Motor Accident Claims | Supreme Court To Examine If Appeal Pre-Deposit Conditions Can Be Higher Than Limit Prescribed Under MV Act

The Supreme Court is set to consider the legal issue whether the Courts could demand a deposit amount beyond the statutory limit for entertaining appeals against claims awarded under the Motor Vehicles Act, 1988. 

The bench of Justices CT Ravikumar and Sanjay Karol was hearing a challenge to the order of the Delhi High Court which imposed a condition of 50% of the compensation award as a deposit by the petitioner . 

" A question of seminal importance in the case on hand as to whether an appeal under Section 173 of the Motor Vehicles Act, 1988 could be entertained on deposit of Rs.25,000/-(Rupees Twenty Five Thousand Only) or 50% of the amount awarded, whichever is less and whether the Courts could insist for deposit of amount which is higher than the statutory prescribed amount as a condition precedent for entertaining such an appeal?" 

The Top Court has issued notice and sought a response from the Union through the Attorney General for India, since the provision under a Central enactment is the question.

Before the High Court, the petitioner moved against the award granted in favour of the respondents by the Tribunal on April 1, 2023. However, the Court imposed a deposit condition higher than the statutory limit prescribed under S. 173 of the MV Act, 1988.  

The condition imposed by the HC read as follows : 

"In the meanwhile, considering the reasons that have been given by the learned Trial Court, the appellant herein is directed to deposit 50% of the compensation with accrued interest with the learned Tribunal within four weeks from today, without prejudice to the rights and contentions of the parties." 

"In case, the amount of compensation is not deposited by the appellant, the claimant shall be at liberty to proceed for execution of the impugned award against the appellant as per law."  

It may be noted that S. 173 allows appeals to be filed with a deposit of either Rs. 25,000 or 50% of the awarded amount, whichever is less. 

The Court has also granted an interim stay on the Delhi High Court's order untill the next date of hearing. 

Matter will now be heard in the month of September. 

Case Details : PRADEEP KUMAR v. MASTER ANKIT & ANR. SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 30751/2024

Click Here To Read/Download Order