CHAPTER III

WORKING OF CLAIMS TRIBUNAL UNDER

MOTOR VEHICLES ACT, 1988

3.1 Introduction

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 vehicles. 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 Act, an application claiming compensation can be made
to the Claims Tribunal without payment of ad valorem fee. 1 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
2
Kamini, “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.”

1
Swaranlata v. N.T.I. Pvt. Ltd., A I R 1974 (Gauhati), 31
2
AIR 1973 (Orissa) 33

80
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

The Act empowers the State Government to constitute one or more Motor Accident
Claims Tribunals for such as may be specified in the notifications 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 both. The expressions, ‘claims
for compensation in respect of accidents involving the death of or bodily injury to
persons arising out of the use of motor vehicles’ includes claims for compensation
under section 140 and 163A of the Act. 3

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. A person shall not be qualified for
appointment as a member for Claims Tribunal unless he:

a) Is, or has been, a judge of a High Court, or

b) Is, or has been, a District Judge, or

c) Is qualified for appointment as a High Court Judge or as a District Judge.

Where two or more Claims Tribunals are constituted for any area, the State
Government, may be general or special order, regulate the distribution of
business among them. 4

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

3
Dr. Krishna Pal Malik, Motor Vehicles and Railway Accidents Claims and compensation
(Statutory Torts)91 (Allahabad Law Agency 1st edition 2010-11)
4
Ibid

81
the accident victims was not very simple and therefore the victims in case of injury
and the legal representative 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 act no privity of contract between the insured and insurer, in the
beginning. But gradually improvements came about in the law of compensation
under the Motors Vehicles Act by amendments brought by the Government on the
basis of the reports of the Law Commissions of India and the judgments pronounced
by the various High courts and the Supreme Court of India 5.

Ever since the Central Act was enacted, the law has not been stationary of static.
There has indeed been a gradual, rather a significant development in the law since
then, and it is obvious that the volume of vehicular traffic, and the number of motor
vehicle accidents have increased many-fold. In this perspective the legislature had
enacted the Motor Vehicles Act and provided by virtue of that a self –contained
code for the adjudication of claims for compensation on behalf of victims and / or
their legal heirs. Even the jurisdiction of the Civil Courts was ousted, where the
Claims tribunals were constituted under Motor Vehicles Act 6.

The provisions of chapter of Motors Vehicles Act, 1939 particularly sections 94 to

96, were modeled on English statutes then in force. The objects of the chapter were:

a) To enable a claimant to recover whatever sum he is in law entitled to despite

the inability of the owner or the driver to pay;

b) To prevent the insurer from escaping liability on the ground of breach, on the
part of the insured of any condition of the contract; and

c) To entitle the claimant to recover compensation directly from the insurer.

The legislation, on the subject of compensation for death or injury from accident
caused by motor vehicle has proceeded mainly on two lines:

(i) Insertion of provisions for enforcing liability towards third parties against the
insurer, even though the contract of insurance was between the owner and
the insurer , thus modify the general rule of law of contract that a third party
cannot sue on a contract.

5
Jai, Janak Raj, Motor Accident Claims Law and Procedure19( Universal Law Publishing 6th
ed.2016)
6
Ibid

82
 (ii) Creation of special forum for the trial of the claims for compensation, thus
modify the jurisdiction of the courts within the general hierarchy of courts.

Whenever an accident takes place, the victim of the road accident is either injured,
seriously injured or is killed by the offending vehicle. The question now arises
where the accident victim or the legal representatives should go for the grant of the
damages by way of compensation. Prior to the existence of the Motor Accident
Claims Tribunal, it was cumbersome method to get any compensation in such cases.
But by the introduction of the Claims Tribunals, things comparatively have become
easier and the victim has only to fill in the prescribed Performa along with some
details of the accident and to file the same in the Motor Accident Claims Tribunal.
Under Section 165 of the Motors Vehicles Act,1988 the Tribunals are constituted
where such claims can be filed. Section 165 of the Act says, a State Government
may, by notification in the Official Gazette, constitute one or more Moto Accidents
Clams Tribunals for such area as may be specified in the notification 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 both 7.

The ‘Rule of Law’ requires that the wrongs should not remain un-redressed. All the
individuals or persons committing wrongs should be liable in an action for damages
for breach of civil law or the criminal punishment. Justice Krishna Iyer has pointed
out that in many states, for want of judicial man power of pathological causes, the
accident claims remain pending before Tribunals in heartless slowness. Courts must
give this bleeding class of cases high priority, adopt simplified procedures without
breach of natural justice, try out pre-trial settlements and narrow down the
controversy and remember, that ‘wiping every tear from every eye’ has judicial
relevance. For, law must keep its promise to justice. 8

The Law Commission also recommended the constitution of Tribunal for

adjudicating the compensation procedure in case of motor vehicle accidents.
Therefore for the first time Motor Accidents Claims Tribunals were constituted in
1982. The provisions related to Tribunals were inserted by the Motor Vehicles

7
Id. at p. 41
8
Dr. Krishna Pal Malik, Motor Vehicles and Railway Accidents Claims and compensation
(Statutory Torts)91 (Allahabad Law Agency 1st edition 2010-11)

83
(Amendment) Act, 1982 and similar were reiterated in the Motor Vehicle Act,
1988.9

3.2 Procedure of Inquiry Conducted by MACT

Section 168 of the Motor Vehicles Act provides that the Tribunal shall hold an
inquiry into the claim. Section 169 provides that the Claims Tribunals shall follow
such summary procedure as it thinks fit. However, it has been noticed that the
Tribunals have been conducting a normal civil trial instead of an inquiry due to
which the disposal of the claim petition was getting unduly delayed. According to
section 168 of the Act Tribunal is expected to hold an inquiry in the claim petition.
In addition to this the provisions of Section 169 states that Tribunals shall adopt
summary procedure in such cases But, unfortunately in most of the cases Tribunals
are found in opting the traditional and time consuming as in civil cases causing
unnecessary delay in the disposal of accident cases.

