GOHAR MOHAMMAD vs. UTTAR PRADESH STATE ROAD TRANSPORT CORPORATION

Case Type: Civil Appeal

Date of Judgment: 15-12-2022

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Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.9322 OF 2022 [ARISING OUT OF SPECIAL LEAVE PETITION (C) NO. 32448 OF 2018] Gohar Mohammed    ...Appellant Versus Uttar Pradesh State Road Transport Corporation & others                            ...Respondent(s) J U D G M E N T J.K. Maheshwari, J. Leave granted.  2. The instant appeal has been filed assailing the final order   dated   06.09.2018   passed   by   the   High   Court   of Allahabad in First Appeal from Order No. 3303 of 2018, vide which   the   appeal   preferred   by   the   appellant   against   the award   dated   04.05.2018   passed   by   the   Motor   Accident Signature Not Verified Claims Tribunal (for short ‘ MACT ’) in MACP No. 1107 of 2012 Digitally signed by VISHAL ANAND Date: 2022.12.22 11:13:40 IST Reason: has been dismissed. MACT allowed the claim petition and 1 awarded a compensation of Rs. 31,90,000/­ (Thirty­one lacs and ninety thousand only) in favour of respondent Nos. 6, 7 and   8   (legal   representatives   of   deceased   and   hereinafter referred to as ‘ claimants ’) to be paid by respondent No. 5 ( ), with further direction to recover the Insurance Company same from appellant (hereinafter referred as  owner ) who was saddled with liability.  3. Facts briefly put are that, on the date of accident, i.e., 29.07.2012, the deceased was 24 years old and working as Managing Director at DRV Drinks Pvt. Ltd. While he was returning from factory to   residence, his car was hit from behind by a bus owned by appellant on the by­pass road near Sanhwali village (U.P.). The deceased sustained severe injuries and died on the way to hospital. FIR was lodged against the driver as well as owner of the offending vehicle and  on   19.01.2012,   claim   petition   was   filed   by  claimants before   MACT   seeking   compensation   of   Rs.   4,19,00,000/­ (Four crores and nineteen lacs only) under various heads. 4. The MACT vide order dated 04.05.2018, allowed the claim petition and awarded a total sum of Rs. 31,90,000/­ 2 alongwith   7%   interest.   While   computing   the   loss   of dependency,   the   annual   income   of   the   deceased   was accepted as Rs. 3,09,660/­ after making deduction towards personal expenses,   multiplier of 18 was applied. It was held that the vehicle was not being operated as per the terms of permit   and     was   in   violation   of   terms   and   conditions   of insurance policy, therefore the owner of the offending vehicle was held  liable to pay compensation. 5. Appellant filed appeal before the High Court assailing the issue of liability contending, inter alia, no violation of guidelines   as   such   was   there   and   submitted   that     the offending   vehicle   was   insured   with   insurance   company indemnifying the liability. Appellant further contended that he had Special Temporary Authorization (in short ‘permit’) to operate the bus on the route for which the fee was paid. The High   Court   vide   impugned   order   affirmed   the   findings   of MACT and held that the vehicle owner failed to produce the original   permit   and   also   could   not   get   the   same   proved calling   the   person   from   the   Transport   Department,   in absence,   the  Claims  Tribunal  rightly  decided  the   issue  of liability against the owner. 3 6. Challenging   the   concurrent   findings   of   the   Courts below, the appellant contested the instant appeal largely on the ground that failure to produce the original permit cannot lead   to   an   inference   against   him,   especially   when   such permit   has   been   duly   issued   by   Transport   Authority   and confirmed in the reply under Right to Information Act (for short ‘ RTI Act ’). It was further contended that the appellant had valid permit as he deposited the due fee on the next day after the date of issuance of permit and hence, the finding of Courts below that the appellant did not have  a valid permit, as such  fastened  the liability  for payment of compensation is unjust.   7. Per contra, the State as well as Insurance Company mainly relied on the findings recorded by the Courts below to  contend that the offending vehicle was not being plied as per   the   terms   and   conditions   of   the   permit   and   also   in violation of the terms and conditions of the insurance policy. It   has   further   been   contended   that   the   offending   vehicle stood withdrawn from State transport services way back in 4 2009 and was no more under the control of respondent No. 1, hence, the issue of liability has rightly been decided.  8. Having heard learned counsel for the parties and on perusal of the material available on record, it clearly reveals that on the date of accident, the appellant did not have a valid and effective permit to ply the offending vehicle on the route where   accident took   place. Having extensively gone through the fact­finding exercise, it is categorically recorded by   MACT   that   the   appellant   was   neither   able   to produce/prove the original permit nor  was able to prove the information received under RTI Act. Even if  RTI information is considered by which it is not clear as to when the disputed permit was issued and by whom.  The alleged  permit  was issued on 28.07.2012, i.e., on Saturday and  no explanation is on record as to why deposit of  fee was asked on the next day i.e.  Sunday. Moreover,  assuming that permit was  valid as per letter of  Transport Authority,  but it does not of any help to the appellant since the vehicle was being plied on a route different than specified in permit. The appellant has failed to give any explanation to refute the observations made by MACT to ply the vehicle on Roorkee by­pass to Haridwar 5 via   Meerut   which   did   not   fall   within   the   route   of   permit issued by Transport Authority.  The said findings of fact have been affirmed by the High Court by the impugned order. 9. After   going   through   the   record,     the   concurrent findings of fact do not warrant any interference since they do not outrageously defy the logic as to suffer from the vice of irrationality and neither incur the blame of being perverse. In view of foregoing discussion, we are of the considered opinion that   the   arguments   raised   by   appellant   are   bereft   of   any merit, hence this appeal is hereby dismissed. 10.   During the course of hearing of the appeal, Ms. Rani Chhabra, Mr. Sameer Abhyankar, Ms. Sakshi Kakkar and Mr.   Vivek   Gupta,   learned   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   (for   short   “M.V.   Amendment   Act”) 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 6 expeditiously   as   possible.     It   is   said   the   mandate   of   the provisions of the M.V. Amendment Act,  Rules and recourse as   specified     have   not   been   followed   by   the   stakeholders including Claims Tribunals working under subordination of different High Courts. 11.      It is urged, the legislation to pay compensation in monetary terms  for damages to person or property  cannot put the claimant into his original position.   What may be the adequate amount for a wrongful act is an extreme task.    The payment of compensation in a case of death or for damage to the   body   in   a   motor   accident   claim   may   be   based   on arithmetical calculation. How far it is just and reasonable, is a matter of satisfaction of the Court by adopting a uniform approach.   While   determining     compensation,   he/she   is required to be compensated as he/she   cannot sue again, therefore, the determination of compensation of the damages is an extreme task  Therefore in assessing the compensation . uniformity and reasonability are required to be followed. In such cases, dispensation of justice may cause social impact and   may   delay   payment   of   compensation.     Therefore, direction to follow the mandate of law at the earliest may be 7 issued.  12.    