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1990 Supreme(Ker) 131

Judges : THOMAS,MANOHARAN
United India Insurance Co.Ltd. - Appellant
Versus
Padmavathy - Respondent
Case No : M.F.A. No. 69 of 1990
Decided On : 03/29/1990
Advocates Appeared :
Siby Mathew; A.A. Mohammed Nazir; H.P. Vijaya Bhanu; F.A. Reziya; For Appellant S. James Vincent; R.D. Shenoi; For Respondents V. Giri; As Amicus Curiae

The main legal point established in the judgment is that the right to compensation under S.140 of the Motor Vehicles Act, 1988, is a continuation of the right envisaged in Chapter VII A of the repealed Act, with an enhancement in the amount of compensation, and that S.6 of the General Clauses Act does not impede the enforcement of S.140 in relation to accidents occurring prior to the enactment of the New Act.

Headnote:

Motor Vehicles Act - Compensation for Motor Accidents - S.140, S.173, S.217, S.6 of the General Clauses Act - The court discussed the interpretation and application of S.140 of the Motor Vehicles Act, 1988, which provides for compensation for 'liability without fault' in motor accident cases. The court examined the impact of the repeal clause (S.217) and the general application of S.6 of the General Clauses Act on the right to compensation under S.140. The court held that the right created under S.140 is a continuation of the right envisaged in Chapter VII A of the repealed Act, with an enhancement in the amount of compensation, and that S.6 of the General Clauses Act does not impede the enforcement of S.140 in relation to accidents occurring prior to the enactment of the New Act. The court also emphasized the legislative intention manifested in Chapter X of the New Act, which gives predominance to the provisions regarding 'no fault liability' over all other laws.

Fact of the Case:

The case involved a motor accident that occurred before the enactment of the Motor Vehicles Act, 1988. The appellant, an insurer, contested the compensation awarded under 'no fault liability' (S.140) on the grounds that the accident happened before the New Act came into force.

Finding of the Court:

The court overruled the preliminary objection against the maintainability of the appeal and upheld the award, dismissing the appeal. The court held that the right created under S.140 is a continuation of the right envisaged in Chapter VII A of the repealed Act, with an enhancement in the amount of compensation, and that S.6 of the General Clauses Act does not impede the enforcement of S.140 in relation to accidents occurring prior to the enactment of the New Act.

Issues: The main issue was whether the victim (or his legal representatives) in a motor accident which happened before the enactment of the Motor Vehicles Act, 1988, is entitled to compensation as provided in S.140 of the New Act.

Ratio Decidendi: The court held that the right created under S.140 is a continuation of the right envisaged in Chapter VII A of the repealed Act, with an enhancement in the amount of compensation, and that S.6 of the General Clauses Act does not impede the enforcement of S.140 in relation to accidents occurring prior to the enactment of the New Act. The court also emphasized the legislative intention manifested in Chapter X of the New Act, which gives predominance to the provisions regarding 'no fault liability' over all other laws.

Final Decision: The court upheld the award and dismissed the appeal, with no costs.

Judgment :-

Thomas, J.

1. The question raised in this appeal has some moment for victims in motor accidents. The Motor Vehicles Act, 1988 (for short "the New Act") came into force on 1-7-1989 containing S.140 in which the amount of compensation for "liability without fault" in accident cases has been fixed at twenty five thousand rupees in respect of death and twelve thousand rupees in respect of permanent disablement. The question raised is this: Whether the victim (or his legal representatives) in a motor accident which happened before the said date is entitled to compensation as provided in the New Act? Some of the Motor Accidents Claims Tribunals in this State have awarded compensation according to the amount fixed in the New Act and appeals have been filed against such awards in which the aforesaid question alone has been raised. When we heard arguments in this appeal, we had the assistance of arguments addressed by some of the standing counsel engaged by Insurance Companies in this High Court. Besides the counsel for victim/ respondent in this appeal, we are also benefited by the able assistance provided by Shri. V. Giri whose services were requested for by us as amicus curiae. We place on record our gratitude to all the counsel.

2. The motor accident in this case took place on 20-11-1988. The claim was preferred by the legal representative of the victim of the motor accident claiming compensation under S.110A of the Motor Vehicles Act, 1939 (for short'the repealed Act'). During the pendency of proceedings before the Claims Tribunal, a claim was made under S.92 A of the repealed Act for compensation under "no fault liability". The Claims Tribunal by an interim award granted twenty five thousand rupees as per S.140 of the New Act. The contention of the appellant, who is the insurer, is that since the accident happened before the New Act came into force, the amount under "no fault liability" should not have been in excess of what is provided in S.92A of the repealed Act.

3. Before we proceeded to hear the merits of the appeal, a preliminary objection was raised against maintainability of the appeal. Shri. James Vincent, learned counsel appearing for a similar claimant in another appeal, contended that no appeal will lie against an interim award. S.173 of the New Act(which corresponds to S.110(D) of the repealed Act) provides for appeals. The said provision says that any person "aggrieved by an award of a Claims Tribunal may, within ninety days from the date of award, prefer an appeal to the High Court". S.173, thus, confers a right of appeal against "an award of a Claims Tribunal". The word "award" is not, of course, defined either in the New Act or in the repealed Act. Hence it has to be given its ordinary meaning. To award ordinarily means "to adjudge to be due or by judicial determination or deliberate judgment" (Law Lexicon by P. Ramanatha Aiyar) Compensation for "no fault liability" was envisaged in S.92A of the repealed Act and in S.140 of the New Act. S.141(2) of the New Act which is identical with S.92(b)(2) of the repealed Act reads thus: "A claim for compensation under S.140 in respect of death or permanent disablement of any person shall be disposed of as expeditiously as possible and where compensation is claimed in respect of such death or permanent disablement under S.140 and also in pursuance of any right on the principle of fault, the claim for compensation under S.140 shall be disposed of as aforesaid in the first place". The section evidently recognises two types of claims. The corollary thereto is that there can be two types of awards. One is the claim for compensation for "no fault liability" (under S.140) and the other is the claim based on fault of the opposite side. The statute enjoins on the Claims Tribunal to dispose of both the claims independently, one first in time and the other next. This means, two awards may have to be passed by the Claims Tribunal in favour of one claimant in the same proceedin














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