3.2.1 Directions with regard to maintenance of records by Nazirs

The record of all the awards passed by the Claims Tribunals shall be maintained by
the Nazirs in chronological order according to the date of the award in such a
manner that it is easy for the Nazir as well as the enquiring litigants/lawyers to
ascertain whether the payment of their award has been received or not 10. The
following can be considered as a format:-

a) Date of award
b) Case number
c) Title of the case
d) Award amount
e) Date of deposit of the award amount
f) Date of notice of deposit by the depositor
g) Date of notice of deposit by the Tribunal.
h) Amount of interest upto date of notice of deposit
i) Whether award amount and complete interest deposited
j) Balance outstanding interest
k) Remarks (Action taken to recover the balance interest)

9
Ibid
10
Available at https://www.yumpu.com/en/document/view/12125957/motor-accident-claims-
referencer-delhi-judicial-academy

84
3.3 Procedure and Powers of the Claims Tribunal

The Claims Tribunal as discussed earlier is a special Forum established to provide

the speedier justice to the victims of the unfortunate road accidents. The main focus
of the Tribunal while dealing with the case is to scrutinize all the facts and figures in
order to calculate the award amount. The strict procedure is however is relaxed in
the trial of such types of cases. But it is to be noted that this does not at all means
that the powers of the Tribunal are inferior to the other civil courts. It possess all the
powers which the other courts posses like powers of issuing summons, production of
documents etc. Claims Tribunal constituted under M.V.Act is a “court” for the
purpose of Section 115 of the CPC. 11 It is subordinate to the concerned High Court
within the meaning of said section and as such the revision against its decision will
also lie to the High court. It was further confirmed that “Claims tribunal for all
intents and purposes and accordingly has ample jurisdiction to exercise power
under the Code, Provision of section 175, of Act,1988, has nothing to do with
application of CPC.”12

Further in Collector, Dewan Manik Chand, courts of Wards Estate v. National

Insurance Co. Ltd.,13 The Hon’ble H. Court held that Tribunal can adjudicate upon
matters related to compensation with regards to road mishap which involve death, or
injury to body or damage caused to third party property. But it was also made crystal
clear that the concept of death caused on road is not exhaustive and thus all the
claim petition in which death is caused on road cannot be tried in the Motor
14
Accident Tribunal for instance in M.D., A.S.T.C v. Samir, it was held that the
Tribunal does not have jurisdiction to pronounce award where injuries caused were
result of bomb blast in terrorist activities. Thus it is very much clear that even the
social legislations are bound by the general rule of interpretations in which undue
extension cannot be given to the cases in order to give benefits to any person.

11
State of Assam v. Pranesh Debnath, 1991(2) TAC 642 (Gau.)
12
Hirabhai N. Desai v.State of Gujrat, 1990 (1) TAC 13 (Guj.) Spl. C.Appll.Nos 1599 and 1600
and 1969
13
1991(2) TAC 53 (Gau.)
14
1994 (2) TAC 303(Gau.)

85
3.3.1 Procedure for Recording Evidence under MACT

The process of the recording evidence in the motor accident claim petition is almost
same as that of the normal civil cases. But this is not right spirit in such type of
cases, as the accident cases petitions cannot be kept at par with normal civil cases.
As the urgency involved in these types of cases needs a high level of sensitivity as
compared to other. The present practice involves countless formalities in concluding
the evidence of the parties. While recording the evidence the courts are not required
to take a restricted and specialized perspective on the case. In specific cases the
Tribunals need to take a liberal view for the victims. It is in this manner, the
obligation of the courts to see that the innocent casualties don't endure, and
offending drivers and the owners don't escape from their liability as a result of some
uncertainty or technical loopholes. 15 The researcher has also pointed out in the study
that many times non availability of the counsels or their hectic schedule creates
hindrances in the recording of evidence. Here some ethical responsibility is expected
from the counsels by treating such petitions involving the accident cases must be
kept on priority basis. The accidents cases must be dealt with compassion as victims
of the accident cases had already been through a trauma of accident and later in the
courts they have to face unnecessary delay which they do not deserve.

3.4 Persons entitled to File Claim Petition under Motor Vehicles Act

Many times it has been notice that while filing the case for compensation under
section 166 of Motor Vehicles Act, it has to be decided that who is entitled to get
compensation. In Gian Chand & Ors. v. Gurlabh Singh & Ors.,16 the question
whether parents / brother can claim or not? It was held that brothers could not be
said to be dependent on the earning of the deceased. Considering the fact that the
deceased was teaching in a school, in totality of facts and circumstances, it would be
appropriate to award a lump sum compensation of Rs.7,50,000/- to the parents along
with interest at the rate of 6 per cent per annum from the date of filing of claim
petition till its realization.

15
Janak Raj Jai, Motor Accident Claims Law and Procedure 104 (Universal Law Publishing, 6th
Edition 2016)
16
2016 (1) L.A.R. 532

86
3.5 Application for Compensation

A very simple format has been prescribed for filing the application under Motor
Vehicles Act containing the details of the claimant(s)/victim(s) (in injury cases) with
the specification of accident. But the amendment Act of 1994 made it mandatory for
the Claims Tribunal to treat any report of accident u/s 158(6) equivalent to claim
petition. The simplicity of the procedure helps in settling the case in expeditious
manner.17

The provisions contained in section 158(6) casts a duty on the officer in-charge of
the police station to forward a copy of the information (FIR)/report regarding any
accident involving death or bodily injury to any person within 30 days from the date
of information to the Claim Tribunal having jurisdiction and also send one copy to
the concerned insurer. Further Claims Tribunal is empowered to treat the report of
the accident on its receipt as if it is an application made by the claimant for award of
the compensation to him under the Act by virtue of Section 166 (4) of the Act and
thus has jurisdiction to decide such application on merits in accordance with law.
The said decision was given by the Apex Court in the land mark judgement titled as
Vimla Devi & Ors. v. National Insurance Company Limited & Ors.18

3.6 Essential Documents Required To File Claim

Following documents are required along with application for compensation claim 19:

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 the 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.

