Current Position With Respect To The Provisions Contained Under Chapter X XI XII Of The Motor Vehicles (Amendment) Act, 2019

The Government of India wanted to bring about what was known as Road Transport and Safety Statute but it had many road blocks and, therefore, in the year 2019 instead of reintroducing Road Safety Bill, amendments were introduced so that they can be moved and the 1988 Act can be transformed and amended .

We are concerned manly with chapter X XI XII namely Sections 50 to 57 of 2019 Amendment Act. Very interestingly, the Amendment Act which was introduced stating that the amendment Act will apply prospectively from the date notified by the Central Government. The Amendment Act, 2019, unfortunately, laid down that certain sections would commence at a later date and unfortunately Chapter X XI XII namely deletion of Chapter X modifications in Chapters XI and XII have yet not been notified to have commenced.

Section 1 of the Amendment Act is relevant for the present discussion therefore, same is reproduced hereinunder:-

Section 1(1):- This Act may be called the Motor Vehicles (Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

In exercise of the powers conferred by Sub-section (2) of Section 1 of the Amendment Act, the Central Government appointed the 1st day of September, 2019 as the date on which the following Sections of the Amendment Act shall come into force, namely...

Section 2, Section 3, Clauses (i) to (iv) of Section 4, Clauses (i) to (iii) of Section 5, Section 6, Clauses (i) of Section 7, Sections 9 and 10, Section 14, Section 16, Clauses (ii) of Section 17, Section 20, Clauses (ii) of Section 21, Section 22, Section 24, Section 27, Clauses (i) Section 28, Sections 29 to 35, Sections 37 and 38, Sections 41 to 43, Section 46, Sections 48 and 49, Sections 58 to 73, Section 75, Clauses (i) of Clause (B) of Section 77, Sections 78 to 87, Section 89, Sub-clauses (a) of clause (i) and clause (ii) of Section 91 and Section 92 of the Amendment Act. Admittedly Sections 50 to 57 of the Amendment Act are not notified till date.^[1]

If we carefully peruse the above referred table, it clearly appears that Sections 50 to 57 of the Amendment Act are yet to be notified. These Sections 50 to 57 of the Amendment Act relate to Sections 140 to 144, Sections 145 to 164, Section 165, Section 166, Section 168, Sections 169, Section 170 and Section 173, respectively of the Principal Act.^[2] In simple words, Sections 140 to 144 of the Principal Act (Chapter - X) have not been omitted as yet and continue to operate. Similarly Sections 145 to 164 (Chapter - XI) and Section 165, Section 166, Section 168, Sections 169, Section 170 and Section 173 of the Principal Act would continue to operate with full vigor till the time Section 51 to 57 of the Amendment Act are notified in the Official Gazette.

Above referred discussion leads us to the conclusion that the provisions contained under Sections 140 of the Principal Act which speaks about liability of the Owner and/or Insurer to pay compensation in certain cases on the principle of no fault, Section 163-A of the Principal Act which provides for the special provisions as to payment of compensation based on structured formula and under Section 166 of the Principal Act, legal representative/s can continue to prefer any of the application mentioned herein above for compensation as Sections 140, 163-A and 166 of the Principal Act would continue to operate with full vigor till the time Section 51 to 57 of the Amendment Act 2019 are notified for their date of commencement rather applicability in the Official Gazette

Section 3 (13) of the General Clauses Act, 1897 which is today also referred as guide legislates that the term commencement in reference to Legislative Act would mean the date on which the Act comes into force. Normally, the Central Act would come into operation on the day it receives the Presidential assent but there can be commencement at the later date namely to some specified future date or such date as appropriate government by notification in the official gazette appoint.

In our case, though several amended sections have been brought into operation, provisions of Chapter X XI XII namely Sections 50 to 57 of the amended Act have been provided to come into force at different date. Till the date this essay is penned namely 15^th December 2020 it has not been brought into force. This provision which is made for the appointment of different dates has led certain ambiguity amongst the Tribunals and it is with this regard that this essay is penned by the under signed to convey to the readers what is the state of affairs as far as provisions which have yet not been notified to come into operation though more than one year after the amendment received Presidential assent are there on the Statute book.

It is very clear that an Act cannot be said to have commenced or come into force unless it is brought into operation by legislative enactment or by exercise of the authority by delegate empowered to bring it into operation. A reference to State of Orissa Vs. Chandrasekhar Singh^[3] and Union of India Vs. Shiv Kumar Sen Gupta^[4] throwing light on this aspect which the author is canvassing. The enacting process is already over but when the Act is worded so that the Act comes into force on a future date but that date has yet not been notified despite the fact that several other Sections of the Amendment Act have come into force.

During this interregnum period or rather the intervening period, the related provisions which are in vogue since 1988 would be applicable for the reasons which the author is canvassing herein below.

