Chapter Vi Formation of Claims Tribunal and Award of Compensation

CHAPTER – VI
FORMATION OF CLAIMS TRIBUNAL AND AWARD OF

COMPENSATION
The law of compensation for the accident victims under the Motor Vehicles
Act has not been stationary or static. It has been gradually growing towards
improvement. It has thus travelled from fault liability to „no fault‟ liability. This is
indeed a very satisfying, but we have still miles to go before we attain perfection and
complete usefulness for the helpless and hapless victims of the road accident and
their legal heirs/ representatives and dependants. In the beginning the law of
compensation for the accident victims was not very simple and, therefore, the
victims in case of injury and the legal representatives in case of fatal accidents had
to face untold hardships and had to affix very heavy court fees in order to file the
claims for compensation. There was in fact no privity of contract between the
insured and insurer, in the beginning. But gradually improvements came about in the
of compensation under the Motor Vehicles Act by amendments brought by the
Government on the basis of reports of the Law Commission of India and the
judgments pronounced by various High Courts and Supreme Court of India. Prior to
enactment of Motor Vehicles Act, compensation could be claimed by institution of
suits for damages only, through the medium of civil court, on payment of ad
valorem court fee. This Act furnishes a self-contained code that the claims can be
lodged on the basis of an application without ad valorem court- fee1. The Legislature
has provided a cheap and speedy remedy for claims for compensation in respect of
accidents, involving death of, or bodily injury to persons, arising out of use of motor
vehicles.
According to the Webster Dictionary, the word „compensation‟ means the
act or action of making up, making good or counter balancing; rendering equal,
amending.
In the Oxford English Dictionary, the meaning of the term „Compensation‟
is given as the action of compensating or condition of being compensated; counter
balance rendering of an equivalent requital, recompose.
India has largest number of road accidents in the world. More than one lakh
people die in road accidents in a year and the average number of deaths per day are
1
Swarnalata Dutta v. National Transport India (Pvt.) Ltd., AIR 1974 Gau 31 (DB).
1
more than 300, meaning thereby that more than ten persons die every hour. Total
number of accidents in Delhi in last 22 months had been more than 15,000 resulting
in 3647 deaths. The insurance companies wait for a case to be filed before Motor
Accidents Claims Tribunal and on receipt of summons also, no steps are taken to
resolve the case and the trial goes on for years. This is a matter of serious concern.
The reasons for delay in disposal of claim cases are as under:
(i) Delay in service of the driver and owner.
(ii) Non-appearance of the driver and owner despite service.
(iii) Non-production of the driving license by the driver and the owner.
(iv) Non-production of the insurance policy, registration cover, fitness certificate
and permit by the owner.
(v) The plea of the owner that he has sold the vehicle before the accident. Most of
the victims of the road accidents are poor people walking on the road or riding
on bicycles/scooters. The drivers of the cars/trucks have least respect for the
road users.
(vi) Avoidance of liability by the insurance company on the ground that the
driver and owner are not producing the relevant documents.
(vii) In the case of uninsured vehicles, claimants are unable to enforce the award
against the owner.
A new forum, i.e. Motor Accidents Claims Tribunal, which substitutes Civil
Court, has been created by the Motor Vehicles Act, for cheaper and speedier remedy
to the victims of accident of motor vehicles2. Prior to the Motor Vehicles Act, a suit
for damages had to be filed with civil court, on payment of ad valorem court fee.
But, under the provisions of this Act3, an application claiming compensation can be
made to the Claims Tribunal without payment of ad valorem fee4. New provisions in
Motor Vehicles Act do not create any new liability, and the liability is still based on
law of tort and enactments like the Fatal Accidents Act. The position on this point
was critically explained in Oriental Fire & General Insurance Co. v. Kamal
Kamini5:
2
Jayendra Singh v. M.P. Electricity Board, AIR 1978 MP 18.
3
R.K.Bangia, Law of Torts including Compensation under the Motor Vehicles Act, (1997) 469.
4
Ibid.
5
A. I . R. 1973 (Orissa) 33.
“The object of this group of sections 110 to 110F of the (1939) Act is to supply
a cheap and expeditious mode of enforcing liability arising out of claim for
compensation in respect of accident involving the death, or bodily injury to, persons
arising out of the use of motor vehicles, or damage to any property of a third party
so arising, or both as referred to in Section 110. Prior to the constitution of the
Tribunal, compensation could be claimed by institution of suits for damages only
through the medium of the Civil Court on payment of ad valorem court fee. This
group of sections furnishes a self-contained Code that the claims can be lodged on
the basis of an application without payment of ad valorem court fee. By providing a
direct appeal to the High Court, second appeals are also dispensed with. The
Tribunal is to follow a summary procedure for adjudication of claims being
provided; the sections do not deal with the substantive law regarding determination
of liability. They only furnish a new mode of enforcing liability. For determination
of liability one has still to look to the substantive law in the law of torts and Fatal
Accident Act, 1855 or at any rate to the principles thereof.”
Chapter XII of the Motor Vehicles Act, 1988 deals with the constitution of
Claims Tribunal, Application of Claims and award of compensation etc. This
chapter also deals with procedure followed by tribunals in awarding claim and
awarding of interest and compensatory costs in some cases and appeals against the
orders of claims tribunal.
6.1 ESTABLISHMENT AND COMPOSITION OF CLAIMS TRIBUNAL

Section 165 of Motor Vehicles Act, 1988 empowers the State Government to
constitute Claims Tribunal to adjudicate upon claims for compensation arising out of
motor vehicle accidents, resulting in death or bodily injury to persons or damages to
any property of third parties. A State Government may, by notification in the
Official Gazette, constitute one or more Motor Accidents Claims Tribunal (hereafter
in this Chapter referred to as Claims Tribunal) for such area as may be specified in
the notification for the purpose of adjudicating upon claims for compensation in
respect of accidents involving the death of, or bodily injury to, persons arising out of
the use of motor vehicles, or damages to any property of a third party so arising, or
both6. For the removal of doubts, it is hereby declared that the expression “claims
for compensation in respect of accidents involving the death of or bodily injury to
6
The Motor Vehicles Act, 1988, Section 165 (1).
persons arising out of the use of motor vehicles” includes claims for compensation
under section 140 and section 163-A7.
A Claims Tribunal shall consist of such number of members as the State
Government may think fit to appoint and where it consists of two or more members,
one of them shall be appointed as the Chairman thereof 8. A person shall not be
qualified for appointment as a member of a Claims Tribunal unless he is or has been
a Judge of a High Court, or is or has been a District Judge or is qualified for
appointment as a High Court Judge or as a District Judge. 9 Where two or more
Claims Tribunal are constituted for any area, the State Government, may by general
or special order, regulate the distribution of business among them.10
6.2 SETTING UP OF CLAIMS TRIBUNAL

A State Government may, by notification in the official gazette, constitute
one or more motor accident claims tribunal for such area as may be specified in the
notification. In Minu B. Mehta v. Balkrishna11 it was held by the Supreme Court of
India that the power of a State Government to constitute Claims Tribunal is optional,
and the State Government may not constitute a Claims Tribunal for certain areas.
Where any claims Tribunal has been constituted for any areas, no civil court shall
have jurisdiction to entertain any question relating to any claim for compensation
which may be adjudicated upon by the Claims Tribunal for that area, and no
injunction in respect any action taken or to be taken by or before the claims tribunal
in respect of the claim for compensation shall be granted by the civil court.
In Sushma Mehta v. Central Provinces Transport Services Ltd12 it was held
by the court that no tribunal can be constituted unless there has been firstly, a
notification of the State Government and Secondly, such notification has been
published in the official gazette of the state.
6.3 APPOINTMENT OF MEMBER

