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2022 Supreme(SC) 1270

S. ABDUL NAZEER, J. K. MAHESHWARI
Gohar Mohammed – Appellant
Versus
Uttar Pradesh State Road Transport Corporation – Respondent


Advocates appeared:
For the Petitioner(s): Mrs. Rani Chhabra, AOR Ms. Riya Sethi, Adv.
For the Respondent(s): Ms. Garima Prashad, Sr. Adv. Mr. Nishit Agrawal, AOR Mr. Shadab Khan, Adv. Ms. Kaniskha Mittal, Adv. Ms. Upasna Agrawal, Adv. Ms. Pooja Agrawal, Adv. Mr. Sameer Abhyankar, AOR Mr. S.P. Jain, Adv. Ms. Sakshi Kakkar, AOR Mr. Shakti Singh, Adv. Ms. Pinky Dubey, Adv. Mr. Vivek Gupta, AOR Mr. Mrinmay Bhattmewara, Adv. Mr. Ankit Verma, Adv. Samprati Bhattmewara, Adv.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points summarized with references:

  1. In motor accident cases, once an FIR is lodged and information is received by the insurance company, it is the duty of the insurance company to appoint a Nodal Officer and furnish the accident information to the State police, who shall coordinate with all stakeholders involved (!) (!) .

  2. When claimants or their legal representatives file multiple applications under Section 166 before different Claim Tribunals at various locations outside the territorial jurisdiction of a single High Court, the tribunal where the first claim was filed shall have jurisdiction. Other claims filed elsewhere shall be transferred to this tribunal, and proceedings under Section 149 shall be tagged with this file (!) .

  3. The legislation emphasizes the importance of expeditious disposal of motor accident claims, urging stakeholders including Claims Tribunals to adhere strictly to procedural rules, particularly the Motor Vehicles Amendment Act, 2019, and the associated Rules (!) (!) .

  4. The process for filing claims allows claimants to submit applications directly to the Claims Tribunal at the location of the accident or where they reside or carry on business. Such applications must be filed within six months of the accident, and if recourse under Sections 164 or 149 has been taken and accepted, Section 166 claims are barred (!) (!) .

  5. The amendments specify that the police, registering authorities, and insurance companies have defined duties, including immediate investigation, preparation of accident reports, and furnishing of information within prescribed timeframes. Failure to comply may lead to severe consequences (!) (!) (!) .

  6. Insurance of motor vehicles is mandatory unless explicitly exempted by the appropriate Government, which must establish a fund for vehicles owned by authorities or used for government purposes not connected with commercial enterprises (!) (!) (!) .

  7. The liability limits for insurance policies are prescribed, with specific caps on compensation for death, injury, and property damage. Policies must be issued by authorized insurers, and certificates of insurance are mandatory for validity (!) (!) (!) .

  8. The procedure for settlement of claims involves the insurance company designating an officer to settle claims, with offers to claimants within 30 days. Acceptance of such offers results in the claim being settled by consent, with payment to be made within 30 days (!) (!) .

  9. In cases of death or grievous injury, the owner or insurer is liable to pay a statutory compensation amount, which is capped unless other laws provide for higher amounts. Claimants can also file applications under Section 166 for pursuing higher compensation by proving negligence (!) (!) .

  10. The process for filing claims includes the option of direct application to the Claims Tribunal, with specific timelines for filing, investigation, and disposal. The Claims Tribunal is required to ensure compliance with procedural rules and facilitate timely settlement (!) (!) (!) .

  11. The amendments establish that the police and registering authorities must act promptly, completing investigations and furnishing reports within specified timeframes. They are also tasked with facilitating the process by providing necessary information and documentation (!) (!) (!) .

  12. The Rules mandate that police officers and authorities prepare accident reports, conduct immediate investigations, and cooperate with stakeholders to ensure claims are processed efficiently. The police are to act as facilitators, not merely investigators (!) (!) (!) .

  13. The legislation emphasizes the importance of establishing specialized units within police stations and training police personnel to handle motor accident claims effectively, ensuring compliance with procedural mandates (!) (!) .

  14. The Claims Tribunal is directed to verify the validity of accident reports, examine claimants, and ensure that settlements are just and reasonable. If offers are not accepted, claims are to be adjudicated on merits within prescribed timeframes (!) (!) .

  15. The authorities are instructed to develop joint web portals and coordinate platforms to facilitate stakeholders' access to information and streamline the claims process, ensuring transparency and efficiency (!) .

  16. The High Courts are directed to circulate this judgment and ensure that all stakeholders, including police, insurance companies, and legal authorities, adhere to the procedural mandates for effective implementation of the Motor Vehicles Amendment Act and Rules (!) .

These points collectively highlight the procedural framework, responsibilities of stakeholders, and legislative intent aimed at expediting and streamlining motor accident claims and ensuring timely compensation.


JUDGMENT :

J.K. MAHESHWARI, J.

1. Leave granted.

2. The instant appeal has been filed assailing the final order dated 06.09.2018 passed by the High Court of Allahabad in First Appeal from Order No. 3303 of 2018, vide which the appeal preferred by the appellant against the award dated 04.05.2018 passed by the Motor Accident Claims Tribunal (for short ‘MACT’) in MACP No. 1107 of 2012 has been dismissed. MACT allowed the claim petition and awarded a compensation of Rs. 31,90,000/- (Thirty-one lacs and ninety thousand only) in favour of respondent Nos. 6, 7 and 8 (legal representatives of deceased and hereinafter referred to as ‘claimants’) to be paid by respondent No. 5 (Insurance Company), with further direction to recover the same from appellant (hereinafter referred as owner) who was saddled with liability.

3. Facts briefly put are that, on the date of accident, i.e. 29.07.2012, the deceased was 24 years old and working as Managing Director at DRV Drinks Pvt. Ltd. While he was returning from factory to residence, his car was hit from behind by a bus owned by appellant on the bypass road near Sanhwali village (U.P.). The deceased sustained severe injuries and died on the way to hospital


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