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TMI Blog2004 (3) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... their further claims made on the basis of fault liability in terms of Section 165 thereof. Subject matter : The appeals arise out of judgment and order dated 9.11.2000 passed by the High Court of Gujarat at Ahmedabad in First Appeal No. 2272 of 2000 whereby and whereunder the claims of the appellants have been calculated limiting the income of the deceased at ₹ 40,000/- per annum.. Two review applications have also been filed seeking review of the judgment and order passed in Kodala's case (supra). An application under Article 136 of the Constitution of India has also been filed marked as S.L.P. (C) No. 708 of 2003 arising out of the judgment and order dated 28.8.2002 passed by the High Court of Himachal Pradesh in F.A.O. [MVA] No. 181 of 2001. Background Fact : The fact of the matter may be noticed from C.A. No. 3126 of 2002. The parents of the appellants herein met with an untimely death in an accident arising out of use of a motor vehicle on or about 4.9.1998. The appellant No. 1 was at the relevant time a major and the other three appellants were minors. The appellants filed two claim petitions; one under Section 163-A of the Act and the other under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntering into the exercise of interpreting the relevant provisions we have passed this order only because both the sides have shown a good gesture before us. At the time of awarding of compensation under section 166 of the Act all the contentions factual and legal as may be available to the respective parties are open to be agitated when the main petitions are considered by the Tribunal. Submissions : Mr. Gaurab Banerjee, learned senior counsel appearing on behalf of the appellants and Mr. G.L. Sanghi, learned senior counsel appearing on behalf of the review petitioners would take us through the legislative history leading to enactment of Section 163-A of the Motor Vehicles Act and submit that the same is indicative of the fact that an order passed thereunder is interim in nature. The learned counsel would urge that the said Act being a beneficent legislation deserves liberal construction and in that view of the matter the remedy available to a claimant against a tort feasor for obtaining a 'just' compensation in terms of Section 166 of the Act cannot be taken away only because an interim award has been made in terms of Section 163-A of the Act as in the said proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other law appearing in Sub-Section (5) of Section 140 to mean any other law for the time being in force as, for example, the Workmen's Compensation Act, 1923 . The said expression, the learned counsel would contend, would embrace also the other provisions of the said Act. According to the learned counsel, the expressions any other law would by necessary implication include the other provisions of the Motor Vehicles Act having regard to the fact that the remedies provided for under Sections 163-A and 166 are distinct and separate and are based on different legal regimes. It was pointed out that whereas under the former adequate and rational compensation is provided for, the latter provides for just compensation . Mr. Jitendra Sharma, learned senior counsel appearing on behalf of the respondents, on the other hand, would submit that Section 163-A which was introduced by the Parliament in the year 1994 carries absolutely a different scheme vis-`-vis 'no-fault liability' introduced in the year 1982 in Motor Vehicles Act, 1939 which was in pari materia with Section 140 in the 1988 Act. By enacting Section 163- A, Mr. Sharma would contend, an exception to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of rash and negligent driving. By reason of Section 92-A, 92-B in Motor Vehicles Act, 1939 inserted in the year 1982, a sum of ₹ 15,000/- was to be provided in case of death and a sum of ₹ 75,000/- in respect of permanent disablement by introducing the concept of no-fault liability . The amount of compensation, however, had been revised from time to time. The Law Commission furthermore recommended for laying of a scheme in terms whereof the victims of 'hit and run accident' could claim compensation where the identity of the vehicle involved in the accident was unknown. Yet again, the 199th Law Commission in its report submitted in 1987 stated the law as it stood then in the following terms: the law as it stands present, save the provisions in chapter VIIA inserted by the Motor Vehicles (Amendment) Act, 1982, enables the victim or the dependants of the victim in the event of death to recover compensation on proof of fault of the person liable to pay the compensation and which fault caused the harm. The present Act came into force thereafter in terms whereof inter alia Sections 92-A to 92-E of the 1939 Act were replaced by Sections 140 to 144 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of such death or permanent disablement be reduced on the basis of the share of such person in the responsibility for such death or permanent disablement. (5) Notwithstanding anything contained in sub-section (2) regarding death or bodily injury to any person, for which the owner of the vehicle is liable to give compensation for relief, he is also liable to pay compensation under any other law for the time being in force : Provided that the amount of such compensation to be given under any other law shall be reduced from the amount of compensation payable under this section or under Section 163-A. Sections 141 and 142 of the said Act read as under: 141. Provisions as to other right to claim compensation for death or permanent disablement. - (1) The right to claim compensation under Section 140 in respect of death or permanent disablement of any person shall be in addition to any other right, except the right to claim under the scheme referred to in Section 163-A (such other right hereafter in this section referred to as the right on the principle of fault) to claim compensation in respect thereof under any other provision of this Act or of any other law for the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. Explanation. - For the purposes of this sub-section, 