A Claims Tribunal shall consist of such number of members as the State
Government may think fit to appoint and where it consists of two or more members,
7
Added by Act No. 54 of 1994, Section 52 (w.e.f. 14-11-1994).
8
Ibid., Section 165 (2).
9
10
Ibid., Section 165 (4) .
11
A.I.R. 1977 S.C. 1248.
12
AIR 1964 (MP) 133 (DB).
one of them shall be appointed as the Chairman thereof. Appointment of a person as
member of tribunal by name is not necessary and appointment with reference to an
office is sufficient. But, it does not mean that no appointment by name can be made.
If a person fulfils the qualification test for such appointment, any person can be
appointed to be a member of a tribunal by name. The usual practice has been to
designate as claims tribunal, the District Judge or Additional District Judge,
provided the latter is qualified to become a District Judge. In Anirudh Prasad
Ambasta v. State of Bihar13it was held that a District Judge or Additional District
Judge, when appointed as member of the tribunal would continue to exercise his
original jurisdiction as a member of the State Judicial Service.
Appointment of Member by Name not Necessary
Delhi High Court in New Asiatic Transport (P) Co. Ltd. v. Manohar
Lal14held that appointment of a person as Member of Tribunal by name is not
necessary and appointment with reference to an office is sufficient. However, it does
not follow that no appointment by name can ever be made. If a person fulfils the
qualification test for such appointment, any person can be appointed to be a Member
of a Tribunal by name. The usual practice has been to designate as Claims Tribunal,
the District Judge or Additional District Judge, provided the latter is qualified to
become a District Judge. A District Judge or Additional District Judge, when
appointed as Member of the Tribunal would continue to exercise his original
jurisdiction as a Member of the State Judicial Service 15. However, the person so
appointed shall function not virtually as court, but purely as persona designate16.
The following points should not be ignored while appointment of a person or
denominating any particular judicial officer, to be a Member of the Tribunal:
(a) Notification of Appointment is Necessary
A notification is always necessary for constituting a Claims Tribunal, and
vesting of powers of a Claims Tribunal, whether by name or with reference to the
judicial office. Without notification even a district judge cannot exercise the powers
of a Claims Tribunal, merely because he is a District Judge and in a case a claim for
compensation has been filed before a District Judge not backed by a notification
13
AIR 1990 (Pat.) 49.
14
(1966) 68 Punj. LR (Del.) 51.
15
Anirudh Prasad Ambasta v. State of Bihar, AIR 1990 ACJ 238 (Pat.) FB.
16
New India Assurance Co. Ltd. v. Molia Devi, 1969 ACJ 164 (MP) DB.
designating him as Claims Tribunal, the claim so filed shall not be a claim filed
under Section 166 of the Motor Vehicles Act, 1988 and in that case such claim shall
have to be returned to the claimant for presenting it before a duly nominated Claims
Tribunal.17
(b) Transfer of Claim Application from District Judge to Claims Tribunal
Transfer of a claim application filed before a District Judge to the Competent
Claims Tribunal, as concerned to in K.P.Verma v. State of Bihar18, will be
misconceived since the power of such transfer is not inherently vested in the civil
court in which such claim has been erroneously filed, but can be exercised by High
Court only either under Section 24 of the Civil Procedure Code or under Article 227
of the Constitution, and the only thing the civil court, bereft of the powers of a
Claims Tribunal, can do is to return the claim to the claimant under Order 7, Rule 10
of the Code of Civil Procedure, for it being presented to the proper Tribunal
constituted for that area under section 165 of the Motor Vehicles Act, 1988.
(c) General Notification Designating All the District Judges as Claims Tribunal
There can be a general notification designating all the District Judges as
Claims Tribunal. Such notification would be notification generally in favour of a
class of District Judges and then, whoever, occupies the office of the District Judge
shall function also as Claims Tribunal.
(d) Not to Confuse Powers of One Office with Other Office
In Varalakshmi Sundar v. Meeran19 case, it was held by the Madras High
Court that a district Judge when appointed as Claims Tribunal shall not confuse
powers in one office with that of the other. While functioning as Claims Tribunal, he
cannot make use of all his powers as a District Judge, because the powers of the
same judicial officer while acting as court as also a Claims Tribunal cannot be the
same. Whereas a civil court has plenary powers, the Claims Tribunal is vested only
with specified and limited powers as contemplated by or conferred under the Motor
Vehicles Act.20
17
Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation, (2010) 495.
18
1990 ACJ 32 (Pat.) DB.
19
1981 ACJ 50 (Mad.).
20
Satyabadi Nayak v. Dameli Khilla, 1991 ACJ 211 (Guj.) DB.
266
6.4 QUALIFICATION FOR APPOINTMENT AS MEMBER OF CLAIMS
TRIBUNAL
A person shall not be qualified for appointment as a member of a Claims
Tribunal unless he is or has been a Judge of a High Court, or is or has been a District
Judge or is qualified for appointment as a High Court Judge or as a District Judge.
The expression „is or has been‟ a Judge of the High Court, or a District Judge
implies that a retired Judge of the High Court or a retired District Judge can be
appointed as the member, or the presiding officer, as the case may be, of a Claims
Tribunal. The expression “qualified for appointment‟ as High Court judge or as a
District Judge is preferable to relevant provisions of the Constitution of India. In
computing the period during which a person has held judicial office in the territory
of India, there shall be included any period, after he has held any judicial office,
during which the person has been an advocate of a High Court or has held the office
as a Member of a Tribunal or any post, under the Union or a state, requiring special
knowledge of law. Similarly, in computing the period during which a person has
been an advocate of a High Court, there shall be included any period during which
the person has held judicial office of a member of a tribunal or any post under the
Union or a State, requiring special knowledge of law after he became an advocate.
6.5 OTHER STAFF OF CLAIMS TRIBUNAL

There is no separate provision for appointment of persons as staff of the
claims tribunal. In case a sitting judicial officer, falling within the definition of a
District Judge, is appointed as member of claims tribunal, the staff of such appointee
shall also function as staff of such Claims Tribunal. In the case of constitution of the
tribunal by appointing a person other than the person holding the post of a District
Judge, it would be open for the State Government to furnish such tribunal with a
staff of persons appointed or to be appointed by the State Government.21
6.6 CLAIMS TRIBUNAL: POWERS OF CIVIL COURTS

Claims tribunal set up under this Act are deemed Civil Courts. In Mohd.
Riyazur Rehman Siddiqui v. Deputy Director of Health Services 22 it was held that
technically grammatically speaking, tribunal may not be a civil court, but it has all
21
Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation (2010) 497, 498.
22
2009 (3) ACC 300 (Bom) FB.
267
the trapping of court since it passes an award which has all the ingredients of a
judgment as known under civil jurisprudence. In the matter of Harinagar Sugar
Mills v. Shyamsunder Jhunjhuinwal23 the distinction between courts and tribunal
was pointed out by the Supreme Court of India as follows:
“The word court is not defined in the Companies Act, 1956. It is not defined
in the Civil Procedure Code. The definition in the Indian Evidence Act is not
exhaustive, and is for the purpose of that Act. In the New English Dictionary 24 the
meaning is given is: „an assembly of judges or other persons legally appointed and
acting as a tribunal to hear and determine any cause, civil, ecclesiastical, military or
naval”. The Claims Tribunal shall, for the purposes of holding any determination
under this Act, have the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908, while trying a suit in respect of the following matters,
namely:
a) The summoning and enforcing the attendance of any witness and examining him
on oath;
b) The discovery and production of any document;
c) The reception of evidence on affidavits;
d) The requisitioning of any public record or document or copy of such record or
document from any court or office; and
e) Such other matters as may be prescribed.
6.7 CLAIMS TRIBUNAL: A SUBSTITUTE OF CIVIL COURTS FOR

THE PURPOSE OF COMPENSATION CLAIMS
To say that Claims Tribunal is a Court is entirely different from saying that a
Claims tribunal is a Civil Court. It is a civil court for all intents and purposes of
adjudication of claims for compensation in motor accident cases. From the scheme
of the Motor vehicles Act and the Rules framed there under, it is clear that a Claims
tribunal is constituted for a specific area, which is specified in the notification for
adjudication of such claim. The institution of the proceedings is by an application
for compensation. The tribunal disposes such application by giving the parties an
opportunity of being heard and holding an inquiry in to the claim and it has to make
an award determining the amount of compensation is to be paid and the amount
23
(1962) 2 SCR 339.
24
New English Dictionary, Vol. II, 1090, 1091.
268
which is to be paid by the insurer. The tribunal has been given all the powers of a
civil judge for the purpose of taking evidence on oath and enforcing the attendance
of witness and of compelling the discovery and production of documents. Rules
framed under the Act also confer all the powers of a civil court on the Claims
tribunal in so far as the same are not inconsistent with the provisions of the Act.
Right to appeal to the High Court is also provided.
Resort to Article 227 of Constitution of India in preference to Revision under
Section 151 of Civil Procedure Code, 1908. In New India Assurance Co. Ltd v.
Ganga Devi25 it was held that as a matter of law and practice both, where the statute
has made provision for an appeal against a judgement or order and right of appeal is
absolute, additional, restricted or otherwise, a revision against such judgement or
order does not lie. The reasoning conceding to the power of the High Court to
entertain such a revision seems to gravitate upon one or the other of the propositions
not appealing to the reason. The claims tribunal is said to have trapping of civil
court, but merely because some authority has been clothed with the trappings of a
court, it cannot logically follow that it is liable to be treated as civil court for all
intents and purposes. If the tribunal is or can be considered to be a civil court, there
is no use of employing the additive which in hares the expression „trappings of
court‟. The use of this expression is itself indicative that the possession of some
trappings of a court cannot identify an authority with a de facto civil court.26
6.8 APPLICATION FOR COMPENSATION

Section 166 of the Act provides for the form of application for
compensation, the person who may claim compensation, the time within which the
application should be filed, etc. It also provides that if the Claims Tribunal, thinks
so, may treat the accident report filed by the Police Officer as per Section 158 as an
application under this Act. An application for compensation arising out of an
accident of the nature specified in sub-section (1) of section 165 may be made by the
person who has sustained the injury or by the owner of the property or where death
has resulted from the accident, by all or any of the legal representatives of the
deceased or by any agent duly authorized by the person injured or all or any of the
25
New India Assurance Co. Ltd v. Ganga Devi, 2006 ACJ 2857 (Jhar.) DB 109.
26
Ibid.
269
legal representatives of the deceased, as the case may be27. Provided that where all
the legal representatives of the deceased have not joined in any such application for
compensation, the application shall be made on behalf of or for the benefit of all the
legal representatives of the deceased and the legal representatives who have not so
joined, shall be impleaded as respondents to the application.
Every application under sub - section (1) of section 166 shall be made, at the
option of the claimant, either to the Claims Tribunal having jurisdiction over the
area in which the accident occurred or to the Claims Tribunal within the local limits
of whose jurisdiction the claimant resides, or carries on business or within the local
limits of whose jurisdiction the defendant resides and shall be in such form and
contain such particulars as may be prescribed28. Provided that where no claim for
compensation under section 140 is made in such application, the application shall
contain a separate statement to that effect immediately before the signature of the
applicant. The Claims Tribunal shall treat any report of accidents forwarded to it
under sub-section (6) of section 158 as an application for compensation under this
Act.29 The state government may under rules prescribes the form of application for
compensation and sub section 2 of section 166 confers jurisdiction to entertain and
adjudicate on such application upon following three different tribunal:
1. The Tribunal within the local limits of whose jurisdiction the accident has
occurred, or:
2. The Tribunal within the local limits of whose jurisdiction the claimant resides or
carries on business, or
3. within the local limits of whose jurisdiction the defendant resides.
And confusion lingers as to which tribunal shall have jurisdiction to entertain
and adjudicate upon application or applications in cases where the claimants of a
person deceased in an accident, or the defendants, where there are more than one,
are residing or carrying on their business at two or more different places, and the
confusion is embittered particularly in absence of any statutory provision for transfer
of an application from one claims tribunal to another. Assuming that such transfer at
instance of one or more parties can be allowed by the High Court under Article 227
27
Section 166(1), The Motor Vehicles Act, 1988.
28
29
Ibid., Section 166(4).
270
of the Constitution, if not under section 24 of the code of Civil Procedure, confusion
can hardly be said to have been resolved if in case of several claimants or several
defendants, each may be residing or carrying business in different states. Assuming
in the last resort, that the Supreme Court may be approached for allowing such
transfer of a claim from one tribunal to the other under Section 25 of the Code of
Civil Procedure, it is difficult yet to conceive on what grounds such transfer can be
allowed, when each of the several claimants has legal right to have his claim decided
by the tribunal within the local limits of whose jurisdiction he resides or carries on
business. In National Insurance Co. Ltd. v. Indu Sharma30 it was held by the High
Court that the proceedings on a claim for compensation under section 163A and
section 166 of the Act can go together, both being independent provisions and
awarding of compensation under section 163 A, unlike that under section 140, does
not detract or defeat the provisions of section 166.
Claim application can be filed under Section 163A for claim to be
determined on structural formula basis provided in Schedule-II. Schedule-II has
been adjudged as suffering from severe mistakes and the Supreme Court has held
that total reliance cannot be placed on this schedule. Further the Schedule do not
provide any computation chart for the persons having more than Rs.40,000/- annual
income. Claim petition can also be filed under Section 166 of Motor Vehicle Act
pleading negligence where the claim shall be assessed by the Judge not on the basis
of structural formula but on the basis of evidence led. The injured or the legal
representatives of deceased can file claim application in a prescribed format making
driver, owner and insurer as party. Driver is not a necessary party in some states. For
e.g. in the Rajasthan Motor Accident Claims Tribunal Rules only owner and insurer
are required to be party.31 No limitation has been prescribed for filing of the claim
application. Initially when the law has come into force the limitation was 6 months
which was later increased to one year and ultimately in the garb of welfare
legislation the provision of limitation has been deleted. A claim launched by
dependents of deceased but not by his legal representatives would be defective
unless the legal representatives of the deceased have been joined either as claimants
or even as respondents.32
30
2000 ACJ 808 (P&H) 112.
31
Rajasthan Motor Vehicles Rules, 1990.
32
Cheriyakutty Mammi v. UmmerKutty, 1996 ACJ 402 (Ker.) DB.
271
6.9 WHO CAN FILE A CLAIM?
In case of damage to property, the application for compensation has to be
made by the owner of the property damaged. It is implied that in case of death of
owner of the property, the legal representatives of deceased owner can competently
claim compensation33.
1. People, who have been injured in accidents on the road, can themselves file for
compensation or route the claims though their advocates.
2. But accident victims, who are below 18 years of age, cannot file for
compensation themselves; they have to go through their advocates.
3. Legal heirs of people who have died in accidents can also claim compensation;
alternatively, they can route their claims through their advocates.
Victim himself or through Advocate, in the case of personal injury. Through
advocate in case of minor applicant below the age of 18 years. Legal heirs
themselves or through advocate in the case of death. The owner of the vehicle in the
case of property damage.
6.10 ESSENTIAL DOCUMENTS REQUIRED TO FILE CLAIM