17
Suchday v. State of Gujrat 1935(2) TAC 318 (Guj.)
18
2018 (2) L.A.R. 435
19
Available at ‘MACT- Motor Accident Claims Tribunal’, Accessed on Website,
www.Vakilno1.com

87
 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.

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

3.7 Place For Filing Application of Compensation

According to section 166(2) of the Act, every application in such form and
containing such particulars as may be prescribed, shall be made at the option of the
claimant, either to the Claims Tribunal :

a) Having jurisdiction over the area in which the accident occurred, or

b) Within the local limits of whose jurisdiction-

(i) The claimant resides, or

(ii) Carries on business, or
(iii) The defendant resides.

Where no claim for compensation under section 140 is made in such application, the
application shall contain a separate statement to that effect before the signature of
the applicant.20

3.8 Option Regarding Claims for Compensation in Certain Cases.

Where the death of, or bodily injury to, any person gives rise to a claim for
compensation under Motor Vehicles Act, 1988 and also under the Employees’
Compensation Act, 1923, the person entitled to compensation may without prejudice
to the provisions relating to liability without fault in certain cases, claim such
compensation either of those Acts but not under both. 21

20
Janak Raj Jai, Motor Accident Claims Law and Procedure 94 (Universal Law Publishing, 6th
edn. 2016)
21
Section 167 of the Motor Vehicle Act, 1988

88
The words ‘may claim’ make it clear that the option is left to the person entitled to
compensation to choose whether it would seek the remedy available under the motor
Vehicles Actor the Employees’ Compensation Act. He has to choose either of these
two remedies but not both. 22

The statutory provisions of Motor Vehicle Act, 1988 being a social enactment have
been designed in manner that it should be compatible with other statutes. The
fundamental aim of such types of legislations is to restore the maximum extent the
pre-accidental position of the victim or the legal heirs of the victim as the case may
be. Now the question is which platform is available to the claimants for claiming the
compensation amount. This could be more clearly explained with the help of an
example, in case a laborer dies or gets injured in an accident during the course of
employment while acting as driver in a firm/factory/establishment etc. The
claimants(s) have to make a choice of the forum either to file a claim under Motor
Vehicle Act or to register a claim under Employees Compensation Act. But in
neither case he can file in both Tribunal and have dual benefit.

In Union of India v. Preetam Singh, 23 it was made clear that the role of Tribunal is
not limited to assessment of compensation and giving direction regarding payment
thereof rather it has to play the role of adjudicator or social justice and also to ensure
that the compensation is properly utilized and man suffering is not deprived of the
compensation awarded and would not be spending away the same because he was
getting lump sum by making proper arrangement for the amount payable.

3.9 Transfer of Claims from One Tribunal To Another Tribunal

The point of territorial jurisdiction shall be decided at the first instance by the
Tribunal. The territorial jurisdiction has to be decided on the various points
mentioned in the Act. But the question arises that whether after filing the claim
petition it can be transferred from one Tribunal to another or not? The Hon’ble
S.Court as well as the Hon’ble H.Court has inherent powers to transfer the case from
one tribunal to another either on the application moved by the parties in this regard
or on its own. For instance when a new district namely Tarn Taaran was created by
separating it from District Amritsar. Even after the creation of new District for

22
Harivadan Maneklal Modi v. Chadrasinh Pramar, AIR 1988 Guj. 69
23
1995(1) TAC(All)

89
almost complete one year the District Court Amritsar continued to entertain the
cases of Motor Accidents which took place in Tarn Taaran and thereafter the said
cases were then transferred from District Amritsar to newly formed District Tarn
Taaran when all the formal steps for the formation of the MACT was completed.
Hence, there is no bar on transfer of the cases from one Tribunal to another. Further
in Smt. Rekha v. Oriental Insurance Co. Ltd.,24 held that where the Claims
Tribunal does not possess the territorial jurisdiction in the claim petition even then it
can entertain the case if it has been transferred to it by H.Court u/s 24, Civil
Procedure Code.

Perusal of Section 166(2) demonstrates that the choice of filing petition under
section 166(1) has been left absolutely at the choice of the petitioner, where tribunal
has jurisdiction and the accident took place within that area, or where Respondent
resides or carries on business etc. In Mantoo Sarkar v. Oriental Insurance Co.
Ltd.,25 A peculiar situation arose where a laborer from Nanital got injured in
an accident that took place in Uttar Pradesh. The Apex Court held that Nanital
MACT has the jurisdiction to entertain and try the case. This liberal view has
been adopted keeping in mind the convenience of the suffering party. The
Motor Vehicle Act is a social welfare legislation and as such there are no strict
guidelines with regard to withdrawal of the claim petition and filing it again at
appropriate place.

3.10 Death on Road vis-à-vis Death Due to Road Accident

While deciding the claims before the Tribunal with respect to the motor accident
cases the situation may arise to dig out the actual facts of the case related to the
cause of death. There should be nexus between the death and involvement of motor
26
vehicles. In National Insurance Co. Ltd. v. Kailash Mehra and others, claim
filed under Section 166, it was objected that there is no legitimate nexus between the
death and the claim filed under the said provisions. Hence the evidence of doctor
was lead in this regard. According to the facts of the case accident took place on
21.5.2010 and injured got admitted in hospital on 21.6.2010. Doctor’s version was

24
1996(1) TAC 89 (Pat.)
25
2009 ACJ 564
26
2016 (1) L.A.R. 461

90
that it was a known case of chronic heart disease and alcoholic liver disease and
deceased died a natural death and has no relation with the alleged accidental injuries.
Held, courts are no experts for determining cause of death. If we make inference
about the cause of death as due to an accident, we invariably look to the fact of
accident and the proximate cause for the death and wherever postmortem is done,
the report of the Doctor regarding the cause of death. It will be wholly wrong for a
Tribunal to discard Doctor's evidence and enter a pure realm of conjecture to
determine cause for death. Award passed in favour of claimant is result of misplaced
sympathy. Award was set aside.

