2019 Amendment To Section 166 of MV Act Enforced In 2022 Only; Claim Not Barred By Limitation: Gauhati HC Sets Aside MACT Order

The Gauhati High Courtset-aside a MACT order holding that the amendment inserting sub-section (3) to section 166 of the Motor Vehicles Act, 1988 was brought in 2019 but enforced in 2022.

The Court was considering a Motor Accident Claims Tribunal Appeal under Section-173 (1) of the Motor Vehicle Act challenging the order whereby the petition filed by the Appellant was dismissed as barred by law of limitation.

The single-bench of Justice Budi Habung observed, ".....considering that the accident occurred on 03.5.2019, prior to the enforcement of the amendment inserting sub-section (3) to section 166 of the MV Act, 1988, I am of the opinion that the learned Tribunal made erroneous interpretation of Section 166(3) of the MV Act, 1988, under incorrect belief that the amendment was enforced on 19.8.2019."

The Appellant was represented by Advocate N N Upadhyaya while the Respondent was represented by Advocate S P Sharma.

The brief facts of the case are that on 03.05.2019 while speaking on phone speaking in front of a shop, the Appellant was knocked down by the offending vehicle due to rash and negligent driving of the driver. Accordingly, the Appellant filed a case before MACT seeking compensation of ₹8,00,000/- for the injuries sustained in the accident. The Respondents contested the case and filed written statements along with a petition seeking for dismissal of the claim petition on the ground that it is barred by limitation. The Tribunal, however, dismissed the petition, holding that the accident occurred on 03.5.2011 but the claimant filed the claim petition on 11.11.2019, which is after 6 months of the accident. The Tribunal relied on Section-166 (3) of the M.V. Act, 1988 which states that no application for compensation shall be entertained unless it is made within six months of the occurrence of the accident. It thereby held that the claim petition is barred by limitation and dismissed the petition.

Counsel for the Respondent didn't object to the submissions of Counsel for the Appellant and fairly submitted that although Section-166 of the MV Act, 1988, was amended in the year 2019, it was notified by the Ministry of Road Transport and Highway only on 25.2.2022. She submitted that the notification stipulates that the Section-50 to 57 and Section-93 shall come into force on April 1st, 2022. 

The Court also agreed with the contentions of the Counsel for the Appellant.

"The learned Tribunal noted that the accident took place on 3.5.2019, but the appellant filed the claim petition only on 11.11.2019 i.e. after the six-month period. Therefore, the claim petition was dismissed as barred by law of limitation," the Court observed.

Cause Title: MD. Tibul Chaudhury vs. The Regional Manager, National Insurance Co. Ltd. and 2 Ors. (2024:GAU-AS:12578)

Appearances:

Petitioner- Advocate N N Upadhyaya, Advocate A Ahmed, Advocate S Sharma, Advocate B B Kakati

Respondents- Advocate S P Sharma, Advocate MD K Rahman, Advocate R D Mozumdar, Advocate C Mozumdar

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