Following documents are required along with application for compensation
claim:34
1. Copy of the FIR registered in connection with said accident, if any.
2. Panchnama copy (this is a list of damages that is drawn by cops in the presence
of witnesses).
3. Copy of the MLC/Post Mortem Report/Death Report as the case may be.
4. The documents of identity of the claimants and of the deceased in a death case.
5. Original bills of expenses incurred on the treatment along with treatment record.
6. Documents of the educational qualifications of the deceased, if any.
7. Disability Certificate, if already obtained, in an injury case.
8. The proof of income of the deceased/injured.
9. Documents about the age of the victim.
10. The cover note of the third party insurance policy, if any.
11. An affidavit detailing the relationship of the claimants with the deceased.
33
Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation , (2010) 642.
34
„MACT- Motor Accident Claims Tribunal‟, www.Vakilno1.com. On 02.07.2010 at 9.22 p.m.
272
12. RTO Certificate (showing name and address of owner and insurance particulars
of vehicle/s involved in the mishap).
13. Passport-Size Photograph.
14. Court-Fee Stamp.
The Court Fees for Filling an Application for Compensation
1. Affix a court-fee stamp of Rs 10 if the compensation you are claiming is less
than Rs 5,000.
2. Affix a court-fee stamp that is worth .25 per cent of your claim if you are asking
for compensation that is between Rs 5,001 and Rs 50,000.
3. Affix a court-fee stamp that is worth .5 per cent of your claim if you are asking
for compensation that is between Rs 50,001 and Rs 100,000.
4. Affix a court-fee stamp that is worth 1 per cent of your claim if you are asking
for compensation that is more than Rs 100,000; but the maximum fee that you
have to pay is Rs 15,000.35
6.11 JURISDICTION OF CLAIMS TRIBUNAL