'permanent disability' shall have the same meaning and extent as in the Workmen's Compensation Act, 1923 (8 of 1923). (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person. (3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule. 163-B. Option to file claim in certain cases. - Where a person is entitled to claim compensation under Section 140 and S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Every application under sub-section (1) shall be made, at the option of the claimant, either to the Claims Tribunal having jurisdiction over the area in which the accident occurred or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides, and shall be in such form and contain such particulars as may be prescribed: Provided that where no claim for compensation under section 140 is made in such application, the application shall contain a separate statement to that effect immediately before the signature of the applicant. (3) *** (4) The Claims Tribunal shall treat any report of accidents forwarded to it under sub-section (6) of section 158 as an application for compensation under this Act. 167. Option regarding claims for compensation in certain cases. - Notwithstanding anything contained in the Workmen's Compensation Act, 1923 (8 of 1923) where the death of, or bodily injury to, any person gives rise to a claim for compensation under this Act and also under the Workmen's Compensation Act, 1923, the person entitled to compensation ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion arising out of the use of motor vehicles. The following columns inter alia are required to be filled up: 10. Brief particulars of the accident... ... ... ... 11. Quantum of compensation claimed and basis thereof ... ... ... However, Rule 231 provides for procedure regarding compensation on the principle of no-fault which is in the following terms: 231. Procedure regarding compensation on the principal of no fault:- Notwithstanding anything contained in rules 211 to 230 and 232 in the case of a claim for compensation under Chapter X of the Act, the procedure shall be as follows, namely:- (1) An application for compensation shall be made to the Claims Tribunal in Form CWF, in triplicate, and shall contain the particulars specified in that form. (2) The application shall be accompanied by a fee of ten rupees in the form of Court fee stamps, and the following documents, namely: (i) First Information Report; (ii) Injury certificate or Post- mortem report in case of death; (iii) Heirship certificate in case of death; (iv) Certificate from the registering authority regarding ownership of the vehicle involved in the accident; (v) Partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laims Tribunal shall also specify the amount payable to each of them. (12) The Claims Tribunal, in passing the orders, shall also direct the owner or insurer, of the vehicle involved in the accident, to pay the amount of compensation to the claimant within thirty days from the date of the said orders. (13) Where the Claims Tribunal thinks that the actual payment to the claimant is likely to take time because of the identification and the fixation of the legal heirs of the deceased, the Claims Tribunal may call for the amount of compensation awarded, to be deposited with the Tribunal and then proceed with the identification of the legal heirs for deciding the payment of compensation to each of the legal heirs. In terms of the aforementioned rule, an application for compensation in respect of liability without fault is required to be filed without any particular as regard the accident having regard to the fact that by reason thereof, fault on the part of the driver of the motor vehicle is required to be pleaded or proved. ANALYSIS OF THE RELEVANT PROVISIONS: The relevant provisions of the Act are beneficial in nature. The Act indisputably is in the nature of a socia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deceased, the monthly income at the time of death, the earning potential in the case of the minor, loss of income on account of loss of limb etc., can be notified. The affected party can then have the option of either accepting the lump sum compensation as is notified in that scheme of structured compensation or of pursuing his claim through the normal channels. The General Insurance Company with whom the matter was taken up, is agreeable in principle to a scheme of structured compensation for settlement of claims on fault liability in respect of third party liability under Chapter XI of M.V. Act, 1988. They have suggested that the claimants should first file their Claims with Motor Accident Claims Tribunals and then the insurers may be allowed six months time to confirm their prima facie liability subject to the defences available under Motor Vehicles Act, 1988. After such confirmations of prima facie liability by the insurers the claimants should be required to exercise their option for conciliation under structured compensation formula within a stipulated time. The recommendations of the Review Committee and representations from public were placed before the Transport D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of compensation without fighting any protracted litigation for proving that the accident occurred owing to negligence on the part of the driver of the motor vehicle or any other fault arising out of use of a motor vehicle. The submission of learned counsel appearing on behalf of the appellants to the effect that Sections 140 and 163-A provide for similar scheme cannot be accepted for more than one reason. Payment of the amount in terms of Section 140 of the Act is ad hoc in nature. A claim made thereunder, as has been noticed hereinbefore, is in addition to any other claim which may be made under any other law for the time being in force. Section 163-A of the Act does not contain any such provision. Section 163-A of the Act is interlinked with several sections of Chapters XI and XII thereof. Section 140 imposes a liability upon the owner of the vehicle to pay compensation where death or permanent disablement of any person has resulted from accident arising out of the use of a motor vehicle. By reason of the said provision a fixed sum is to be paid. Sub-Section (4) of Section 140 provides that