Gujarat High Court
Reliance General Insurance Co. Ltd vs Tinaben Rajeshbhai Bhil on 2 January, 2025
NEUTRAL CITATION
C/SCA/14498/2024 ORDER DATED: 02/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 14498 of 2024
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RELIANCE GENERAL INSURANCE CO. LTD.
Versus
TINABEN RAJESHBHAI BHIL & ORS.
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Appearance:
MR RATHIN P RAVAL(5013) for the Petitioner(s) No. 1
NOTICE SERVED for the Respondent(s) No. 1,2,3,4
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 02/01/2025
ORAL ORDER
1. The instant petition is filed under Article 227 of the Constitution of India seeking following reliefs :
"(A) Your Lordships may be pleased to admit and allow this petition.
(B) Your Lordships be pleased to issue an appropriate writ/ direction/order to quash and set aside the order passed by the Ld.mact (Aux.) Chhotaudepur at Bodeli in MACP Misc.
Application No.97/2023 dated 24.06.2024 (Annexure A).
(C) Your Lordships be pleased to as an ad-interim ex-parte relief stay the further proceedings of the order passed by Ld. Motor Accident Claim Tribunal (Aux.) Chhotaudepur at Bodeli in MACP Misc. Application No.97/2023 dated 24.06.2024 (Annexure A)."
2. The brief facts of the case are that on ill-fated day i.e. on 19.02.2023, the deceased sustain injuries and died due to accidental injuries. The claimants have filed the claim petition under Section 166 of the Motor Vehicle Act, 1988, but since delay has occurred, MACMA No.97 of 2023 came to be filed before learned Tribunal for condoning the delay of 54 days Page 1 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined occurred in filing the claim petition which came to be allowed by learned Tribunal vide impugned order dated 24.06.2024. Hence, this petition.
3. In essence, the Insurance Company has challenged the order passed in MACMA No.97 of 2023 whereby learned Tribunal condoned the delay of 54 days occurred in filing the claim petition under Section 166 (2) of the Motor Vehicle Act.
4. Heard learned advocate for petitioner-Insurance Company.
5. Learned advocate appearing for the Insurance Company mainly contended that Section 166(3) of the Motor Vehicle Act, 1988 amended in 2019 with effect from 01.04.2022 being a special law has fixed the limitation of six months to file claim petition under Section 166 from the date of occurrence of the accident. In the present case, the accident took place on 19.02.2023 and therefore amendment which took place in Motor Vehicle Act would be applicable to the facts of the case. It is further submitted that since specific time limit has been stated in Section 166(3) of the Motor Vehicle Act to file claim petition, Section 5 of the Limitation Act, 1963 would not be applicable for relaxing/condoning the delay. Therefore, it is submitted that learned Tribunal erred in condoning the delay by passing the order in MACMA No.97 of 2023.
5.1 Mainly upon above submissions, it is submitted to allow this petiton and to quash and set aside the impugned order.
6. Though served, the respondents did not choose to appear and contest the petition.
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7. While catering challenge to the impugned order, let extract the legislative history of limitation vis-a-vis claim petition filed under relevant provisions. At the first instance a reference is needed to Section 110A of the Motor Vehicle Act, 1939. This legislation was in force for nearly fifty years. Section 110A of the Motor Vehicle Act, 1939 was the enabling provision to file claim petition, the period of limitation for the purpose of making a claim was "six months from the date of the occurrence of the accident". However, the rigour of the provision was softened by the proviso added to the said section. Under the said proviso, it was left to the discretion of the Motor Accident Claim Tribunal whether to condone the delay in filing the petition claiming compensation amount, provided if sufficient cause has been shown and explained. Noticeably, no particular time period has been slated in the proviso to condone the delay but it is left to the fine discretion of the learned Tribunal that if sufficient cause has been shown the delay of any length can be condoned.
8. In the successor legislation laid in the Motor Vehicle Act, 1988, Section 166(3) as originally enacted also provided for limitation of period of six months for filing the claim petition with the rider of the proviso that the tribunal has discretion to relax further time period of six months but learned Tribunal cannot relax the total time period for filing the claim petition later than twelve months. Again sufficient cause has been laid as determinative factor to exercise discretion.
9. It would be pertinent to mention that the period of limitation provided under Section 166(3) in aforementioned Page 3 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined Motor Vehicle Act, 1988 has been completely done away with effect from 14.11.1994 as Section 166(3) came to be deleted from the Motor Vehicle Act, 1988.
10. Interpreting the amended Section 166 of the Motor Vehicle Act, 1988, the Hon'ble Apex Court was pleased to hold in Dhanlal vs. D.P. Vijayvargiya and others -1996 (4) SCC 652 as follows :
"It can be said that Parliament realised the grave injustice and injury which was being caused to the heirs and legal representatives of the victims who died in accidents by rejecting their claim petitions only on ground of limitation. It is a matter of common knowledge that majority of the claimants for such compensation are ignorant about the period during which such claims should be preferred. After the death due to the accident, of the bread earner of the family, in many cases such claimants are virtually on the streets. Even in cases where the victims escapes death some of such victims are hospitalized for months if not for years..."
11. By virtue of amendment took place in Section 166 of the Motor Vehicle Act, 1988 with effect from 14.11.1994 whereby Section 166(3) stating the period of limitation has been done away, the victim of road accident who has lost limb or life approached the learned Tribunal after any length of time for getting the compensation. The amendment which deleted Section 166(3) is continued in the Motor Vehicle Act, 1988 till new amendment to Section 166 of the Act came with effect from 01.04.2022 introducing the limitation as under :
"166. Application for compensation.- (3) No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident.Page 4 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025
NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined (4) The Claims Tribunal shall treat any report of accidents forwarded to it under Section (159) as an application for compensation under this Act. "
12. Perhaps the above newly introduced provision in the Motor Vehicle Act, 1988 has worked on the mind of the petitioner - Insurance Company to raise contention in the present petition.
