Case Note & Summary
The present appeal was filed by the original claimants, Jashmatbhai Hardasbhai Vora and another, under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 12.08.2013 passed by the learned Motor Accident Claims Tribunal (Main), Rajkot, in Motor Accident Claim Petition No.782 of 2003. The Tribunal had partly allowed the claim petition and awarded compensation of Rs. 1,54,500/- with interest at 8% per annum from the date of filing of the claim petition till its actual realization, to be recovered from opponent nos.1 to 3 jointly and severally. The claimants, being dissatisfied with the quantum of compensation, preferred the present appeal. The limited issue involved was whether the amendment to Section 163A(1) read with the Second Schedule of the Motor Vehicles Act, 1988, vide notification dated 22.05.2018, enhancing the compensation limit from Rs. 1 lakh to Rs. 5 lakhs, would apply to the pending appeal. The learned advocate for the appellants placed reliance on the decision of the Hon'ble Supreme Court in K.R. Jagdish and another vs. National Insurance Company Limited and Another reported in 2025 ACJ 1881, wherein it was held that the amendment is beneficial and should be applied retrospectively. The court, after hearing the parties, allowed the appeal, set aside the impugned judgment and award to the extent of quantum, and enhanced the compensation to Rs. 5 lakhs with interest at 8% per annum from the date of the claim petition. The respondent no.2-United India Insurance Company Ltd. was directed to deposit the enhanced amount within eight weeks.
Headnote
A) Motor Vehicles Act - Compensation under Section 163A - Enhanced Limit - The amendment to Section 163A(1) read with the Second Schedule of the Motor Vehicles Act, 1988, vide notification dated 22.05.2018, enhancing the compensation limit from Rs. 1 lakh to Rs. 5 lakhs, is applicable to pending appeals. The court, relying on K.R. Jagdish v. National Insurance Co. Ltd. 2025 ACJ 1881, held that the beneficial amendment should be applied retrospectively to pending proceedings. (Paras 5-7) B) Motor Vehicles Act - Appeal against Tribunal Award - Enhancement of Compensation - The claimants, aggrieved by the Tribunal's award of Rs. 1,54,500/-, sought enhancement under Section 173 of the Motor Vehicles Act, 1988. The High Court, applying the amended Second Schedule, enhanced the compensation to Rs. 5 lakhs with interest at 8% per annum from the date of claim petition. (Paras 4-8)
Issue of Consideration
Whether the amendment to Section 163A(1) read with the Second Schedule of the Motor Vehicles Act, 1988, enhancing the compensation limit from Rs. 1 lakh to Rs. 5 lakhs, applies to pending appeals and entitles the claimants to enhanced compensation.
Final Decision
The appeal is allowed. The impugned judgment and award dated 12.08.2013 passed by the learned Motor Accident Claims Tribunal (Main), Rajkot in Motor Accident Claim Petition No.782 of 2003 is set aside to the extent of quantum. The respondent no.2-United India Insurance Company Ltd. is directed to deposit the enhanced compensation of Rs. 5 lakhs with interest at 8% per annum from the date of filing of the claim petition within eight weeks.
Law Points
- Section 163A Motor Vehicles Act
- 1988
- Second Schedule amendment 2018
- enhanced compensation limit from Rs. 1 lakh to Rs. 5 lakhs
- retrospective application of beneficial amendment
- K.R. Jagdish v. National Insurance Co. Ltd. 2025 ACJ 1881
