In Mac.App 154 of 2022- DEL HC- Motor Vehicle (Amendment)Act: Delhi High Court reiterates the provision of Section 164(1) which awards a consolidated amount of Rs 5 lakh in each case of death
Justice Rajnish Bhatnagar [24-05-2023]

Read Order: Iffco Tokio General Insurance Company Limited v Uma Devi

Simran Singh

New Delhi, May 25, 2023: In a Motor Accident Claim appeal, the Delhi High Court, dismissed the appeal filed by the insurance company vis-a-vis Section Section 164 (1) of the Motor Vehicles (Amendment) Act, 2019 which states to award a consolidated amount of INR 5,00,000/- in each case of death, and further enhanced the interest rate from 6% per annum to 7.5% per annum from the date of filing of the petition before the Tribunal till the date of realisation.

In the matter at hand, the appellant challenged the order dated 23-03-2022 passed by the Motor Accident Claim Tribunal on the ground that it failed to appreciate the provision under section 164 of  Motor Vehicle Act 1988 (‘MV Act’), being in force at the time of passing the order which clearly stated that the award shall be INR 5,00,000/- in case of death. It was further submitted that the Tribunal awarded additional amount of INR 1,21,000/- towards compensation without there being any provision.

The Respondent vehemently opposing the contentions of the appellant stated that the Tribunal while passing the award had duly considered the Second Schedule annexed to the MV Act and granted only INR 5,00,000/-as the compensation amount as per the judgment of the Supreme Court in National Insurance Co. Ltd. vs. Pranay Sethi.

The Bench upon perusing Section 164 (1) of the Motor Vehicles (Amendment) Act, 2019 stated that the aim of the legislature while passing this amendment was to award a consolidated amount of INR 5,00,000/- in each case of death. Thus, it was stated that the provision here ought to have been considered by the Tribunal while passing the order.

The Court further enhanced the interest rate from 6% per annum to 7.5% per annum from the date of filing of the petition before the Tribunal, till the date of realisation as per the established principles of law held by the Supreme Court in S. Chandrasekharan v M. Dinakar.

The Bench directed the Tribunal to re-compute the compensation amount after considering the above modifications, thereafter the same was to be disbursed to the claimants as per the scheme of disbursal mentioned therein. In view thereof, the Court dismissed the appeal and the statutory amount of INR 25,000 deposited by the appellant insurance company was to be refunded to the appellant.