13. At this juncture, reference to Section 158(6) of the Motor Vehicle Act, 1988 (Prior to introduction of Section 159) is needed to read. Section 158 (6) of the Motor Vehicle Act, 1988 reads as under :
"[(6) As soon as any information regarding any accident involving death or bodily injury to any person is recorded or report under this section is completed by a police officer, the officer incharge of the police station shall forward a copy of the same within thirty days from the date of recording of information or, as the case may be, on completion of such report to the Claims Tribunal having jurisdiction and a copy thereof to the concerned insurer, and where a copy is made available to the owner, he shall also within thirty days of receipt of such report, forward the same to such Claims Tribunal and Insurer.]"
14. This being epistolary provision having been in life till 01.04.2022 and now became Section 159 of the amended Act mandates that an FIR of the road accident registered by the police officer needed to forward copy of the same within 30 days from the date of recording it or as the case may be on completion of the investigation such report to the claim tribunal having jurisdiction and a copy thereof to the concerned insurer as well. On 01.04.2022, Section 159 along with Section 166(3) and 166(4) are introduced to Motor Vehicle Act, 1988. Newly added Page 5 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined Section 159 is pari materia to old Section 158(6) and it requires to be read with Central Motor Vehicle Rules as well. Section 159 of the Motor Vehicle Act reads as under :
"159. Information to be given regarding accident.- The police officer shall, during the investigation, prepare an accident information report to facilitate the settlement of claim in such form and manner, within three months and containing such particulars and submit the same to the Claims Tribunal and such other agency as may be prescribed."
15. A plain reading of Section 159 being introduced from 01.04.2022 in the Motor Vehicle Act mandates that on occurrence of the accident, police should register FIR and when it is read with rule, police is under statutory duty to send a copy thereof within 48 hours to the jurisdictional Motor Accident Claim Tribunal. This statutory requirement is in line with Rule 150A of the Central Motor Vehicle Rules.
16. Reference to Section 166(4) is also required to be made at this juncture. Any report arrived under Section 159 to motor accident claim tribunal shall be treated to be application for compensation under the Motor Vehicle Act. These all are the statutory provisions which indicates initiation of making of claim under the Motor Vehicle Act being a benevolent provision of law.
17. Glance at old provisions and amended provisions of Motor Vehicle Act demonstrates that by following the procedure wherein road accident has taken place, information regarding accident is required to be furnished to the police officer. Thus, it is evident that on receiving the intimation of the accident and Page 6 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined during investigation, police officer is needed to prepare the accident report and shall work as facilitator in settlement of the claim in a manner as prescribed and furnish the information to the claim tribunal and other stake holders as specified. Since it is statutory duty it is expected from the police officer to discharge this function and to facilitate and furnish information to the person entitled for compensation or to the insurer against whom the claim has been made. The Central Government has also amended the Motor Vehicle Rules which is known as Motor Vehicle Amended Rules, 2002.
18. The issue of amended provision of Section 159 and 160 in the Motor Vehicle Act vis-a-vis duty of the police officer in registering the information of the road accident and filing of accident information reports, namely first accident report, interim accident report and detailed accident report as per Motor Vehicle Amendment Rules, 2022 has been addressed and thoroughly discussed by Hon'ble Apex Court in case of Gohar Mohammed vs. Uttar Pradesh Road Transport Corporation and others - 2022 Live Law (SC) 1040. Relevant para are para 26 to 33 which reads as under :
"26. While following the procedure, where an accident has taken place, information regarding accident is required to be furnished to the police officer. The relevant provisions with respect to the information and duties of the police officer and registering authority have been specified under Sections 159 and 160 of the M.V. Amendment Act, which are reproduced as thus:
"159. Information to be given regarding accident.--The police officer shall, during the investigation, prepare an accident information report to facilitate the Page 7 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined settlement of claim in such form and manner, within three months and containing such particulars and submit the same to the Claims Tribunal and such other agency as may be prescribed."
160. A registering authority or the officerincharge of a police station shall, if so required by a person who alleges that he is entitled to claim compensation in respect of an accident arising out of the use of a motor vehicle, or if so required by an insurer against whom a claim has been made in respect of any motor vehicle, furnish to that person or to that insurer, as the case may be, on payment of the prescribed fee, any information at the disposal of the said authority or the said police officer relating to the identification marks and other particulars of the vehicle and the name and address of the person who was using the vehicle at the time of the accident or was injured by it and the property, if any, damaged in such form and within such time as the Central Government may prescribe."
27. From the above, it is evident that on receiving the intimation of the accident and during investigation, the police officer is required to prepare the accident information report (AIR) and shall work as a facilitator in settlement of the claim in a manner as prescribed and furnish the information to the Claims Tribunal and other stakeholders, as specified. The police officer and registering authority are supposed to discharge their functions to facilitate and furnish the information on payment of prescribed fees to the person entitled for compensation or to insurer, against whom the claim has been made. They shall also facilitate to identify the vehicle, name and address of the person using the vehicle at the time of accident and also regarding a person injured or property involved, as prescribed.
28. The Central Government in its wisdom with an intent to carry out the purpose of the Act promulgated the Rules, known as Motor Vehicle Amendment Rules, 2022.
29. As per the Rules, in the event of a road accident, the investigation must be started immediately on receipt of information by the police officer of the police station concerned. The Investigating Officer shall inspect site of Page 8 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined accident, take photographs/videos of scene and vehicle involved, followed by preparation of site plan drawn to scale as to indicate the width of road(s) as the case may be and other relevant factors including the persons and vehicles involved in the accident. In a case of injury, the Investigating Officer shall take photographs of the injured in the hospital and shall conduct spot enquiry examining the eyewitnesses/bystanders. The intimation regarding the accident is required to be furnished by Investigating Officer within 48 hours to the Claims Tribunal in the shape of First Accident Report (FAR) in FormI. It is further required to be sent to the Nodal Officer of the insurance company on having particulars of the insurance policy. The injured/victim(s), legal representative(s), State Legal Services Authority, insurer shall also be provided the copy of FormI and the same must be uploaded on the website of the State Police, if available.
