Bombay High Court Allows Appeal in Motor Accident Claim — No-Fault Liability Under Section 140 MV Act. Claimants entitled to interim compensation of Rs. 50,000 without proof of negligence as per Section 140 of Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The present appeal arises from an order dated 22.11.2017 passed by the Motor Accident Claims Tribunal, Akola in MACP No. 92 of 2016, rejecting the application (Exh. 6) filed by the claimants under Section 140 of the Motor Vehicles Act, 1988. The claimants, Saberabi and others, are the mother-in-law and father-in-law of the deceased daughter-in-law who died in a motor vehicle accident. They filed the application seeking interim compensation of Rs. 50,000 on the principle of no-fault liability. The Tribunal rejected the application on the ground that the claimants were not dependents of the deceased. Aggrieved, the claimants filed the present appeal before the High Court. The High Court heard the learned counsel for the appellant and the respondent insurance company. The court examined Section 140 of the Motor Vehicles Act, 1988, which provides for liability to pay compensation in certain cases on the principle of no fault. The court noted that under Section 140(3), the claimant is not required to plead and establish that the death was due to any wrongful act, neglect or default of the owner or any other person. The court held that the only requirement for entitlement to interim compensation under Section 140 is that the death resulted from an accident arising out of the use of a motor vehicle. The question of dependency is not relevant at this stage. The court further observed that the Tribunal erred in rejecting the application on the ground of lack of dependency. Accordingly, the High Court allowed the appeal, set aside the impugned order, and directed the respondent insurance company to pay interim compensation of Rs. 50,000 to the claimants within four weeks.

Headnote

A) Motor Accident Claims - No-Fault Liability - Section 140 Motor Vehicles Act, 1988 - Interim Compensation - Claimants sought interim compensation of Rs. 50,000 for death of daughter-in-law in motor accident - Tribunal rejected application on ground that claimants were not dependents - High Court held that under Section 140, claimants need not prove negligence or dependency; only requirement is death arising out of use of motor vehicle - Appeal allowed, interim compensation granted (Paras 4-6).

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Issue of Consideration

Whether the claimants are entitled to interim compensation under Section 140 of the Motor Vehicles Act, 1988 without proving negligence?

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Final Decision

Appeal allowed. Impugned order dated 22.11.2017 set aside. Respondent No. 1 (New India Assurance Co. Ltd.) directed to pay interim compensation of Rs. 50,000 to the claimants within four weeks.

Law Points

  • No-fault liability
  • Section 140 Motor Vehicles Act
  • 1988
  • interim compensation
  • death in motor accident
  • dependency
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Case Details

2019 LawText (BOM) (06) 141

First Appeal No. 690 of 2018

2019-06-19

M. G. Giratkar

Shri P. R. Agrawal for claimants/appellant, Shri Sandeep Marathe for respondent no. 1

Saberabi Wd/o Ab. Rauf

New India Assurance Co. Ltd., Rajesh s/o Babulal Agrawal, Kripa Shankar s/o Ram Din

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Nature of Litigation

Appeal against rejection of application under Section 140 of Motor Vehicles Act, 1988 for interim compensation.

Remedy Sought

Claimants sought interim compensation of Rs. 50,000 under no-fault liability.

Filing Reason

Death of daughter-in-law in motor vehicle accident; claimants claimed to be dependents.

Previous Decisions

Motor Accident Claims Tribunal, Akola rejected application Exh. 6 on 22.11.2017 on ground that claimants were not dependents.

Issues

Whether claimants are entitled to interim compensation under Section 140 of Motor Vehicles Act, 1988 without proving negligence or dependency?

Submissions/Arguments

Claimants argued that under Section 140, no proof of negligence or dependency is required; only death arising out of use of motor vehicle is sufficient. Respondent insurance company opposed the application.

Ratio Decidendi

Under Section 140 of the Motor Vehicles Act, 1988, the claimant is entitled to interim compensation without proving negligence or dependency; the only requirement is that death resulted from an accident arising out of the use of a motor vehicle.

Judgment Excerpts

Section 140 of Motor Vehicles Act, 1988 reads as under: ... (3) In any claim for compensation under subsection (1), the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person.

Procedural History

Claimants filed MACP No. 92 of 2016 before Motor Accident Claims Tribunal, Akola. They filed application Exh. 6 under Section 140 MV Act for interim compensation. Tribunal rejected application on 22.11.2017. Claimants filed First Appeal No. 690 of 2018 before Bombay High Court, Nagpur Bench. High Court heard and allowed appeal on 19.06.2019.

Acts & Sections

  • Motor Vehicles Act, 1988: 140
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