3.11 Conversion of Application U/S 163A To Section 166

The claim petition to be filed under the Motor Vehicles Act has to be scrutinized
from various point of views as there is a condition in the Act itself that in case the
petition is filed under section 163-A then the annual income of the deceased/ injured
as the case may be should not in any case exceed Rs 40000/- per annum, moreover
there is no need to strictly establish the act of negligence under this provision.
Whereas under section 166 of the Act the act of negligence is not only to be alleged
but it has to be proved beyond any doubt and also the strict proof of all the
documents such as source of income of the victim, driving license and other
vehicular documents etc are also to be placed before the Tribunal. But as discussed
earlier the legislation being aimed for social welfare is flexible enough to convert the
petition from one platform to another in order to allow the compensation to the
unfortunate victim of the accident as no strict rules of evidence and CPC are to be
applied in such types of cases.

As in United India Insurance Company Ltd. v. Ajay Matta and another, 27 (Section
163-A/ 166.) The type of Insurance in the present case was comprehensive policy. In
the accident driver dashed against a culvert. The claimant’s income was more than
Rs.8,000/- per month and as such under the relevant provisions of the Act he could
not have maintained the petition under Section 163-A. High Court take it that the
petition is filed under a wrong premise, for, as far as the passenger is concerned, the
accident speaks of the negligence of the driver which is a typical res ipsa
loquitur situation. Negligence of the driver is writ large and the passenger ought to

27
2016 (1) L.A.R. 456

91
have been provided for injuries suffered in the accident. Taking a liberal view the
Hon’ble High Court treat it as a petition u/s 166 of the Act and allow for the
retention of the award against the insurer.
28
In the case titled as Gian Chand & Ors. v. Gurlabh Singh & Ors., the Apex
Court held that the claim petition filed under section 166 is somewhat different from
the claim petition filed u/s 163A. The petition u/s166 of the Act demands not only
merely the involvement of vehicle but it warrants the actual proof of the accident
and mere allegation is not sufficient it has to be proved beyond any doubt so as to
allow the claim. In the present case accident was caused by a bus. Plea of
mechanical defect was taken. But a bare perusal of the FIR substantiates the plea of
the claimants and not of the driver. Moreover driver has not pleaded in reply that
due to road condition the bus jumped all of a sudden, and has also suppressed the
fact that the bus initially dashed a stationary tractor. Thus the version of the driver
was held to be not reliable. Further the mechanic has categorically stated that the
belt of springs could have been broken in case brakes were suddenly applied. Thus it
appears that the bus driver drove the bus rashly and negligently and initially dashed
the stationary tractor and then a eucalyptus tree. In the circumstances there is no
escape from the conclusion that the bus was driven in a rash and negligent manner
by its driver. Apart from that merely a mechanical failure is not enough to exonerate
the Transport Undertaking from its liability in the absence of evidence being
adduced that the vehicle was maintained properly.

3.12 Claims For Third Parties

The term 'Third Party' has not been defined in exact terms in the New Act, same was
the position under the Old Act as well, therefore this term is to be interpreted in the
terms of the provisions of the New Motor Vehicle Act it is clear that whosoever is
entitled to raise a claim against the owner/Insured or the insurer is the third party. In
order to understand it properly a combined reading of Sections 146, 147, 149, 150 to
155, 163-A and particularly Section 166 clearly spell out that the Third Party; for
contract of Insurance; under the Motor Vehicle Act is:-

(a) Any person or entity whose property is damaged in the accident.

28
2016 (1) L.A.R. 532

92
(b) Any person who gets injuries in an accident or his authorised agent

(c) Legal representatives of the deceased person who died in the accident or the
authorised agent of such legal representatives.

Further it was held that there cannot be any limitation or dilution of the definition of
the term 'Third Party' as used in the Act, since such limitation or dilution shall run
29
counter to the provisions of the Act itself.

In awarding compensation in motor vehicle accident case where the gratuitous

passengers are involved, whether the Insurance company is liable under third party
risk is the most important question involved in the motor accident cases. What will
be the status of liability of Insurance company, whether the gratuitous passengers in
the offending vehicle would fall within the meaning of 'third party' and thus, would
be covered by the statutory policy under Section 147 of the Act or not. It was held
that object and purpose of Sections 146 and 147 are that policy of insurance should
cover liability in respect of death or bodily injury of person including owner of the
goods or its authorized representative who may be carried in a goods
vehicle/carriage as defined in Section 2(14) of the Act. Simplifying the situation the
court held ‘admittedly, passengers were authorized representatives of the owner on
the offending vehicle and thus covered under the policy of insurance.’ 30

Then a very unusual situation arose in where the members of same family were
travelling together and the question was whether one of them can be treated as third
party or not? What will be the status of father and son where they are travelling
together? Here in this case, Shiv Lochan Singh @Bhola v. National Insurance Co.
Ltd and others,31 it was held that they are distinct legal entities because according to
the settled principle any two individuals are separate and distinct legal entities with
independent rights and liabilities If due to negligence in driving a vehicle, father
causes the death of his own son, the dependents of such deceased son can very well
raise a claim against the negligent father of such deceased. The Hon’ble H.Court of
Punjab and Haryana in its latest decision has make this distinction that relationship
of parties inter se will not create impediment in such type of claim proceedings.