30. It would be the duty of the Investigating Officer to inform the injured/victim(s)/legal representative(s) regarding their rights by supplying FormII attaching flow chart within 10 days specifying the scheme to seek remedial measure. It would be the duty of the Investigating Officer to ask the information in FormIII and FormIV from the driver(s) and the owner(s) respectively within 30 days. As per the new regime, on receiving the information, Interim Accident Report (IAR) shall be submitted by the Investigating Officer to the Claims Tribunal within 50 days in Form V along with relevant documents. A copy of the said IAR shall be furnished to the insurance company of the motor vehicle(s) involved in the road accident, victim(s)/claimant(s), State Legal Services Authority, insurer and General Insurance Council. The Investigating Officer or the insurance company shall have right to verify the details of the driver and the owner by using the VAHAN App or shall take the help of Registering Authority. Investigating Officer is duty bound to take the relevant details from the victim(s) or the legal representative(s), as the case may be and furnish the details within 60 days in FormVI. FormVIA is modulated to the minor children, who are in need of care and protection in terms of the Juvenile Justice (Care and Protection of Children) Act, 2015.
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31. On failure to submit the relevant information and documents, as required in Forms III, IV and VI by the driver(s), owner(s), claimant(s) or any information by the insurance company, the Investigating Officer may ask for direction to the stakeholder(s) before the Claims Tribunal to furnish such information within 15 days. The registering authority is duty bound to verify the licence of driver, fitness and permit of the vehicle(s) involved in the accident and shall supply such information within 15 days to the Investigating Officer. Similarly, for the purpose of issuance of medico legal report or the post- mortem report, the hospital is required to furnish such information to the Investigating Officer within 15 days.
32. The Investigating Officer shall within 90 days compile all relevant documents and material in the form of Detailed Accident Report (DAR) in FormVII accompanying site plan FormVIII, mechanical inspection report FormIX , verification report FormX and the report under Section 173 Code of Criminal Procedure (Cr.P.C.) It would be the duty of the registering authority to verify the registration certificate, driving licence, fitness and permit in respect of the vehicle(s) involved in the accident and the same is required to be submitted within 15 days to the Investigating Officer to complete the IAR and DAR. The extension of time limit to file IAR and DAR is only permissible where the Investigating Officer approaches the Claims Tribunal in cases where parties reside outside the jurisdiction of the Court or where the driver's licence is issued outside the jurisdiction of the Court or where the victim(s) have suffered grievous injuries and are undergoing continuous treatment. Thus, the Investigating Officer shall furnish FAR within 48 hours, IAR within 50 days, complete the investigation within 60 days and file DAR within 90 days. Copy of DAR shall be furnished to the victim(s), owner(s)/driver(s) of the vehicle(s), the insurance company involved and the State Legal Services Authority including the Nodal Officer of the insurance company and the General Insurance Council.
33. On perusal of the above, it is clear that to carry out the purpose of the provisions of Sections 159 and 160 of Page 10 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined the M.V. Amendment Act, the Officer Incharge of the police station and the registering authority are required to act upon in a manner as prescribed in the Rules within the period as specified, thereby on receiving the information of accident, the complete information regarding such accident is to be made available before the Claims Tribunal within the time limit without delay. As per Rules, the failure to perform the duties by the police officer may entail severe consequences as envisaged under the provisions of the State Police Act. Thus, legislative intent is clear that on reporting a road accident the Investigation Officer must complete all his action within time frame and shall act as facilitator to the victim(s)/claimant(s), insurance company by furnishing all details in prescribed forms, thereby claimant(s) may get damages/compensation without delay."
19. A special procedure has been carved out by legislature in introducing Section 149 in the Motor Vehicle Act. The aforesaid section is relevant to deal with the issue in context therefore reproduced as thus :
"149. Settlement by insurance company and procedure therefor. -- (1) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.
(2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government.
(3) If, the claimant to whom the offer is made under sub-
section (2), --
(a) accepts such offer, --
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(i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and
(ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement;
(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to adjudicate such claim on merits."
20. Simultaneously, Section 164 is also introduced by way of amendment in the Motor Vehicle Act. It is also relevant to read as under :
"Section 164 Payment of compensation in case of death or grievous hurt, etc (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be.
(2) In any claim for compensation under subsection (1), the claimant shall not be required to plead or establish that the death or grievous hurt in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or of the vehicle concerned or of any other person.
(3) Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section."
21. In view of Section 149, the Insurance Company is saddled with statutory liability to appoint designated officer to settle the Page 12 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined claim on receipt of accidental information report. The Insurance Company under Section 149 of the Motor Vehicle Act, on receipt of accidental report is also duty bound to make an offer to the claimant or the victim of the road accident specifying its detail within 30 days by following the procedure as prescribed under Sub-section (3) of Section 149. In case if such offer is made and accepted by the claimant, the Claim Tribunal shall have to record the statement and treat the claim as settled one by consent and in case of rejection of such offer, the Claim Tribunal has to fix the date of hearing for adjudication of such claim on merits.
22. Whereas Section 164 provides for claimant not to plead or establish any wrongful act or neglect or default of the owner of the vehicle or any other person for payment of compensation. The limit of the compensation has been made in the provision. Liability is fastened to Rs.2.5 Lakhs in case of grievous hurt and Rs.5 Lakh in case of death. Noticeably, Section 164 which is introduced by way of amendment in the Motor Vehicle Act with effect from 01.04.2022 did not specify any time limit to make any claim petition.