To advert the said issue, the assistance of learned Senior Counsel Mr. S. Nagamuthu, Mr. C.A. Sundaram, Mr. A.N.   Venugopala   Gowda   and   learned   counsel   Mr.   A.N. Krishna Swamy was sought as amici curiae including Ms. Garima Prashad,  Additional Advocate   General for  State  of U.P. They have rendered their assistance  being officers of the Court in true sense and spirit which we acknowledge. 13.  Learned     counsel  for   the   parties   and   learned   amici curiae have mainly advanced their arguments with respect to M.V. Amendment Act in particular Chapter XI thereof, inter alia, emphasizing the importance of Sections 146, 149, 159, 160, 161, 164, 166 of the M.V. Amendment Act.   It is urged that the Motor Vehicles (Fifth Amendment), Rules, 2022 (for short “M.V. Amendment Rules”) have also been brought into force w.e.f. 1.4.2022 after the M.V. Amendment Act.  Prior to the amendment of Act and Rules, as per the directions issued by   the   Delhi   High   Court   and   this   Court,   the   standard operating  procedure  formulated  and   circulated   to    all  the High Courts was observed by choice, and the outcome of its 8 implementation was negligible.  But, now by  amendment,  a statutory regime is prescribed which is not being followed in most of the High Courts and by subordinate courts though it is   required   to   be   followed   strictly.   However,     appropriate directions are required to   implement    the   regime of M.V. Amendment Act and Rules.   In alternative,   the hurdle in implementation  of   the     directions       by   joining   the   stake­ holders  may be directed  as  deemed fit.  In support of these contentions,  recourse  as taken by the Delhi High Court as well as this Court in the case of  ‘Rajesh Tyagi & Ors. Vs. Jaibir Singh & Ors.2009 SCC Online Del 4306’  (for short “ Rajesh Tyagi I” ),   ‘Jai Prakash Vs. National Insurance (for short “ Jai Prakash Co. Ltd. & Ors., (2010) 2 SCC 607’  I” ),  ‘Rajesh Tyagi & Ors. Vs. Jaibir Singh & Ors., 2014 (for   short   “ ), SCC   OnLine   Del   7626’   Rajesh   Tyagi   II” ‘Rajesh Tyagi & Ors. Vs. Jaibir Singh & Ors., 2017 SCC Online Del 4306’   (for short “ Rajesh Tyagi III” ) have been relied   upon,   in   addition   to   refer   the   provisions   of   M.V. amendment Act and Rules. 9 14. After   having   heard     learned   counsels,     we   deem   it necessary to trace the history as to how the M.V. Amendment Act and M.V. Amendment Rules have been brought into force to set up new regime to deal with the claim cases since the time of accident.  Evolution   of   Motor   Vehicles   Act   vis­à­vis   2019 Amendment –  15. In this regard, the distinguished attempt to address the ensuing concerns was made by the Delhi High Court in Rajesh Tyagi I   (supra). In the said case, the Court while dealing with the question of effective implementation of Delhi Motor   Accident   Claims   Tribunal   Rules,   2008   and   Section 158(6)   of   M.V.   Act   (pre­2019   amendment)     directed   the Station House Officers to submit ‘accident information report’ to MACT within 30  days  of  accident and  said  report   be treated as claim petition by MACT for the purpose of inquiry. Suggestions   were   invited   and   later   a   committee   was constituted   to   find   out   a   mechanism     for   time   bound settlement of motor accident claim cases. After deliberations 10 from all   stakeholders, the committee submitted a draft of ‘agreed   procedure’   and   consequently     vide   order   dated 16.12.2009,   the   Delhi   High   Court   formulated   “Claims Tribunal Agreed Procedure”  (for short  ‘CTAP’ ) for time bound settlement of motor accident claims within 90 to 120 days and directed its implementation only for  trial as pilot project for a period of six months from 15.01.2010 to 14.07.2010. The   CTAP   in   addition   to   Section   158(6),   in   a   nutshell provided as follows –  1. Mandatory intimation of factum of the accident by Investigating Officer to the Claims Tribunal within   48   hours   of   the   accident   and   if information   about   insurance   company   is available by that time, then intimation to the concerned insurance company by email; 2. Appointment of designated officer by insurance company   for   each   case   immediately   upon receipt of intimation; 3. Collection of relevant evidence by Investigating Officer   relating   to   accident   as   well   as computation   of   compensation   (photographs, proof of age, proof of income of deceased etc.); 4. Detailed Accident Report (DAR) to be filed by Investigating   Officer   before   Claims   tribunal within   30   days   of   the   accident   and   a   copy thereof to the concerned insurance company; 11 5. Copy   of   DAR   alongwith   documents   to   be submitted to Legal Services Authority; 6. Discretion of the Claims Tribunal on application made for extension of time in cases where the Investigating Officer is unable to complete the investigation within 30 days for reasons beyond his control; 7. Production of driver, owner, claimant and eye­ witnesses   before   Claims   Tribunal   alongwith DAR; 8. Furnishing of report by concerned Registration Authority   in   Form­D   of   Delhi   Motor   Accident Claims Tribunal Rules, 2008 to the Police and Claims Tribunal within 15 days from the receipt of request; 9. Examination of DAR by the Claims Tribunal as to whether the DAR is complete in all respects or not; 10. Treatment of DAR filed by Investigating Officer as claim petition under Section 166(4) of Motor Vehicles Act (pre 2019 Amendment); 11. Grant of 30 days’ time to Insurance Company by Claims Tribunal to examine the DAR and to take a decision as to quantum of compensation; 12. Assessment   of   compensation   by   designated officer accompanied with reasoned order which shall constitute a legal offer to the claimants and in case, when such offer is acceptable to the claimant, Claims Tribunal to pass a consent award   with   a   further   30   days’   time   for   the insurance company to deposit the amount; 12 13. Time period of not more than 30 days’ to be granted   by   Claims   Tribunal   to   claimant   to respond to offer made by insurance company; 14. Conduct of enquiry by Claims Tribunal under Section   168   and   169   (pre   2019   Amendment) and passing of award within 30 days’ in case of non­acceptance of offer by claimant given by insurance company; 15. Computation   of   compensation   payable   to   the legal representatives of deceased victims to be done by Claims Tribunal in accordance with the principles laid down by Hon. Supreme Court in ‘Sarla Verma Vs. DTC, 2009 (6) SCALE 129’; 16. Minimum   wage   to   be   considered   by   Claims Tribunal in cases where legal representatives of the   deceased   do   not   have   documentary evidence as to proof of income of deceased; 17. Consideration of principles laid down by Delhi High Court in ‘National Insurance Co. Ltd. Vs. Farzana, MAC. APP.13/2007’ in case of death of a child.   16.   The     High   Court   also   directed   the   Delhi   Police   to prepare “Accident Investigation Manual” for implementation of   the    .   In the output, it revolutionized the Motor CTAP Accident   Compensation   Scheme   due   to   which   the 13 claimant(s) received the compensation within 120 days of the accident.  