IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
VIKAS BAHL, J.
Karam Chand and others - Appellants
Versus
Avtar Singh and others - Respondents
FAO-3299 of 2018
Decided On : 15-01-2026
JUDGMENT :
VIKAS BAHL, J.
1. The husband and three minor children of the deceased Charno Devi, who had died in a motor vehicular accident, which had taken place on 19.10.2016, have filed the present appeal for enhancement of compensation.
2. The Motor Accident Claims Tribunal vide award dated 28.10.2017 had awarded an amount of Rs.4,05,500/- as compensation along with interest.
3. Learned counsel for the appellants has submitted that in the present case, the present appellants-claimants had filed a claim petition under Section 163-A of the Motor Vehicles Act, 1988 (hereinafter to be referred as “the 1988 Act”) and under issue no.1 which was re-settled / re- framed on 28.10.2017, it was held by the Tribunal that the accident had occurred due to the use of offending vehicle and the said issue was decided in favour of the present appellants. It is further submitted that in view of settled law, an amount of Rs.5,00,000/- was required to be awarded to the appellants whereas the compensation which has been awarded is on the lesser side. It is further submitted that the provisions of Section 163A of the 1988 Act have now been replaced with Section 164 of the 1988 Act and thus, the claimants are entitled to an amount of compensation of Rs.5,00,000/-. It is submitted that the Hon'ble Supreme Court in the case of “Ram Murti and others Vs. Punjab State Electricity Board, reported as 2023 ACJ 631, in similar facts and circumstances, was pleased to grant compensation of an amount of Rs.5,00,000/- in a case where the negligence of the driver of the offending vehicle was not proved. In the said case also, although the accident had taken place on 23.05.1991 and the award in the said case was passed on 12.04.1994, yet the Hon'ble Supreme Court had given the benefit of the beneficial provisions of Section 164 of the 1988 Act, which provision had been incorporated by the Act 32 of 2019. It is submitted that in view of the same, the said amount be paid along with interest to the claimants from the date of the application till the date of the actual payment. It is submitted that the present case be treated as a case under Section 164 of the 1988 Act as amended. It is submitted that the Combine Marka Ramji 5100 bearing registration no.HR-01AP-2142 was proved to be driven by respondent no.1, which was owned by respondent no.2 and insured by respondent no.3 and the said aspects are not in dispute.
4. Learned counsel for respondent no.3-insurance company has submitted that the amount which has been awarded by the Tribunal is adequate and no further enhancement is called for.
5. This Court has heard learned counsel for the parties and has perused the paper book.
6. This Court in case bearing No.FAO-247-1991 titled as “Sushma Devi and others Vs. Tarlochan Singh and others” decided on 03.09.2024 while considering the case of no fault liability had, by placing reliance upon the judgment of the Hon’ble Supreme Court in case of Ram Murti and others (Supra), directed the Insurance Company to pay an amount of Rs.5,00,000/- to the claimants along with the interest at the rate of 7.5% per annum from the date of filing the claim petition till its actual payment. Relevant portion of the said judgment passed in the case of Sushma Devi and others (Supra) is reproduced hereinbelow:-
“6. Section 140 of the Motor Vehicles Act, 1988, which was in force on the date of the accident i.e. 04.12.1989 provided that the compensation to the extent of Rs.25,000/- would be payable in the case of death of a person and in such a situation, the claimant was not required to plead and establish that the death or permanent disablement in respect of which the claim had been made was due to any wrongful act, negligence or default of the owner of the offending vehicle or vehicles concerned or any other person. The said Section 140 of the Motor Vehicles Act, 1988 was amended in the year 1994 and the amount payable in the case of death was enhanced to Rs.50,000/-. The relevant portion of amended S
Claimants are entitled to compensation under Section 164 of the Motor Vehicles Act, 1988, irrespective of negligence, with a fixed amount of Rs.5,00,000/- for death in a road accident.
The amended Second Schedule has to be taken into account in pending proceedings under Section 163A for deciding the quantum of compensation.
The court established the ability to convert claims from Section 163-A to Section 166 of the Motor Vehicles Act, allowing for cases based on negligence to receive thorough examination and compensatio....
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