SC Issues Comprehensive Guidelines For High Courts & States For Adjudication Of Claims Under MV Act Without Delay

The Supreme Court has issued comprehensive directions with the intent to find out the convenient procedure for adjudication of the claims under the Motor Vehicles Act without any delay.

The Court has noted the concern regarding the delay in disposal of the claims cases under the Motor Vehicles Act, in the trial court or at the appellate stage.

The Court has observed that the mandate of the provisions of the Motor Vehicles Amendment Act, Rules, and recourse as specified has not been followed by the stakeholders including Claims Tribunals working under the subordination of different High Courts. Therefore, directions to follow the mandate of the law at the earliest were sought before the Apex Court.

A Bench comprising Justice S Abdul Nazeer and Justice JK Maheshwari said that appropriate directions are required to implement the regime of the Motor Vehicles Amendment Act and Rules as the statutory regime prescribed, even after amendment, is not being followed in most of the High Courts and by subordinate courts, though it is required to be followed strictly.

The Court was hearing an appeal wherein the issue of the delay in adjudication of claims under motor vehicles was brought before the Supreme Court.

"[L]earned counsel for the parties have expressed concern regarding delay in disposal of the claims cases in trial court or at appellate stage. Emphasis has been made to the 'Objects and Reasons' of Motor Vehicles Amendment Act, 2019 which is a benevolent legislation brought with an intent to compensate the family of the deceased and the persons suffered with injuries including permanent disability as expeditiously as possible", it said.

The Court, therefore, appointed Senior Advocates S. Nagamuthu, C.A. Sundaram, A.N. Venugopala Gowda, Advocate A.N. Krishna Swamy, and Garima Prashad, Additional Advocate General for State of U.P. as amicus curiae in the present case to assist it.

The Supreme Court issued the following directions with an intent to find out convenient procedure for adjudication of the Claims without any delay:

(1) On initiation of the proceedings under Section 149 registering a Miscellaneous Application by the Claims Tribunal, in whose jurisdiction the accident occurred would continue until the proceedings under Section 166 has been filed by the claimant(s) separately. In the event of filing a separate application and on receiving the information in this regard either from the claimant(s), or investigating officer or insurance company, the proceedings under Section 149 shall be deemed as closed and be tagged with the proceedings of Sections 164/166 filed by the claimant(s).

(2) In case the claimant(s)/legal representative(s) have filed different applications under Section 166 before different Claim Tribunals at different places outside the territorial jurisdiction of one High Court, in the said contingency the Claims Tribunal, where the first claim petition is filed shall have jurisdiction to adjudicate and decide the same and other claim petition(s) filed by the claimant(s)/legal representative(s) in the territorial limits of other High Courts shall stand transferred to the Claims Tribunal where the first claim petition was filed and the proceedings under Section 149 shall be tagged with the said file.

(3) In order to curb the delay on account of pendency of claim petition(s) before different Claim Tribunals within the territorial jurisdiction of different High Courts, such direction is necessary. Therefore, we deem it appropriate to exercise our power under Article 142 of the Constitution of India.

(4) It is directed that Registrar General of the High Courts shall issue appropriate orders for transferring the subsequent proceedings and records to the Claims Tribunal where the first claim petition filed by the claimant(s) is pending. It is made clear here that the parties are not required to file any transfer petition before this Court seeking order of transfer in such individual cases pending in the jurisdiction of different High Courts.

(5) In the High Courts, where the distribution of police stations and specified Claims Tribunals is not already in force, steps shall be taken by the Registrar Generals to prepare distribution memos and notify the same time to time, thereby the proceedings under Section 149 may continue effectively in such Claim Tribunals without any delay

(6) The Tribunals, as notified, shall take recourse as discussed and on appointment of the Designated Officer as per Rule 23 of the Rules, the settlement of claim may be processed by the insurance company. The said proceedings would continue until it is tagged with the claim petition, if any, filed under Section 166 of the M.V. Amendment Act.

(7) It is also made clear that if the claimant(s) have not taken any recourse under Section 166, then the miscellaneous application be treated as claim petition under Section 166(4) of the M.V. Amendment Act and the Claims Tribunal is duty bound to decide such claim by following the procedure in accordance with law.

(8) We direct that the Designated Officer, while making offer, shall assign detailed reasons to show that the amount which is offered is just and reasonable. In case, the said offer is not accepted by the claimant(s), the onus would shift on the claimant(s) to seek for enhancement of the amount of compensation and the said enquiry under Section 149(3) would be limited for enhancement only.

(9) We direct that if the claimant(s) wants to exercise the option under Section 166(2) of the M.V. Amendment Act, he/they are free to take such recourse by joining the Designated Officer/Nodal Officer of the insurance company of the place where the accident occurred as respondent in the claim petition.

(10) We direct the State Judicial Academies to take recourse to sensitize the stakeholders (the police officials, insurance companies,etc.) including the said subject (provisions of the M.V. Amendment Act and the Rules) in their annual training calendar as early as possible.

(11) The head of the Home Department of the State and the Director General of Police in all States/Union Territories shall ensure the compliance of the Rules by constituting a special unit in the police stations or at least at town level to investigate and facilitate the motor accident claim cases. The said action must be ensured within a period of three months from today.

(12) Where the insurance company disputes the liability, the Claims Tribunal is duty bound to record the evidence through the local commissioner and the fee/expenses of such local commissioner shall be borne by the insurance company.

