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1998 Supreme(Raj) 847

High Court Of Rajasthan
Judgename : D.C. Dalela
Oriental Insurance Co.Ltd. - Appellant
Versus
Nathu Ram - Respondent
S.B. Civil Writ Petition No. 6465 of 1997
Decided On : 12/15/1998

Advocates Appeared:
Virendra Agrawal, for the Appellant
Rakesh Sharma, for the Respondents

Compensation under Sections 140 and 163-A of the Motor Vehicles Act, 1988 are alternative to each other, and the compensation under Section 163-A is in the nature of interim compensation.

Headnote:

Motor Vehicles Act, 1988 - Compensation - Interim Compensation

Fact of the Case:

The claimants filed a claim petition for compensation under Section 166 of the Motor Vehicles Act, 1988 for the alleged loss suffered due to a fatal accident. The Tribunal awarded interim compensation under Section 163-A of the Act. The petitioner insurance company challenged this decision.

Finding of the Court:

The court held that the Motor Accidents Claims Tribunal has jurisdiction to award interim compensation under Section 163-A of the Act. It emphasized that compensation under Sections 140 and 163-A are alternative to each other, and the compensation under Section 163-A is in the nature of interim compensation.

Issues: Jurisdiction of the Tribunal to award interim compensation under Section 163-A of the Act.

Ratio Decidendi: The court interpreted the provisions of Sections 140, 163-A, and 165 of the Act, emphasizing that compensation under Section 163-A is in the nature of interim compensation and can be adjudicated upon by the Tribunal.

Final Decision: The petition challenging the award of interim compensation was dismissed.

Judgment

D.C. Dalela, J.-The claimant-respondent Nos. 1 to 4 preferred a claim petition before the Motor Accidents Claims Tribunal, Alwar, under Section 166 of the Motor Vehicles Act, 1988 (hereinafter called, ‘the Act’), for the alleged loss suffered by them on account of death of Taradevi, who died in the accident that took place on 16.3.96. Along with the claim petition, the claimants also filed an application under Section 163-A of the Act, for interim compensation. In the claim petition, the claimants alleged that the accident took place due to negligence of the driver and owner of the motor cycle in question, which was insured with the petitioner insurance company. The learned Tribunal, vide its order dated 111.1996, awarded a compensation of Rs. 99,300 in favour of the claimants, as interim compensation, under Section 163-A of the Act. Feeling aggrieved thereby, this writ petition has been preferred.

2. I have heard the arguments of both the sides.

3. Thecontention of learned counsel for the petitioner is that the learned Tribunal has no jurisdiction to award interim compensation under Section 163-A of the Act. Sections 165 to 168 of the Act provide that a Motor Accidents Claims Tribunal is required to adjudicate upon the claim for compensation, in respect of the accident, involving death or bodily injury arising out of the use of the motor vehicle and/or damage to any property of the third party, on the basis of fault, negligence or any wrongful act of the owner or/and driver of the vehicle. For the purposes of such adjudication, it is required to hold an inquiry into the claim and to make award, determining the amount of compensation, which appears to be just. The liability to pay compensation would be of the owner, driver and insurer of the vehicle, as may be directed by the Tribunal.

4. In addition to the claim of compensation as above, the claimant has a right to claim compensation in respect of death or permanent disablement, on the principle of ‘no fault’ under Section 140 of the Act.

5. Theclaimant has also a right under Section 163-A of the Act, to claim compensation, as indicated in the Second Schedule of the Act, in the case of death or permanent disablement, without pleading or proving any wrongful act, neglect or default of the owner or the driver.

6. Section 163-B of the Act provides that where a person is entitled to claim compensation under Sections 140 and 163-A of the Act, he would file a claim under either of the sections and not under both.

7. Section 141 of the Act provides that the right to claim compensation under Section 140, would be in addition to any other right (based on principle of fault), except the right under Section 163-A of the Act. From Sections 163-A and 141 of the Act, it is amply clear that compensations, awardable under Sections 140 and 163-A are alternative to each other. One may claim compensation either under Section 140 or under Section 163-A. One cannot claim under both the sections, namely, Section 140 as well as Section 163-A. Therefore, the right to claim compensation under Section 163-A is an alternative to one provided under Section 140. Like the claim under Section 140, the claim under Section 163-A, is in addition to the right to claim compensation under Sections 165 to 168 of the Act.

8. Under Section 140 as well as under Section 163-A, compensation is awardable on the principle of’no fault’, because, under Section 163-A also the claimant is not required to plead and prove the fault, neglect or wrongful act of the owner/ driver.

9. The compensation awardable under Section 140 is certainly an interim compensation. Therefore, the compensation awardable under Section 163-A is in the nature of interim compensation. The amount may be adjusted against the total amount of compensation awarded under Sections 165 to 168 of the Act.

10. TheExplanation to Section 165 clearly declares that the claim of compensation required to be adjudicated upon by the Motor Accidents Claims Tri




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