29
Shiv Lochan Singh @ Bhola v. National Insurance Co. Ltd. and others (P&H)2018 (1) L.A.R. 36
30
New India Assurance Co. Ltd. v. Smt. Hurran and others (P&H) 2016 (3) L.A.R. 72
31
2018 (1) L.A.R. 36

93
Therefore in an attempt of the insurance company to avoid statutory liability by
creating artificial distinction of Comprehensive/Package policy and the alleged 'Act
only policy' does not stand legal scrutiny under the provisions of the New Act, qua
the claim for damages to third party liability; every policy has to be taken as 'Act
Policy' only, since it is mandatory to be issued by the Insurance Company and it is
mandatory to be obtained by the owner of the vehicle under the provisions of the
Motor Vehicle Act. In that sense every policy, qua third party, can be said to be and
has to be only an 'Act Policy'. It was held that classification created by the insurance
company cannot be made a ground by it for avoiding liability arising from an
insured vehicle, qua the damages to the third party, including passengers in private
passenger car/pillion rider on a Motor Cycle. Further IRDA does not have any
authority to prescribe extra and separate amount even to cover the third party risk
because that would tantamount to violation and dilution of the scope of compulsory
Insurance prescribed under Section 147(1)(b)(i). 32

3.13 Award of Claims Tribunal

As discussed earlier the role played by the Tribunal while deciding the claim petition
should be a reflection of social welfare institution but the award should not be of
such a nature that it puts the other party in adverse position on hypothetical grounds.
In Archit Saini and Anr. v. The Oriental Insurance Company Ltd. and ors.,33 A
Claim petition filed u/s Section 166, 173 Motor Vehicles Act, 1988 (59 of 1988),–
where it was held that an appeal before the High Court is required to be decided on
fact and law. However it would not permit the High Court to casually overturn the
finding of fact recorded by the Tribunal. As in the present case it is evident from the
analysis done by the Tribunal that it is a well considered opinion and a plausible
view. High Court has not adverted to any specific reason as to why the view taken
by the Tribunal was incorrect or not supported by the evidence on record. Nature of
proof required in cases concerning accident claims is qualitatively different from the
one in criminal cases, which must be beyond any reasonable doubts and ultimately
the findings of the Tribunal were restored.

32
Ibid
33
2018 (1) L.A.R. 417

94
On receipt of an application for compensation 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, 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 be paid and in making the
award the Claims Tribunal shall specify the amount which shall be paid by the
insurer of owner of driver of the vehicle involved in the accident or by all or any of
them, as the case may be. Where such application makes a claim for compensation
under section 140 in respect of the death or permanent disablement of any person,
such a claim or any other claim (whether made in such application or otherwise) for
compensation in respect of such death or permanent disablement shall be disposed
off in accordance with the provision of chapter X. 34

The Claims Tribunal shall arrange to deliver copies of the award to the parties
concerned expeditiously and in any case within a period of 15 days from the date of
the award. When an award is made, 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 be the
Claims Tribunal, deposit the entire amount awarded in such manner as the Claims
Tribunal may direct.35

3.14 Recovery of Money From Insurer As Arrears 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.

Where an award has been passed by the Claims Tribunal and the same is not paid by
the concerned person/ authority against whom it has been passed, the on receiving
an application in this regard the Tribunal can issue a certificate to the Collector
directing accordingly and the said amount can be recovered as ‘arrear of land
revenue’.36

34
Janak Raj Jai, Motor Accident Claims Law and Procedure 95 (Universal Law Publishing, 6th
Edition 2016)
35
Ibid
36
Section 174 of the Motor Vehicles Act,1988

95
The amount directed to be paid even in terms of Chapter X of the act must as of
necessity, in the event of non compliance of directions be recovered in terms of
section 174 of the Act. There is no other provision in the Act which takes care of
such a situation. Even where objections are raised by the insurance company in
regard to its liability, the Tribunal is required to render a decision upon the issue,
which would attain finality and, thus, the same would be an award within the
meaning of section 173 of the Act. 37

Further in the case titled as Baj Singh v. Balbir Singh, 38 where ex-parte award was
passed against the offending vehicle (truck) which was insured with the Respondent
New India Assurance Co. ltd. the plea raised by the petitioner that since the vehicle
was insured with the Company so the amount cannot be recovered as ‘arrears’. It
was held that the same is within the scope of Section 174 and the Claims Tribunal
can recover it by issuing certificate to collector and the award amount can be
recovered as ‘land arrears.

3.15 Amendment of Pleadings for Enhancement of Award

An important case titled as Ravinder (minor) v. Sant Ram and others.,39 In which
the Hon’ble Punjab and Haryana H. Court held that the fact that each and every
claim has to be placed on the firm footing of evidence when the claim petition is
filed under section 166 of the Act but there are instances where the tribunal works
on some obvious line of action which though not supported by the documentary
evidence but are the inseparable incidents of the accident which can be looked into
by the Tribunal of its own as in the present case of injury filed under section 166.
Compensation in motor vehicle accident case was claimed and 25% disability was
assessed. The plea that medical bills are required was raised. Accident occurred on
1.2.1993 and in the award Rs.50,000/- towards pain and suffering and Rs.50,000/-
towards disability was held to be sufficient. But as regards to medical expenses, no
bill was been placed on record. Yet considering the fact that claimant got 25%
disability to the whole body, it cannot be said no expense on medical bills,
transportation and special diet would have been incurred. Here Insurance Company
is not in a position to deny this but states that in the absence of any evidence it

37
Dr. Krishna Pal Malik, Motor Vehicles and Railway Accidents Claims and compensation
(Statutory Torts)102 (Allahabad Law Agency 1st edition 2010-11)
38
1991 (2) TAC 103
39
2016 (1) LAR 542

96
would not be appropriate for the Court to award any amount. But ultimately keeping
in view the nature of injuries, Rs.30,000/- granted for medical expenses, for
transportation and for special diet. Hence it is not the ground of rejection that the
Tribunal has already given the award in the favour of the claimant, if the claimants
are not satisfied with the amount of compensation awarded then within the stipulated
time an appeal can also be preferred.

