Case Note & Summary
The appellant, Babu @ Balu Narsingrao Pathak, owner of the vehicle involved in a motor accident, filed an appeal against the judgment and award dated 7 August 2007 passed by the Ad-hoc District Judge-4 and Ad-hoc Member, MACT, Amravati in Motor Accident Claim Petition No.159 of 2002. The Tribunal had partly allowed the claim petition filed by the respondents (Smt. Bharti wd/o Gajanan Mohod and her minor children) and directed the appellant to pay Rs.1,79,800 with interest at 7.5% per annum from the date of petition till realization. The only challenge raised by the appellant's counsel, Mr. J.Y. Ghorde, was that the Tribunal failed to include the amount of Rs.50,000 already paid by the appellant towards no-fault liability under Section 140 of the Motor Vehicles Act, 1988. The counsel argued that the award should have directed payment of Rs.1,79,800 inclusive of the Rs.50,000 already paid. The respondents' counsel, Mr. C.J. Dhumane, did not dispute that the amount had been paid. The Court, after hearing both sides, admitted the appeal and held that the amount of Rs.50,000 paid under no-fault liability must be adjusted against the total compensation. The Court directed the Tribunal to modify the award by including the said amount and to pass appropriate orders. The appeal was allowed in those terms.
Headnote
A) Motor Accident Claims - No-Fault Liability - Section 140 Motor Vehicles Act, 1988 - Adjustment of Interim Payment - The appellant, owner of the vehicle, challenged the Tribunal's award for not deducting Rs.50,000 already paid as no-fault liability. The Court held that the amount paid under Section 140 must be adjusted against the final compensation, and directed the Tribunal to modify the award accordingly. (Paras 5-6)
Issue of Consideration
Whether the amount of Rs.50,000 paid by the appellant towards no-fault liability under Section 140 of the Motor Vehicles Act, 1988 should be included in the compensation awarded by the Tribunal.
Final Decision
Appeal allowed. The Tribunal is directed to modify the award by including the amount of Rs.50,000 already paid by the appellant towards no-fault liability and pass appropriate orders.
Law Points
- No-fault liability payment must be deducted from total compensation
- Section 140 Motor Vehicles Act
- 1988
- Compensation adjustment