17. Another notable effort was made by this Court in  Jai  (supra), wherein this Court identified majorly four Prakash I issues i.e.,  firstly , grant of compensation in cases of ‘hit and run where the vehicles remain unidentified   which do not have   insurance   cover     having   third   party   insurance   but carrying  persons   not   covered   by   the   insurance’;   secondly , ‘widespread practice of using goods vehicles for passenger traffic’;   thirdly , ‘procedural delays in adjudication of claims by Motor Accident Claims Tribunal and following hardships to   the   victims;   and     ,   ‘the   full   amount   of fourthly compensation not reaching the victims, particularly to those who are uneducated’. Having regard to the nature of subject matter   and   considering   the   suggestions   made   by   amicus, vide   order   dated   17.12.2009     guidelines/directions     were issued by this Court to   be carried out in three stages, the same are reproduced in brief as under:–  Directions to Police Authorities   1. Director  General  of  Police   for  each  State  is directed to instruct all Police Stations in the 14 State   to   comply   with   provisions   of   Section 158(6)   of   Motor   Vehicles   Act   (pre   2019 Amendment) and submit Accident Information Report   in   Form   no.   54   accompanied   with copies   of   First   Information   Report,   site sketch/mahazar/photographs,   insurance policy,   etc.   to   the   jurisdictional   MACT   and insurance   company   within   30   days   of registration of FIR; Directions to Claims Tribunals 1. Registrar   General   of   each   High   Court   is directed to instruct all Claims Tribunal in his State   to   register   the   reports   of   accidents received under Section 158(6) of the Act and deal   with   them   without   waiting   for   filing   of claim petition. Further, Registrar General shall ensure   that   necessary   registers,   forms   and other support is extended to the Tribunal; 2. Tribunal shall maintain an Institution Register for   recording   Accident   Information   Reports received   from   Station   House   Officers   and register   them   as   miscellaneous   petitions. Tribunal shall further fix a date of preliminary hearing and after appearance of claimants, it shall be converted into claim petition; 3. Tribunal shall satisfy itself that the Accident Information Report relates to a real accident and   is   not   a   result   of   any   collusion   or fabrication; 4. In case of non­dispute of liability by insurance company, Tribunal shall make an endeavor to determine   the   compensation   amount   by summary enquiry or refer the matter to Lok 15 Adalat for settlement and dispose­off the claim petition itself within a time frame not exceeding six   months   from   the   date   of   registration   of claim petition; 5. Tribunal   shall   direct   insurance   company   to deposit   the   admitted   amount   or   the   amount determined,   with   Claims   Tribunal   within   30 days of determination; Suggestions for Insurance Companies 1. In case of death and non­dispute of liability by insurance company, endeavor shall be made by insurance company to pay compensation as per   standard   formula   to   the   family   (legal representatives) of deceased  without  waiting for decision of Tribunal or settlement by Lok Adalat; 2. In case of injuries and non­dispute of liability by insurance company, the insurer should offer treatment   at   its   cost   to   the   injured   without waiting for award of the Tribunal; 3. To   protect   and   preserve   the   compensation amount awarded to families, special schemes in consultation with Nationalized Banks and Life   Insurance   Corporation   of   India   may   be considered by the insurance companies under which   the   compensation   is   kept   in   fixed deposit for an appropriate period and interest is paid by Bank on monthly basis; 4. Insurance   companies   may   also   consider offering   annuity   instead   of   lump   sum compensation and prepare an annuity scheme with involvement of Life Insurance Corporation of India. 16 Suggestions for Legislative/Executive intervention 1. Formulation   of   more   comprehensive   scheme ensuring   payment   of   compensation   to   all accident victims of road accidents; 2. Introduction of hybrid model which involves collection of fixed lifetime premium in regard to   each   vehicle   plus   imposition   of   a   road accident   cess   which   may   provide   more satisfactory   solution   in   vast   country   like India; 3. Define   ‘third   party’   to   cover   any   accident victim other than the owner and increase the premia, if necessary; 4. Consider rationalization of Second Schedule to   the   Act   and   increase   the   quantum   of compensation payable under Section 161 of the Act in case of hit and run motor accidents; 5. Secure compensation to the victims of road accidents   involving   uninsured   vehicles   by directing the owner of vehicle to offer security or deposit an amount adequate to satisfy the award as a condition precedent for release of seized vehicle. 18. With the advent of time, the suggestions and guidelines issued   by   Courts   were   adopted   and   implemented   by   the authorities.   Progress   reports   were   filed   by   stakeholders   at regular   intervals   for   consideration   of   court.   Similarly,   in furtherance of the directions given by Delhi High Court in 17 Rajesh Tyagi I (supra) the  CTAP   was implemented in the territory of Delhi and certain lacunae were identified in its practical implementation. Meetings were convened involving all the stakeholders and further suggestions were presented before Court for incorporation in order to make the guidelines more   efficient.  The  suggestions   were   duly   considered,   and Delhi  High  Court   vide   order   dated   12.12.2014   in   ‘ Rajesh  (supra) incorporated the suggestions and appended Tyagi II   the   modified   Claims   Tribunal   Agreed   Procedure   to   be implemented with effect from 01.02.2015 for a period of six months   subject   to   review after expiry of three months. Following   is   the   gist   of   modifications   as   carried   out   and approved by Delhi High Court :­  1. Intimation of the accident by the Investigating Officer has to be in Form I of the modified procedure (Clause 2); 2. List   of   documents   to   be   collected   by Investigating Officer is given under Clause 3; 3. Detailed Accident Report (DAR) to be filed by Investigating Officer shall be in Form II of the modified procedure; 4. Duty of Investigating Officer to seek directions from Claims Tribunal in Part X of Form II of DAR,   in   event   of   failure   of 18 driver/claimant/owner/   insurance   company to disclose relevant information and produce documents before Investigating Officer within 15 days; 5. Duty   of   insurance   companies   to   get   DAR verified by their surveyor within 20 days of the receipt of copy of DAR (Clause 20); 6. Report of the Designated Officer of insurance company   shall   be   in   Form   III   of   modified procedure (Clause 21); 7. Duty of Claims Tribunal to elicit the truth and satisfy itself that the statements made in DAR are   true   before   passing   the   award   (Clause 24); 8. Duty of the Claims Tribunal to examine the claimants   before   passing   the   award   to ascertain   their   financial   condition,   proof   of residence etc. (Clause 26); 9. Manner   of   deposit   of   award   amount   to   be specified by Claims Tribunal (Clause 27); 10. Claims Tribunal to pass an appropriate order for protection of award amount (Clause 28); 11. Claims   Tribunal   shall   deal   with   the compliance   of   provisions   in   award   (Clause 29); 12. Claims Tribunal shall fix a date for reporting compliance (Clause 30); 13. Copy of DAR as well as award to be sent to concerned Magistrate (Clause 31); 14. Record of award passed by Claims Tribunal shall be maintained in Form V (Clause 33); 19 19. The aforesaid modified procedure was given a seal of affirmation by this Court vide order dated 13.05.2016 passed in   ,   while   reviewing the progress Jai Prakash I (supra) made with respect to legislative changes that were suggested by previous order dated 17.12.2009 The modified procedure approved by Delhi High Court was brought on record and after perusal, this Court observed as follows:   “We have also perused the procedure, which has been placed  before us  as  Annexure  R5 with the  response which, in our view, appears to be a comprehensive one and that we can issue further directions to the Registrar General of the Delhi High Court to ensure that procedure is strictly followed insofar as Delhi is concerned and also circulate the said procedure to all the other High Courts and the Registrar General of all the other High Courts are directed to ensure that the said procedure is implemented   through   the   Motor   Accident   Claims Tribunal   in   coordination   with   the   Legal   Service Authorities as well as the Director General of Police of the States concerned.” Subsequently,   this   Court   vide   order   dated   06.11.2017, modified its earlier order dated 13.05.2016 and directed all States to implement the ‘ Modified   CTAP ’ while observing as follows –    “The   order   dated   13.05.2016   will   therefore   stand modified to the extent that Justice Midha has himself th modified his earlier order on 12  December, 2014. The Registry will send a copy of this order as well as the 20 th order passed by Justice Midha on 12  December, 2014 to   the   Registrar   General   of   each   High   Court   for necessary information and compliance. List the matter rd on 23  January, 2018.”  