3.16 Claim Amount and Deductions

While awarding compensation in road accident caused by motor vehicle it is

necessary that principle of ‘just compensation’ shall be kept in mind by the
Tribunals. It was observed that if the deceased/ injured/ claimants gets any of the
monetary benefits as result of death as the case may then it is not subject to any kind
of deduction is not permissible. According to settled law the amount of
compensation obtained through the award of Tribunals or the Insurance amount or
falling under any category of benefits of pension, or employment of
victim(deceased) are not subject to any kind of deductions. Claimants/dependents
are entitled to ‘just compensation’ under the Act. Any benefit accruing to the
property of the victim of fatal accident or to his L.Rs which may be product of any
agreement or deal executed by the deceased during his life time, it is irrelevant that
such advantage will go in the hands of the claimants/dependents after his death, it is
not the subject of deduction. Moreover if take the case of LIC the policy conditions
may contain any such clause that the deceased will get the insurance amount on his
death or on maturity of the policy similarly the investment by way of FDRs in bank
or in share market or any other plans cannot be deducted while calculating the
amount of compensation. It was held that. The wrong doer is not supposed to take a
plea in his favour by taking advantage of the forethoughts regarding monetary
investment made by the deceased for securing his future. The amount received by
way of pension or gratuity which became due towards the deceased because of his
service provided to the concerned department is to be considered as the property of
that person(deceased), it will not be wrong to state them as ‘deferred salaries’ there
can be no deductions from these amounts. Sebastiani Lakra & ors. v. National
Insurance Company Ltd. & anr., 40

40
(SC) 2018 (2) L.A.R. 558

97
In the captioned case while following the rule of ‘harmonious construction of the
statue’ being a social welfare legislation, it was observed that for determining ‘just
compensation’ the exclusion of amount falling under Rules of 2006 which are at par
to head ‘pay and other allowances’ which are last drawn by the deceased is not
barred, but it will not in any way affect the future prospects (increment) of the
decease employee further the other benefits including pension, LIC, P.F. etc does
not come under the purview of permissible deductions. 41

Further the plea was taken by the adverse party that the deceased used to run a
business which is still continuing even after the death of the deceased and as such
there is no loss of income and in the light of this fact the amount of dependency
should be reduced by deducting the same. But the contentions were refused by the
Hon’ble H. Court was no such deduction was allowed. 42

3.17 Tribunal’s Jurisdiction to Set-aside Award Procured by Fraud

Bogus /False cases: The Motor Accident Claims Tribunal was established with a
view that victim of the accident should not suffer the after effects of the unfortunate
happening. But the motive of awarding compensation was neither to provide
bonanza to the aggrieved party nor should it be so less that it seems to be mockery of
the judicial system. Actually it should be a ‘just compensation’. But even a step
ahead it should be a genuine claim petition. Sometimes it has been noticed that in
order to get wrongful claims a natural death i.e. otherwise than the road accident is
clubbed with accident cases. Here the Tribunal has to be vigilant and should follow
the strict basic para meters in order to check the varsity of the case/claims. In Anil &
ors. v. New India Assurance Co. Ltd. & ors., 43 respondents a claim petition filed
under Motor Vehicles Act, under section 166 where No post-mortem report was
filed and FIR was lodged after more than one month. While at one stage it was
stated that the deceased was brought dead, at another place it was stated that he was
referred to the government hospital for further treatment. Considering the
circumstance that no post-mortem was conducted is an extremely significant aspect.
The person who died was the brother of the owner of the tractor. Further it was held

41
Reliance Gen. Insurance Co. Ltd. v. Shashi Sharma & Ors. (SC) 2016 (3) L.A.R. 509
42
Cholamandalam M.S. General Insurance Company Ltd. v. Ravinder Kaur and others (P&H)
2016 (3) L.A.R. 381
43
2018 (1) L.A.R. 150

98
that complaint was not lodged for nearly one month is a significant omission in the
case. Above all no hospital records to indicate the nature of the injuries, that death
had occurred due to an accident of the nature alleged. Held, each of the
circumstances relied upon by the High Court is germane to the ultimate conclusion
that a false case was set up to support a claim for compensation.

In United India Insurance Co. Ltd. v. Ramdas, 44 it was held that if in case any type
of fraud or collusion is revealed even after the Tribunal has pronounced its award on
merits such plea can be brought to notice of the Tribunal in the light of inherent
powers of review conferred to the “court” u/s 169 of Act. From the above discussion
it is very clear that the Tribunal has many a times deviated from the set track and
even sometimes do not follow the structured formula appended to the Act in order to
give just and fair compensation to the victims or to the dependents of the deceased.
Even Tribunal may dismiss the petition if it seems to be a frivolous, fictitious or
fraudulent petition.

In the Oriental Insurance Co. Ltd. v. Kamla and others,45 where a compensation
petition filed u/s 166 of the Act in motor vehicle accident case. Acquittal of the
accused of offending vehicle in criminal case. In the present accident case deceased
slipped/skidded from the motorcycle and it was the consistent stand of the relatives
that there was no criminal intent. However, after two days, when the patient died,
the theory of involvement of the offending vehicle was coined and the same has
been proved before the Tribunal. However, when the case came up before the
Criminal Court, the same very eye witness turned hostile so that the accused-driver
is not put to any harm and thus cleverly the insurer of the offending vehicle has been
made to be held liable to pay the compensation in the instant case. Held, there is a
massive increase in such like cases of fraud, High Court in its supervisory role has
the onerous duty to cleanse the lower Courts of such fraudulent acts. Appeal filed by
the Insurance Company was allowed. Claim petition filed by the claimants was
dismissed. Superintendent of Police was directed to investigate the matter and
initiate the appropriate proceedings.