23. It is to be noted that if recourse under Section 164 or procedure specified in Section 149 has been undertaken and the amount of compensation offered by the Insurance Company is accepted by the claimant then recourse under Section 166 would not be available to the claimant, but in case compensation has not been accepted under Section 149 or recourse of Section 164 is not taken, the claim tribunal in whose jurisdiction the Page 13 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined accident has occurred has to mandatorily treat report under Section 159 as claim petition under Motor Vehicle Act, 1988 and may proceed to decide the same in accordance with law. At this juncture, I may refer to para 40 to 53 of the judgment in case of Gohar Mohammed (supra) as under :
"40. On perusal of the scheme of the Act, it is clear that as a first recourse by not pleading or establishing proof of wrongful act, neglect or default of the owner or driver or of the vehicle, the compensation can be claimed under Section 164, but such compensation is of limited amount to the tune, as specified in case of death or grievous injury. The second recourse available to the claimant(s) is to apply by proving wrongful act and neglect of the owner(s) or the driver(s) before the Claims Tribunal by opting the jurisdiction at a place specified under sub- section(2) but such claim must be filed within six months from the date of accident and be adjudicated by the Tribunal. The third recourse has been prescribed by introducing Section 149 of M.V. Amendment Act by which in case the claimant(s) have failed to take recourse either under Section 164 or Section 166 within the prescribed period of limitation, the report submitted by the investigating officer to the Claims Tribunal, within whose jurisdiction the accident occurred, may be treated as claim application under Section 166(4) and would not debar the claimant(s) to seek compensation if he/they could not file the application under Section 166(1) of the Act.
41. As discussed above, Section 149 lays emphasis on the settlement of the claim in case the liability of the insurance company is not in dispute subject to complying other necessary formalities, as prescribed. The said provision also emphasize the determination of compensation within time frame without delay, thereby the victim may get compensation for the damages at the earliest. On harmonious reading and construing the said three Sections, it is therefore clear that the M.V. Amendment Act emphasizes the need to pay compensation to the claimant(s) or legal representative(s) and decide the claim by taking recourse whatever is opted by the claimant(s) at the earliest and the family Page 14 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined should not be left to suffer without payment of damages. In cases of rash negligent driving where DAR does not bring the charge of negligence or the claimant(s) choose to claim compensation under nofault despite the charge of negligence, the said claim shall be registered under Section 164 and it be dealt with accordingly.
42. As per Rules, except in cases under Section 164, for the claims either under Section 149 or 166, the procedure prescribed in the M.V. Amendment Rules is required to be followed by the Claims Tribunal. As specified, on receiving the FAR, the Claims Tribunal is required to register such FAR as Miscellaneous Application. On filing the IAR and DAR, it shall be attached and be made part of the Miscellaneous Application. The Claims Tribunal is required to examine the FAR, IAR or DAR, as the case may be and in the proceedings of the said Miscellaneous Application, appropriate direction for production of requisite forms prescribed in the Rules through claimant(s), driver(s), owner(s) or extension of time, as specified, may be directed. It should be kept in mind by the Claims Tribunal that the said DAR may be treated as an application under Section 166 as per subsection (4) thereof. In case the claimant(s) have taken the recourse under Section 166(1) & (2) and filed a separate claim petition, the said DAR may be tagged with the said claim petition, otherwise the proceedings under Section 149 shall continue. The Claims Tribunal awaiting the report under Section 173 Cr.P.C. may satisfy itself with respect to the negligence before passing an award.
43. On filing FAR, if IAR/DAR is not complete, the time shall be fixed by the Claims Tribunal to complete the same and on completion, the date for appearance of the driver(s), owner(s), claimant(s) and eye witness(s) shall be fixed and they shall be produced by the Investigating Officer on the date so fixed. It shall also be the duty of the Investigating Officer to intimate the Nodal Officer of the insurance company and also the insurance company to secure their presence on such date.
44. After lodging the FIR and on receipt of information by the insurance company, it would be the duty of the Page 15 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined company to appoint a Nodal Officer and furnish the intimation to the state police, who shall coordinate with all stakeholders. On receiving the information through Nodal Officer, the insurance company shall verify the claim up to the stage of filing the DAR. In case it is found that DAR is not correct, the Designated Officer of the insurance company shall send a copy of the report of the surveyor/investigator to the Deputy Commissioner or equivalent officer of the Police Department or otherwise to carry out the purpose of Section 159. The said officer shall make an offer to the claimant(s) for settlement before the Claims Tribunal, specifying the details of offer and submit the said proposal within 30 days of DAR in Form-XI along with the report of the surveyor/investigator. On submitting such form, the claimant(s) may accept the offer of the insurance company or may reject the same. In case the offer is accepted, the Claims Tribunal shall take such offer on record and by the consent the claim be settled recording satisfaction that the compensation, as settled, is just and reasonable and pass an award in terms of such settlement. Prior to passing an award, it is open to the Tribunal to examine the claimant(s) for ascertaining their financial condition, owner(s), driver(s) and the insurer to submit their defence, if any to satisfy itself. In case the offer made by the Designated Officer is not accepted by the claimant(s), rejecting such offer, the claimant(s) are required to file relevant material asking more amount of compensation for which the date of hearing shall be fixed by the Tribunal to adjudicate the claim on merit. After fixing the date and recording the evidence, if required, written submissions may be taken and thereafter Tribunal shall finally adjudicate and decide the claim. After passing the award, copy of the DAR and the award so passed be sent to the criminal court and accordingly, the Miscellaneous Application registered by the Tribunal shall be treated as disposed of.
ANALYSIS OF THE M.V. AMENDMENT ACT AND RULES WITH AN INTENT TO FIND OUT CONVENIENT PROCEDURE FOR ADJUDICATION OF THE CLAIM CASES WITHOUT ANY DELAY.
45. As per the discussion made hereinabove, it is made clear that the M.V. Amendment Act and the Rules have been introduced with an advent to implement the steps Page 16 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined taken by the Court issuing directions to carry out the purpose of the benevolent legislation. As per the M.V. Amendment Act, insurance of the vehicle, until exempted, is made necessary to carry out the purpose of the Act and the Rules subject to the conditions, as specified under Section 147.
46. The claimant(s) have been given three options to claim compensation before the Claims Tribunal. As discussed hereinabove, the option under Section 164 is without pleading the proof of negligence while option under Section 166(1) & (2) by the claimant(s) is by proving the negligence of the offending vehicle. In addition, Section 149 is added by which the de novo procedure has been prescribed immediate on registration of FIR by taking action through the police officer before the Claims Tribunal. It is urged by learned Amicus Curiae that the said procedure is not being followed in most part of the country by the Claim Tribunals though the said Section is a complete code in itself in the matter of distribution of the compensation. Therefore, appropriate directions are required.
