Case Note & Summary
The judgment pertains to three first appeals filed by the claimants against the order of the Motor Accident Claims Tribunal rejecting their applications under Section 140 of the Motor Vehicles Act, 1988 for interim compensation. The claimants were legal representatives of three deceased persons who died in a motor vehicle accident involving a truck. The Tribunal had rejected the applications on the ground that the accident was not proved to have been caused by the offending vehicle. The High Court, in a common judgment, held that Section 140 provides for no-fault liability and that the claimants are entitled to interim compensation without proving negligence. The court observed that the requirement under Section 140 is only that the death or permanent disablement resulted from an accident arising out of the use of a motor vehicle. The court set aside the Tribunal's order and directed the insurance company to pay Rs. 50,000 to each claimant within four weeks, with the amount to be adjusted against the final compensation.
Headnote
A) Motor Vehicles Act - Section 140 - No-Fault Liability - Interim Compensation - The court held that Section 140 of the Motor Vehicles Act, 1988 provides for payment of compensation on the principle of no-fault liability, and the claimant is entitled to interim compensation without proving negligence. The Tribunal erred in rejecting the application on the ground that the accident was not proved to have been caused by the offending vehicle, as the requirement under Section 140 is only that the death or permanent disablement resulted from an accident arising out of the use of a motor vehicle. (Paras 1-5) B) Motor Vehicles Act - Section 140 - Interim Compensation - Standard of Proof - The court clarified that for the purpose of Section 140, the claimant need only establish a prima facie case that the accident involved the motor vehicle. The Tribunal's insistence on proof of negligence or exact manner of accident was misplaced. The appeals were allowed, and the Tribunal was directed to pay interim compensation of Rs. 50,000 per claimant within four weeks. (Paras 4-5)
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in rejecting the application for interim compensation under Section 140 of the Motor Vehicles Act, 1988 on the ground that the accident was not proved to have been caused by the offending vehicle.
Final Decision
The appeals are allowed. The impugned orders passed below Exhibit 05 in Motor Accident Claim Petition No.126 of 2018, 128 of 2018, and 127 of 2018 are set aside. The Motor Accident Claims Tribunal is directed to pay Rs. 50,000 to each claimant within four weeks from the date of the order, subject to adjustment against the final compensation.
Law Points
- Section 140 of Motor Vehicles Act
- 1988 provides for no-fault liability
- interim compensation is payable without proof of negligence
- entitlement to compensation under Section 140 is not dependent on final adjudication of fault