44
2000 (2) TAC 455
45
2016 (1) L.A.R. 635

99
3.18 Tribunal Awarding More Compensation than Claimed

As already discussed earlier in this chapter that the mode and amount of
compensation award should be well within the legal framework and amount should
fall comply with the doctrine of ‘just compensation’. But the question arises that
while deciding the amount of compensation can the Tribunal suo-moto enhance the
amount than actually claimed by the claimant or not? In a landmark judgement titled
as ‘Mulla Mohd. Abdul Wahid v. Abdul Rahim,46 the query was answered in
affirmative. The power of granting more award than claimed was further extended in
United India Fire and General Insurance Co. Ltd. V Pallapu Sridevi, 47 where it
was held that the Tribunal can allow the higher award amount even in the agreement
finalized by the parties in the Lok Adalat. Further there is no as such no stipulation
to restrict Tribunal in awarding higher compensation in the Act. In Managing
Director (Metro), Pallavan transport Corp. Ltd. v Kalalvathy, 48 it was clarified that
while deciding the case the claims falling under the various sub heads or sum total of
all the claims cannot adversely affect the power of the Tribunal to allow the claim
either on higher or lower side of the actual claim preferred by the claimants. The
sole purpose of the Tribunal as visioned by the legislature to achieve the goals set
has equipped it with such powers that it can grant the amount of compensation in
excess or limit the same from what has actually been claimed. A reasonable
compensation may vary from claimant to claimant and from counsel to counsel,
whereas just compensation is fixed with respect to the nature of injuries sustained. 49

Then the further distinction was explained by the Tribunal in order to avoid any type
of confusion while award the compensation. It was held that there can be a ‘special
compensation’ as well as ‘general compensation’. The special compensation relates
to the amount spent in medicine, hospital care and other medical attendance,
procured for the injured , and expenses, incurred by the claimants in getting repaired
the damaged property, such as the cat etc. the general compensation relates to pain
and suffering etc.50

46
1994 ACJ 348 (Ori.)
47
1993 ACJ 575 (AP)
48
1999(2) TAC 570
49
B.H.Rangaiah v. H.R.V. Basavaraju,2000 (3) TAC 180.
50
Dharamvir kapur v. State of H.P.AIR 1976 TAC 454

100
The Hon’ble M.P. High Court observed that one of standards for assessing
compensation is that, while insofar as the lump-sum of damages of damages is still
unspent, it will be earning interest and damages and interest together will be
adequate to last out for the requisite number of years. The reason is that a prudent
person, receiving a lump-sum to make food his loss over a period, is expected to
invest it and use it up gradually. 51In addition to this the amount of compensation
may sometimes be determined in such a manner that annual interest, earned thereon,
may equal to the estimated annual pecuniary benefit which the claimant could obtain
from the deceased if he had been alive. 52

3.19 Appeal against Decisions of Claims Tribunal

Section 173. Appeals: “1. 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: 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 or fifty per cent. of the amount so awarded, whichever is less, in the manner
directed by the High Court: 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 time.

2. 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.” (In section 173 of the
principal Act, in sub-section (2), for the words "ten thousand", the words "one lakh"
shall be substituted.)53

The right to appeal against the award passed by the Tribunal being a statutory right
is not affected by the receipt given by the claimants on receiving the amount of
compensation towards full and final settlement of award. 54A right of appeal can
never be treated as a procedural matter it is to be considered as substantive right.
Right to prefer an appeal from the decision of the inferior court to a superior court is

51
Ballubhai Hirji Gajjar v. Suresh kumar, AIR 1977 MO 58 at p.63
52
Oriental Fire and General Insurance Co. Ltd.v. Chunilal, 1969 ACJ 15
53
Inserted by Amendment Act, 2019
54
Kunnjamma v. Shri Marcelo Fernandes, 1995(1) TAC 583

101
vested when the proceedings in the inferior courts are first initiated. 55Further where
the amount involved in the appeal is less than Rs.10000/- it is hit by Section 173(2)
of the Act and is barred and was thus not maintainable. 56

3.19.1 Joint Appeal by the Parties

A joint appeal is basically preferred when the grounds of appeal are common or
when the remedies to be availed by the parties are similar. The fact was clarified in
New India Assurance co. Ltd. v. Saraswati Samanta Singhar, 57 where it was
observed that if the joint appeal by the insured as well as insurer has been filed then
the fact that whether it is maintainable by at least one of them. But the joint appeal
preferred by the insurer alongwith owner or driver of the vehicle in question was
held not maintainable due lack of statutory authority under the Act. 58

Further in the case titled Narendra Kumar v. Vares Hassan Farooqui, 59 where the
Motor Accident Tribunal on accepting the claim petition filed by the claimant, the
joint appeal was preferred by the Insurer and the owner of the vehicle against whom
the Tribunal passed the award. But the same was rejected by the by Single Bench on
the ground of maintainability consequently the special appeal was also not accepted
against the said decision of the single bench as not maintainable in the light of
provisions of MVAct.

3.20 Significance of Lok Adalats

The idea of Lok Adalat has been charged by the section of the Legal Services
Authorities Act 1987 wherein under Chapter VI the State or District Authorities
have been approved to composed Lok Adalat at such interims and places and for
practicing such ward as they deem necessary. 60

The modus operandi for conducting a Lok - Adalat is straightforward with respect to
the Motor Accidents Claims. The necessity for alluding Third party Motor Accidents
Claims pending with Motor Accidents claims Courts to the Lok Adalat was
considered in a symposium composed by General Insurance Companies in the year

55
Oriental Insurance Co. ltd. v. Mukku Bullewama, 1996 (1) TAC 760
56
National Insurance Co. Ltd. Illapy Seethamma 2000(2) TAC 361 (AP)
57
1995 ACJ 416
58
Chinamma George v. N.K. Raju, 2000 ACJ 777
59
1994 ACJ 205 (Raj.)
60
Janak Raj Jai, Motor Accident Claims Law and Procedure 130 (Universal Law Publishing, 6th
Edition 2016)

102
1985. Methodology to be assumed for settlement of such cases and the task to be
assigned to each associated with the Lok-Adalat process, specifically, the concerned
authorities of Legal Aid and Advice Board for each state, counsels of the parties
involved, were expected to be prominent. The preference of cases to be taken in Lok
Adalat is then finalized with the consent of the parties or their respective lawyers
according to the facts and figures of the cases, mostly these cases are shortlisted on
the basis of quantum, where the only point of difference among the parties is on the
ground of quantum. 61

According to section 21 of the Legal Services Authorities act, ‘every award of the
Lok Adalat shall be deemed to be a decree of a civil court and as such it is
executable by that court.’ With regards to the Act there is no distinction between the
Civil and Criminal Courts. Even the compromise award passed by the Lok Adalat
carries equal weightage as that any Civil court or Criminal Court. The methodology
of arriving at any compromise is not defined or fixed rather a liberal view has been
taken but this does not at all mean that the legal aspect is dispense with, all the
proceedings of Lok Adalat has to well within the legal framework.