47. As prescribed under M. V. Amendment Act and Rules, the police officials and the registering authority are bound to take action in the event when an accident takes place and the information is received by them. Further, it is seen that as per Rule 3 of the M.V. Amendment Rules, the police officer is required to furnish the details to the victim(s) regarding his/their rights in a road accident and the flow chart of the scheme along with FormII is required to be furnished to them. The said flow chart and all other documents, as specified in the Rules, must be either in vernacular language or in English and shall be furnished to the claimant(s) or other affected persons, as per their convenience. They are required to take immediate action and submit the report to the Claims Tribunal informing the victim(s), driver(s), owner(s), insurance company and other stakeholders with an intent to facilitate them, subject to the directions of the Claims Tribunal. The Claims Tribunal is also duty bound to take immediate action and to proceed in the matter as required under the Act and the Rules.
48. In our view, the contentions advanced by the learned counsels deserve to be allowed. The police officers and Page 17 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined registering authority are duty bound to act as per the M.V. Amendment Act and the Rules and are required to submit the FAR, IAR and DAR within the prescribed period under the Rules. The registering authority is also bound to take action in the matter of verification of the permit, fitness of vehicle, driver licence and on other ancillary issues. The insurance company is bound to appoint the Nodal Officer as per Rule 24 to facilitate the Investigating Officer in the matter of enquiry and investigation, submitting details regarding insurance and coordinate with the stakeholders.
49. In our view, the procedure carved out under Section 149 of the Amendment Act is de novo on filing the FAR before the Claims Tribunal and Tribunal is required to register such proceedings as Miscellaneous Application. On filing IAR and DAR by the police officer within the time as specified, it shall be made part thereof. If the claimant(s) has not opted for taking recourse under Section 166(1) within the time limit of six months, such Miscellaneous Application may be treated as an application under Section 166(4) of M.V. Amendment Act and be adjudicated in accordance with law. Therefore, the procedure as prescribed under Section 149 is in addition to the proceedings of Sections 164, 166 of M.V. Amendment Act and such mandate of law is required to be followed in true sense and spirit.
50. Learned Amicus Curiae contends that in a situation where the claimant(s) opts to file a claim petition under Section 166 other than a place where the accident has taken place taking recourse of Section 166(2) of the M.V. Amendment Act, the proceedings initiated under Section 149 is required to be closed and tagged with those proceedings. It is also urged that possibility of filing application by opting the Claims Tribunals at different places within territorial jurisdiction of different High Court by other claimant(s) cannot be ruled out. It is further contended that in case the claim petitions have been filed at different places by different claimant(s) within the territorial jurisdiction of different High Courts, appropriate directions to transfer those cases at one place in exercise of the power under Section 142 of the Constitution of India needs to be issued, thereby the delay may be curbed in proceeding the claim case.Page 18 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025
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51. In our view, the argument as advanced is having force, therefore, we direct that on initiation of the proceedings under Section 149 registering a Miscellaneous Application by the Claims Tribunal, in whose jurisdiction the accident occurred would continue until the proceedings under Section 166 has been filed by the claimant(s) separately. In the event of filing a separate application and on receiving the information in this regard either from the claimant(s), or investigating officer or insurance company, the proceedings under Section 149 shall be deemed as closed and be tagged with the proceedings of Sections 164/166 filed by the claimant(s). In case the claimant(s)/legal representative(s) have filed different applications under Section 166 before different Claim Tribunals at different places outside the territorial jurisdiction of one High Court, in the said contingency the Claims Tribunal, where the first claim petition is filed shall have jurisdiction to adjudicate and decide the same and other claim petition(s) filed by the claimant(s)/legal representative(s) in the territorial limits of other High Courts shall stand transferred to the Claims Tribunal where the first claim petition was filed and the proceedings under Section 149 shall be tagged with the said file. In order to curb the delay on account of pendency of claim petition(s) before different Claim Tribunals within the territorial jurisdiction of different High Courts, such direction is necessary. Therefore, we deem it appropriate to exercise our power under Article 142 of the Constitution of India. It is directed that Registrar General of the High Courts shall issue appropriate orders for transferring the subsequent proceedings and records to the Claims Tribunal where the first claim petition filed by the claimant(s) is pending. It is made clear here that the parties are not required to file any transfer petition before this Court seeking order of transfer in such individual cases pending in the jurisdiction of different High Courts.
52. Learned Amicus Curiae has further pointed out that in some High Courts, distribution memos attaching the Claims Tribunal to the police stations have not been issued, however taking recourse under Section 149 of the M.V. Amendment Act is not possible within the Page 19 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined prescribed period of time, therefore directions may be issued to prepare the distribution memos by the High Courts with respect to police stations and Claims Tribunals in order to implement the recourse of Section 149 of the M.V. Amendment Act and the Rules may be issued and the same be notified in public domain for the convenience of public.
53. In this regard, it would suffice to observe that in the High Courts, where the distribution of police stations and specified Claims Tribunals is not already in force, steps shall be taken by the Registrar Generals to prepare distribution memos and notify the same time to time, thereby the proceedings under Section 149 may continue effectively in such Claim Tribunals without any delay. The Tribunals, as notified, shall take recourse as discussed and on appointment of the Designated Officer as per Rule 23 of the Rules, the settlement of claim may be processed by the insurance company. The said proceedinreated as claim petition under Section 166(4) of the M.V. Amendment Act and the Claims Tribunal is duty bound to decide such claim by following the procedure in accordance with law.gs would continue until it is tagged with the claim petition, if any, filed under Section 166 of the M.V. Amendment Act. It is also made clear that if the claimant(s) have not taken any recourse under Section 166, then the miscellaneous application be treated as claim petition under Section 166(4) of the M.V. Amendment Act and the Claims Tribunal is duty bound to decide such claim by following the procedure in accordance with law."
