The main legal point established in the judgment is the need to strictly adhere to the Second Schedule while granting compensation under Section 163-A of the Motor Vehicles Act, 1988, and the requirement to apply the new schedule to pending claim applications/appeals post the amendment.

JUDGMENT

Sant Parkash, J. - This appeal has been filed by the Insurance Company challenging award dated 18.10.2002 passed by the Motor Accident Claims Tribunal, Gurdasur (hereinafter referred to as, 'The Tribunal'), whereby compensation has been awarded to the claimants/respondent Nos. 1 to 3 in a petition under Section 163-A of the Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act') filed by them.

2. It is the case of the claimants that on 11.03.2000 at about 3.00 PM, deceased-Kartar Singh along with his relative-Kuldip Singh was coming to their village after attending his duty at PAP Jalandhar Cantt. and when they reached near PAP 'T' point, a Maruti Van bearing registration No.PCJ-983 came at a very high speed from Rama Mandi side and struck against Kartar Singh, on account of which, he sustained multiple injuries. He was taken to the Hospital but died on the way. He left behind widow and two daughters.

3. The claim petition filed by the claimants was resisted by the Insurance Company as well as driver and owner of the offending vehicle by filing separate written statements.

4. The learned Tribunal on consideration of the facts and evidence on record awarded the compensation while considering the claim petition under Section 166 of the Act a sum of Rs.6,94,320/- alongwith interest @ 9% per annum as compensation in the following manner:-

5. This Court has heard the learned counsel for the parties and perused the paper-book.

6. It is pertinent to mention here that vide order dated 29.01.2004, the learned Tribunal was directed to release an amount up-to Rs.4,00,000/- to the claimants as per their shares, already determined by the learned Tribunal.

7. The Tribunal has assessed the annual income of the deceased to be Rs.63,120/- after deducting personal expenses to the extent of 1/3rd and applied the multiplier of 11. Further, while calculating the compensation at Rs.6,94,320/-, the learned Tribunal has wrongly observed that in the claim petition under Section 163-A read with Second Schedule of the Act, maximum limit of income as prescribed in the Second Schedule could be taken. Thus, the learned Tribunal has not passed the award, in terms of Section 163-A read with Second Schedule of the Act and wrongly passed the award in terms of provisions of Section 166 of the Act.

8. It is not in dispute that petition under Section 163-A of the Act was filed by the claimants seeking compensation. It is a settled position of law that while granting compensation under Section 163-A of the Act, the Courts are to be guided strictly by the Second Schedule to the Act. The learned Tribunal ought not to have taken recourse to the provisions of Section 166 of the Act totally and outrightly ignoring the mandate of Section 163 A of the Act. The case was filed by the claimants themselves under Section 163 A of the Act and the learned Tribunal was not to go beyond that while assessing the annual income of the deceased. Resultantly, the observations of the learned Tribunal granting compensation under Section 166 of the Act in the instant case are totally erroneous and manifestly illegal.

9. The notification dated 22.05.2018 issued by the Central Government in exercise of power conferred by sub-section (3) of Section 163A of the Act, appears to have done away with the multiplier method of determination and quantum of compensation and prescribes lump-sum compensation. Separate lump-sum amounts have been introduced for claims arising out of death and injury replacing the structured formula, which was prevalent earlier. The Second Schedule after its amendment by the above-said notification prescribes lump-sum compensation in the following manner:-

1. (a) Fatal accidents:

Compensation payable in case of Death shall be five lakh rupees.

(b) Accidents resulting in permanent disability:

Compensation payabl