the claim for compensation under sub-section (1) thereof shall not be defeated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as regard age and income of the deceased or the victim, as the case may be. Unlike Section 140 of the Act, adjudication on several issues arising between the parties is necessary in a proceeding under Section 163-A of the Act. Decisions rendered by this Court are galore where computation as regard the amount of compensation has been related to multiplier method involving ascertainment of loss of dependency and capitalizing the same by appropriate multiplier. (See General Manager, Kerala State Road Transport Corporation, Trivandurm Vs. Mrs. Susamma Thomas and others, (1994) 2 SCC 176). The structured formula provided for in the Second Schedule also provides for similar concept as regard determination of the amount of compensation. Apart from the fact that compensation is to be paid by applying multiplier method under the Second Schedule other relevant factors, namely, reduction of one-third in consideration of the expenses which the victim would have incurred towards maintaining himself, general damages in case of death as also in the case of injuries and disabilities as also the disability in non-fatal accidents, a notional income for compensation to those who had no income p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Section 47 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 held that the language thereof is plain and certain statutory obligation on the employer was cast to protect an employee acquiring disability during service and only in that situation, it was observed: 9...In construing a provision of a social beneficial enactment that too dealing with disabled persons intended to give them equal opportunities, protection of rights and full participation, the view that advances the object of the Act and serves its purpose must be preferred to the one which obstructs the object and paralyses the purpose of the Act... It is also not a case where an exception or exclusion clause in a beneficial legislation has been provided for and, therefore, the decision of this Court in State of Tripura and Another Vs. Roopchand Das and Others [(2003) 1 SCC 421] cannot also be said to have any application. It is now well-settled that for the purpose of interpretation of statute, same is to be read in its entirety. The purport and object of the Act must be given its full effect. [See High Court of Gujarat Anr. Vs. Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t intended to provide for adjustment or refund of the compensation payable on the basis of no-fault liability, as for example, Sections 140 and 161 in case of hit and run motor accident, from the amount of compensation payable under the award on the basis of fault liability under Section 168 of the Act, the same has expressly been provided for and having regard to the fact that no such procedure for refund or adjustment of compensation has been provided for in relation to the proceedings under Section 163-A of the Act, it must be held that the scheme of the provisions under Sections 163-A and 166 are distinct and separate in nature. It is also not of much relevance that in terms of Section 140 of the Act, the owner of the vehicle has been fastened with the statutory liability and in Section 163-A thereof both the owner as also his authorised insurer has been made so liable. In Sub-Section (5) of Section 140 of the Act the expression also has been used which is indicative of the fact that the owner of the vehicle would be additionally liable to pay compensation under any other law for the time being in force. Proviso appended to Sub-Section (5) of Section 140 states that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of liability without fault and for the said purpose the claim application prescribed therefor is to be filed in Form No. CWF. The very fact that different forms had been prescribed as regard determination of the final compensation is also suggestive of the fact that both proceedings are meant to be final in nature. Column No. 10 in Form Comp. A requires the claimant to give brief particulars of the accident which would include the nature and extent of fault on the part of the driver of the vehicle, but no such column is provided for in Form CWF. Subject to the said distinction, all other particulars required to be furnished are almost identical. We may notice that Section 167 of the Act provides that where death of, or bodily injury to, any person gives rise to claim of compensation under the Act and also under the Workmen's Compensation Act, 1923, he cannot claim compensation under both the Acts. The Motor Vehicles Act contains different expressions as, for example, under the provision of the Act , provisions of this Act , under any other provisions of this Act or any other law or otherwise . In Section 163-A, the expression notwithstanding anything contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementioned, do not find any merit in the review applications which are dismissed. So far as Civil Appeal Nos. 3126/2002 and 3127/2002 are concerned, we in exercise of our jurisdiction under Article 142 of the Constitution direct that the claim applications of the appellants under Section 163-A of the Act be treated to be applications under Section 140 thereof. The amount invested by the Tribunal may be allowed to be withdrawn by the respondent - Insurance Company. The appellants shall refund the excess amount withdrawn by them after adjusting the amount payable in terms of Section 140 of the Act and the interest which would have accrued thereon shall be adjusted towards the compensation received by the claimant within four weeks from the date of communication of this order whereafter, the Motor Vehicles Accident Claims Tribunal shall proceed to determine their claim petitions filed under Section 166 of the Act in accordance with law. This order shall not be treated as a precedent. Section 163-A was introduced in the year 1994. The executive authority of the Central Government has the requisite jurisdiction to amend the Second Schedule from time to time. Having regard to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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