The jurisdiction of Claims Tribunal for adjudication of claims relating to the
motor vehicles accidents can be invoked if the accident has arisen out of the use of
the motor vehicle and the accident has resulted in bodily injury to the person who is
making the claim or the death of the person whose legal representatives are making
the claim. Thus the Claims Tribunal has the jurisdiction to entertain claims relating
to accident which occurred in the course of user of the bus for carriage of the
passengers, irrespective of the fact whether vehicle was mobile or stationary36.
In Sanno Devi v. Balram37 it was held that jurisdiction of tribunal depends
essentially on the fact whether there had been any use of motor vehicle and once it
has been established, tribunal‟s jurisdiction cannot be held ousted on findings that it
is negligence of other joint tortfeasor and not of the motor vehicle in question. A
victim of an accident arising out of use of motor vehicles may file their claim
application to the Claims Tribunal within local limits of whose jurisdiction the
claimant resides or carries on business.
35
Ibid.
36
Ram Chandra v. Rajasthan State Road Trans. Corpn. , 1996 ACJ 736.
37
2007, ACJ 1881 (MP) DB.
I. Pecuniary Jurisdiction
The pecuniary jurisdiction of the Claims Tribunal has a double implication
i.e. compensation in case of death or bodily injury and in respect of damage caused
to any property. Section 165 of the Act empowers the tribunal to award
compensation not only for death and bodily injury but also for damage to property.
As regards the former, there are three different provisions in the Motor Vehicles
Act, 1988, namely:
1. Compensation in certain cases on the principle of no fault, as provided in section
140 of the Act.
2. Compensation on structured formula basis, under section 163-A of the Act, and
3. Compensation which appears to the Claims Tribunal to be just, under section
168 of the Act.
In the category of claims under 1. Above, i.e. compensation on principle of
no fault, compensation can be awarded either in cases of death or in cases of
permanent disablement of any person, and in either case, the fixed and different
amounts have been fixed respectively for death and permanent disablement. The
relevant provisions are sub-sections (1) and (2) of section 14038.
II. Exclusion of Civil Court’s Jurisdiction not readily Inferred
The civil courts under section 9 of the Civil Procedure Code have general
and overall jurisdiction to try all suits of a civil nature and a suit wherein the right to
property or to an office is contested is a suit of a civil nature. The bar of jurisdiction
of the civil court cannot thus, readily inferred, and the Supreme Court in a classic
decision in Dhulabhai v. State of Madhya Pradesh39 has covered out as many as
seven exceptions to a statutory bar created on jurisdiction of the civil court, seven
exceptions are as under:
1. Where the statute gives finality to the order of the special tribunal, the civil
court‟s jurisdiction must be held to be excluded if there is adequate remedy to do
what the civil courts would normally do in a suit. Such provision, however, does
not exclude those cases where the provisions of the particular Act have been
complied with or the statutory tribunal has not acted in conformity with the
fundamental principles of judicial procedure.
38
Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation (2010) 537.
39
AIR 1969 SC 78.
2. Where there is an express bar of jurisdiction of the courts, an examination of the
scheme of the particular Act to find the adequacy or the sufficiency of the
remedies provided may be relevant but is not decisive to sustain the jurisdiction
of the civil court. Where there is no express exclusion, the examination of the
remedies and the scheme of the particular Act to find out the intendment become
necessary and the result of the inquiry may be decisive. In the latter case, it is
necessary to see if the statute creates a special right or a liability and provides for
the determination of the right or liability and further lays down that all questions
provides the said right and liability shall be determined by the tribunal so
constituted, and whether remedies normally associated with actions in civil
courts are prescribed by the said statute or not.
3. Challenge to the provisions of the particular Act as ultra vies cannot be brought
before tribunal constituted under that Act. Even the High Court cannot go into
the question on a revision or reference from the decision of the tribunal.
4. When a provision is already declared unconstitutional or the constitutionality of
any provision is to be challenged, a suit is open. A writ of certiorari may include
a direction for refund if the claim is clearly within the time prescribed by the
Limitation Act but it is not a compulsory remedy to replace a suit.
5. Where the particular Act contains no machinery for refund of tax collected in
excess of constitutional limits or illegally collected, a suit lies.
6. Question of the correctness of the assessment apart from its constitutionality are
for the decision of the authorities and a civil suit does not lie if the orders of the
authorities are declared to be final or there is an express prohibition in the
particular Act. In either case the scheme of the particular Act must be examined
because it is a relevant inquiry. An exclusion of the jurisdiction of the Civil
Court is not to be readily inferred unless the conditions above set down apply.
III. Jurisdiction in Respect of Cases Where Accidents Occurred Prior to
Establishment of Tribunal
The existence of a claims tribunal on the date of accident is not a condition
precedent for entertaining a claim for compensation. A claim for compensation can
be entertained by a Tribunal even in respect of an accident which occurred at a time
when there was no claims tribunal for that area. In New India Assurance Co. v.
Rukiyabai40 a motor accident took place within the jurisdiction of the civil court at
Nasik. There was no claims tribunal on the date when the accident had occurred or
on the date when the suit for compensation was instituted in the Nasik. After the
institution of the suit, the claims tribunal came to be established, but even then the
tribunal set up at Nasik had no jurisdiction to entertain claim for compensation in
respect of accidents which occurred at a place within the territorial jurisdiction of
the Nasik court. It was, therefore, held that the notification establishing a tribunal at
Indore could not come in the way of the civil court at Nasik to proceed with the
claim instituted therein when no tribunal for that area was then in existence41.
IV. Bar on jurisdiction of Civil Courts
Section 175 bars the jurisdiction of Civil Courts where any Claims Tribunal
has been constituted. Where any Claims Tribunal has been constituted for any area,
no Civil Court shall have jurisdiction to entertain any question relating to any claim
for compensation which may be adjudicated upon by the Claims tribunal for that
area, and no injunction in respect of any action taken or to be taken by or before the
Claims Tribunal in respect of the claim for compensation shall be granted by the
Civil Court42. In Vatticherukuru Village Panchayat v. Nori Venkataraman
Deehsithulu43 it was held by the apex court that the procedure before the tribunal is
simple and not hidebound by intricate procedure of pleadings and trial, admissibility
of the evidence and proof of facts according to law.
Therefore, there is abundant flexibility in the discharge of the functions with
greater expedition and in expensiveness. In Gurbax Singh v. Financial
Commissioner44 it was held by the Supreme Court that despite the bar on civil courts
jurisdiction under a statute, if the special tribunal or authority acts ultra vires or
illegally, the civil court has power by virtue of section 9 of the C.P.C.to interfere and
set matters right. If the provisions of the statute have not been complied with or the
statutory tribunal has not acted in conformity with the fundamental principles of
judicial procedure, the civil courts have jurisdiction to examine such cases.
40
1985 (2) ACC 499.
41
State of Madhya Pradesh v. Pehlajrai Dwarkada, 1976 ACJ 222 (MP) DB.
42
Section 175, The Motor Vehicles Act, 1988.
43
1991 (5) JT 140.
44
AIR 1991 SC 435.
V. Bar on Jurisdiction of Consumer Dispute Redressal Forum
In Chairman Thiruvallurar Transport Corporation v. Consumer Protection
Council45 the deceased was travelling in an omni bus which met with an accident
while trying to avert a bullock – cart. It appears that when the bus driver was in
process of overtaking the bullock cart, the bullock got panicky whereupon the driver
swerved the bus to left and ran in to branches of a tree on the roadside resulting in
damage to the vehicle, the window panes having been smashed. As the vehicle
suddenly swerved and the driver applied the brakes the deceased who was sitting in
the centre of the rear seat was thrown in the front and hit against the iron side bar,
sustaining a serious head injury. Subsequently he succumbed to the injury. The
Consumer Protection Council, Tamil Nadu on behalf of the legal representative of
the deceased, lodged a complaint before the National Commission under the 1986
Act claiming compensation. The appellant contested the claim contending that the
claimant i.e. the Council, had no locus standi to maintain the action and in any case
the National Commission had no jurisdiction to entertain a petition since exclusive
jurisdiction was conferred by the 1988 Act on the Claims Tribunal constituted there
under. The National Commission contended the appellant, side stepped the question
regarding jurisdiction and without answering the same awarded Rs. 5.10 Lacs by
way of compensation with interest at 18% per annum with costs of Rs. 10,000/-. An
appeal against the judgement was preferred to the Supreme Court. The question that
arose for consideration was whether the National Commission had jurisdiction to
entertain the claim application and award compensation in respect of an accident
involving death of the deceased caused by the use of Motor Vehicle.
The Supreme Court without going in to depth of awarding of compensation by
National Commission to the victim, only answer the question of law as to whether
National Commission can entertain such case held that National Commission has no
jurisdiction whatsoever and was entirely wrong in exercising jurisdiction and
awarding compensation. However, in the facts and circumstances of this case, the
judgment pronounced by National Commission was reversed and appellant were not
entitled to recover the compensation money already paid to the victim under the
45
1995 SC 1384.
order‟s of National Commission. Hence, claims for compensation arising out of use
of motor vehicles cannot be adjudicated by any of the Consumer Disputes Redressal
Forums contemplated and created under Consumer Protection Act, 1986. The
complaint in the case of motor accident cannot be said to be in relation to any
service hired or availed of by the consumer because the injury sustained by the
consumer has nothing to do with the service provided or availed of by him if the
injury is the direct result of the accident.
VI. Jurisdiction of Tribunal, Where Collision between Trains and Motor
Vehicle Occurred
In Union of India v. Satish Kumar Patel46 where there is negligence only of
the driver of the motor vehicle or where there is negligence both of the driver of the
motor vehicle and of the railway, a claim is entertainable by the motor accidents
claims tribunal. In Amritlal v.Union of India47 where the truck driver was warned by
inmates of truck about approaching railway engine and there was consequent
collision between truck and the engine on unmanned railway level crossing and
resultant death of some of the passengers in the truck and injuries to other inmates of
truck, award of compensation by the tribunal was held justified and the railways was
held not liable since it is no duty of railways to man all level crossings.
In Union of India v. Bhagwati Prasad48 there was collision between a
passenger train and a taxi. The track was lying open even at time of passing of the
train. Some of the inmates of the taxi died and others sustained injury. It was held
that once it is established that the accident arose out of use of motor vehicle, the
tribunal‟s jurisdiction cannot be said to be ousted on a finding that it was negligence
of the other joint tortfeasor and not negligence of the motor driver.
VII. Claimant to Choose Place of Jurisdiction
A plain reading of section 166(2) shows legislative intent to insert sub-section
(2) that making of claim application under section 166(1) has been left totally at the
option of the claimant, either to the claims tribunal having jurisdiction over the area
where the accident took place, or to such tribunal within local limits of whose
jurisdiction the claimant resides or carries on business or within local limits of
46
AIR 2001 MP 41.
47
2004 ACJ 1868 (Raj.).
48
AIR 2002 SC 1301.
whose jurisdiction the defendant resides. In other words, obviously the claimant can
file an application within the jurisdiction of claims tribunal (1) where the accident
occurred, or (2) before the tribunal within local limits of whose jurisdiction,
claimant resides or carries on his business, or (3) within local limits of whose
jurisdiction, the defendant resides or carries on his business. In Kusum Devi v.
Dungaram49 it was held that in view of the word “or” which separates three clauses,
the claimant can choose either of the three options and as per legislative intent, there
are three options implied, whereby he has been given a right to pick one of three
places for exercising his option.
VIII. Jurisdiction of Tribunal in India, where Accident occurred in Foreign
Country
A suit or proceeding can be filed in a court or tribunal having jurisdiction in
relation with the place where the cause of action or part thereof had arisen 50 and
where a bus was booked at Delhi, part of cause action had arisen in India and the
claimants can file a claim in the tribunal having jurisdiction over place or residence
of claimant under section 166(2) of the Act51.
In the above case, a bus for pilgrimage from Delhi to Kathmandu was
booked at Delhi and vehicle was registered in India. The bus fell into a river in the
territory of Nepal. It was held that a claim under section 163A of the Act was
maintainable in a tribunal within the State of Punjab. It was further held that the
Motor Vehicles Operations and Contiguous Counties Rules, 1963 had no
application, since the rules could operate only if the claim was filed in Nepal.
Eventually, the insurer was held liable. In Savara Pydi Raju v. T. Venkata Rao,52 it
was held that as per amended provisions of section 166(2) victims are entitled to
make their claims in any court having jurisdiction over place where accident
occurred or over place where they are residing.
IX. Jurisdiction to Entertain Claim by Indigent Person
The tribunal has trapping of civil court for the purpose of taking evidence on
oath and of enforcing attendance of witnesses and compelling the discovery and
production of documents and material objects and for such other purposes as may be
49
2008 ACJ 1709 (Raj.).
50
Civil Procedure Code, 1908, Section 20.
51
Sarbati v. Anil Kumar, 2006 ACJ 2532 (P&H).
52
2007 ACJ 2245 (AP).
prescribed, as section 169(2) of the Motor vehicle Act, 1988 has stated. There is no
direct reference of Order 33 of Civil Procedure Code which deals with suits by or on
behalf of indigent persons. In State of Haryana v. Darshana Devi53 the Supreme
Court of India observed that the poor shall not be forced out of the justice market by
instance on court fee and refusal to apply the exemptive provisions of Order
XXXIII, Civil Procedure Code. So we are distressed that the State of Haryana,
mindless of the mandate of equal justice to the indigent under the magna carta of
our Republic, expressed in article 14 and stressed in article 39A of the Constitution,
has sought of leave to appeal against the order of the High Court which has rightly
extended the pauper provisions to the auto accident claims. The reasoning of the
High Court in holding trail under Order XXXIII will apply to tribunals which have
the trappings of the civil court finds our approval and hence upheld the decision of
the High Court.
In Gulab Singh Meruji v. Jayantilal Shankarlal Brahmin54 where a prayer
was made for filling the appeal as indigent person. The appellant was permitted to
file the claim before the tribunal as indigent person, but the claim was dismissed.
Permitting the appeal to be filed as indigent person the court observed that in the
legal aid programmes, whatever amount is paid as legal assistance to the
litigant….that is not repayable by the litigant. In the case where a person comes up
with a prayer that he may be permitted to file appeal as an indigent person…by
permitting him to file appeal as indigent person, payment of court fee is only being
deferred. So this court, while dealing with such applications, should be more liberal
which will advance the cause of justice to poor persons. The court was of the view
that in such matter, even notice to the opposite party is unnecessary, since the other
side can challenge the same later on with necessary, cogent and justifiable
evidence.55
X. Death Occurred Due To Heart Attack: No Jurisdiction
In National Insurance Co. Ltd v. Chandra Prava Barman56 where the
insurer argued that admittedly the father of the claimant died on account of heart
attack and not due to vehicular accident, and that Motor Accidents Claims Tribunal
53
1979 ACJ 205 (SC).
54
2001 ACJ 346 (Guj.).
55
Ibid.
56
2001(2) TAC 698 (Guj.) DB.
280
can award compensation only in connection with the liability of the insurer on the
insured which arises out of vehicular accident and not for any remote cause. Holding
this statement as well merited the High Court held that the claim for death of the
father might or could have been taken up under Law of Torts and not by Motor
Accidents Claims Tribunal, which has got limited jurisdiction to deal with claims
arising out of accident. Such a claim which has been allowed by the tribunal could
only be within the competence of the civil court and not within the competence of
the Motor Accidents Claims Tribunal.
XI. Claims Tribunal- Its retrospective jurisdiction
The effect of Sections 110 to 110-F of the Act, is merely to provide for change
of forum and its procedure, thereby substituting a cheap remedy to the victims of all
motor accidents, and from the date of constitution of the Claims Tribunal, the
jurisdiction of the civil court is totally ousted in respect of such claims. Therefore, it
is wrong to say that the claims before the Claims Tribunal can be lodged only in
respect of inevitable accident and the remaining accidents, which result from any
negligence or rashness, are outside the jurisdiction of Claims Tribunal. 57 Provisions
of Section 110-F of Motor Vehicles Act, 1939 are not retrospective debarring
jurisdiction of Civil Court in pending suits.58
6.12 TRANSFER OF CLAIMS FROM ONE TRIBUNAL TO ANOTHER

