Claims Tribunal Under Motor Vehicles Act

CHAPTER XII OF MOTOR VEHICLES (AMENDMENT) ACT, 2019 DEALS WITH CLAIMS TRIBUNAL.

CHAPTER XII SECTION 165 CLAIMS TRIBUNAL (SECTIONS 165 TO 176)

SECTION 165 CLAIMS TRIBUNAL

State Government may by notification constitute one or more Motor Accidents Claims Tribunals (MACT) for such area as may be specified, for adjudicating upon claims for compensation involving accidental death/bodily injury to person or damages to any property of a third party.

It was held by the Supreme Court of India in MINU B. MEHTA V. BALKRISHNA , that the power of a State Government to constitute Claims Tribunal is optional, and the State Government may not constitute a Claims Tribunal for certain areas.

Provided Compensation here includes compensation under SECTION 164 .

Claims Tribunal shall consist such number of members as State government thinks fit. if more then 2 members - one shall be chairman.

QUALIFICATION - A person shall be qualified for appointment as a member of a Claims Tribunal if he is or has been A JUDGE OF A HIGH COURT, or is or has been JUDGE OF DISTRICT COURT, or is QUALIFIED FOR APPOINTMENT as a Judge of a High Court or as a District Judge . The State Government, may by general or special order, regulate the distribution of business, where two or more Claims Tribunals are constituted for any area.

SECTION 166 :- APPLICATION FOR COMPENSATION ( WHO CAN FILE FOR AN APPLICATION? )

An application for compensation involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, can be made —

  1. by the person who has sustained the injury; or
  2. by the owner of the property; or
  3. where death has resulted from the accident, by all or any of the legal representatives of the deceased; or
  4. by any agent duly authorized by the person injured.

PROVIDED : where all the legal representatives are not joined, they shall be impleaded as respondents.

PROVIDED : where person accepts compensation under SECTION 164 as per procedure under SECTION 149 his claims petition before claims tribunal shall lapse.

JURISDICTION

  • every application shall be made, at option of claimant , either at claims Tribunal having jurisdiction over the area where accident occurred or to the Claims Tribunal (CT) within the local limits of whose jurisdiction the claimant resides or carries on business or defendant resides.
  • no application shall be entertained unless it is made within 6 months of the occurence of accident.
  • the claims tribunal shall treat any report of accident forwarded to it as an application for compensation.
  • the right of a person to claim compensation for injury shall , upon the death of injured person, survive to his legal representative , irrespective of whether cause of death is relatable to / had ant nexus with the injury / not

SECTION 167 :- OPTION REGARDING CLAIMS FOR COMPENSATION

where death/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 may claim either of those Acts but not under both.

SECTION 168 :- AWARD OF THE CLAIMS TRIBUNAL

On receipt of an application, Tribunal gives notice of the application to the insurer , after giving the parties an opportunity of being heard, hold an inquiry into the claim and, make an award for compensation. The Tribunal shall specify the amount to be paid by the insurer or owner or by all of them.

Tribunal shall arrange to deliver copies of the award to the parties concerned expeditiously within fifteen days (15 days) from the date of the award.

Person required to pay amount in terms of award shall within thirty days (30 days) of announcing of award, deposit the entire amount as Tribunal may direct.

SECTION 169 :- PROCEDURE AND POWERS OF CLAIMS TRIBUNALS

  1. follow summary procedure as it thinks fit.
  2. Claims Tribunal shall have all the powers of a Civil Court/ Claims Tribunal shall be deemed to be a Civil Court as per Code of Criminal Procedure, 1973.
  3. Tribunal may choose one or more persons possessing special knowledge to assist it in holding the inquiry.
  4. Tribunal shall have power of a civil court for enforcement of its award.

Supreme Court of India in HARINAGAR SUGAR MILLS V. SHYAMSUNDER JHUNJHUINWA, has opined the distinction between Courts and Tribunals as “The word court is not defined in the COMPANIES ACT, 1956. It is not defined in the Civil Procedure Code. The definition in the Indian Evidence Act is not exhaustive, and is for the purpose of that Act. In the New English Dictionary the meaning is given is: ‘an assembly of judges or other persons legally appointed and acting as a tribunal to hear and determine any cause, civil, ecclesiastical, military or naval”.

In MOHD. RIYAZUR REHMAN SIDDIQUI V. DEPUTY DIRECTOR OF HEALTH SERVICES it was held that Tribunal has all the trapping of court since it passes an award which has all the ingredients of a judgement as known under civil jurisprudence.

SECTION 171 :- AWARD OF INTEREST WHERE ANY CLAIM IS ALLOWED

Tribunal may in addition to the amount of compensation, direct simple interest also to be paid at such rate and from such date not earlier than the date of making the claim as it may specify.

SECTION 172 :- AWARD OF COMPENSATORY COSTS

(1) If Tribunal is satisfied for reasons to be recorded by it in writing —

(a) that policy of insurance is void as it was obtained by representation of fact which was false in any material particular, or

(b) any party or insurer has put forward a false or vexatious claim or defence.

Tribunal may make an order for the payment, by guilty party, special costs by way of compensation to the insurer / other party.

(2) No special costs for any amount exceeding one thousand rupees. ( Rs. 1000)

(3) No person or insurer against whom an order has been made Shall be Exempted from any criminal liability in respect of such mis-representation.

(4) Any amount awarded compensation under this section shall be taken into account in any subsequent suit for damages.

SECTION 173 :- APPEALS

by aggrieved party within ninety days(90 DAYS) from the date of the award to High Court. no appeal shall be entertained unless twenty-five thousand rupees (Rs 25000) or fifty percent (50%) of amount which ever is less.

beyond ninety days (90 DAYS) if High Court Satisfied sufficient cause for delay.

No appeal if amount in dispute in appeal is less than one Lakh ( Rs. 100000)

SECTION 175 :- BAR ON JURISDICTION OF CIVIL COURTS

Where any Claims Tribunal has been constituted for any area, no Civil Court shall have jurisdiction to entertain any question relating to any claim which may be adjudicated by the Claims Tribunal.

SECTION 176 :- POWER OF STATE GOVERNMENT TO MAKE RULES

State Government may make rules for purpose of carrying into effect the provisions of SECTIONS 165 TO 174, rules may provide for following matters :—

  1. form of application for claims for compensation.
  2. procedure to be followed by a Claims Tribunal in holding inquiry.
  3. powers vested in a Civil Court which may be exercised by a Claims Tribunal.
  4. form and the manner in which an appeal may be preferred.
  5. any other matter which may be, prescribed.