20. In pursuance of the implementation of the guidelines, the proceedings in  Rajesh Tyagi I (supra)  continued before Delhi High Court and vide order dated 07.12.2018 (for short ‘ Rajesh Tyagi III ’), the Delhi High Court incorporated few more   directions   in   the   modified   .   However,   effective CTAP implementation   of   the   modified   procedure   remained   a persistent roadblock at all  levels, especially in terms of the directions given by this Court vide order dated 13.05.2016 and 06.11.2017 in  . The said concern Jai Prakash I (supra) again   came   for   consideration   before   this   Court   in   ‘M.R. Krishna Murthi Vs. The New India Assurance Co. Ltd., 2019   SCC   OnLine   SC   315’ ,   wherein,   vide   order   dated 05.03.2019, this Court categorically noted that there was no effective   implementation   of   modified     by   Claim CTAP Tribunals at all India level. Taking note of the aforesaid, this Court directed National Legal Services Authority to take up the matter and monitor the same in co­ordination and co­ 21 operation with various High Courts. Further, directions were also   given   to   State   Judicial   Academies   to   sensitize   the Presiding Officers of Claim Tribunals, senior police officials and  insurance   companies   for   implementation   of     modified CTAP . Lastly, this Court also directed the Claim Tribunals pan   India   to   implement   ‘Motor   Accident   Claims   Annuity Deposit Scheme’ (for short ‘ MACAD Scheme ’) as formulated by Delhi High Court in  Rajesh Tyagi III (supra) . The relevant paragraphs are being reproduced below for ready reference –  “32. Notwithstanding   the   aforesaid   ADR   methods, adjudicatory   process   before   the   MACTs   is indispensable.   There   cannot   be   a   guarantee   that 100% cases would be settled through mediation or Lok   Adalat.  Therefore,   there   is   a   dire   need   for deciding   these   cases   without   delays   and   within reasonable period. The Delhi High Court has given few judgments providing for mechanism to speed up the   disposal   of   such   cases   and   to   ensure   that schemes are settled within a period of 90/120 days from   the   date   of   accident.   In   nutshell,   these directions include that on the occurrence of accident, the police which comes into the picture in the first instance,   should   complete   the   investigation   and along with filing of FIR before the concerned Court of Metropolitan Magistrate, copies are sent to MACT as well   as   Insurance   Company   also.   Insurance Company is supposed to look into the same to find out as to whether the claim is payable and within 30 days it should respond to MACT and once all these documents are before the MACT in the form of 22 evidence etc., as well, it would enable the MACT to decide the case within 30 days……. th 33. Vide   order   dated   06   November,   2017   in   Jai Prakash Case, this Court modified its order dated th 13  May, 2016 and directed all States to implement the   Modified   Claims   Tribunal   Agreed   Procedure th   formulated by Delhi High Court on 12       December, 2014.   The   copy   of   the   Modified   Claims   Tribunal Agreed Procedure was directed to be circulated to the Registrar General of each High Court necessary for compliance……. 34. This needs to be followed at all India level. NALSA should take up and monitor the same as well in coordination   and   cooperation   with   various   High Courts to facilitate the same.  xxx xxx xxx 37. Thus,  direction for implementation of the ‘Claims Tribunal Agreed Procedure’ which is substituted by modified procedure, as noted above, are already there. However, we find that  there is no proper implementation   thereof   by   the   Claims   Tribunals. We, thus, direct that there should be programs (sic) from time to time, in all State Judicial Academies to sensitize   the   presiding   officers   of   the   Claims Tribunals, senior police officers of the State Police as   well   as   Insurance   Company   for   the implementation of the said Procedure.  21. Based on the guidelines issued by this Court and Delhi High   Court,   recommendations   were   made   by   Group   of Transport   Ministers   (GoM)   of   States   alongwith   other stakeholders.   The Central Government with an objective to ‘improve road safety, facilitate citizens in their dealings with transport   departments,   strengthen   rural   transport,   public 23 transport,   last   mile   connectivity   through   automation, computerization and online services’ introduced  ‘The Motor . The aforesaid Bill was Vehicles (Amendment) Bill, 2019’   passed by both the  Houses  as   ‘The Motor Vehicles Act,   1988 (59 of 1988).  22. Vide new Amendment,   ‘Chapter X’   of the preceding Act   was   omitted.     ‘Chapter   XI   –   Insurance   of   Motor Vehicles against third party risks’ and Chapter XII – were amended as per the Motor Vehicle Claims Tribunals   Amendment Act, 2019 which came into force w.e.f. 1.4.2022. For the purpose of this case,  we are mainly concerned with Chapters XI and XII of the Amendment Act and the Rules to emphasize the necessity of insurance, duties specified to the police officer, registering authority, insurance companies and Clam Tribunals to determine compensation.  Necessity of Insurance of the vehicle: 23. By   virtue   of   an   amendment   made   in   Section   146, insurance   of   motor   vehicle   is   made   necessary.     The   said Section is relevant, therefore reproduced as under: 24 “ 146 :  Necessity for insurance against third party risk.
(1) No person shall use, except as a passenger, or cause or<br>allow any other person to use, a motor vehicle in a public<br>place, unless there is in force in relation to the use of the<br>vehicle by that person or that other person, as the case<br>may be, a policy of insurance with the requirements of this<br>Chapter:
[Provided that in the case of a vehicle carrying, or meant<br>to carry, dangerous or hazardous goods, there shall also<br>be a policy of insurance under the Public Liability<br>Insurance Act, 1991 (6 of 1991).]
Explanation. —A person driving a motor vehicle merely as<br>a paid employee, while there is in force in relation to the<br>use of the vehicle no such policy as is required by this sub­<br>section, shall not be deemed to act in contravention of the<br>sub­section unless he knows or has reason to believe that<br>there is no such policy in force.
(2) Sub­section (1) shall not apply to any vehicle owned by<br>the Central Government or a State Government and used<br>for Government purposes unconnected with any<br>commercial enterprise.
(3) The appropriate Government may, by order, exempt<br>from the operation of sub­section (1) any vehicle owned by<br>any of the following authorities, namely:—
(a) the Central Government or a State Government, if<br>the vehicle is used for Government purposes<br>connected with any commercial enterprise;
(b) any local authority;
(c) any State transport undertaking:
Provided that no such order shall be made in relation to<br>any such authority unless a fund has been established<br>and is maintained by that authority in accordance with<br>the rules made in that behalf under this Act for meeting<br>any liability arising out of the use of any vehicle of that<br>authority which that authority or any person in its<br>employment may incur to third parties.