24. In case of Jai Prakash vs. National Insurance Company Limited - 2010 (2) SCC 607, the Hon'ble Apex Court addressed four major issues. Firstly, grant of compensation in case of hit an run case. Secondly, wide spread practice of using goods vehicle for passenger traffic. Thirdly, procedural delay in adjudication of claim by Motor Accident Claim Tribunal and fourthly full amount of compensation not reaching to the victims particularly to those who are uneducated. Hon'ble Supreme Page 20 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined Court while addressing all these four problems, issued directions to the police authority as under :
"8. The Director General of Police of each State is directed to instruct all Police Stations in his State to comply with the provisions of Section 158(6) of the Act. For this purpose, the following steps will have to be taken by the Station House Officers of the jurisdictional police stations:
(i) Accident Information Report in Form No. 54 of the Central Motor Vehicle Rules,1989 (`AIR' for short) shall be submitted by the police (Station House Officer) to the jurisdictional Motor Vehicle Claims Tribunal, within 30 days of the registration of the FIR. In addition to the particulars required to be furnished in Form No. 54, the police should also collect and furnish the following additional particulars in the AIR to the Tribunal: (i) The age of the victims at the time of accident; (ii) The income of the victim; (iii) The names and ages of the dependent family members.
(ii) The AIR shall be accompanied by the attested copies of the FIR, site sketch/mahazar/photographs of the place of occurrence, driving licence of the driver, insurance policy (and if necessary, fitness certificate) of the vehicle and postmortem report (in case of death) or the Injury/Wound certificate (in the case of injuries). The names/addresses of injured or dependant family members of the deceased should also be furnished to the Tribunal.
(iii) Simultaneously, copy of the AIR with annexures thereto shall be furnished to the concerned insurance company to enable the Insurer to process the claim.
(iv) The police shall notify the first date of hearing fixed by the Tribunal to the victim (injured) or the family of the victim (in case of death) and the driver, owner and insurer. If so directed by the Tribunal, the police may secure their presence on the first date of hearing."Page 21 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025
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25. In Jai Prakash (supra), Hon'ble Apex Court also issued directions to the claim tribunals as under :
"13. For complying with section 166(4) of the Act, the jurisdictional Motor Accident Claims Tribunals shall initiate the following steps:
(a) The Tribunal shall maintain an Institution Register for recording the AIRs which are received from the Station House Officers of the Police Stations and register them as miscellaneous petitions. If any private claim petitions are directly filed with reference to an AIR, they should also be recorded in the Register.
(b) The Tribunal shall list the AIRs as miscellaneous petitions. It shall fix a date for preliminary hearing so as to enable the police to notify such date to the victim (family of victim in the event of death) and the owner, driver and insurer of the vehicle involved in the accident.
Once the claimant/s appear, the miscellaneous application shall be converted to claim petition. Where a claimant/s file the claim petition even before the receipt of the AIR by the Tribunal, the AIR may be tagged to the claim petition.
(c) The Tribunal shall enquire and satisfy itself that the AIR relates to a real accident and is not the result of any collusion and fabrication of an accident (by any `Police Officer - Advocate - Doctor' nexus, which has come to light in several cases).
(d) The Tribunal shall by a summary enquiry ascertain the dependent family members/legal heirs. The jurisdictional police shall also enquire and submit the names of the dependent legal heirs.
(e) The Tribunal shall categories the claim cases registered, into those where the insurer disputes liability and those where the insurer does not dispute the liability.
(f) Wherever the insurer does not dispute the liability under the policy, the Tribunal shall make an endeavour to determine the compensation amount by a summary enquiry or refer the matter to the Lok Adalat for settlement, so as to dispose of the claim petition itself, Page 22 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined within a time frame not exceeding six months from the date of registration of the claim petition.
(g) The insurance companies shall be directed to deposit the admitted amount or the amount determined, with the claims tribunals within 30 days of determination. The Tribunals should ensure that the compensation amount is kept in Fixed deposit and disbursed as per the directions contained in General Manager, KSRTC v. Susamma Thomas [1994 (2) SCC 176].
(h) As the proceedings initiated in pursuance of Section 158(6) and 166(4) of the Act, are different in nature from an application by the victim/s under Section 166(1) of the Act, Section 170 will not apply. The insurers will therefore be entitled to assist the Tribunal (either independently or with the owners of the vehicles) to verify the correctness in regard to the accident, injuries, age, income and dependents of the deceased victim and in determining the quantum of compensation."
26. The Hon'ble Supreme Court recorded its anguish for Insurance Companies not adopting the procedure to satisfy claim and pay quantum of compensation as is happening in U.K. Para 17 of the judgment in case of Jai Prakash (supra) reads as under :
"17. In countries like United Kingdom, the percentage of motor accident claims, with reference to the accidents is very low. This is because immediately after being notified of the accident, the insurer makes its own enquiries and satisfies itself about its liability and voluntarily assesses and pays the compensation to the victim. Only where the insurer denies the claim or where the victim is not satisfied with the quantum of compensation paid, the matter goes to court. There is no reason why insurance companies in India should not adopt such a procedure. In death cases, the calculation of compensation is now standardized by several decisions of this court [See for example: Sarla Verma v. Delhi Transport Corporation - 2009 (6) SCC 121]. The insurers can either by relying upon the police report (AIR) Page 23 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined or by enquiring with the family or the employer of the deceased, ascertain the three inputs required for calculation of the compensation, that is, age of the deceased, income of the deceased and number of dependent family members. With these particulars, the insurers can easily calculate the compensation and offer a compensation, either a lump sum or an annuity. Similarly in cases of injuries, the insurers can offer treatment in hospitals approved by it and meet the expenses or pay the bills, or if the victim has already undergone the treatment, reimburse the cost of treatment. It can also reimburse other items of special damages, the damages for pain suffering, which is also standardized in several decisions of this Court. By such voluntary payment there will be all round benefits. The insurers save interest and litigation cost and discharge their obligation to the society. The victims will be relieved from financial hardship and benefit from timely effective treatment. Burden on courts will be reduced and judicial man power can be diverted to more complex cases."