TRIBUNAL
In Siddarmappa Patil v. President, Bhartiya Vidya Vardhaka Sangha59 the
tribunal entertaining the claim was situated at a distance of 1000 kilometers from the
claimant‟s residence. Subsequent to the amendment of the section, giving option to
the claimants to file claim at the place of residence, transfer of claim petition was
allowed in conformity with the spirit of law as amended. In Padminbai Ashok Yadle
v. Mannan Ismail Shaikh60 the claim was pending before the claims tribunal at Latur,
whereas the claimant was residing at Mumbai, the claim petition was transferred
from tribunal at Latur to the tribunal at Polghar. The benefit of Section 166(2),
which had been inserted by way of a amendment in 1994, can be extended even in
respect of a claim instituted prior to such amendment.
57
State of M.P. v. Pehlajraj, AIR 1976 MP 208; Munibai v. Raj Kumar, 1966 ACJ 107; Devendra
Kumar v. Pilokhri Brick Kiln, 1971 ACJ 352.
58
Anusaya Bai v. Union of India, 1992 (1) TAC 583: 1993 ACJ 528(Bom).
59
1997 ACJ 713 (Karn.).
60
2003 ACJ 247 (Bom.).
281
Claimant can Withdraw Applications and file it at Appropriate Place
Where the claim was filed in a tribunal having Jurisdiction over the area in
which the accident occurred or defendant resides, but the claimant having become
totally crippled and unable to prosecute his claim there, he may be allowed to
withdraw his claim and file it afresh at a place where he usually resides. In B.K.
Singh v. Union of India61 where the claim was filed in a tribunal in Assam having
Jurisdiction over the area in which the accident occurred, but the claimant having
become totally crippled and unable to prosecute his claim, he was allowed to
withdraw his claim and file it afresh at Pune as desired by him.
Tribunal Cannot Entertain Application for Claim in Case of Hit and Run
Accident
A plain reading of Rule 20 of the Solatium Scheme, 1989, makes it clear that
an application seeking compensation under the Scheme in case of hit and run
accidents is to be filed in Form 1 before the Claims Enquiry Officer of the Sub-
Division in which the accident had taken place. Thus, under the scheme, a particular
forum has been provided for claiming compensation in case of hit and run motor
accidents. This being the position, claimants claiming compensation in cases of
death or grievous hurt arising under the hit and run motor accidents cannot file
application before the Claims Tribunal, and the Claims Tribunal having no
jurisdiction in the matter, the order of the Claims Tribunal rejecting the objection
taken by the insurer as regards the maintainability of the application cannot be
allowed to stand62.
Option Regarding Claims for Compensation in Certain Cases
Section 167 of the Act lays down that when claim arises under this Act and
under the compensation only under either of these Acts and not under both the Act.
Notwithstanding anything contained in the Workmen‟s Compensation Act, 1923
where the death of, or bodily injury to, any person gives rise to a claim for
compensation under this Act and also under the Workmen‟s Compensation Act,
1923, the person entitled to compensation may without prejudice to the provisions of
Chapter X claim such compensation under either of those Acts but not under both63.
61
2006 (4) ACC 242 (SC).
62
New India Assurance Co. Ltd. v. Rajendra Prasad Bhatt, 2002 ACJ 1762 (MP).
63
The Motor Vehicles Act, 1988, Section 167.
In New India Assurance Co. Ltd. v. Mehebubanbibi64 the decision in the case may
be taken as an exception to the provision of section 167, wherein the facts (at the
cost of repetition) were that the deceased had been deputed by his employer to carry
a damaged transformer in a tractor, had fallen into a ditch. The deceased, pressed
under the damaged transformer in the ditch succumbed to his injuries in the hospital.
Death of the deceased had arisen out of and in the course of employment since the
deceased was employee of the electricity board and died while on duty. Since the
accident had occurred because of negligence of the driver of the tractor, which
belonged to a different person, it was held by the Division Bench that the claimants,
in the peculiar circumstance of the case, were entitled to claim compensation under
the Motor Vehicles Act as well as under the Workmen‟s Compensation Act.
The Tribunal has no jurisdiction to grant consequential loss arising out of
damage to the property65. Only those provisions of CPC which are specifically
mentioned, will apply to proceedings under Motor Vehicles Act 66. Delay in filing
FIR is not a ground to dismiss claim petition 67. Claimants are not required to prove
the case in motor accident compensation claims as it is required to be done in a
criminal case.68
6.13 AWARD OF THE CLAIMS TRIBUNAL

The expression „award‟ must be given wider and proper meaning. An award
would comprehend every decision of the Tribunal, whether for or against the
claimant or the opposite parties69. The meaning of the word „Award‟ as given in
Webster‟s New World Dictionary is “a decision, as by Judges”.
Section 168 of the Act provides that the Claims Tribunal shall deliver the
copies of the award to the parties within fifteen days of the award and that the
person against whom the award is made shall deposit the amount awarded within
thirty days of announcement of the award. On receipt of an application for
compensation made under section 166, the Claims Tribunal shall, after giving notice
of the application to the insurer and after giving the parties (including the insurer) an
64
2003 (2) TAC 639 (Guj.) DB .
65
National Insurance Company Ltd., v. HRTC, HLJ 2010 (HP) 165.
66
Miss. Lata v. United India Insurance Co. Ltd, 2005 (1) Shim. L.C 278.
67
Ravi v. Badrinarayan , (2011) 4 SCC 693.
68
Kusum Lata v. Satbir , (2011) 3 SCC 646.
69
Govindarajulu v. Govindaraja, AIR 1966 Mad 332.
opportunity of being heard, hold an inquiry into the claim or, as the case may be,
each of the claims and, subject to the provisions of section 162 may make an award
determining the amount of compensation which appears to it to be just and
specifying the person or persons to whom compensation shall be paid and in making
the award the Claims Tribunal shall specify the amount which shall be paid by the
insurer or owner or driver of the vehicle involved in the accident or by all or any of
them, as the case may be70. Provided that where such application makes a claim for
compensation under section 140 in respect of the death or permanent disablement of
any person, such claim and any other claim (whether made in such application or
otherwise) for compensation in respect of such death or permanent disablement shall
be disposed of in accordance with the provisions of Chapter X. The Claims tribunal
shall arrange to deliver copies of the award to the parties concerned expeditiously
and in any case within a period of fifteen days from the date of the award 71. When
an award is made under this section, the person who is required to pay any amount
in terms of such award shall, within thirty days of the date of announcing the award
by the Claims Tribunal, deposit the entire amount awarded in such manner as the
Claims Tribunal may direct72.
In Ranu Bala Paul v. Bani Chakraborty73 it was held that an award under
Motor Vehicles Act, 1988 cannot be equated either with a civil or a criminal case,
and the tribunal while awarding compensation is not expected to go into niceties or
technicalities but must adopt a broad and a liberal approach. In New India Assurance
Co. Ltd. v. G. Lakshmi74 it was held that the tribunal is expected to award a
compensation which appears to be just, it follows that in deserving cases, the
tribunal may not be bound by the figure stated in the claim petition and can award an
amount even more that what has been claimed.
6.14 Procedure and powers of Claims Tribunal