Explanation. —For the purposes of this sub­section,<br>“appropriate Government” means the Central Government<br>or a State Government, as the case may be, and—
25 (i)  in relation to any corporation or company owned by the Central Government or any State Government, means the Central Government or that State Government; (ii)  in relation to any corporation or company owned by the Central Government and one or more State Governments, means the Central Government; (iii)  in relation to any other State transport undertaking or any local authority, means that Government which has control over that undertaking or authority. 24. On perusing the M.V. Amendment Act, in particular Section 146 of Chapter XI, it is clear that a motor vehicle cannot ply on public place nor is allowed to be used at the public place unless insured.   The exemption from insurance has been prescribed  to the vehicles owned by   the Central Government, State Government, local authority or any State Transport Undertaking, if the vehicle  is used for the purpose not connected with any commercial enterprise.  Exemptions specified in sub­section (2)  are subject to the orders of the appropriate Government.   As per the said   provisions, the rigor     of   sub­section   (1)   would   not   apply   to   the   vehicles owned by the authorities specified in sub­section (3)  (a) to (c) subject to establishment of the fund and its maintenance by such   authority,   as   may   be   prescribed   by   appropriate Government.  Thus, exemptions permitted to the class  and category of the vehicles of the Central Government and State 26 Government are only   subject to the order of the appropriate Government on establishing and maintaining  fund by such authority.     The   appropriate   Government   has   also   been defined for the purpose of vehicles of local authorities and State Transport Undertakings. 25. The limits of the liability of the insurance have been prescribed under  Section 147 and in terms of the policy so issued   under   the   provisions   of   the   M.V.   Amendment   Act. Section 147 is reproduced thus: 147 : Requirements of policies and limits of liability. — (1)  In   order   to   comply   with   the   requirements   of   this Chapter, a policy of insurance must be a policy which— (a)  is issued by a person who is an authorised insurer; and (b)  insures the person or classes of persons specified in the policy to the extent specified in sub­section (2)— (i)  against any liability which may be incurred by him in  27 respect of the death of or bodily  [injury to any person, including   owner   of   the   goods   or   his   authorised representative carried in the vehicle] or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place; (ii)  against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required— (i)  to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury 27 sustained by such an employee arising out of and in the course of his employment other than a liability arising under   the   Workmen's   Compensation   Act,   1923   (8   of 1923) in respect of the death of, or bodily injury to, any such employee— (a)  engaged in driving the vehicle, or (b)  if it is a public service vehicle engaged as conductor of the vehicle or in examining tickets on the vehicle, or (c)  if it is a goods carriage, being carried in the vehicle, or (ii)  to cover any contractual liability. Explanation. —For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or   damage   to   any   property   of   a   third   party   shall   be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place notwithstanding that the person who is dead or injured or the property which is damaged was not in a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place. (2)  Subject to the proviso to sub­section (1), a policy of insurance referred to in sub­section (1), shall cover any liability incurred in respect of any accident, up to the following limits, namely:— (a)  save as provided in clause (b), the amount of liability incurred; (b)  in respect of damage to any property of a third party, a limit of rupees six thousand: Provided that any policy of insurance issued with any limited   liability   and   in   force,   immediately   before   the commencement of this Act, shall continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier. (3)  A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected a certificate   of   insurance   in   the   prescribed   form   and containing   the   prescribed   particulars   of   any   condition subject to which the policy is issued and of any other 28 prescribed matters; and different forms, particulars and matters may be prescribed in different cases. (4)  Where a cover note issued by the insurer under the provisions of this Chapter or the rules made thereunder is   not   followed   by   a   policy   of   insurance   within   the prescribed time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify   the   fact   to   the   registering   authority   in   whose records the vehicle to which the cover note relates has been registered or to such other authority as the State Government may prescribe. (5)  Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. The   aforesaid   provision   specifies   what   may   be   the requirements   of   the   insurance   policies   and   on   having insurance,   limits   of   liability   to   pay   compensation   to   the claimants.  ACTION   BY   POLICE   OFFICERS   AND   REGISTERING AUTHORITIES IN THE EVENT   OF OCCURRENCE OF ACCIDENT   BY  USE   OF  MOTOR   VEHICLE   AT  PUBLIC PLACE: 26. While following the procedure, where an accident has taken place, information regarding accident is required to be furnished to the police officer.  The relevant provisions with 29 respect to the information and duties of the police officer and registering authority have been specified under Sections 159 and 160 of the M.V. Amendment Act, which are reproduced as thus: “159 .   Information  to  be  given  regarding  accident.—The police officer shall, during the investigation, prepare an   accident   information   report   to   facilitate   the settlement of claim in such form and manner, within three  months  and  containing such particulars  and submit the same to the Claims Tribunal and such other agency as may be prescribed.”
160. A registering authority or the officer­in­charge of a
police station shall, if so required by a person who
alleges that he is entitled to claim compensation in
respect of an accident arising out of the use of a
motor vehicle, or if so required by an insurer against
whom a claim has been made in respect of any motor
vehicle, furnish to that person or to that insurer, as
the case may be, on payment of the prescribed fee,
any information at the disposal of the said authority
or the said police officer relating to the identification
marks and other particulars of the vehicle and the
name and address of the person who was using the
vehicle at the time of the accident or was injured by it
and the property, if any, damaged in such form and
within such time as the Central Government may
prescribe.”
27. From   the   above,   it   is   evident   that   on   receiving   the intimation of the accident and during investigation, the police officer is required to prepare the accident information report 30 ( AIR ) and shall work as a facilitator   in   settlement of the claim in a manner as prescribed and furnish the information to the Claims Tribunal and other stakeholders, as specified. The police officer and registering authority are supposed to discharge   their   functions   to   facilitate   and   furnish   the information   on   payment   of   prescribed   fees   to   the   person entitled for compensation or to insurer, against whom the claim has been made.   They shall also facilitate to identify the vehicle, name and address of the person using the vehicle at the time of accident and also regarding a person injured or property involved, as prescribed. 28. The Central Government in its wisdom with an intent to carry out the purpose of the  Act promulgated the Rules, known as Motor Vehicle Amendment Rules, 2022.   29. As per the  Rules, in the event of a road accident, the investigation   must   be   started   immediately   on   receipt   of information   by   the   police   officer   of   the   police   station concerned.   The   Investigating   Officer   shall   inspect   site   of accident,   take   photographs/videos   of   scene   and   vehicle involved, followed by preparation of site plan drawn to scale 31 as to indicate the width  of road(s) as the case may be and other   relevant   factors   including   the   persons   and   vehicles involved in the accident. In a case of injury, the Investigating Officer shall take photographs of the injured in the hospital and   shall   conduct   spot   enquiry   examining   the eyewitnesses/bystanders.   The   intimation   regarding   the accident  is required to  be furnished by Investigating Officer within 48 hours to the Claims Tribunal in the shape of  First Accident Report ( ) in  . It is further required to be FAR Form­I sent to the Nodal Officer of the insurance company on having particulars of the insurance policy.   The injured/victim(s), legal representative(s), State Legal Services Authority, insurer shall also be provided the copy of    and the same must Form­I be uploaded on the website of the State Police, if available.  30. It   would   be   the   duty   of   the   Investigating   Officer   to inform the injured/victim(s)/legal representative(s) regarding their rights by supplying  Form­II  attaching flow chart within 10 days specifying the scheme to seek remedial measure. It would   be   the   duty   of   the   Investigating   Officer   to  ask   the information in  Form­III  and  Form­IV  from the driver(s) and 32 the   owner(s)   respectively   within   30   days.   As   per   the   new regime, on receiving the information, Interim Accident Report ( ) shall  be submitted by the Investigating Officer to the IAR Claims   Tribunal   within   50   days   in   Form   V   along   with relevant   documents.   