Section 164 of the Motor Vehicles Act applies retrospectively to award fixed compensation for death or grievous hurt.

On December 21, 2010, the deceased, Bhikhiben Chauhan, was traveling in a rickshaw when an Alto car, driven in a rash and negligent manner, collided with the vehicle, resulting in her death

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

On July 7, 2012, the Motor Accident Claims Tribunal (Aux.), Nadiad, awarded compensation of ₹1,96,500 with 8% interest, while exonerating the insurer of the car (Respondent No. 4)

The appellants challenged this award before the High Court, primarily on the ground of quantum, seeking the retrospective application of newly inserted Section 164 of the MV Act

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

2. Whether the appellants are entitled to the enhanced fixed compensation of ₹5,00,000 for death as prescribed under the amended Act

The court primarily applied Section 164 of the Motor Vehicles Act, which replaced the old structured formula under Section 163A, mandating a fixed compensation of ₹5,00,000 for death regardless of negligence

It relied heavily on the precedent set by the Hon’ble Supreme Court in New India Assurance Company Limited v. Urmila Halder (2024), which established that Section 164 is beneficial legislation and its computational modalities apply retrospectively to pending claims in the absence of a specific bar

The Court examined the transition from Section 163A to the newly inserted Section 164 of the MV Act. It noted that while the accident occurred in 2010 under the old regime, the Supreme Court's ruling in Urmila Halder clarified that Section 164 is a beneficial provision intended to simplify compensation

The Court rejected the Insurance Company’s argument that the amendment could not be applied retrospectively, reasoning that unless a statute specifically bars such application, the benefits of social welfare legislation must pass to the claimants

Consequently, the Court determined that the "computational mode" prescribed in the current law (a flat ₹5,00,000 for death) must supersede the Tribunal's original calculation of ₹1,96,500

The appeal was partly allowed, and the compensation was enhanced from ₹1,96,500 to a lump sum of ₹5,00,000. Respondent No. 2 (Insurance Company) was directed to deposit the enhanced amount with 8% interest per annum within six weeks. The exoneration of Respondent No. 4 was maintained, and the Tribunal was directed to disburse the amount to the claimants after verifying court fees