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1991 Supreme(MP) 221

1991 JLJ 490
(FULL BENCH)
S.K. Jha, C.J., K.M. Agarwal and D.M. Dharmadhikari, JJ.
New India Assurance Company Ltd. v. Nafis Begum and others
C.R. No. 14 of 1991; on reference of Hon‘bie Justice Shri S.K. Dubey; J.
Decided on 26.4.1991

Advocates:
K.K. Lahoti and K.B. Chaturvedi for applicants.

Headnote:Per Full Bench:

        (1) Motor Vehicles Act, 1939 -- S. 92-A -- nature of the provision under -- it is not retrospective -- award of interim compensation can be made only in cases in which accident took place on 1.10.1982 and onwards.

        The settled canon of interpretation is that a law enacted is to operate prospectively unless it is expressed to be retrospective in operation, by the legislature itself or the nature of the law is such that it is to operate on passed events and transactions as well. [Para 10

        The right of compensation based on principle of no fault liability to the victims and the corresponding liability of the owner and insurer of the vehicle arise on the occurrence of the accident. The accident is the cause of giving rise to the rights and liabilities of the parties involved in it. AIR 1982 SC 836 followed. [Para 11

        If the rights and liabilities of the parties were held to depend on any change of law effected subsequent to the accident, discriminatory situation is likely to arise between the parties involved in accidents happening even on the same date. 1990 JLJ 560 overruled. 1989 ACJ 941 approved. 1991 JLJ 280 relied on. 1990(1) SCC 356 followed. [Para 12

       Per Hon‘ble Shri S.K. Jha, C.J.:

        (2) Motor Vehicles Act, 1939 -- S. 92 -A -- prospectivity of the provision amply clear from the language used by the Legislature -- made effective since 1.10.1982 by a notification as provided in the amending Act -- no room left for any intendment -- provision cannot be given retrospective effect. [Para 21

ORDER

D.M. Dharmadhikari, J. -- 1. The order passed by us in this revision shall govern the disposal of Miscellaneous Appeal No. 191 of 1990 (The New India Assurance Company Ltd., Gwalior v. Smt. Kasturibai w/o late Shri Radheshyam Gautam and others) also.

2. The learned Single Judge (S.K. Dubey, J.) at the Gwalior Bench of this Court has referred the legal question involved for decision by a Full Bench in view of the cleavage of opinions between the two Division Bench decisions of this Court reported in the case of Karuram and others v. Om Prakash and others 1989 ACJ 941, decided by P.D. Muley and K.L. Shrivastava, J. of the Indore Bench and the decision in the case of Indramipini Mukhriya General Manager, M.P.S.R.T.C. 1990 JLJ 560, decided by Division Bench consisting of Faizan Uddin and Y.B. Suryavanshi, JJ. of the main seat at Jabalpur.

3. The question also came up for consideration before a learned Single Judge at the Gwalior Bench, namely, R.C. Lahoti, J. on a difference of opinion between Dr. T.N. Singh, J. and K.K. Verma, J. The third Judge to whom the case was referred for resolving the dispute (R.C. Lahoti, J.), agreed with the opinion expressed by K.K. Verma, J. The opinions of three Judges of the Gwalior Bench are reported in the case of Bhagwandas and another v. National Insurance Co. Ltd. and another 1991 JLJ 280 = 1990 MPJR 578.

4. The question arising before the Full Bench is whether the provisions providing for interim compensation based on the principle of no fault liability contained in section 92-A, which was introduced by Amendment Act No. 47 of 1982 and brought into force with effect from 1.10.1982 of the M.V. Act, 1939 (now repealed by M.V. Act of 1988 w.e.f. 1.7.1989), can also apply and govern the rights and liabilities of the parties in a pending claim before a Claims Tribunal in respect of accidents which occurred prior to 1.10.1982. In other words, the question is whether section 92-A of the Act has to be given only prospective operation in relation to accidents which occurred after 1.10.1982 or even to those which occurred prior to the above date.

5. At the outset it may be stated that the Act of 1939 stands repealed by the Act of 1988 with effect from 1.7.1989 and similar provision as contained in section 92-A of the replealed Act had been re-enacted in section 140 of the 1988 Act with the only difference that the amounts of no fault compensation have been increased from Rs. 15,000/- to Rs. 25,000/- in case of death and from Rs. 7,000/to Rs. 12,000/- in case of permanent disablement.

6. For the decision of the above legal question which is relevant both for the purpose of the provisions in section 92-A of the repealed Act and section 140 of the Act of 1988, it would be necessary to consider the nature and contents of the various legal provisions involved. Section 92-A is a part of Chapter VII-A introduced by the Amendment Act No. 47 of 1982 and is in pari materia with section 140 of the Act of 1988. Section 92-A under consideration before us reads as under:

"92-A. Liability to pay compensation in certain cases on the principle of no fault -- (1) Where the death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.

(2) The amount of compensation which shall be payable under sub-section (1) in respect of the death of any person shall be a fixed sum of fifteen thousand rupees and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of seven thousand five hundred rupees.

(3) In any claim for compensation under sub-section (1), the claimant shall not be required to plead and establish that the death or permanent disable










































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