A   copy   of   the   said   IAR   shall   be furnished to the insurance company of the motor vehicle(s) involved   in   the   road   accident,   victim(s)/claimant(s),   State Legal   Services   Authority,   insurer   and   General   Insurance Council. The Investigating Officer or the insurance company shall have right to verify the details of the driver and   the owner by using the     App or shall take the help of VAHAN Registering Authority. Investigating Officer is duty bound to take   the   relevant   details   from   the   victim(s)   or   the   legal representative(s), as the case may be  and furnish the details within 60 days in   .     is modulated to the Form­VI Form­VI­A minor children, who are in need of care and protection in terms   of   the   Juvenile   Justice   (Care   and   Protection   of Children) Act, 2015.   31. On   failure   to   submit   the   relevant   information   and documents,   as   required   in   Forms   III,   IV   and   VI   by   the 33 driver(s),   owner(s),   claimant(s)   or   any   information   by   the insurance   company,   the   Investigating   Officer   may   ask   for direction to the stakeholder(s) before  the Claims Tribunal to furnish   such   information   within   15   days.   The   registering authority is duty bound to verify the licence of driver, fitness and permit of the vehicle(s) involved in the accident and shall supply such information within 15 days to the Investigating Officer. Similarly, for the purpose of issuance of medico legal report or the post­mortem report, the hospital is required to furnish such  information to the Investigating Officer within 15 days.  32. The   Investigating   Officer   shall       within   90   days compile all relevant documents and material in the form of Detailed Accident Report ( DAR ) in   Form­VII   accompanying site plan   Form­VIII , mechanical inspection report    Form­IX  verification report        and the report under Section , Form­X 173 Code of Criminal Procedure (Cr.P.C.)   It would be the duty   of   the   registering   authority   to   verify   the   registration certificate, driving licence, fitness and permit in respect of the   vehicle(s)   involved   in   the   accident   and   the   same   is 34 required to be submitted within 15 days to the Investigating Officer to complete the   and  . The extension of time IAR DAR limit to file   IAR   and   DAR   is only permissible   where the Investigating Officer approaches the Claims Tribunal in cases where parties reside outside the jurisdiction of the Court or where the driver’s licence is issued outside the jurisdiction of the   Court   or   where   the   victim(s)   have   suffered   grievous injuries and are undergoing continuous treatment.   Thus, the Investigating Officer shall furnish   within 48 hours, FAR IAR   within 50 days,   complete the investigation within 60 days and file    DAR   within 90 days. Copy of   DAR   shall be furnished to the victim(s), owner(s)/driver(s) of the vehicle(s), the insurance company involved and the State Legal Services Authority   including   the   Nodal   Officer   of   the   insurance company and the General Insurance Council.   33. On perusal of the above, it is clear that to carry out the purpose of the provisions of Sections 159 and 160 of the M.V. Amendment Act, the Officer In­charge   of the police station and the registering authority are required to act upon in a manner   as   prescribed   in   the   Rules   within   the   period   as 35 specified,  thereby  on receiving the information of accident, the complete information regarding such accident is to be made available before the Claims Tribunal within  the  time limit  without delay.  As per Rules, the failure to perform the duties by the police officer may  entail severe consequences as envisaged under the provisions of the State Police Act. Thus,   legislative   intent   is   clear   that   on   reporting   a   road accident    the    Investigation Officer  must complete  all  his action within   time frame and shall act as facilitator to the victim(s)/claimant(s),   insurance   company   by   furnishing   all details   in   prescribed   forms,   thereby   claimant(s)   may   get damages/compensation  without delay.  PROCEDURE   TO   PROCESS   THE   CLAIM   BEFORE TRIBUBAL  FOR GRANT OF COMPENSATION. 34. Under the M.V. Amendment Act and the Rules framed thereunder, by omitting Chapter­X, the provisions for grant of compensation under no­fault liability have been deleted and the special procedure has been carved out introducing Section 149.   The aforesaid section is relevant to deal with the issue in context, therefore  reproduced as thus: 36 “ 149.Settlement   by   insurance   company   and  —  procedure therefor. (1) The   insurance   company   shall,   upon   receiving information of the accident, either from claimant or through   accident   information   report   or   otherwise, designate an officer to settle the claims relating to such accident.  (2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before   the   Claims   Tribunal   giving   such   details, within   thirty   days   and   after   following   such procedure   as   may   be   prescribed   by   the   Central Government.  (3) If, the claimant to whom the offer is made under sub­section (2), —  (a) accepts such offer, —  (i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and  (ii) the   payment  shall   be  made  by  the  insurance company   within   a   maximum   period   of   thirty days from the date of receipt of such record of settlement;  (b) rejects such offer, a date of hearing shall be fixed by the   Claims   Tribunal   to   adjudicate   such   claim   on merits. 35. As per Section 149, on receiving the information of the accident   from   claimant   or   from   the   Accident   Information Report   ( AIR ),   the   insurance   company   shall   appoint   a ‘Designated Officer’ to settle the claim.   The said officer is required to make an offer to the claimant(s), specifying its 37 detail   within   30   days   by   following   such   procedure,   as prescribed   by   the   Central   Government.   Sub­section   (3)   of Section   149   makes   it   clear   that   the   offer   made   by   the Designated Officer may either be accepted or rejected by the injured/victim or legal heirs of the deceased. In case, the offer   is   accepted,   the   Claims   Tribunal   shall   record   the settlement and treat such a claim as settled by consent. On such settlement, the payment has to be made by insurance company   within   30   days.   But,   in   the   latter   situation   of rejection of such offer, the Claims Tribunals shall fix a date of hearing for adjudication of such claim on merits.   36. Section 164 of M.V. Amendment Act is relevant to deal with the claim cases in which negligence is not required to be pleaded and  proved and the same is  reproduced thus: Section 164 ­ Payment of compensation in case of death or grievous hurt, etc (1) Notwithstanding 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 grievous hurt due to any accident   arising   out   of   the   use   of   motor   vehicle,   a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be. 38 (2) In any claim for compensation under sub­section (1),   the   claimant   shall   not   be   required   to   plead   or establish that the death or grievous hurt 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   of   the   vehicle   concerned   or   of   any   other person.
(3) Where, in respect of death or grievous hurt due to
an accident arising out of the use of motor vehicle,
compensation has been paid under any other law for
the time being in force, such amount of compensation
shall be reduced from the amount of compensation
payable under this section.
37. The aforesaid provision has been brought where the claimant(s) is not required to plead or establish any wrongful act or neglect or default of the owner(s) of the vehicle(s) or of any   other   person   for   payment   of   compensation.     Therefore, sub­section  (1)  has   been  given  overriding   effect  limiting  the liability to pay compensation to the tune of Rs. 5 lakhs in case of death and Rs. 2.50 lakhs in case of grievous hurt to the legal heirs   or to the victim(s), as the case may be.       It is further made clear  the compensation, if payable in any other law, then such amount is required to be reduced from the amount of compensation payable   under this Section, meaning thereby the legislative intent is clear  that a person, who has suffered with an accident must be compensated just and reasonably and the victim(s)/family of the deceased must be paid   for the 39 bodily injury or loss of life caused by an accident  by use of a motor vehicle  at a public place. 38. In  addition  to  the   said   process   of   adjudication,   the claimant(s)   have   the   option   for   taking   recourse   directly   by approaching   the   Claims   Tribunal     by   filing   an   application seeking  compensation.   The  said   provision  of   Section  166  is relevant and reproduced as thus: “166 . Application for compensation. (1) An   application   for   compensation   arising   out   of   an accident   of   the   nature   specified   in  sub­section   (1)   of section 165 may be made —  (a)    by the person who has sustained the injury; or  (b)     by the owner of the property; or  (c) where death has resulted from the accident, by all or any of the legal representatives of the deceased; or  (d) by any agent duly authorized by the person injured or all  or any of  the legal representatives  of  the deceased, as the case may be:  Provided   that   where   all   the   legal   representatives   of   the deceased   have   not   joined   in   any   such   application   for compensation, the application shall be made on behalf of or for the benefit of all the legal representatives of the deceased and the legal representatives who have not so joined, shall be impleaded as respondents to the application. Provided further that where a person accepts compensation under section 164 in accordance with the procedure provided under   section   149,   his   claims   petition   before   the   Claims Tribunal shall lapse.] 