RAJASTHAN HIGH COURT AT JAIPUR BENCH
R.S.Chauhan, J.
New India Assurance Co. Ltd. - Appellant
Versus
Sabana Bano and others - Respondent
S.B. Civil Misc. Appeal No. 3682 of 2013.
Decided On : 21-11-2013
Motor Vehicles Act - Interpretation of Section 163A - Summary of Acts and Sections: Section 163A of the Motor Vehicles Act, 1988 - The court discussed the interpretation of the phrase 'use of motor vehicle' and its application in the context of the accident. It highlighted the social beneficial nature of Section 163A and emphasized that an accident can occur even when the vehicle is stationary but being employed for transporting people or objects. The court also emphasized that claimants are not required to prove negligence under Section 163A.
Fact of the Case:
The appellant, a insurance company, appealed against a compensation award granted to the claimants-respondents for the death of a motorcycle rider in an accident. The appellant contested the interpretation of 'use of motor vehicle' and the claimants' failure to prove negligence on the part of the driver of the offending vehicle.
Finding of the Court:
The court dismissed the appeal, emphasizing that the accident arising out of the use of a motor vehicle is not limited to when the vehicle is in motion. It also highlighted that claimants are not required to prove negligence under Section 163A.
Issues: Interpretation of 'use of motor vehicle' under Section 163A and the claimants' burden of proving negligence.
Ratio Decidendi: The court held that the phrase 'use of motor vehicle' includes a vehicle that is stationary but being employed for transporting people or objects. It also emphasized that claimants are not required to prove negligence under Section 163A.
Final Decision: The appeal was dismissed.
Firstly, the words "use of motor vehicle" contained in Section 163A of Motor Vehicles Act, 1988 ('the Act' in short) need to be interpreted. According to the learned counsel since the motorcycle on which Ahmed was sitting, was stationary at the time of accident, therefore, the motorcycle "was not in use". Hence, the case does not fall within the ambit of 163A of the Act. Secondly, the claimants have failed to prove the negligence on part of driver of the offending vehicle. Hence, the learned Tribunal has erred in granting them the compensation. Thirdly, relying on the case of United India Insurance Company Ltd. v. Sunil Kumar & Anr., Civil Appeal No. 9694 of 2013 (SLP (Civil) No. 7586 of 2012, decided on 29.10.2013 , he has pleaded that the interpretation of Section 163-A of the Act has been referred to a Larger Bench of the Apex Court. Therefore, the impugned award needs to be interfered with.
"163A. Special provisions as to payment of compensation on structured formula basis.
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorized insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as in
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