Section 164’s enhanced no-fault compensation of ₹5 lakh per death applies retrospectively to earlier accidents.

The appellant’s wife, Aruna, and son, Vipul, died in a motor-vehicle accident on 12 April 1998 involving vehicle No. 89D-80722H-LPT-5031ASC BTN.

The appellant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal, Karnal, held that the accident resulted from the appellant’s own rash and negligent driving and therefore denied compensation under Section 166, but awarded ₹50,000 for each death—₹1,00,000 in total—under the prevailing no-fault liability provision, with interest at 9% per annum from the date of accident.

The appellant challenged the award, seeking enhancement on the basis of the subsequently enacted Section 164 of the Act and the Supreme Court’s decision in Ram Murti v. Punjab State Electricity Board.

The Court considered Section 166 of the Motor Vehicles Act, 1988, governing claims based on fault liability, and the statutory no-fault liability provisions previously contained in Sections 140 and 163-A.

Section 140 was subsequently omitted and Section 164 was introduced, providing ₹5,00,000 compensation in the event of death under the no-fault regime.

Relying on the Supreme Court’s decision in Ram Murti v. Punjab State Electricity Board, 2023 ACJ 631, the Court applied the beneficial provisions of Section 164 to an earlier accident and held that claimants could receive ₹5,00,000 despite the accident having occurred before Section 164 came into force.

Beneficial amendments to the Motor Vehicles Act may therefore be applied retrospectively in appropriate no-fault liability cases.

Although the Tribunal had rejected the appellant’s claim under Section 166 on the ground that his own negligence caused the accident, it had nevertheless recognized entitlement to no-fault compensation of ₹50,000 for each death.

The High Court held that the reasoning in Ram Murti applied because that case likewise concerned an earlier accident and a claim originally pursued under Section 166, while the Supreme Court granted the benefit of the later, more beneficial no-fault compensation provision.

Since Section 164 had come into force on 1 September 2019 and prescribed ₹5,00,000 for death, the appellant was entitled to ₹5,00,000 each for the deaths of Aruna and Vipul, replacing the Tribunal’s award of ₹50,000 each.

However, interest on the enhanced component was limited to the period commencing from 1 September 2019 rather than from the date of the accident.

The appellant’s total compensation was enhanced from ₹1,00,000 to ₹10,00,000—₹5,00,000 for each death.

After deducting the ₹1,00,000 already awarded, the enhanced amount payable was ₹9,00,000, with interest at 9% per annum from 1 September 2019 until realization.

The respondents were held jointly and severally liable to pay the enhanced compensation.