40 [(2) Every application under sub­section (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: [(3)  No   application   for   compensation   shall   be   entertained unless it is made within six months of the occurrence of the accident.] [(4) The Claims Tribunal shall treat any report of accidents forwarded to it under section 159 as an application for compensation under this Act.] [(5) Notwithstanding anything in this Act or any other law for the time being in force, the right of a person to claim compensation for injury in an accident shall, upon the death   of   the   person   injured,   survive   to   his   legal representatives,   irrespective   of   whether   the   cause   of death is relatable to or had any nexus with the injury or not.] 39. On perusal, it is clear that in the case of injuries or of death or of damage of property arising out of motor accident at a public place, application for grant of compensation can be   submitted   directly   to   the   Claims   Tribunal   by   the claimants.  In the case of death, all the representatives of the deceased or any of them may file an application.  If all have not   joined   as   applicant(s),   remaining   may   be   joined   as respondents. Under this Section, if the claimant(s) apply for 41 grant of compensation, they have  option to choose  the place or   the   Claims   Tribunal,   which   may   have   the   jurisdiction either where, the accident occurred or the claimant(s) resides or carries  business or in the local limits of whose jurisdiction the   defendant   resides.     For   taking   recourse     under   the aforesaid Section, the application seeking compensation can be  entertained  if it is filed within six months from the date of the accident.  As per second proviso of sub­section (1), it is apparent that in case recourse under Section 164 or  as per the procedure specified in Section 149 has been taken and the   compensation   is   accepted   by   the   claimant(s),   then recourse under Section 166 would not be available. But, in case the compensation has not been accepted under Section 149 or  the recourse of Section 164 has not been taken, the Claims Tribunal, in whose jurisdiction the accident occurred, shall treat the report of Section 159 as claim petition under this Act and may proceed to  decide the same  in accordance with law. 40. On perusal of the scheme of the Act, it is clear that as a   first   recourse   by   not   pleading   or   establishing   proof   of wrongful act, neglect or default of the owner or driver or  of 42 the vehicle, the compensation can be claimed under Section 164,   but such compensation is   of limited   amount to the tune, as specified in  case of  death or grievous injury.  The second recourse available to the claimant(s) is to apply   by proving     wrongful   act   and   neglect   of   the   owner(s)   or   the driver(s)     before   the   Claims   Tribunal   by   opting   the jurisdiction   at   a   place   specified   under   sub­section(2)   but such claim must be filed  within six months from the date of accident   and   be   adjudicated   by   the   Tribunal.     The   third recourse has been prescribed by introducing Section 149 of M.V. Amendment Act  by which in case the claimant(s) have failed to take recourse either under Section 164 or Section 166   within   the   prescribed   period   of   limitation,   the   report submitted by the investigating officer to the Claims Tribunal, within whose jurisdiction the accident occurred,     may be treated as claim application under Section 166(4) and  would not debar the claimant(s) to seek compensation if he/they could not file the application under Section 166(1) of the Act. 41. As discussed above, Section 149 lays emphasis on the settlement of the claim in case the liability  of the  insurance company   is   not   in   dispute   subject   to   complying   other 43 necessary formalities, as prescribed.   The said provision also emphasize   the determination of compensation within  time frame     without   delay,   thereby   the   victim   may   get compensation   for   the   damages   at   the   earliest.   On harmonious  reading and construing  the said three Sections, it   is   therefore   clear   that   the   M.V.   Amendment   Act emphasizes the need to pay compensation to the claimant(s) or   legal   representative(s)   and   decide   the   claim   by   taking recourse whatever is opted by the claimant(s) at the earliest and the family should not be left to suffer without payment of damages.  In cases of rash negligent driving where    DAR does not bring   the charge of negligence or the claimant(s) choose to claim compensation under no­fault   despite the charge of negligence, the said claim shall be registered  under Section 164 and it be dealt with accordingly.  42. As per Rules, except in  cases under Section 164, for the   claims  either under Section 149 or 166, the procedure prescribed in the M.V. Amendment Rules  is required to be followed by the Claims Tribunal.   As specified, on receiving the   FAR , the Claims Tribunal is required to register such 44 FAR   as Miscellaneous Application.   On filing the   IAR   and DAR ,   it   shall   be   attached   and   be   made     part   of   the Miscellaneous Application.  The Claims Tribunal is required to examine the  ,   or  , as the case may be and in FAR IAR DAR the   proceedings   of   the   said   Miscellaneous   Application, appropriate   direction   for   production   of   requisite   forms prescribed   in   the   Rules   through     claimant(s),   driver(s), owner(s)  or extension of time, as specified, may be directed. It should be kept in mind by the Claims Tribunal that the said   DAR   may be treated as   an application under Section 166 as per sub­section (4) thereof.   In case the claimant(s) have taken the recourse under Section 166(1) & (2) and filed a separate claim petition, the said  DAR  may be  tagged  with the   said   claim   petition,   otherwise   the   proceedings   under Section 149 shall continue.    The Claims Tribunal awaiting the report under Section 173 Cr.P.C. may satisfy itself with respect to the negligence before passing an award. 43. On  filing   FAR , if  IAR/DAR  is not complete, the time shall be fixed by the Claims Tribunal to complete the same and  on completion, the date for appearance of the driver(s), 45 owner(s), claimant(s) and eye witness(s)   shall be fixed and they shall be produced by the Investigating Officer on the date so fixed.   It shall also be the duty of the Investigating Officer   to   intimate   the   Nodal   Officer   of   the   insurance company and also the insurance company to secure their presence on such date. 44. After lodging the FIR and on receipt of  information by the insurance company, it would be the duty of the company to appoint a Nodal Officer  and furnish the intimation to the state police, who shall co­ordinate with all stakeholders.  On receiving   the   information   through   Nodal   Officer,   the insurance company shall verify the claim up to the stage of filing the  DAR.   In case it is  found that  DAR  is not correct, the Designated Officer of the insurance company shall send a copy of the report of the surveyor/investigator to the Deputy Commissioner or equivalent officer of the  Police Department or otherwise  to carry out the purpose of Section 159.  The said   officer   shall   make     an   offer     to   the   claimant(s)   for settlement before the Claims Tribunal, specifying the details of offer   and   submit  the said proposal   within 30 days of 46 DAR   in   Form­XI   along   with   the   report   of   the surveyor/investigator.     On   submitting     such   form,   the claimant(s) may accept the offer of the insurance company or may   reject   the   same.     In   case   the   offer   is   accepted,   the Claims Tribunal shall take such offer on record and  by the consent the claim be settled recording satisfaction that the compensation, as settled, is just and reasonable and pass an award   in   terms   of   such   settlement.     Prior   to   passing   an award, it is open to the Tribunal to examine the claimant(s) for ascertaining their  financial condition, owner(s), driver(s) and the insurer   to submit their defence, if any to satisfy itself.  In case the offer made by the Designated Officer is not accepted   by   the   claimant(s),   rejecting   such   offer,   the claimant(s) are required to file relevant material asking more amount of compensation for which the date of hearing shall be fixed by the Tribunal to adjudicate the   claim on merit. After fixing the date and recording the evidence, if required, written submissions may be taken and thereafter Tribunal shall finally adjudicate  and decide the claim.  After  passing the award, copy of the   and the award so passed be sent DAR to   the   criminal   court   and   accordingly,   the   Miscellaneous 47 Application     registered by the Tribunal shall be treated as disposed of.  ANALYSIS OF THE M.V. AMENDMENT ACT AND RULES WITH   AN   INTENT   TO   FIND   OUT   CONVENIENT PROCEDURE FOR ADJUDICATION  OF THE CLAIM CASES WITHOUT ANY DELAY . 45. As per the discussion made hereinabove, it is made clear that the M.V. Amendment Act  and the Rules have been introduced with an advent  to implement the steps taken by   the Court issuing directions to carry out the purpose of the benevolent   legislation.     As   per   the   M.V.   Amendment   Act, insurance of the vehicle, until exempted, is made necessary to carry out the purpose of the Act and the Rules subject to the conditions, as specified under Section 147.   46. The claimant(s)  have been given three options to claim compensation   before   the   Claims   Tribunal.     As   discussed hereinabove,     the   option   under   Section   164   is   without pleading the proof of negligence while option under Section 166(1) & (2)  by the claimant(s) is  by proving the negligence of the  offending  vehicle.   In   addition,    Section   149   is added  by which the de novo procedure has been prescribed 48 immediate   on registration of FIR by taking action through the police officer before the Claims Tribunal.  It is urged by learned Amicus Curiae that  the said procedure is not being followed in most part of the country by the Claim Tribunals though the said Section is   a complete code in itself in the matter   of   distribution   of   the   compensation.     Therefore, appropriate directions are required. 47. As   prescribed   under     M.   V.   