MV Act | Multipliers Under Second Schedule To Be Applied Even If At The Time Of Accident Those Were Not In Force: Orissa High Court

"The MV Act being a statute intended to benefit accident victims, the Schedule thereto ought to be applied in pending cases of accident victims even if the accident occurred at a time when the Schedule was not in force."

Factual Background:

The appeal was filed by the insurance company against the judgment passed by a Single Judge Bench in a miscellaneous appeal filed by the Appellant. By the impugned judgment, the Court upheld the Award passed by the Motor Accident Claims Tribunal, Bhubaneswar (MACT), awarding a sum of Rs.3 lakhs to the Claimants-Respondents 1, 2 and 3.

Before the learned Single Judge, the Appellant (the Insurance Company) argued that since the accident occurred in 1992, whereas the Schedule in terms of Section 163-A of the Act was introduced in 1994. Therefore, the multiplier set out in the Schedule will not be applicable.

However, following the decision of the Supreme Court of India in Shankarayya v. United India Insurance Co. Ltd., (1998) 3 SCC 140, the learned Single Judge held that the Insurance Company could not raise any challenge to the quantum awarded or on the question of negligence of the driver of the Tractor and Trolley. The learned Single Judge did not find any ground to interfere on the question of negligence and the quantum of compensation. Therefore, in this appeal, it was again contended that because the accident took place in the year 1992, the Schedule to the Act will not apply.

Decision of the Court:

However, the Court held that by the time the MACT decided the case, the Schedule was already operational. Further, the Act being a beneficial legislation intended to benefit accident victims, the Schedule thereto should be applied in pending cases of accident victims even if the accident occurred at a time when the Schedule was not in force.

Consequently, the Court found no merit in the contention of the appellant regarding applicability of the Schedule to the Act and confirmed the award rendered by the MACT, which was affirmed by the Single Judge.

Case Title: The Divisional Manager, New India Assurance Co. Ltd., Bhubaneswar v. Sauri Das & Ors.

Case No.: AHO No. 01 of 1999

Judgment Dated: 21 March 2022

Coram: Chief Justice Dr. S. Muralidhar and Justice R.K. Pattanaik

Counsel for the Appellant: Mr. B. K. Mohanty, Advocate

Counsel for the Respondent: None

Citation: 2022 LiveLaw (Ori) 32