Delhi High Court
Oriental Insurance Co. Ltd. vs Ram Chander Dwievedi And Ors. on 8 March, 1991
Equivalent citations: II(1991)ACC53
JUDGMENT R.L. Gupta, J.
1. This appeal is directed against an order dated 21.8.89 of the learned Motor Accident Claims Tribunal by which it awarded an interim amount of Rs. 25,000/-on the basis of no fault liability to the claimants recoverable from the appellant
2. I have heard learned Counsel for the appellant as well as the claimants. The principle for recovering compensation on account of no fault liability is contained in Chapter X of the Motor Vehicles Act, 1988. It came into force with effect from 1.7.89. This section increases the no fault liability to Rs. 25,000/-. from Rs. 15,000/- as provided in the previous Act. There is no dispute in the present case that the accident pertains to period prior to the coming into force of the present Act. However, we are to see the effect of the new Act in case of no fault liability. Section 144 gives an overriding effect to the provisions of Chapter X in the following words:
The provisions of this Chapter shall have effect notwithstanding anything contained in any other provision of this Act or of any other law for the time being in force.
Section 217 of the new Act repeals any law corresponding to that Act in force in any State immediately before the commencement of this Act. However, it saves notifications, rules, regulations etc. issued under the old Act which may not be inconsistent with the provisions of this Act.
3. Therefore, this Section goes to show that there is no saving of any of the clauses of the previous Act regarding the no fault liability. Since Section 144 of the new Act has overriding effect over any other provisions contained in this Act, I am of the view that even in cases of accidents in which death has resulted prior to the coming into force of the Act, amount payable on account of no fault liability will be Rs. 25.000/- only as covered by Chapter X of the present Act.
4. Learned Counsel for the appellant argued that under the old Act the maximum liability of Insurance Company in respect of a passenger of the bus was Rs. 15,000/- only in case of death. He has further drawn my attention to the proviso to Section 147(2)(b) of the Act. It says.
Provided that any policy of insurance issued with any limited liability and in force, immediately before the commencement of this Act, shall continue to be effective for a period of four months after such commencement till the date of expiry of such policy whichever is earlier.
5. Learned Counsel in view of the aforesaid proviso submits that this proviso effectively saves the continuance of the previous policies for a period of four months from the date of commencement of the policies which were issued prior to the coming into force of this Act. Therefore, if any accident occurred during the continuance of previous policy, according to the proviso no fault liability in respect of a passenger or in respect of the death even will be governed by the old Act and not by the new Act. I am of the view that in the present case the policy of insurance had already lapsed before coming into force of the new Act For all practical purposes Section 217 has completely repealed the provisions of the previous Act in respect of many facts including the no fault liability. It is only Chapter X of the new Act which will govern the no fault liability because Section 144 clearly says that the provisions of this Chapter shall have effect notwithstanding anything contained in any other provisions of this Act or of any other law for the time being in force. This clearly means that the provisions of the previous Act and even what is said in Section 217 will be subject to the overriding effect of Section 144, So far as the question of liability of a bus passenger is concerned that matter can be decided in some appropriate case wherein that point arises but in the present case we are concerned only with the compensation claim payable to the legal heirs of the deceased person involved in the accident. Therefore, I am of the view that the order under appeal is not liable to be set aside. The appeal is dismissed. There will be no order as to costs. The appellant shall deposit the remaining amount of Rs. 10,000/- within four weeks before the Tribunal which will be paid by the Tribunal to the claimants in the manner it deems fit. File may be sent back immediately. Parties are directed to appear before the Tribunal on 10.4.1991.