Section 169 of the Act lays down the procedure to be followed by the Claims
Tribunal in setting claims compensation and the powers of the Claims tribunal. In
holding any inquiry under section 168, the Claims Tribunal may, subject to any
70
The Motor Vehicles Act, 1988, Section 168 (1).
71
72
73
1999 ACJ 634 (Gauhati).
74
1999 ACJ 1068 (AP).
rules that may be made in this behalf, follow such summary procedures as it thinks
fit75. The Claims Tribunal shall have all the powers of a Civil Court for the purpose
of taking evidence on oath and of enforcing the attendance of witnesses and of
compelling the discovery and production of documents and material objects and for
such other purposes as may be prescribed; and the Claims Tribunal shall be 132
deemed to be a Civil Court for all the purposes of section 195 and Chapter XXVI of
the Code of Criminal Procedure, 197376. Subject to any rules that may be made in
this behalf, the Claims Tribunal may, for the purpose of adjudicating upon any claim
for compensation, choose one or more persons possessing special knowledge of any
matter relevant to the inquiry to assist it in holding the inquiry 77. The procedure to
be followed at the Claims Tribunal is as under:
I. Application for Compensation
First step at claims tribunal is application for compensation by either the
victim of motor vehicle accident or his legal heirs or legal representative.
Application for Compensation has been studied in detail earlier in this chapter with
heading - Application for Compensation.
II. Amendment of Pleadings: Amendment for Enhancement of Claim Amount
In Madan Lal v. Chimman Singh‟s78 Case, it was held by the High Court that
amendment in pleadings cannot be refused on ground of doubt about truth of
averments in pleadings. Truth or otherwise of averments in pleadings has to be
ascertained on basis of evidence. In a claim by widow for her and her minor son, the
widow died during pendency of proceedings and the son having become major south
some amendment in claim petition. It was wrong on part of Tribunal to have
disallowed amendment holding that there is no provision for amendment and
doubting bonafides or argument made in application for amendment. In appeal, the
amendment was allowed on costs.79
In United India Insurance Co. v. Shaik Saibaqtualla80 it was held by the
High Court that there is no provision in law for amendment after decision of claim.
Subsequent events can be no basis for seeking amendment in original claim after its
75
The Motor Vehicles Act, 1988, Section 169 (1) .
76
77
Ibid., Section 169 (3) 76.
78
1991 (1) ACC 265 (MP).
79
Ibid.
80
1992 ACJ 858 (AP) DB.
decision. An amendment in claim petition for enhancement of amount of
compensation can be sought before the Tribunal but not before the appellate court81.
III. Service of summons
On receipt of claim application Claims tribunal is duty bound to ensure
service of summons on owner and driver of the vehicle. Where a notice has been
sent in regular course as also through Registered Post, but could not be served on
one of the two owners and there was nothing to show that said owner was avoiding
service or that claimant had made efforts to give correct address of said owner, it
was held that condition for substituted service through newspaper was not satisfied.
Case had to be remanded after setting aside ex parte orders. 82 The question of
personal verification of the petitioner would arise at the time of disbursement of
interim compensation and not at the stage of issuance of the summons.83
The provision of Rule 1 of Order 1 Civil Procedure Code lays down that
written statement should be filed within 90 days from date of service is directory and
court can grant permission to file written statement even beyond period of 90 days if
a case in this regard is made out. This provision does not specifically take away the
power of court to record written statement even after period of 90 days. In Oriental
Insurance Co. Ltd. v. Sanjay Kumars84 case, the Hon‟ble High Court set aside the
order of striking off defence in the interest of justice. In New India Assurance Co.
Ltd. v. Bimla‟s85 case it was held by the High Court that mere admission of driver in
his written statement of some of contentions raised in the claim petition cannot
amount to collusion of driver with the claimant. For the purpose of collusion, there
should have been an issue and for framing of issue, there should have been specific
pleading. Absence of pleadings in written statement that the conditions of insurance
policy were violated resulting in not casting any issue on the point, precludes insurer
to meet such objection.86
If any procedure is not prescribed, Tribunal is free to follow any procedure87.
81
Manager, New India Assurance Co. Ltd v. Chintnala@ Anagaiah Narasimha, 2002 ACJ 1524
(AP) DB.
82
Dayanand v. Baijnath, 1991 ACJ 975 (Raj.) .
83
Raghunath v. Presiding Officer, M.A.C.T.: 2000(3) TAC 562: 2000 ACJ 1210 (Del).
84
2007 ACJ 222 (P&H).
85
2001 ACJ 388 (P&H). 85.
86
United India Insurance Co. Ltd. v. B. Hemavati, 2001 ACJ 749 (Cal.) DB .
87
K. Velluni v. Srimati Prem Lata, 1989 (2) TAC 126 (Ker).
Summary Procedure for Holding Enquiry
In holding any enquiry under Section 168 of the Motor Vehicles Act, 1988,
the Claims Tribunal may, subject to any rules that may be made in this behalf,
follow such summary procedure as it thinks fit88.
Powers of Court in Respect of Taking Evidence on Oath, Enforcing Attendance
of Witness etc.
The claims tribunal shall have all the powers of a civil court for the purpose
of taking evidence on oath and of enforcing the attendance of witness and all
compelling the discovery and production of documents and material objects and for
such other purposes as may be prescribed, and the Claims Tribunal shall be deemed
to be a civil court for all the purposes of Section 195 of the Motor Vehicles Act,
1988 and Chapter XXVI of the Code of Criminal Procedure, 197389.
Taking of Assistance of Persons Possessing Special Knowledge
The Claims Tribunal may, for the purpose of adjudicating upon any claim for
compensation choose one or more persons possessing special knowledge of any
matter relevant to the inquiry to assist it in holding the inquiry. This is subject to any
rules made in this behalf.
6.15 FRAMING OF ISSUES

On receipt of application for compensation and written statement, it is the
duty of the claims tribunal to frame issues involved in the matter. Adjudicating
authority is required to pronounce its judgement on all issues. In an accident cases,
material propositions for framing issues would be whether owner of vehicle was
involved in accident and who was the person driving the vehicle and whether
accident took place due to rash and negligent driving of vehicle 90. Where there are
several issues, no party can compel the tribunal to decide an issue as preliminary
issue particularly when the issue raised is not a question of law or jurisdiction. Order
of tribunal was not faulted 91. Several claims in respect of one single accident when
disposed of by common award and some of them if not appealed from, the issue of
negligence attains finality in awards not appealed from, and same cannot be
88
Section 169(1), The Motor Vehicles Act, 1988.
89
Ibid. Section 169(2).
90
Kanti Lal v. Manohar Lal, 1994(1) ACC 413 (MP).
91
Oriental Insurance Co. Ltd. v. Ram Babu, 2007 ACJ 1406 (All.).
reopened in appeal92. Once issues have been framed, it is incumbent on tribunal to
record its findings thereon. There is no scope for dismissal in default after claim has
been admitted and issues have been framed. If a claim has been dismissed after
framing issues, Order 9 of Civil Procedure Code would apply for its restoration93.
Ex Parte Proceedings – Dismissal in Default, Restoration etc.
Where defendants failed to submit written statement as well as failed to
appear before the tribunal either personally or through authorised representatives or
submit written statement but subsequently failed to appear, the tribunal may record
the defendants as ex-parte. Remedy against order of tribunal refusing to set aside ex-
parte award lies in petition under Article 227 of Constitution of India. A
miscellaneous appeal under Order 43, Rule 1 of Civil Procedure Code is not
maintainable nor can such appeal be treated as petition under article 227 of the
Constitution, though such petition can be filed afresh.94
6.16 JUDGEMENT – FINDING ON ALL ISSUES NECESSARY

On receipt of an application for compensation made under section 166, the
Claims Tribunal shall, after giving notice of the application to the insurer and after
giving the parties (including the insurer) an opportunity of being heard, hold an
inquiry into the claim or, as the case may be, each of the claims and, subject to the
provisions of section 162 may make an award determining the amount of
compensation which appears to it to be just and specifying the person or persons to
whom compensation shall be paid and in making the award the Claims Tribunal
shall specify the amount which shall be paid by the insurer or owner or driver of the
vehicle involved in the accident or by all or any of them, as the case may be95.
It is duty of tribunal to record findings on all issues, even if on the finding of
one or other of the issues, it was possible to decide the matter one way or the other.
Under Order 20, Rule 5 of Code of Civil Procedure, it is mandatory that the court
shall state its finding or decision, with the reason therefore, upon each separate issue
and all the distinct issues have to be answered separately. The exceptional situations
are only those provided under Order 14, Rule 2(2), where an issue relating to the
92
Oriental Insurance Co. Ltd. v. Badri Ram, 2002(1) TAC 194 (Raj.).
93
Burmi v. Tej Bhan, 1994(2) AJR 24 (P&H).
94
Mangla Jat v. Raju, 2001(2) ACC 195 (Raj.).
95
Section 168 (1), The Motor Vehicles Act, 1988.
288
jurisdiction or a bar to a suit/ proceedings is required by any law for the time being
in force to be decided as a preliminary issue, where evidence is recorded on all the
issues, when there is scope of appeal, under Section 173 of the Act, to avoid delay
and protraction of litigation, that tribunal/ court should, when dealing with matter
dispose of all issues and not merely to rest its decision on one or more issues by
leaving unanswered the remaining issues96.
Section 168(2) of the Motor Vehicles Act, 1988 provides that the Claims
Tribunal shall arrange to deliver copies of the award to the parties concerned
expeditiously and in any case within a period of fifteen days from the date of award.
Person Required to Pay Compensation in Terms of Award to Deposit the
Entire Amount within 30 Days
Section 168(3) states that when an award is made under this section, the
person who is required to pay any amount in terms of such award shall within 30
days of the date of announcing the award by the Claims Tribunal deposit the entire
amount awarded in such manner as the Claims Tribunal may direct. It may also be
noted here that ordinarily while awarding compensation, the provisions contained in
the second schedule may be taken as a guide including the multiplier, but they may
arise some cases, as one in hand, which may fall in the category having special
feature or facts calling for deviation from the multiplier usually applicable.97
6.17 EXECUTION OF AWARD OF CLAIMS TRIBUNAL

Executing court is not empowered to reconsider any aspect of award afresh
but is required to execute it as passed by trial court. Execution of award if taken out
after twelve years is not permissible. The award if not executed within twelve years
becomes inoperative and unenforceable98. The executing court while enforcing the
award cannot travel beyond the main award. Where the offending vehicle was the
exclusive property of the U.P. State Road transport Corporation, the Corporation
would be liable for payment of compensation qua the accident.
Any subsequent apportionment of the assets of the corporation between the
state of U.P. and State of Uttranchal can be no ground to obstruct execution of the
award so as to adversely affects the rights of the claimant. Application of the
96
Mallamma v. Mahaboob Ali, AIR 2010 (NOC) 10 (Karn.).
97
United India Insurance Co. Ltd. v. Patricia Jean Mahajan, AIR 2002 SC 2616 .
98
Mt. Prag Kaur v. Devi Dutt, 1998(1) ACC 313 (P&H).
289
corporation for Impleading Uttranchal State Road Transport Corporation was held
rightly rejected by the executing court99. Jurisdiction of tribunal to enforce its award
is not limited only one method, namely issuance of certificate to the collector for
recovery of the amount due under the award as arrears of land revenue. The tribunal
posses inherent jurisdiction to enforce its own award in accordance with the
provisions of the Code of Civil Procedure as applicable to execution of orders and
decrees passed by a civil court. When tribunal possesses such inherent jurisdiction,
the claimant cannot be asked to follow another procedure and the tribunal is to
execute the award under Order 21, Rule 11 of Civil Procedure Code100.
6.18 ASSESSMENT OF CLAIM