The counsel appearing for claimant as well as counsel on behalf of Insurer presents
themselves and the contentions on the part of quantum is recorded. For a successful
result in settlement, the claimants themselves are furthermore supported to join in. In
addition to this the competent authorities of the Insurance companies are also
expected to assist in order to expedite the matter. At every possible opportunity,
efforts are made during the Lok - Adalat, even pre-settlement of claim amount are
too organized to determine award amount ensuring it to be a ‘just compensation’.
Having roughly shown up an estimate of quantum with the joint efforts of the parties
as well as their counsels, it would simplify the settlement procedure in Lok- Adalat.
In most of the cases a stipulated period of 30 days is allowed in order to deposit the
award amount and rare cases if the amount is on higher side then after recording the
reasons the Tribunal can allow more than 30 days also. 62

In India justice seekers are in millions and it is getting somewhat hard for the Courts
to adapt up to the consistently expanding cases with the current foundation and

61
Available at https://shodhganga.inflibnet.ac.in/bitstream/10603/8947/14/14_chapter%2010.pdf
62
Available at https://shodhganga.inflibnet.ac.in/bitstream/10603/8947/14/14_chapter%2010.pdf

103
traditional infrastructure. Courts are over-flooded with cases; with a continuous rise
in number of cases the legal machinery is feeling the squeezed. Consequently, if
there was a permanent platform to settle the issue at a pre-preliminary stage,
numerous issue would not discover their way to the Courts and thus the heap of
cases could be removed from the Courts. In order to save the precious court time,
cases should be settled by ADR techniques, before they knock the doors of the
Court. Here comes the significant role of Lok Adalat which has indicated its
importance by settling enormous number of Third Party claims referred by Motor
Accident Claim Tribunal (MACT).

Lok Adalat is currently doing commendable job in claim settlement of MACT cases.
It will not be wrong to state that it has assumed the role of Dispute Management
Institution. A less formal procedure is followed in settling the disputes related to
Motor Accidents claims. This is the quick technique to resolve huge number of
MACT claims. Reconciling the claims through Lok Adalat is the alone panacea for
controlling the high rising pendency of the cases. Moreover the insurer also saves
the liability of interest when a mutual agreement between the claimant and insurance
company is achieved with the help of Lok Adalat. Thus the settlement of disputes
through Lok Adalat is considered as simplest strategy, which is without procedural
wrangles of traditional trials.

It expedites the dispute resolution process with the mutual consent of the parties to
the dispute. While deciding the jurisdiction of the Lok Adalat the Apex court held
that Lok Adalat will not be able to decide the matter where the parties do not
consent to settle the dispute via this channel as it will be considered as lack of
jurisdiction63. But on the other hand the in the case titled as Manju Gupta v.
National Insurance Co. Ltd., 64 Hon’ble High Court held that Lok Adalats in the
garb of providing speedy justice, should not put in stake the real object of justice for
which assurance has been rested on them by the general public.

Lok Adalat is thus a significant institution, and if it works as it should, it can prove a
powerful aid in resolving the problem of the heavy backlog of cases. It operates on

63
State of Punjab V Jalour Singh 2008 ACJ 2874 (SC)
64
1994 ACJ 1036 (All)

104
the principle of a settlement between the parties. In the spirit of compromise, there
are no winners or losers. And the conclusion of a happy adjustment between the
parties promotes and atmosphere of mutual satisfaction conducive to an amicable
settlement. 65

3.21 Conclusion

The above detailed discussion has shown that till time the Tribunals have played
commendable role in providing justice to the road accident victims. But still if
critically examined, the working of the Tribunals or in simple words we can say that
there are some lacunas which creates hindrances in awarding compensation e.g.
technical procedure causing delay on the part of Insurance Companies, lengthy legal
proceedings causing delay in awarding compensation, etc. However by fixing some
of the additional duties of the concerned authorities and by simplifying the tense
procedure it can be curbed. Some of the suggestions are as follows.

In case the accident is caused by uninsured offending vehicle and is also not covered
with respect to third party or the driver at the time of accident was not holding legal,
valid and effective driving license or in case the owner of the vehicle in question is
unable to produce the insurance policy or he fails to bring on record the driving
license of the driver of said offending vehicle causing death or injury or even the
damage to any kind of property, then such vehicle shall be confiscated and it should
not to be released, except the owner of the said vehicle undertakes to produce
adequate security to the satisfaction of the court. After the expiry of three months
from the date of taking of possession of the vehicle by the Investigation Officer,
such vehicle shall be auctioned by the Ilaka Magistrate having jurisdiction over the
area where accident took place and the amount so obtained by the auction sale shall
be deposited with the MACT in order to satisfy the award amount.

Where the officer appointed for the purpose is unable to complete the investigation
in 30 days for the reasons beyond his control viz: where parties belong to area
outside the area of his jurisdiction, or where the concerned authority issuing the
license is beyond the jurisdiction of the court involving the procedural delay with

65
Janak Raj Jai, Motor Accident Claims Law and Procedure 132(Universal Law Publishing, 6th
Edition 2016)

105
regard to verifying the authentication of driving license, or where the victim of the
accident is undergoing the treatment and is unable to attend the court, then in such
cases on an application moved by the Investigating Officer Tribunal can grant
adjournment for such time as it deems fit.

106