High Court Of Madhya Pradesh
U. L. BHAT, M. V. TAMASKAR, D. K. JAIN, RAJEEV GUPTA, M. S. A. SIDDIQUI
ORIENTAL INSURANCE COMPANY LIMITED, NEW DELHI - Appellant
Versus
CHITAMAN - Respondents
Misc. Appeal 234 Of 1995
Decided On : 09/29/1994
MOTOR VEHICLES ACT - NO FAULT LIABILITY - DETERMINATION OF COMPENSATION UNDER SECTION 140 - APPEAL - REVISION - ARTICLE 227 OF THE CONSTITUTION - INTERPRETATION OF SECTIONS 140, 141, 165, 166, 168, 173 AND 174 OF THE ACT.
Fact of the Case:
Various petitions were filed challenging the decisions of the Motor Accidents Claims Tribunal (MACT) under Section 140 of the Motor Vehicles Act, 1988 (the Act), which deals with no-fault liability in certain cases. Some petitioners sought compensation for accidents, while others challenged the rejection of their claims. The main issue was whether an appeal lay against the MACT's decision under Section 140, as a Full Bench of the High Court had previously held in Gaya Prasad v. Suresh Kumar that no appeal was allowed.
Finding of the Court:
The Court held that an appeal does lie against the MACT's decision under Section 140 of the Act. It interpreted various provisions of the Act, including Sections 140, 141, 165, 166, 168, 173, and 174, to conclude that the determination of compensation under Section 140 is an award and that an appeal lies against such an award under Section 173 of the Act. The Court also held that since an appeal lies, a revision under Section 115 of the Code of Civil Procedure or a challenge under Article 227 of the Constitution of India is not maintainable.
Issues: 1. Whether an appeal lies against the MACT's decision under Section 140 of the Act? 2. Whether a revision under Section 115 of the Code of Civil Procedure or a challenge under Article 227 of the Constitution of India is maintainable against the MACT's decision under Section 140 of the Act?
Ratio Decidendi: 1. The Court interpreted the provisions of the Act, including Sections 140, 141, 165, 166, 168, 173, and 174, to conclude that the determination of compensation under Section 140 is an award and that an appeal lies against such an award under Section 173 of the Act. 2. The Court held that since an appeal lies, a revision under Section 115 of the Code of Civil Procedure or a challenge under Article 227 of the Constitution of India is not maintainable against the MACT's decision under Section 140 of the Act.
Final Decision: The Court held that an appeal does lie against the MACT's decision under Section 140 of the Act and that a revision under Section 115 of the Code of Civil Procedure or a challenge under Article 227 of the Constitution of India is not maintainable against the MACT's decision under Section 140 of the Act. The Court allowed the petitioners to amend their petitions to convert them into appeals under Section 173 of the Act.
( 1 ) CIVIL Revision 602 of 1992 has been filed by the insurer against a decision under Section 140 of the Motor Vehicles Act, 1988 (for short the Acts directing the Insurance Company to pay compensation on account of no fault liability. Civil Revisions Nos. 589/92 and 454/93 have been filed by claimants in different cases against rejection of the claim for compensation under Section 140 of the Act. Civil Revision No. 70/93 has been filed by an owner of the vehicle alleged to have been involved in an accident who has been directed under Section 140 to pay compensation on account of no fault liability. Civil Revision No. 590/92 has been filed by an owner of the vehicle similarly placed. M. P. No. 2351/92 has been filed by a claimant under Article 227 of the Constitution whose claim for compensation under Sec. 140 of the Act has been rejected.
( 2 ) THE civil revision petitions have been referred to a Full Bench by a learned single Judge. The petition under Article 227 of the Constitution has been referred to a Full Bench by a Division Bench. Thus the cases came up before a Full Bench of three Judges who in the course of hearing were of the opinion that an earlier decision of a Full Bench in Gaya Prasad v. Suresh Kumar, 1992 MPLJ 485, may require reconsideration. Accordingly, the Full Bench referred the matter to a larger Bench. That is how this larger Bench has been constituted.
( 3 ) THE cases involve grant or refusal, as the case may be, of compensation by M. A. C. Tribunal under Section 140 of the Act, the unsuccessful parties having invoked either jurisdiction of the High Court under Sec. 115, C. P. C. or the supervisory jurisdiction of this Court under Art. 227 of the Constitution. They have done so in view of the decision in Gaya Prasad's case, 1992 MPLJ 485 to the effect that no appeal lies against a decision of the Tribunal under Section 140 of the Act. Two Judges of the Full Bench took that view while the third Judge took a contrary view. The Full Bench overruled an earlier decision of the Division Bench in Oriental Insurance Company Ltd. v. Pritamlal, 1989 MPLJ 580 where it has been held that an appeal lies against such an award.
( 4 ) IT is necessary to look into the scheme and relevant provisions of the Act in order to appreciate and adjudicate the controversy before us. Chapter X of the Act deals with no fault liability in certain cases. Broadly speaking, the provisions in Chapter X replaced the corresponding provisions of the Motor Vehicles Act, 1939 with minor changes. The no fault liability and the quantum of such liability are declared in Section 140. Section 141 lays down, inter alia, that the right under Sec. 140 of the claimant is in addition to any other right on the principle of fault to claim compensation under any other provision of the Act or any other law for the time being in force. Sub-section (3) of Section 141 ensures that if the compensation under Section 140 is less than the amount of compensation fixed for no fault liability. The person concerned is liable to pay in addition to the no fault liability only so much of the compensation awarded as is equal to the amount by which it exceeds the no fault liability compensation. The provision also makes it clear that if the amount of the no fault liability compensation is, equal to or more the amount of the compensation finally awarded, he shall not be liable to pay the latter. Section 144 declares that the provisions of Chapter X shall have effect notwithstanding anything contained in any other provision of the Act or of any other law for the time being in force.
( 5 ) CHAPTER XII of the Act deals with Claims Tribunals. The provisions of this Chapter are parimateria with the corresponding provisions of the Motor Vehicles Act, 1939. Section 165 states, inter alia, that the State Government may constitute one or more Motor Accidents Claims Tribunals "for the purpose of adjudicating upon claims for compensation in respect of accidents i
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