Case Note & Summary
The case arises from a motor accident claim filed by the parents of a deceased person who died after falling from a moving BEST bus (No. MH-01-LA-6788). The Motor Accident Claims Tribunal, Mumbai, passed an interim award under Section 140 of the Motor Vehicles Act, 1988, granting Rs.50,000/- as no fault liability compensation. The appellant, the General Manager of BEST, challenged the award, arguing that the bus was an air-conditioned bus and the deceased was not a passenger, and therefore the accident did not arise out of the use of the vehicle. The High Court examined the provision of Section 140, which provides for no fault liability in cases of death or permanent disablement resulting from an accident arising out of the use of a motor vehicle. The Court noted that the section is intended to provide immediate relief to the victims or their dependents without the need to prove negligence. The Court found that the death occurred due to a fall from the moving bus, which clearly falls within the ambit of 'use of vehicle'. The Court held that the Tribunal was correct in awarding interim compensation and dismissed the appeal, confirming the award. The Court also directed that the amount be paid to the respondents if not already paid.
Headnote
A) Motor Accident Claims - No Fault Liability - Section 140 Motor Vehicles Act, 1988 - Interim Compensation - The Tribunal awarded interim compensation of Rs.50,000/- to the parents of the deceased under Section 140, holding that the death arose out of the use of the bus, irrespective of any negligence. The High Court upheld the award, noting that the provision is intended to provide immediate relief and does not require proof of fault. (Paras 1-5) B) Motor Accident Claims - Liability of Owner - Section 140 Motor Vehicles Act, 1988 - The appellant (BEST) contended that the bus was air-conditioned and the deceased was not a passenger, but the Court held that the death occurred due to fall from the moving bus, which is covered under 'use of vehicle'. The owner is liable to pay compensation under no fault liability. (Paras 2-5)
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in awarding interim compensation under Section 140 of the Motor Vehicles Act, 1988, on the basis of no fault liability, without requiring proof of negligence on the part of the bus driver.
Final Decision
The appeal is dismissed. The interim award passed by the Motor Accident Claims Tribunal under Section 140 of the Motor Vehicles Act, 1988 is confirmed. The appellant is directed to pay the amount to the respondents if not already paid.
Law Points
- No fault liability under Section 140 Motor Vehicles Act
- 1988
- Strict liability in motor accident claims
- Interim award without proof of negligence
- Liability of owner irrespective of negligence