The assessment of compensation, however, be made good but cannot be said
to be fool proof. In every such assessment certain assumptions are to be made and
there is all possibility of variance from Judge to Judge in applying the various
principles enunciated by the Courts from time to time. Lord Viscount Simon has
evolved a method of assessment known as "Nance's method" more popularly as
"discounting method". Another popular method, which is known as Davis Method
was evolved by Lord Wright. Hon'ble Supreme Court while dealing with a matter
evolved a formula. Yearly Income Yearly expenditure on Deceased gives the sum
expended on legal representatives. If this amount is capitalized subject to certain
deductions, pecuniary loss to the family can be assessed. While improving the above
formula Supreme Court in C.K.Subramonia Iyer v. T. Kunhikuttan Nair101 case has
stated that there is no exact uniform rule for measuring the value of human life and
measure of damages cannot be arrived at by a mathematical calculation but the
amount recoverable depends upon life expectancy of legal representative
beneficiaries. In the same period Lord Diploc has evolved Interest Capitalization
method by calculating net pecuniary loss on annual basis and multiplied with
number of years purchase. The Hon'ble Supreme Court of India with the
development of accident claims has decided the landmark case of General Manager,
Kerala State Road Transport Corporation v. Susamma Thomas102 has started giving
appreciation to the annual income of deceased. This appreciation ranges to the
99
U.P.State Road Transport Corportaion v. Motor Accident Claims Tribunal, AIR 2006 NOC 198.
100
Mishra v. Motor Accident Claims Tribunal, 2006(1) ACC 362.
101
AIR, 1970 SC 376.
102
AIR, 1994SC 1631.
290
double of income depending upon the nature of job, age, future prospects etc.
Supreme Court has held that after determining and doubling annual income, 1/3
should be deducted towards the expenses to be incurred on the deceased and the
remaining amount should be multiplied by a multiplier depending on the age of
deceased and beneficiary. The maximum multiplier approved by Supreme Court in
this case was 16. Later, Supreme Court's 3 Judges bench have approved the Davis
formula along with determination of dependency on unit basis in which the adults
have been taken as 2 units and the minors has been taken as 1 unit. The multiplier,
which was approved as 16 in Sushma Thomas case, was increased to maximum of
18. In this case the court did not allow double of the amount except that a premium
may be given looking to the future prospects. But, in a recent Supreme Court
judgment, in order to make compensation just and to take consideration of overall
factors multiplier was reduced from 16 to 12 in case of deceased of 38 years. In
same facts and circumstances, in another case Supreme Court has said for
determination of multiplier depends upon (1) age of deceased (2) age of claimants
(3) marital status (4) education and employment of the claimants; and (5) loss of
pecuniary benefits.
The Supreme Court has also held that criteria of awarding compensation
include some guess work, some hypothetical consideration and some amount of
sympathy linked with the nature of disability caused are all involved. But, all such
elements are required to be viewed with the objective standard. In view of the above
case laws, one can say that the assessment of compensation is to be guided by way
of applying precedents on the facts and circumstances of a particular case. It should
not be misunderstood that an injured or legal representatives of the deceased should
be given exorbitant claim, but the law restrict them to be "just compensation" so as
to save the injured or legal representatives of deceased from possible pecuniary and
non-pecuniary losses guided by the above judgments.
Impleadation of Insurer in Certain Cases
Section 170 of the Act provides for impleadation of insurer in certain cases.
Where in the course of any inquiry, the Claims Tribunal is satisfied that there is
collusion between the person making the claim and the person against whom the
claim is made or the persons against whom the claim is made has failed to contest
the claim, it may, for reasons to be recorded in writing, direct that the insurer who
may be liable in respect of such claim, shall be impleaded as a party to the
proceeding and the insurer so impleaded shall thereupon have, without prejudice to
the provisions contained in sub-section (2) of section 149, the right to contest the
claim on all or any of the grounds that are available to the person against whom the
claim has been made.103
6.19 AWARD OF INTEREST WHERE ANY CLAIM IS ALLOWED

Section 171 of the Act empowers the Claims Tribunal to order that simple
interest at such rates as it thinks fit shall also be paid along with the award of
compensation. Where any Claims Tribunal allows a claim for compensation made
under this Act, such Tribunal may direct that in addition to the amount of
compensation simple interest shall also be paid at such rate and from such date not
earlier than the date of making the claim as it may specify in this behalf.104
6.20 AWARD OF COMPENSATORY COSTS IN CERTAIN CASES

Section 172 of the Act seeks to empower the Claims Tribunal to award
special compensatory costs where in certain cases it is found that there has been mis-
representation of case or vexatious to claims or defence. Any Claims Tribunal
adjudicating upon any claim for compensation under this Act, may in any case
where it is satisfied for reasons to be recorded by it in writing that the policy of
insurance is void on the ground that it was obtained by representation of fact which
was false in any material particular or any party or insurer has put forward a false or
vexatious claim or defence such Tribunal may make an order for the payment, by
the party who is guilty of misrepresentation or by whom such claim or defence has
been put forward of special costs by way of compensation to the insurer or, as the
case may be, to the party against whom such claim or defence has been put
forward.105 No Claims Tribunal Shall pass an order for special costs under sub
section (1) of section 172 for any amount exceeding one thousand rupees106. No
person or insurer against whom an order has been made under this section shall, by
reason thereof be exempted from any criminal liability in respect of such
misrepresentation, claim or defence as is referred to in sub-section (1) of section
103
104
105
106
107
172. Any amount awarded by way of compensation under this section in respect
of any mis-representation, claim or defence, shall be taken into account in any
145subsequent suit for damages for compensation in respect of such mis-
representation, claim or defence.108
6.21 TRIBUNAL’S JURISDICTION TO SET ASIDE AWARD PROCURED

BY FRAUD
In Oriental Insurance Company Ltd. v. R. Mani109 since fraud affects the
solemnity, regularity and orderliness of the proceedings of the court and also
amounts to an abuse of the process of court, the courts have been held to have
inherent powers to set aside an order obtained by fraud practiced upon the court.
Similarly, where the court is misled by a party or the court itself commits a mistake
which prejudices a party, the court has the inherent jurisdiction to recall its order. It
was held that where an award had been obtained on basis of a fabricated policy, the
commissioner of workmen‟s compensation, was empowered to reopen the case if
allegation of fraud was sustainable.110
In National Insurance Co. Ltd. v. Murti Devi,111 where a fraud was
committed on the insurer which had not been taken note of by the tribunal while
passing its award. The fraud perpetrated by the claimants had come to the
knowledge of the insurer even while proceedings were before the tribunal, yet the
insurer had not filed an application under section 170 of the Motor Vehicles Act, for
obtaining an order to contest the claim on all grounds that are available to the
insured. The insurer having failed to do so, the court was of opinion, in view‟s of the
court‟s earlier decision in National Insurance Co. Ltd. v. Balbir Kaur112 that the
appeal by the insurer was not maintainable. However, the appeal was treated as a
writ petition and it was held that if a fraud has been committed by the claimants, it
was open to the insurer to have moved an application before the tribunal under
section 151, 152 or 153 of the Civil Procedure Code for recalling the award. It was
observed that as and when such application be filed, the same shall be considered
and disposed of by the tribunal.
107
Ibid., Section 172 (3) .
108
109
Oriental Insurance Company Ltd. v. R. Mani, 2000 ACJ 247.
110
Ibid.
111
National Insurance Co. Ltd. v. Murti Devi, 2002 (1) TAC 470 (P&H) DB.
112
National Insurance Co. Ltd. v. Balbir Kaur, 2001 ACJ 555 (P&H) DB.
6.22 APPEALS AGAINST THE DECISIONS OF CLAIMS TRIBUNAL
Section 173 makes provision for appeal to High Court by the aggrieved
against the orders of Claims tribunal and where the person aggrieved is the person
who has to pay the compensation such person shall deposit 50 percent of the amount
awarded as directed by the High Court. Subject to the provisions of sub-section (2),
any person aggrieved by an award of a Claims Tribunal may, within ninety days
from the date of the award, prefer an appeal to the High Court 113. Provided that no
appeal by the person who is required to pay any amount in terms of such award shall
be entertained by the High Court, unless he has deposited with it twenty-five
thousand rupees of fifty per cent, of the amount so awarded, whichever is less, in the
manner directed by the High Court114. Provided further that the High Court may
entertain the appeal after the expiry of the said period of ninety days, if it is satisfied
that the appellant was prevented by sufficient cause from preferring the appeal in
time115. No appeal shall lie against any award of a Claims Tribunal if the amount in
dispute in the appeal is less than ten thousand rupees 116. The condition of deposit of
Rs. 25,000/- or 50% of the amount, whichever is less, as imposed by the first
proviso to Section 173(1) is a rule which is unexceptionable. Nor can the amount as
specified to be deposited be reduced. Such conditions are imposed in other statutes,
for example, under section 21 of the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993 and under the third proviso to section 30 of the Workmen‟s
Compensation Act, 1923.
Provision of appeal has been provided under Section 173 of Motor Vehicle
Act. But the courts have held that the right to appeal is available only to the driver
and owner against whom the award is passed. The right of Insurance Company to
file appeal is not permitted on the ground of quantum or negligence. Insurance
Company can file appeal only on the ground of statutory defenses available. In
circumstances where the application under Section 170 has been rejected, the
insurance Company has got right of one judicial review on the reasons of rejection
either by filing writ petition or to agitate the matter in appeal. Legislature has
already restricted the right of defense but a further restriction of not participating in
113
The Motor Vehicles Act, 1988, Section 173 (1) .
114
Ibid., Proviso to Section 173 (1).
115
Ibid., Proviso to Section 173 (1).
116
the trial would not be just. There is imminent need of amendment to permit the
insurer to contest the claims as they are the persons who have to make payment of
the compensation. Once the insurance cover is available, the owner feels safe and do
not help the Insurance Company in the process of contesting the claim.
Further, now a day, if seriously quantified, a good number of cases are
coming as a flood in the courts of law for compensation. This is because of huge
sum of compensation are allowed to the claimants and for that purpose fake
accidents, fake drivers are planned with the connivance of the police. The police in
connivance do not investigate the matter of delay in lodging of F.I.R., delay in
recording of statements. In these circumstances, a right to contest on merit and
quantum should be provided to the Insurance Company in order to make the contest
just and equitable. It may be useful to mention here that the condition of deposit
cannot be bypassed by filling a writ petition instead of appeal. In Sushil Kumar
Jaiswal v. Bank of India117 it was held that the petitioner cannot be permitted to
resort to exercise of revisional jurisdiction under Article 227 merely to avoid the
rigour of the statutory provision of appeal.
Recovery of Money from Insurer as Arrear of Land Revenue
Where any amount is due from any person under an award, the Claims
tribunal may, on an application made to it by the person entitled to the amount, issue
a certificate for the amount to the Collector and the Collector shall proceed to
recover the same in the same manner as an arrear of land revenue. A person entitled
for amount under an award by Claims tribunal in a motor accident may move an
application to the claims tribunal under Section 174 of the Act for recovery of the
amount awarded by the claims tribunal and claims tribunal may issue to such
claimant a certificate for such amount and collector may proceed under such
certificate to recover the amount as an arrear of land revenue.
6.23 POWER OF STATE GOVERNMENT TO MAKE RULES

