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2005 Supreme(P&H) 1338

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
YASHVIR SINGH RATHOR, J.
Smt Gurdev Kaur And Ors. - Appellant
Versus
Raj Krishan And Ors. - Respondent
FAO-3834-2005(O&M) With FAO-3835-2005(O&M)
Decided On : 07-04-2026

Advocates:
Advocate Appeared:
For the Appellant :Mr. Neeraj Khanna, Advocate
For the Respondent:Mr. D.P. Gupta, Advocate and Mr. Shubham Gupta, Advocate

The enhanced compensation amount for death under no-fault liability, as prescribed by the amended statutory provisions, applies retrospectively to pending claims, as the legislation is a beneficial provision intended to provide adequate relief to victims of motor accidents.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 163-A and 164 - Amendment Act 32 of 2019 - Death in motor accident - Quantum of compensation - Beneficial provision - Retrospective application - Claimants entitled to enhanced compensation of Rs. 5,00,000/- under no-fault liability - Legislative intent behind beneficial provisions must be given effect to ensure just compensation. (Paras 8, 10, 11, 12)

(B) Appeal - Enhancement of compensation - Appellate court empowered to apply beneficial legislative amendments to pending claims to ensure substantive justice - No-fault liability compensation enhanced from Rs. 50,000/- to Rs. 5,00,000/-. (Paras 12, 13, 14)

Facts of the case:
Claimants filed petitions for compensation following a fatal motor accident. The tribunal awarded a fixed sum under no-fault liability. Appellants sought enhancement, arguing that the amended statutory provisions providing for higher compensation should apply to their claims.

Findings of Court:
The court determined that the legislation is a beneficial provision and that the enhanced compensation amount prescribed by the amendment should be applied to the pending claims, despite the accident occurring prior to the amendment.

Issues: Whether the enhanced compensation amount under the amended statutory provision is applicable to claims arising from accidents that occurred before the amendment came into force.

Ratio Decidendi: Given the beneficial nature of the legislation, the court held that the enhanced compensation amount provided under the amended statute applies to pending claims, ensuring that the legislative intent of providing adequate relief is fulfilled.

Result: Appeals allowed.

Table of Content
1. procedural history and tribunal findings on compensation. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. contention regarding application of beneficial provision under section 164. (Para 8 , 9)
3. retrospective application of beneficial statutory provisions for compensation. (Para 10 , 11 , 12)
4. granting of enhanced compensation and incidental orders. (Para 13 , 14 , 15 , 16 , 17 , 18)

JUDGMENT :

YASHVIR SINGH RATHOR. J.

1. This judgment shall dispose of the two appeals which have emanated out of the same Award.

2. These appeals have been instituted against the Award dated 20.05.2005 passed by the Motor Accident Claims Tribunal, Ambala (for short “Tribunal”) in MACT Case No.9 of 2002 and MACT Case No.10 of 2002, under Section 166 of Motor Vehicles Act, 1988 (hereinafter referred to as ‘Act’), vide which claimants in both the petitions have been awarded a sum of Rs.50,000/- each only as compensation under the “no fault liability” along with interest @ 9% per annum from the date of the institution till realization as the accident in question had taken place solely due to rash and negligent driving on the part of motorcyclist Gurvinder Singh driver/deceased himself.

3. From the pleadings of parties, following issues were framed in both the claim petitions by the learned Tribunal:-

“1. Whether Bhag Singh and Gurvinder Singh died in a motor vehicular accident allegedly caused due to rash and negligent driving of Ambassador car no. HR-06-G-0096 being driven by respondent no. 1, as alleged? OPP

2. If issue no. 1 is proved in affirmative then to what amount of compensation, the claimants of both the claim petitions are liable to and from whom? OPP

3. Whether the driver of the offending vehicle was not having valid and effective driving license at the time of accident? OPR

4. Relief.”

4. Thereafter, the parties led evidence in support of their respective case.

5. After hearing the parties and going through the material on the file, the learned Tribunal awarded a sum of Rs.50,000/- each as compensation to the claimants in both petitions under ‘no fault liability’, on account of death of Bhag Singh and Gurvinder Singh along with interest @ 9% per annum from the date of filing of claim petitions till realization.

6. Feeling aggrieved, the appeals in hand have been preferred. The material on file has been perused and parties have been heard.

7. The Tribunal, while deciding issue No.1 held that the accident had not taken place due to rash and negligent driving on the part of driver of the offending vehicle No.HR-06-G-0096 and infact, accident occurred solely due to negligent driving of the motorcycle on the part of one of the deceased namely Gurvinder Singh and decided issue No.1 against the claimants. However, under issues No.2 and 3, it was held that vehicle was insured with respondent No.4 vide policy Ex.RA and insurance company has failed to lead any evidence to prove that driver was not holding any valid and effective driving licence and held that insurance company is liable to pay compensation. The Tribunal has awarded a sum of Rs.50,000/- each as compensation to the claimants under ‘no fault liability’.

8. Learned counsel for the appellants argued that the claim petitions were filed under Section 166 of the Act, which have been dismissed by the Tribunal and the Tribunal has awarded compensation of Rs.50,000/- each on account of death of Bhag Singh and Gurvinder Singh under “no fault liability”. However, the mode of assessment of compensation under “no fault liability” is not proper and in accordance with settled principles of law. Learned counsel for the appellants argued that the impugned award is liable to be set aside as the same is based on conjectures and surmises. Learned counsel further contended that the provision of Section 163-A of the Act has been replaced by Section 164 of the Act vide Act No.32 of 2019 and under Section 164 of the Amended Act, claimants are entitled to compensation to the tune of Rs.5,00,000/- each on accoun

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