The state of affairs as far as Chapter X is concerned, though laudable object of bringing this Amendment seems to be that since recent times this amount of no fault liability often leads to delay and the amount is so meager that it may not meet any of the need of the family members or the injured and one more aspect is there are certain judgments of certain High Courts which even direct the Tribunals to deposit the amount under Section 140 of the Act, in the humble opinion of the author these orders are beyond the scheme and object of the said Section.

Turning to Section 51 of the Amendment Act which refers to Section 145 to 164 legislated in Chapter XI of the 1988 Act, these Sections are also as of date though on the Statute book have not commenced or rather are non operative. The laudable object of compulsory motor insurance goods carried in the vehicle and definition of the term third party rather mandatory third party insurance scope of third party insurance coverage and more importantly Section 147 which is the fulcrum on which the issue of compulsory insurance coverage or third party benefits revolves. Significant changes are introduced. Unfortunately, this is a pleading portfolio, hence, may be the Government may not have thought it proper to still bring it on the Statute book^[5]. The power to fix the third party insurance premium under the Motor Vehicles Act itself is new. The crux of Section 147 under the 1939 Act and 1988 Act which was damaged property limit was Rs.6,000/- which is now been enhanced to Rs.7.5 lakhs on payment of additional premium. But these provisions are dramatically yet not notified. The powers are now left to Central Government to legislate on imposition of limits. The rating of premium is left to Central Government.

The author would not like to delve into the defenses, which may be permitted to betaken by the Insurance Company. The remedy of pay and recover and duty of owner of the vehicle, as can be seen, all these sections are still not brought on the statute book for enquiry. Most important is alternation of Section 163 A doing away with second Schedule, doing away with many other aspects, host of changes are made, namely, fix ups, are introduced. A new introduction of Section 164B, namely, Motor Vehicle Accident fund has been added by the amendment

The period of limitation, under section 166 of the Act which was done away with on 14^th November 1994, is reintroduced by the 2019 Amendment. The language being quite simple, it would be debatable whether the compensation applications of petitions could be entertained beyond the period of six months. As of today, I clarify as of today when the author is penning this article, this Section has not come into play and, therefore, as per the principle of statutory interpretation, as the Section has not come into play, it would be the old section under which claim petitions will have to be decided. Reference to the recent decision of the undersigned clarifying this issue can be referred to in FIRST APPEAL FROM ORDER No. - 1563 of 2020 titled Shailendra Tripathi And Another Vs Dharmendra Yadav And 2 Others dated 20 Nov 2020

The very purpose of legislating section 166 (5) which was till date debatable and there are diverse views whether action would be permitted to legal representative of an injured claimant, who died during the pendency of litigation, would now statutorily recognised once the provision is implemented.

Section 167 to 171 and 172 have no significant changes but as far as Section 173 is concerned, no appeal under 2019 Act for amounts in dispute less than one lac would be maintable..

The author is quite surprised why number of provisions, which have been chosen to come into force, have not yet been notified. The notification will have to be issued by the Central Government as it is a Central Act. Notification in relation to the subject matter would have to be issued. The provision of the Act would come into operation in all States when the date is notified. To the best of the knowledge of the undersigned, till penning of this essay, the old provisions rather Chapter X still operates and applications pending will have to be decided as per the 1988 Unamended Act as no retrospective operation has been assigned to these chapters rather, as of today, they are not even brought on the commencement list.

Since, Sections 50 to 57 of the Amendment Act are not notified, claimant/s can still prefer an application u/s 140 of the Principal Act independently or along with an application for compensation u/s 166 of the Principal Act or in alternative claimant/s can prefer an application u/s 163-A of the Principal Act for compensation based on the structured formula. It is to be remembered that w.e.f. 14th November, 1994 Section 166(3) of the Principal Act, wherein the provision with respect to condonation of delay was made, has been omitted. Since now, there is no provision which provides for seeking condonation of delay, if an application for compensation is filed beyond the period of six months from the date of the accident (Sub-section 3 of Section 166, as proposed to be inserted by way of the Amendment Act), till the time Section 53 of the Amendment Act is notified, claimant/s are not required to prefer an application for condensation of delay.

Reference: A) Motor Vehicle Laws by Kannan and Vijayraghavan 16^th Edition can also be made here on Chapter I, namely, Critic on the Motor Vehicles Amendment Act 2019 for detailed study. As per gist of amendment in chapters relevant for this article

Deletion of Chapter X

New Additions in Chapter XI-

A. Compulsory Motor Insurance, B. Definition of Third Party, C. Goods Carried in the Vehicle, D. Mandatory Third Party Insurance, E. Scope of Third Party Insurance Coverage, F. Limit of Liability Regime, G. Agreed Procedure/Settlement of Claims, H. Mediation Procedure, I. Defences of Insurance Companies, J. Remedy of Pay and Recovery, K. Duty of owner of vehicle, L. Sale of Vehicle/Insurance Benefit, M. Accident Information ReportN. Solatium Scheme, O. Alternative to Section 163-A, P. Motor Vehicle Accident Fund, Q. Period of Limitation.

Views are Personal.