Section 164 of the Motor Vehicles Act applies retrospectively to award enhanced compensation in pending proceedings.

On 21.12.2010, Veenaben Chauhan succumbed to injuries sustained when an Alto car (GJ-2-AC-9823) collided with the rickshaw in which she was traveling

The appellants filed a claim petition under Section 163A of the Motor Vehicles (MV) Act, 1988

On 07.07.2012, the Motor Accident Claims Tribunal, Nadiad, awarded Rs. 42,000/- at 8% interest, exonerating respondent No. 4 (the second insurer) from liability

The claimants appealed to the High Court seeking enhancement of the quantum based on the subsequent 2019 amendment to the MV Act

1. Whether Section 164 of the Motor Vehicles Act (inserted by the 2019 Amendment) can be applied retrospectively to pending appeals arising from accidents prior to the amendment

2. Whether the appellants are entitled to the fixed compensation of Rs. 5,00,000/- for death as prescribed under the new Section 164

The court primarily applied Section 164 of the Motor Vehicles Act, which replaced/superseded the old structured formula under Section 163A, mandating a fixed compensation of Rs. 5,00,000/- for death and Rs. 2,50,000/- for grievous hurt without requiring proof of negligence

It relied on the precedent established by the Supreme Court in New India Assurance Company Limited v. Urmila Halder (2024 (0) AIJEL-SC-74844), which held that as a piece of beneficial legislation, the amended provisions regarding computational modalities apply retrospectively to pending claims

The court examined the appellants' contention that although the accident occurred in 2010, the intervening amendment to the MV Act allowed for higher compensation

While the respondent Insurance Company argued that the amendment could not be applied retrospectively, the court rejected this stance by citing the Supreme Court’s ruling in Urmila Halder

The court reasoned that since Section 164 is a beneficial provision, and in the absence of a specific legislative bar, the benefit of the updated "computational mode and modality" must be passed to the claimants

Consequently, since the case involved a death, the court determined that the fixed statutory amount of Rs. 5,00,000/- under Section 164 must override the lower quantum originally calculated by the Tribunal

It held that the appellants are entitled to enhanced compensation of Rs. 5,00,000/- based on the retrospective application of Section 164 of the MV Act

Respondent No. 2 (Insurance Company) was directed to deposit the enhanced amount with 8% interest per annum within six weeks, after which the Tribunal is to disburse the amount to the legal heirs

The exoneration of Respondent No. 4 was maintained