Section 176 of the Act confers upon the State Government to make rules for
carrying into effect provisions of clauses 165 to 173. A State Government may make
rules for the purpose of carrying into effect the provisions of sections 165 to 174,
and in particular, such rules may provide for all or any of the following matters,
namely:
117
Sushil Kumar Jaiswal v. Bank of India , 1997 Bank LJ 37 149.
(a) the form of application for claims for compensation and the particulars it may
contain, and the fees, if any, to be paid in respect of such applications;
(b) the procedure to be followed by a Claims Tribunal in holding an inquiry under
this Chapter;
(c) the powers vested in a Civil Court which may be exercised by a Claims
Tribunal;
(d) the form and the manner in which and the fees (if any) on payment of which an
appeal may be preferred against an award of a Claims Tribunal; and
(e) any other matter which is to be, or may be, prescribed.
6.24 INSURER AND NO FAULT LIABILITY

In Bani Ram Das v. National Insurance Co. Ltd118 it was held that the statute
never placed any liability on the insurer to pay compensation under no fault liability
even if vehicle is covered under a valid insurance policy since the statute clearly
placed that liability on the owner to pay. In Lakshmi Soren v. New India Assurance
Co. Ltd.119 a victim initially injured in accident had died within one year from date of
discharge from hospital. There was no evidence that he ever led a normal life after
discharge from hospital. In view of close proximity of time of death of victim from
date of discharge, cause of death being nothing but injuries, award under no fault
liability was passed in appeal for Rs. 50,000, even if the fault claim was dismissed
by the tribunal.
Multiplier in Second Schedule when to be ignored
In Usha v. Tamil Nadu State Road Transport Corp. Ltd. 120 It was held that
the multiplier set out in Second Schedule is not all conclusive, and can vary
depending upon circumstances, and in some cases it could be more and in others less
than what is contemplated in the section. In United India Insurance Co. Ltd. v.
Dhanlaxmiben Satishbhai Bhagat121 it was held that the multiplier is on higher side,
the multiplier indicated in the Second Schedule may not be adopted. Since section
163A is incomplete without the text of the Second Schedule of the Motor Vehicles
118
2008 ACJ 538 151.
119
2006 ACJ 551 (Cal) DB.
120
2009 ACJ 2424 (Mad.).
121
2008 ACJ 966 (Guj.) DB.
Act, 1988, the same for purposes of determining the pecuniary jurisdiction of the
Claims tribunal under that section has to follow section 163A.
In Raj Kumar v. Ajay Kumar122, the Court considered some of the precedents
and held, “The provision of the Motor Vehicles Act, 1988 makes it clear that the
award must be just, which means that compensation should, to the extent possible,
fully and adequately restore the claimant to the position prior to the accident. The
object of awarding damages is to make good the loss suffered as a result of wrong
done as far as money can do so, in a fair, reasonable and equitable manner. The
court or the Tribunal shall have to assess the damages objectively and exclude from
consideration any speculation or fancy, though some conjecture with reference to the
nature of disability and its consequences, is inevitable. A person is not only to be
compensated for the physical injury, but also for the loss which he suffered as a
result of such injury. This means that he is to be compensated for his inability to
lead a full life, his inability to enjoy those normal amenities which he would have
enjoyed but for the injuries, and his inability to earn as much as he used to earn or
could have earned. The heads under which compensation is awarded in personal
injury cases are the following:
Pecuniary damages (Special damages)
(i) Expenses relating to treatment, hospitalisation, medicines,transportation,
nourishing food, and miscellaneous expenditure.
(ii) Loss of earnings (and other gains) which the injured would have made had he
not been injured, comprising:
(a) Loss of earning during the period of treatment;
(b) Loss of future earnings on account of permanent disability.
(iii) Future medical expenses.
Non-pecuniary damages (General damages)
(iv) Damages for pain, suffering and trauma as a consequence of the injuries.
(v) Loss of amenities (and/or loss of prospects of marriage).
(vi) Loss of expectation of life (shortening of normal longevity).
In routine personal injury cases, compensation will be awarded only under
heads (i), (ii)(a) and (iv). It is only in serious cases of injury, where there is specific
medical evidence corroborating the evidence of the claimant, that compensation will
122
(2011) 1 SCC 343.
be granted under any of the heads (ii)(b), (iii), (v) and (vi) relating to loss of future
earnings on account of permanent disability, future medical expenses, loss of
amenities (and/or loss of prospects of marriage) and loss of expectation of life.” We
shall consider whether the compensation awarded to the appellant is just and
reasonable or he is entitled to enhanced compensation under any of the following
heads:
(i) Loss of earning and other gains due to the amputation of leg.
(ii) Loss of future earnings on account of permanent disability.
(iii) Future medical expenses.
(iv)Compensation for pain, suffering and trauma caused due to the amputation of
leg.
The Apex Court has held, that the Tribunals should follow the procedure
under sections 158 (6) and 166 (4) Motor Vehicles Act, as it will minimize the time
taken in the disposal of the claim petitions, when filed. Otherwise the Tribunals can
convert the AIR123 as claim petitions. The following directions were also issued in
Jai Prakash v. National Insurance Company Limited124, as under:
to Tribunals, The Registrar General of each High Court
is directed to instruct all Claims Tribunals in his State to register the reports of
accidents received under Section 158(6) of the Act as applications for compensation
under Section 166(4) of the Act and deal with them without waiting for the filing of
claim applications by the injured or by the family of the deceased. The Registrar
General shall ensure that necessary registers, forms and other support is extended to
the Tribunal to give effect to Section 166(4) of the Act. For complying with Section
166(4) of the Act, the jurisdictional Motor Accidents 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
123
Accident Information Report - Sections 158(6) and 166(4), Motor Vehicles Act, 1988.
124
(2010) 2 SCC 607.
(family of the 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 categorise 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, 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 a fixed deposit and disbursed as per the directions contained in Kerala
SRTC v. Susamma Thomas125.
(h) As the proceedings initiated in pursuance of Sections 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 dependants of the deceased victim and in determining the quantum
of compensation.”
125
Ibid.
The Parliament has done its job to ensure payment of just compensation
expeditiously. It is now the job of other authorities- the insurers, the Tribunals and
the Collectors to give practical shape to the Parliament's intention. The minimum the
Insurer can do is to make immediate payment to the dependant in the event of death
and to the victim who has suffered permanent disablement. Where the insurer fails
to discharge this obligation, the Tribunal can proceed to make a preliminary award
under Order XII Rule 6 of the C.P.C. and send recovery certificate to the Collector
in accordance with S. 174 of the Act. The Collector may not lose time in issuing the
necessary process.
6.25 CONCLUSION
Road accident victims who survive the traumatic experience could get higher
compensation from now as the Supreme Court expanded the scope of its
computation by asking Motor Accident Tribunals and courts to factor in both
disability and loss of future income caused by the injury. A bench of Justices P
Sathasivam and M Y Eqbal said,
"The adjudicating authority, while determining the quantum of
compensation, has to take note of the sufferings of the injured person which would
include his inability to lead a full life, his incapacity to enjoy normal amenities
which he would have enjoyed but for the injuries and his ability to earn as much as
he used to earn or could have earned,"126.
While computing compensation, the approach of the tribunal or a court has
to be broad-based and sometimes it would involve some guesswork as there cannot
be any precise formula to determine the quantum of compensation. On the other
hand, the concept of 'just compensation' suggests application of fair and equitable
principles and a reasonable approach on the part of the tribunals and the courts. We
hold that the determination of quantum in motor accident cases and compensation
under the Workmen's Compensation Act, 1923 must be liberal since the law values
life and limb in a free country in generous scales.
126
The Times Of India, Road accident victims must get liberal compensation: SC, 2nd July, 2013.
300

Chapter Vi Formation of Claims Tribunal and Award of Compensation

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Chapter Vi Formation of Claims Tribunal and Award of Compensation

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CHAPTER – VI

FORMATION OF CLAIMS TRIBUNAL AND AWARD OF

6.1 ESTABLISHMENT AND COMPOSITION OF CLAIMS TRIBUNAL

6.2 SETTING UP OF CLAIMS TRIBUNAL

6.3 APPOINTMENT OF MEMBER

6.5 OTHER STAFF OF CLAIMS TRIBUNAL

6.6 CLAIMS TRIBUNAL: POWERS OF CIVIL COURTS

6.7 CLAIMS TRIBUNAL: A SUBSTITUTE OF CIVIL COURTS FOR

6.8 APPLICATION FOR COMPENSATION

6.10 ESSENTIAL DOCUMENTS REQUIRED TO FILE CLAIM

6.11 JURISDICTION OF CLAIMS TRIBUNAL

6.12 TRANSFER OF CLAIMS FROM ONE TRIBUNAL TO ANOTHER

6.13 AWARD OF THE CLAIMS TRIBUNAL

6.14 Procedure and powers of Claims Tribunal

6.15 FRAMING OF ISSUES

6.16 JUDGEMENT – FINDING ON ALL ISSUES NECESSARY

6.17 EXECUTION OF AWARD OF CLAIMS TRIBUNAL

6.18 ASSESSMENT OF CLAIM

6.19 AWARD OF INTEREST WHERE ANY CLAIM IS ALLOWED

6.20 AWARD OF COMPENSATORY COSTS IN CERTAIN CASES

6.21 TRIBUNAL’S JURISDICTION TO SET ASIDE AWARD PROCURED

6.23 POWER OF STATE GOVERNMENT TO MAKE RULES

6.24 INSURER AND NO FAULT LIABILITY

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