High Court of Bombay at Goa Dismisses Appeal by Claimants in Motor Accident Claim Under Section 163-A of Motor Vehicles Act, 1988 Owing to Income Exceeding Statutory Limit. Claim Petition Filed Under Section 163-A Held Not Maintainable Due to Deceased's Annual Income Exceeding Rs. 40,000 Contrary to Second Schedule, and Conversion to Section 166 Not Permitted Because of Absence of Pleading Rashness and Negligence.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appeal arose from an order dated 12 March 2003 passed by the Motor Accident Claims Tribunal, Mapusa, dismissing Claim Petition No. 52 of 2000 filed by the legal heirs of Kashinath Betu Gawas under Section 163-A of the Motor Vehicles Act, 1988. The deceased, Sushant K. Gawas, died in an accident while travelling in a truck insured with the respondent insurer; he was not driving but was the owner of the vehicle. The tribunal held that the claim petition was not maintainable as the deceased was the owner. In appeal before the High Court of Bombay at Goa, the counsel for the appellants conceded that the petition under Section 163-A was not maintainable because the deceased's income was mentioned as Rs. 10,000 per month, exceeding the statutory annual limit of Rs. 40,000 prescribed in the Second Schedule to the Act. The counsel sought permission to convert the petition into one under Section 166, placing reliance on a ruling of the Kerala High Court in Mini Philip v. P.J. Mathew. The respondent insurer opposed conversion, arguing that there is no limitation for filing under Section 166. The court considered the concession and the clear language of Section 163-A read with the Second Schedule, and held that the petition was not maintainable. It declined to allow conversion, observing that a claim under Section 166 requires specific pleading of rashness and negligence, unlike a claim under Section 163-A. Moreover, since there is no limitation for filing an application under Section 166, the appellants were not left remediless. The court quashed the impugned order but confirmed that the claim petition under Section 163-A was not maintainable. The appellants were granted liberty to file appropriate proceedings as available in law.

Headnote

A) Motor Vehicles - Claim under Section 163-A - Income Ceiling - Motor Vehicles Act, 1988, Section 163-A, Second Schedule - The claim petition under Section 163-A was admitted to be not maintainable because the deceased's monthly income was stated as Rs. 10,000/- (annual income Rs. 1,20,000/-), exceeding the maximum permissible limit of Rs. 40,000/- prescribed in the Second Schedule. Held that the claim petition filed under Section 163-A is not maintainable on this ground. (Paras 3, 4, 7)

B) Motor Vehicles - Conversion of Claim from Section 163-A to Section 166 - Pleading of Rashness and Negligence - Motor Vehicles Act, 1988, Sections 163-A and 166 - The appellant sought conversion of the claim petition from Section 163-A to Section 166, relying on a Kerala High Court judgment. The court refused conversion, noting that a claim under Section 166 requires specific pleading of rashness and negligence, which is absent in a Section 163-A petition, and that there is no limitation for filing a fresh petition under Section 166. Held that conversion cannot be permitted and granted liberty to file appropriate proceedings under law. (Paras 4, 6)

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Issue of Consideration

Whether a claim petition under Section 163-A of the Motor Vehicles Act, 1988 is maintainable when the deceased's income exceeds Rs. 40,000 per annum; and whether the claimants can be permitted to convert such a petition into one under Section 166 of the Act.

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Final Decision

The appeal was disposed of by holding that the claim petition under Section 163-A was not maintainable. The impugned order of the Tribunal was quashed and set aside, and the claimants were granted liberty to file appropriate proceedings as may be available in law.

Law Points

  • Section 163-A claim maintainable only if victim's annual income is up to Rs. 40
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  • Conversion from Section 163-A to Section 166 not automatic and requires specific pleading of rashness and negligence
  • No limitation for filing under Section 166
  • Second Schedule to the Motor Vehicles Act prescribes income ceiling for Section 163-A claims
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Case Details

2010 LawText (BOM) (10) 108

First Appeal No.181 of 2003

2010-10-13

A. P. Lavande, J.

2010:BHC-GOA:2599

Ms. R. Kantak, Mr. J. J. Mulgaonkar

Shri Kashinath Betu Gawas (since deceased) through legal heirs: Shri Manohar Kashinath Gawas, Smt. Manila Manohar Gawas, Shri Ratnakar Kashinath Gawas, Smt. Resha Ratnakar Gawas, Shri Shivnath Kashinath Gawas, Smt. Swati Shivnath Gawas, Shri Mahesh Kashinath Gawas

National Insurance Company Limited

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Nature of Litigation

Motor accident claim petition under Section 163-A of the Motor Vehicles Act, 1988, dismissed by the Tribunal, appealed to the High Court.

Remedy Sought

Appellants sought to set aside the Tribunal's dismissal and either have the claim maintained under Section 163-A or converted to one under Section 166.

Filing Reason

The original claim petition was dismissed by the Tribunal on the ground that the deceased was the owner of the vehicle involved in the accident.

Previous Decisions

The Motor Accident Claims Tribunal, Mapusa, by order dated 12 March 2003 in Claim Petition No. 52 of 2000, dismissed the claim petition holding that it was not maintainable under Section 163-A because the deceased was the owner of the vehicle.

Issues

Whether a claim petition under Section 163-A of the Motor Vehicles Act, 1988 is maintainable when the deceased's annual income exceeds Rs. 40,000 as per the Second Schedule. Whether the claimants can be permitted to convert a claim petition filed under Section 163-A into one under Section 166 of the Act.

Submissions/Arguments

Appellants conceded that the petition under Section 163-A was not maintainable due to income exceeding the limit but sought conversion to Section 166, relying on the Kerala High Court decision in Mini Philip v. P.J. Mathew. Respondent opposed the conversion, contending that there is no limitation for filing a petition under Section 166 and therefore the prayer should not be granted.

Ratio Decidendi

A claim under Section 163-A of the Motor Vehicles Act, 1988, is not maintainable if the victim's annual income exceeds Rs. 40,000, as stipulated in the Second Schedule to the Act. Conversion of a petition from Section 163-A to Section 166 cannot be permitted as a matter of course because a claim under Section 166 requires specific pleading of rashness and negligence, which is absent in a Section 163-A petition. Further, there is no limitation for filing a petition under Section 166, so claimants are not left without remedy; they may file fresh proceedings.

Judgment Excerpts

the claim petition filed under Section 163-A was not maintainable the claimant has to specifically plead rashness and negligence in contradiction to Section 163A of the Act the claim petition filed by the claimants under Section 163-A of the Act is not maintainable

Procedural History

Claim Petition No. 52 of 2000 was filed under Section 163-A of the Motor Vehicles Act, 1988, before the Motor Accident Claims Tribunal, Mapusa. The Tribunal dismissed the petition on 12 March 2003, holding it not maintainable because the deceased was the owner of the vehicle. The claimants appealed to the High Court of Bombay at Goa vide First Appeal No. 181 of 2003. The High Court heard the appeal and passed judgment on 13 October 2010, holding the petition not maintainable on the ground of income exceeding the statutory limit and refusing conversion to Section 166, while granting liberty to file appropriate proceedings.

Acts & Sections

  • Motor Vehicles Act, 1988: 163-A, 166
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