NATIONAL INSURANCE COMPANY LIMITED vs SMT. SEETAMUNI

Court: Chhattisgarh High Court
Case type: MISC.APPEAL OF COMPENSATION
Decided on: 10-04-2026

<div> 1 2026:CGHC:16679 ASHOK SAHU AFR Digitally signed by ASHOK SAHU Date: 2026.04.10 18:06:19 +0530 HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 2314 of 2019 National Insurance Company Limited, Branch Office / Division Office, Priyadarshni Nagar, Bilaspur, Chhattisgarh. (Insurer Of Motorcycle Bearing Registration No. C.G. - 14 - ME -7329). ... Appellant versus 1 - Smt. Seetamuni, Wd/o. Late Sukhnath Ram, Aged About 23 Years, R/o. Village Raikona, Post Sitonga, Tahsil And District Jashpur, Chhattisgarh. 2 - Smt. Dubi Bai, W/o. Shri Bihanu @ Bihna Ram, Aged About 50 Years, R/o. Village Raikona, Post Sitonga, Tahsil And District Jashpur, Chhattisgarh. 3 - Bihna Ram, S/o. Late Shani Ram, Aged About 50 Years, R/o. Village Raikona, Post Sitonga, Tahsil And District Jashpur, Chhattisgarh. ………..(Claimants) 4 - Lalchand Ram, S/o. Shiva Ram @ Aetwa Ram Nagesiya, Aged About 35 Years, R/o. Village Kere (Kinkel), Kasira, Tahsil And District Jashpur, Chhattisgarh. (Owner Of Motorcycle Bearing Registration No. C.G.-14- ME-7329). 2 5 - Dilip Ram @ Ram Prasad, S/o. Chaman Ram, Aged About 33 Years, R/o. Purani Toli, Jashpur, District Jashpur, Chhattisgarh. (Driver Of Motorcycle Bearing Registration No. C.G. -14-ME-7329). ... Respondents For Appellant : Mr. Anil Gulati, Advocate For Respondents : None appeared. </div><table><thead><tr><th></th><th></th><th></th><th></th><th></th><th>(Single Bench)</th><th></th></tr></thead><tbody></tbody></table><table><thead><tr><th></th><th></th><th></th><th>Hon'ble Shri Justice Sanjay K. Agrawal</th></tr></thead><tbody></tbody></table><table><thead><tr><th></th><th>Judgment On Board</th></tr></thead><tbody></tbody></table><div> 10.04.2026 1. This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred questioning the award dated 30.08.2019 passed by the Motor Accident Claims Tribunal, Jashpur, in Motor Accident Claim Case No.07/2019, by which an amount of Rs. 6,94,599/- alongwith interest has been awarded to the claimants while allowing the application filed under Section 163 of the Motor Vehicles Act. 2. Mr. Anil Gulati, learned counsel for the appellant/insurance company, would submit that in view of the amendment made on nd 22 May, 2018, the claimant would be entitled only Rs. 5 Lakhs in view of the decision of the Supreme Court in the matter of New 1 India Assurance Co. Ltd. v. Urmila Halder . 1 2024 SCC OnLine SC 4983 3 3. None appeared on behalf of the respondents, though served. 4. It is a death case and claim application was filed before the Claims Tribunal under Section 163-A of the Motor Vehicles Act, which was allowed and an amount of compensation of Rs. 6,94,599/- along- with interest has been awarded. However, the Claims Tribunal has failed to notice the scheduled annexed to Section 163-A of the nd Motor Vehicles Act, which has been amended on 22 May, 2018, wherein it has been provided that in case of death, the compensation payable under Section 163-A of the Motor Vehicles Act would be Rs. 5,00,000/-. 5. At this stage, it would be appropriate to notice Section 163A of the Motor Vehicles Act, which reads as under:- “ 163-A. Special provisions as to payment of compensation on structured formula basis .— (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 permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. Explanation .