Accordingly, the Supreme Court decided the appeal with the following directions:

i) The appeal filed by the owner challenging the issue of liability is hereby dismissed confirming the order passed by the High Court and MACT.

ii) On receiving the intimation regarding road accident by use of a motor vehicle at public place, the SHO concerned shall take steps as per Section 159 of the M.V. Amendment Act.

iii) After registering the FIR, Investigating Officer shall take recourse as specified in the M.V. Amendment Rules, 2022 and submit the FAR within 48 hours to the Claims Tribunal. The IAR and DAR shall be filed before the Claims Tribunal within the time limit subject to compliance of the provisions of the Rules.

iv) The registering officer is duty bound to verify the registration of the vehicle, driving licence, fitness of vehicle, permit and other ancillary issues and submit the report in coordination to the police officer before the Claims Tribunal.

v) The flow chart and all other documents, as specified in the Rules, shall either be in vernacular language or in English language, as the case may be and shall be supplied as per Rules. The Investigating Officer shall inform the victim(s)/legal representative(s), driver(s), owner(s), insurance companies and other stakeholders with respect to the action taken following the M.V. Amendment Rules and shall take steps to produce the witnesses on the date, so fixed by the Tribunal.

vi) For the purpose to carry out the direction No. (iii), distribution of police stations attaching them with the Claim Tribunals is required. Therefore, distribution memo attaching the police stations to the Claim Tribunals shall be issued by the Registrar General of the High Courts from time to time, if not already issued to ensure the compliance of the Rules.

vii) In view of the M.V. Amendment Act and Rules, as discussed hereinabove, the role of the Investigating Officer is very important. He is required to comply with the provisions of the Rules within the time limit, as prescribed therein. Therefore, for effective implementation of the M.V. Amendment Act and the Rules framed thereunder, the specified trained police personnel are required to be deputed to deal with the motor accident claim cases. Therefore, we direct that the Chief Secretary/Director General of Police in each and every State/Union Territory shall develop a specialized unit in every police station or at town level and post the trained police personnel to ensure the compliance of the provisions of the M.V. Amendment Act and the Rules, within a period of three months from the date of this order.

viii) On receiving FAR from the police station, the Claims Tribunal shall register such FAR as Miscellaneous Application. On filing the IAR and DAR by the Investigating Officer in connection with the said FAR, it shall be attached with the same Miscellaneous Application. The Claims Tribunal shall pass appropriate orders in the said application to carry out the purpose of Section 149 of the M.V. Amendment Act and the Rules, as discussed above.

ix) The Claim Tribunals are directed to satisfy themselves with the offer of the Designated Officer of the insurance company with an intent to award just and reasonable compensation. After recording such satisfaction, the settlement be recorded under Section 149(2) of the M.V. Amendment Act, subject to consent by the claimant(s). If the claimant(s) is not ready to accept the same, the date be fixed for hearing and affording an opportunity to produce the documents and other evidence seeking enhancement, the petition be decided. In the said event, the said enquiry shall be limited only to the extent of the enhancement of compensation, shifting onus on the claimant(s).

x) The General Insurance Council and all insurance companies are directed to issue appropriate directions to follow the mandate of Section 149 of the M.V. Amendment Act and the amended Rules. The appointment of the Nodal Officer prescribed in Rule 24 and the Designated Officer prescribed in Rule 23 shall be immediately notified and modified orders be also notified time to time to all the police stations/stakeholders.

xi) If the claimant(s) files an application under Section 164 or 166 of the M.V. Amendment Act, on receiving the information, the Miscellaneous Application registered under Section 149 shall be sent to the Claims Tribunal where the application under Section 164 or 166 is pending immediately by the Claims Tribunal.

xii) In case the claimant(s) or legal representative(s) of the deceased have filed separate claim petition(s) in the territorial jurisdiction of different High Courts, in the said situation, the first claim petition filed by the claimant(s)/legal representative(s) shall be maintained by the said Claims Tribunal and the subsequent claim petition(s) shall stand transferred to the Claims Tribunal where the first claim petition was filed and pending. It is made clear here that the claimant(s) are not required to apply before this Court seeking transfer of other claim petition(s) though filed in the territorial jurisdiction of different High Courts. The Registrar Generals of the High Courts shall take appropriate steps and pass appropriate order in this regard in furtherance to the directions of this Court.

xiii) If the claimant(s) takes recourse under Section 164 or 166 of the M.V. Amendment Act, as the case may be, he/they are directed to join Nodal Officer/Designated Officer of the insurance company as respondents in the claim petition as proper party of the place of accident where the FIR has been registered by the police station. Those officers may facilitate the Claims Tribunal specifying the recourse as taken under Section 149 of the M.V. Amendment Act.

xiv) Registrar General of the High Courts, States Legal Services Authority and State Judicial Academies are requested to sensitize all stakeholders as early as possible with respect to the provisions of Chapters XI and XII of the M.V. Amendment Act and the M.V. Amendment Rules, 2022 and to ensure the mandate of law.

xv) For compliance of mandate of Rule 30 of the M.V. Amendment Rules, 2022, it is directed that on disputing the liability by the insurance company, the Claims Tribunal shall record the evidence through Local Commissioner and the fee and expenses of such Local Commissioner shall be borne by the insurance company.

xvi) The State Authorities shall take appropriate steps to develop a joint web portal/platform to coordinate and facilitate the stakeholders for the purpose to carry out the provisions of M.V. Amendment Act and the Rules in coordination with any technical agency and be notified to public at large

The Court has directed the Registry to circulate a copy of its judgment to the Registrar General of all High Courts and the Chief Secretary/Administrator of all the States/Union Territories for implementation and to carry out the purpose of the Motor Vehicle Amendment Act and the Rules made thereunder.

Cause Title- Gohar Mohammed v. Uttar Pradesh State Road Transport Corporation & Ors.

Click here to read/download the Judgment