Section 92-A of the Motor Vehicles Act, 1939, and Section 140 of the Motor Vehicles Act, 1988, are retrospective in operation and effect, and their benefit is extendible to claims for compensation in respect of death or permanent disablement resulting from motor vehicle accidents occurring prior to 1. 10. 1982.

( 1 ) THE question of law of obvious significance and far-reaching consequence permitted to be raised and debated at the Bar, though not taken in the grounds of appeal, has been the subject-matter of conflicting decisions of various High Courts. The question is whether Section 92-A of the Motor Vehicles Act, 1939, as inserted by Amending Act No. 47 of 1982 with effect from 1. 10. 1982 and Section 140 of the Motor Vehicles Act, 1988, are retrospective in operation and effect and the benefit thereof is extendible to a claim for damages in respect of death or permanent disablement which has resulted from an accident arising out of the use of motor vehicle, occurring prior to 1. 10. 1982?

( 2 ) BEFORE taking up the question a resume of the facts giving rise to this appeal may be stated as thus: The accident arising out of the use of motor vehicle in the instant case occurred on 14. 1. 1977 on the G. T. Road in village Kazipur, P. S. Puramukti, District Allahabad. K. Tejia, the victim of the accident, was the daughter of the claimants-appellants. She was going on foot by her left side when she was hit by car UTE No. 5545 due to rash and negligent act of driver of the car. She received head injuries which proved fatal. The appellants filed claim petition on 2. 7. 1977 claiming Rs. 30,150/- as the total compensation on account of the death of their daughter who was aged about 6 years at the time of accident. Costs of the suit and interest from the date of presentation of the claim petition were also claimed. The Tribunal awarded Rs. 12,700/- as compensation on account of the death of the daughter of the claimants in the said motor accident with interest at the rate of 6 per cent per annum from the date of presentation of the claim petition till the date of recovery. Being dissatisfied, the claimants filed the instant appeal and it is during the pendency of the appeal that Section 92-A was inserted by amending act 47 of 1982 with effect from 1. 10. 1982.

( 3 ) LEARNED counsel appearing for the appellants urged that Section 92-A of the Act is retrospective in nature and the amount of compensation payable on the principle of fault in respect of death and permanent disablement resulting from an accident arising out of the use of motor vehicle can in no case be less than what is prescribed by Section 92-A of the Act corresponding to Section 140 of the Motor Vehicles Act, 1988, in no fault cases. It was also urged by the counsel appearing for the appellants that the amount of compensation awarded by the Tribunal in the instant case was too low having regard to the facts and circumstances of the case. Learned counsel further urged that the appellants are entitled to get the benefit of Section 140 of 1988 Act as amended by the Motor Vehicles (Amendment) Act, 1994, enforced with effect from 14. 11. 1994. Learned counsel appearing for National Insurance Co. Ltd. , respondent no. 2, refuted the submissions made by the counsel appearing for the appellants and urged that section 92-A had the effect of amending substantive law on the point and as such it was prospective and not retrospective in nature. It was also urged by the counsel appearing for the respondent insurance company that the amount of compensation awarded by the Tribunal was just and reasonable having regard to the facts and circumstances of the instant case.

( 4 ) IN the words of S. C. Agrawal, J. , who spoke for the majority in K. S. Paripoornan v. State of kerala JT 1994 (6) SC 182, para 71 at page 213: a statute dealing with substantive rights differs from a statute which relates to procedure or evidence or is declaratory in nature inasmuch as while a statute dealing with substantive rights is prima facie prospective unless it is expressly or by necessary implication made to have retrospective effect, a statute concerned mainly with matters of procedure or evidence or which is declaratory in nature has to be construed as retrospective unless there is a clear indic