Amendment     Act   and Rules,  the police officials  and the registering authority are bound to take action in the event when an accident takes place and the information is received by them.  Further, it is seen  that as per Rule 3 of the M.V. Amendment Rules, the police   officer   is     required   to   furnish     the   details   to   the victim(s) regarding his/their rights in a road accident and the flow chart of the scheme along with  Form­II  is required to be furnished   to   them.     The   said   flow   chart     and   all   other documents,  as specified  in the   Rules,     must be  either in vernacular language or in  English and shall be furnished to the   claimant(s)   or   other   affected   persons,   as   per   their convenience. They  are required to take immediate action and submit   the   report   to   the   Claims   Tribunal   informing   the 49 victim(s), driver(s), owner(s), insurance company and other stakeholders with an intent to facilitate them, subject to the directions of the Claims Tribunal.    The Claims Tribunal is also duty bound to take immediate action and to proceed  in the matter as required under the Act and the Rules.   48 In our view, the contentions advanced by the learned counsels     deserve   to   be   allowed.     The   police   officers   and registering authority are duty bound to act as per the M.V. Amendment Act and the Rules and are required to submit the   ,  and within  the prescribed period under FAR  IAR  DAR  the Rules.   The registering authority is also bound to take action in the matter of verification  of the permit, fitness of vehicle, driver licence and on other ancillary issues.   The insurance company is bound to appoint the Nodal Officer  as per Rule 24 to facilitate the Investigating Officer in the matter of   enquiry   and   investigation,   submitting   details   regarding insurance and co­ordinate with  the stakeholders.   49. In our view,  the  procedure  carved out under  Section 149 of the Amendment Act is   de novo   on filing the   FAR before   the   Claims   Tribunal   and   Tribunal   is   required   to 50 register such proceedings as Miscellaneous Application.  On filing  and     by the police officer within the time as  IAR DAR specified, it shall be made part thereof.  If the claimant(s) has not opted for taking recourse under Section 166(1) within the time limit of six months, such Miscellaneous Application may be treated as an application under Section 166(4) of M.V. Amendment Act and be adjudicated in accordance with law. Therefore, the procedure as prescribed under Section 149 is in addition to the proceedings of Sections 164, 166 of M.V. Amendment Act and such mandate of law is required to be followed in true sense and spirit. 50. Learned Amicus Curiae contends   that in a situation where the claimant(s) opts   to file a claim petition under Section 166  other than a place where the accident has taken place   taking   recourse   of   Section   166(2)   of   the   M.V. Amendment Act, the proceedings initiated under Section 149 is required to be closed and tagged with those proceedings. It is also  urged that possibility of filing application by opting the   Claims   Tribunals   at   different   places   within   territorial jurisdiction   of   different   High   Court     by   other   claimant(s) 51 cannot be ruled out.   It is further contended that in case the claim petitions have been filed at different places by different claimant(s) within the territorial jurisdiction of different High Courts, appropriate directions to transfer those cases  at one place   in   exercise   of   the   power   under   Section   142   of   the Constitution of India needs to be issued, thereby the delay may be curbed in proceeding  the claim case.   51. In our view, the argument as advanced is having force, therefore,   we   direct   that   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).   In case the claimant(s)/legal representative(s) have   filed   different   applications   under   Section   166   before different   Claim   Tribunals   at   different   places   outside   the 52 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.   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.  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 53 52. Learned Amicus Curiae has further pointed out that in some High Courts, distribution memos attaching  the Claims Tribunal   to   the     police   stations   have   not   been     issued, however     taking recourse under Section 149 of the M.V. Amendment Act  is not possible within the prescribed period of time, therefore directions may be issued to   prepare the distribution     memos   by   the   High   Courts   with   respect   to police stations and Claims Tribunals    in order to implement the     recourse of Section 149   of the M.V. Amendment Act and the Rules may be issued and the same be notified in public domain for the convenience of public.  53.  In this regard, it would suffice to observe  that 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.  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 54 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. 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. 54.  It is contended by learned Amicus Curiae that in case the   liability   of   the   insurance   company   is   not   disputed   in terms of the policy conditions commensurate to Section 147 of the Act, the offer  so made by the Designated Officer ought to be reasonable specifying   the detailed reasons to make such offer within the time as prescribed.  On the said offer, the Claims Tribunal shall seek consent of the claimant(s), whether   they agree for the same. In case, the claimant(s) does not agree with the said offer, the enquiry under Section 149(3) should be limited to the extent of enhancement of compensation shifting onus to claim such enhancement on 55 claimant(s)   which   is   required   to   be   discharged   by   the claimant(s). 55. We find force in the said contention.   Therefore, 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.  56. Learned  Amicus Curiae  further submits that in case the claimant(s) wishes to opt to take recourse under Section 166 of the M.V.  Amendment Act opting jurisdiction of Claims Tribunal   as specified under Section 166(2), in such cases, directions may be issued to join the Nodal Officer/Designated Officer   of   the   insurance   companies   of   a   place   where   the accident   took   place.     The   said   recourse   is   necessary   to further curb the delay  in tagging the proceedings of Section 149.   Those Designated Officer/Nodal Officer may be in a position to clarify regarding the details of the proceedings 56 already taken under Section 149 of the M.V. Amendment Act before the Claims Tribunal concerned.  57. We   find   force   in   the   said   contention.   Therefore,   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.  58. It is further urged by learned Amicus Curiae  that the Claims   Tribunal,   police   officials     and   the   insurance companies   must   be   sensitized     by   the   State   Judicial Academies   working   under   the   control   of   the   High   Courts with respect to the provisions of the M.V. Amendment Act and the Rules, thereby the said procedure must be adopted in­coordination with the police officials, insurance companies and other stakeholders.   We are in agreement to the said submission and direct the State Judicial Academies to take recourse to   sensitize   the stakeholders including the said 57 subject     in   their   annual   training     calendar   as   early   as possible. 59. Learned Amicus Curiae   has shown the apprehension that the procedure, as specified under Sections 149,159 and 160 of the M.V. Amendment Act and Rules, is for seeking compensation   de   novo.     As   per   the   said   procedure,   the greater  liability  has   been  fastened    on  the  police   officers, registering authority, Nodal Officer and Designated Officer of the   insurance   companies.     In   such   a   situation,   at   least officers of the police department must be well equipped  and conversant   with   the   provisions   and   rules   and   efficient   to discharge the function as specified in the Act and the Rules. Ordinarily the police officers may be efficient in investigation of   the   complicated   criminal   cases   but   the   procedure   as prescribed in the M.V. Amendment Act and Rules  is different than the procedure of investigation in criminal cases.  In fact it fasten duty on the police officer as a facilitator, in addition to the investigator and submit the report in prescribed forms. Therefore, the trained and equipped police officers may be posted in the police stations constituting a special unit to make   investigation   for   motor   accident   claim   cases.     After 58 going through the procedure, as discussed in detail above, we find some substance in the argument.  In our view, 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. 60. The learned amicus curiae  further submitted that in recording the evidence by Claims Tribunal, appointment  of local commissioner as per Rule 30 of the MV Amendment Rules 2022 may also be directed, otherwise looking at the pendency of claim cases before the Tribunals, it will cause delay in disposal.  61. In our view the said contention is as per   Rule 30. 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.   59 62. Accordingly, this appeal is decided 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   and   shall be filed IAR DAR 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. 60 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 61 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 62 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 63 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 64 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. 65 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. 62. Registry of this Court is directed to circulate   the copy of this judgment  to the Registrar General of all High Courts and the  Chief Secretary/Administrator   of   all   the   States/Union  66 Territories for implementation and  to carry out the purpose of Motor Vehicle Amendment Act and the Rules made thereunder. ..………….……………….J. ( S. ABDUL NAZEER ) ..………….……………….J. ( J.K. MAHESHWARI ) New Delhi; December 15, 2022.      67