27. In Vimla Devi vs. National Insurance Company Limited
- 2019 (2) SCC 186, the Hon'ble Supreme Court noting the object of Section 158(6) [now Section 159] read with Section 166(4) of the Motor Vehicle Act and recorded that there is no necessity to file claim petition. The receipt of the FIR of the accident can be treated to be claim petition. Para 19 of the said judgment reads as under :
"19. The object of Section 158(6) read with Section 166(4) of the Act is essentially to reduce the period of pendency of claim case and quicken the process of determination of compensation amount by making it mandatory for registration of motor accident claim within one month from the date of receipt of FIR of the accident without the claimants having to file a claim petition. (See Jai Prakash vs. National Insurance Co. Ltd., 2010 (2) SCC 607)."Page 24 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025
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28. Again in case of Bajaj Allianz General Insurance Company Limited vs. Union of India and others - 2021 (2) CCC 232, Hon'ble Supreme Court has taken up this issue and held in para 2 and 3 which is needed to be referred as under :
"2. It is now agreed as per table I of the note submitted by learned ASG that the following agreed directions can be issued:
A. Accident Information Report- The jurisdictional police station shall report the accident under Section 158(6) of the Act(Section 159 post 2019 amendment) (hereinatfer "the report") to the tribunal and insurer within first 48 hours either over email or a dedicated website.
B. Detailed Accident Report- Police shall collect the documents relevant to the accident and for computation of compensation and shall verify the information and documents. These documents shall form part of the Report. It shall email the Report to the tribunal and the insurer within three months. Similarly the claimants may also be permitted to email the application for compensation with supporting documents, under Section 166 to the tribunal and the insurer within the same time.
C. The tribunal shall issue summons along with the Report or the application for compensation, as the case may be, to the insurer by email.
D. The insurer shall email their offer for settlement/response to the Report or the application for claim to the tribunal along with proof of service on the claimants.
E. After passing the award, the tribunal shall email an authenticated copy of the award to the insurer.
F. The insurer shall satisfy the award by depositing the awarded amount into a bank account maintained by the tribunal by RTGS or NEFT. For this purpose the tribunal shall maintain a bank account and record the relevant account details along with the directions for payment to the insurer in the award itself.
Page 25 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined G. Each tribunal shall create an email ID peculiar to its jurisdiction for receiving the emails from the police and the insurer as mentioned above. Similarly, all insurer throughout India shall also create an email ID peculiar to the jurisdiction of each claim tribunal. These email IDs would be prominently displayed at tribunal, the police stations and the office of the insurers for the benefit of the claimants. Similarly, these email IDS shall also be prominently displayed on the website maintained by the tribunal and the insurer.
H. Insurers shall appoint nodal officers for each tribunal and provide their contact details, phone and mobile phone numbers, and email address to Director Generals of State Police and the tribunals.
3. We direct that the aforesaid directions will apply across the country so that a uniform practice is followed."
29. Perusal of all above provisions as well as binding precedent manifestly makes it clear that police officer who is registering the information of the road accident is duty bound to send the copy of the same to the jurisdictional claim tribunal as also to the insurer. Central Motor Vehicle Rules makes it abundantly clear and make it obligatory upon the police officer to file various reports with claim tribunal. Section 149 as introduced by the amendment in the Motor Vehicle Act provides for settlement by Insurance Company and also laid down procedure therefor. This could be taken up to reduce the time period of deciding the claim petition. The wording of Section 149 mandates upon the Insurance Company to offer compensation amount to the claimant upon receiving information of the accident either from the claimant or through accident information report or otherwise. The claimant is not required to make claim for getting Page 26 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined the compensation under Section 149. Section 149(2)(b) statutorily makes it incumbent upon the claim tribunal to adjudicate such claim on merits in case where offer made by the Insurance Company has been rejected after fixing date. Section 159 which is introduced by way of amendment in the Motor Vehicle Act being pari materia to Section 158(6) of Motor Vehicle Act, 1988 makes it obligatory for the police officer to send the accident information report for settlement of the claim. Section 164, again newly introduced provision permits the claimant to make claim without pleading fault or negligence. Noticeably, it does not specify any time limit to make claim petition. Section 166(4) mandates that the claim tribunal shall treat any report of accidental information forwarded to it under Section 159 as application for compensation under the Motor Vehicle Act .
30. In backdrop of above, let refer to statement of object and reason of amending Motor Vehicle Act, 1988 which reads as under :
"STATEMENT OF OBJECTS AND REASONS The Motor Vehicles Act, 1988 (the Act), was enacted with a view to consolidate and the laws relating to motor vehicles. The Act was enacted to give effect to the suggestions made by the Supreme court in M.K. Kunhimohammed vs P. A. Ahmedkutty (1987) 4 SCC 284.
2. The Act was amended several times to adapt to the technological upgradation emerging in road transport, passenger and freight movement and in motor vehicle management. With rapidly increasing motorisation, India is facing an increasing burden of road traffic injuries and fatalities. The emotional and social trauma caused to the family which loses its bread winner, cannot be Page 27 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined quantified. India is signatory to the Brasilia Declaration and is committed to reduce the number of road accident fatality by fifty per cent. by the year 2020. The road transport sector also plays a major role in the economy of the country.
3. Numerous representations and recommendations in the form of grievances and suggestions from various stakeholders have been received in the Ministry, citing cases of increase in road accidents, delay in issue of driving licences, the disregard of traffic rules and regulations, etc. Therefore, in order to improve road safety and transport system, certain amendments are required to be made in the Motor Vehicles Act, 1988 to address safety and efficiency issues in the transport sector.
4. In view of the above, it has become necessary to amend certain provisions of the said Act. The proposed Motor Vehicles (Amendment) Bill, 2019 seeks to address the issues relating to road safety, citizen facilitation, strengthening public transport, automation and computerisation.
