An open factory compound constitutes a “public place” under the Motor Vehicles Act.

The deceased, a factory worker, was resting on a heap of cotton in the open premises of M/s. Vivekand Industries after working hours when a tractor entered the compound and ran over him while reversing or manoeuvring. He later died from his injuries.

His legal heirs sought compensation before the Motor Accident Claims Tribunal, Mehsana, which allowed their claim.

The insurer appealed, contending that the accident occurred within private factory premises that were not a “public place” under the Motor Vehicles Act, 1988.

Whether the open compound of M/s. Vivekand Industries was a “public place” within the meaning of Section 2(34) of the Motor Vehicles Act, 1988.

Whether the Tribunal’s award could be challenged on the ground that the accident occurred within private factory premises, rather than a public place.

Section 2(34) of the Motor Vehicles Act, 1988 defines “public place” to include a road, street, way, or other place to which the public has a right of access, whether or not there is a right of thoroughfare.

The Court also relied on the Gujarat High Court’s decision in United India Insurance Co. Ltd. v. Gujarat Ship Trading Corporation, which treated an accident site within a ship-breaking yard as falling within the statutory definition of “public place”.

It followed the Coordinate Bench’s application of that precedent in United India Insurance Co. Ltd. v. Harjibhai Hakubhai Kavad.

The panchnama placed the accident in the factory’s open compound, where the deceased was lying on cotton.

The Court noted that the insurer had not contended that the public had no right of access to the compound. Applying Section 2(34) and the cited precedents, it held that the compound could not be excluded from the definition of a public place; access may arise by right, permission, or customary practice.

The insurer’s challenge to the Tribunal’s finding therefore lacked merit.

It directed the Tribunal to disburse the awarded amount, with accrued interest, to the claimants after verification and in accordance with due procedure, deducting any unpaid court fees as required.

The record and proceedings were ordered to be returned to the Tribunal.