousand rupees and the amount of compens
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