5. The Motor Vehicles (Amendment) Bill, 2019, inter alia, provides for the following, namely :-
(a) to facilitate grant of online learning licence;
(b) to replace the existing provisions of insurance with simplified provisions in order to provide expeditious help to accident victims and their families;
(c) to increase the time limit for renewal ofdriving licence from one month to one year before and after the expiry date;
(d) to increase the period for renewal of transport licence from three years to five years;
(e) to enable the licensing authority to grant licence even to the differently abled persons;Page 28 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025
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(f) to enable the States to promote public transport, rural transport and last mile connectivity by relaxing any of the provisions of the Act pertaining to permits;
(g) to increase the fines and penalties for violation of provisions of the Act; and
(h) to make a provision for protection of Good Samaritans.
6. The Notes on clauses explain in detail the various provisions contained in the Bill.
7. The Bill seeks to achieve the above objectives."
31. Bill No.154 of 2019 was introduced to Lok Sabha on 15.07.2019 to amend the Motor Vehicle Act, 1988 with aforesaid statement of object and reasons. It also contains notes on clauses. Clause 53 which seeks amendment in Section 166 of the Motor Vehicle Act, 1988 and to introduce Section 166(3), requires to be referred as under :
"Clause 53 seeks to amend section 166 of the Act to ensure that a claim for compensation does not abate on the death of the claimant and may be continued by his legal representatives an that the application has to be made within six months from the date of occurrence of the accident."
32. As per notes on clauses, Clause 53, Section 166(3) was introduced to ensure that claim for compensation does not abate on the death of the claimant and may be continued by his legal representatives and that the application is to be made within six months from the date of occurrence of the accident.
33. The amendment in Motor Vehicle Act introduced Section
164. The victim of the road accident has two options to seek Page 29 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined claim, one under Section 164 and another under Section 166. Interestingly, the Legislature has not put any fetter of limitation in claiming compensation under Section 164 of the Motor Vehicle Act. The intention of the Legislature has to be also considered while interpreting Section 166(3) of the Motor Vehicle Act. Had the legislation intended to introduce limitation in making claim petition, both the enabling provisions viz. Section 164 an Section 166 would have strap/fetter of limitation. There cannot be any discrimination in same law for two provisions claiming compensation or permitting victim of the road accident to claim the compensation.
34. In view of the above and reading all provisions together harmoniously then it is no more right of the accident victim to make claim petition under Section 166 but it is bloomed and bestowed in full fledged duty on the part of the police machinery as well as on the part of the Insurance Company to settle the compensation amount on receiving various reports namely FIR as well as first accident report, interim accident report and detailed accident report. In the circumstances, the claim petition filed by the claimant under Section 166 is in addition to statutory duty of the police machinery or Insurance Company who has not settled the claim on receipt of the information cannot be treated as claim petition made beyond time period. Probably aforesaid provisions are amended in the Motor Vehicle Act to ensure that helpless victim of the motor accident need not to be dependent on filing claim petition in a Court for the purpose of getting just, fair and adequate compensation. The proceeding to grant just, fair and adequate compensation starts Page 30 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025 NEUTRAL CITATION C/SCA/14498/2024 ORDER DATED: 02/01/2025 undefined on the basis of report filed by the police authority as per Section
159. Duty is upon the Insurance Company to offer just, fair and adequate compensation to the victim of the road accident on receipt of the information as per Section 149 of the Motor Vehicle Act and if such offer is rejected, duty is upon claim tribunal to adjudicate such claim on merits. In effect the petition under Section 166 is mnemonic to the learned Tribunal when police has already filed the various report containing all the requisite details and therefore it has to take up said report as claim petition and to tag it with the petition filed under Section 166 of the Motor Vehicle Act and to proceed further for adjudicating the claim petition.
35. Learned advocate appearing for the Insurance Company is not in position to submit that police authority has not followed the procedure laid down in Section 159 or under the Central Motor Vehicle Rules, 2022 and has not filed/forwarded various reports which they are required to file. Even the Insurance Company did not bring on record anything that what they have done to settle the claim as per Section 149, for which they are statutorily bound to do and to offer just, fair and adequate compensation. Thus, in view of aforesaid discussion, it is crystal clear that in case where any request is made and assessable by the tribunal to adjudicate the claim petition in addition to procedure laid down in Section 149, Section 159 reading with Section 166(4) of the Motor Vehicle Act, question of six months limitation would not arise. The question of six months limitation will arise only in case where no FIR has been registered by the police and no report has been sent or uploaded.
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36. The upshot of the discussion is that on registration of the FIR, the claimant is entitled to make petition without fear of being thrown out on the ground of limitation. This could be the reading, more particularly when FIR is registered within six months from the date of the road accident.
37. Another aspect which could be noticed that learned advocate appearing for the Insurance Company has failed to point out that by amending Section 166, Legislature has excluded the operation of Limitation Act, 1963. Learned advocate appearing for the Insurance Company argued that since limitation has been specified in the special law being Motor Vehicle Act, the general law being Limitation Act would not be operative. To exclude operation of the Limitation Act, 1963, there must exist a specific exclusion clause, in view of Section 29(2) of the Limitation Act. Notably, in amended Act the Legislature has not put any clause for relaxing the time limit specified in Section 166(3). In absence of clause permitting Court to relax time stated in Section 166(3), it would be incorrect to say that provisions of the Limitation Act are not applicable.
38. In case on hand deceased Rajeshbhai Bhil lost his life from the road accident. He is survived by his legal heirs and representatives. Amongst them two are minor children. Section 6 and 7 of the Limitation Act for legal disability also applies in case on hand. Since one of the several persons being the claimant suffered from legal disability, they can file claim petition within same time limit after the disablement is ceased.
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39. In discussion of above, I find that present petition has no merit and it deserves to be dismissed. Accordingly, this petition stands dismissed. Notice is discharged.
(J. C. DOSHI, J) GAURAV J THAKER Page 33 of 33 Uploaded by GAURAV J THAKER(HC00951) on Fri Jan 10 2025 Downloaded on : Fri Jan 10 22:45:44 IST 2025