—For the purposes of this sub-section, “permanent disability” shall have the same meaning and extent as in the Workmen's Compensation Act, 1923 (8 of 1923). (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that 4 the death or permanent disablement 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 vehicles concerned or of any other person. (3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule.” nd 6. Notification dated 22 May of 2018 provides as under:- SCHEDULE FOR COMPENSATION FOR THIRD PARTY FATAL ACCIDENT/INJURY CASES CLAIMS 1. (a) Fatal Accidents :- Compensation payable in case of Death shall be five lakh rupees. (b) Accidents resulting in permanent disability : Compensation payable shall be = [Rs. 5,00,000/- x percentage disability as per Schedule I of the Employee’s Compensation Act, 1923 (8 of 1923)] : Provided that the minimum compensation in case of permanent disability of any kind shall not be less than fifty thousand rupees. (c) Accidents resulting in minor injury : A fixed compensation of twenty five thousand rupees shall be payable : st 2. On and from the date of 1 day of January, 2019 the amount of compensation specified in the clauses (a) to (c) of paragraph (1) shall stand increased by 5 per cent annually. 3. This notification shall come into form on the date of its publication in the Official Gazette. 7. Now, the question for consideration would be whether Notification nd dated 22 May, 2018 would have retrospective effect as the accident in the instant case has taken place on 13.04.2018, whereas, 5 the Notification with regard to amendment in the Schedule annexed with Section 163-A of the Motor Vehicles Act fixing the nd compensation in the death case has come into effect on 22 May, 2018 by which in the death case the compensation under Section 163-A of the Motor Vehicles Act would be payable to 5,00,000/-. ₹ 8. In the matter of Urmila Halder (supra), their Lordships of the Supreme Court have framed the aforesaid question for determination in paragraph No.4 and answered in paragraph No.10. Paragraphs No.4 & 10 state as under:- 4. The short point for consideration before this Court is whether the amendment in Section 163-A of the Motor Vehicles Act, 1988, which came into effect by a Gazette nd Notification on 22 May, 2018, would relate to an accident which had occurred prior to the said date. 10. The order of the High Court is well discussed and we agree with the view taken. We may, however, add that a beneficial legislation would necessarily entail the benefit to be passed on to the claimant in the absence of any specific bar to the same. In the present case, the liability of the appellant-Insurance Company has not been interfered with. Only the computational mode and the modality have been further clarified, which rightly has been noted by the High Court and accordingly, the claim has been enhanced to Rs. 5,00,000/-(Rupees Five Lakhs). As 50% of the compensation amount was stayed by this Court, the same be paid to the respondent in terms of the impugned judgment within eight weeks 9. In view of the above, the amount of compensation of Rs. 6,94,599/- awarded by the Claims Tribunal is reduced to Rs. 5,00,000/-. Accordingly, the claimants are entitled for an amount of 6 Rs.5,00,000/- as compensation along-with interest. However, as per nd the amendment notified in 22 May, 2018 on and from the date of st 1 day of January, 2019 the amount of compensation specified in the clauses (a) to (c) of paragraph (1) shall stand increased by 5 per cent annually. Therefore, the claimants will be entitled for an additional amount of Rs. 40,000/- from 01.01.2019 to till date i.e. about 8 years (Rs.5000 x 8 = Rs.40,000) and, as such, they are entitled for total amount of Rs. 5,40,000/- along-with 6% interest with effect from 23.01.2019 i.e. date of filing of claim application before the Claims Tribunal. 10. Since the claimants have not appeared, the Registry is directed to send a copy of this order to the claimants and the appellant/ insurance company is directed to deposit the rest of the amount within 45 days. 11. Accordingly, the appeal is partly allowed to the extent indicated herein above. Sd/- </div><table><thead><tr><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th></th><th>(Sanjay K. Agrawal)</th><th></th><th></th><th></th></tr></thead><tbody><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>Judge</td><td></td></tr></tbody></table><table><thead><tr><th>Ashok</th><th></th></tr></thead><tbody></tbody></table><div> </div>