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      A PROJECT ON:

    MOTOR VEHICLES CLAIMS TRIBUNALS: JURISDICTION AND

    POWERS

    SUBMITTED TO:

    DR. DEEPAK DAS

    (Faculty ! LAW OF INSURANCE"

    SUBMITTED B#:

    VIVEK $URNANI

    Rll N.%&'

    S)*)+t),%VIII

    DATE OF SUBMISSION:

    A-,l /0 12&3

    HIDA#ATULLAH NATIONAL LAW UNIVERSIT#0 RAIPUR (C.$."

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    ACKNOWLEDGEMENTS 

    I would like to take this opportunity to express my deep sense of gratitude towards my course

    teacher, Dr. Deepak Das for giving me constant guidance and encouragement throughout the

    course of the project.

    I would also like to thank the University for providing me the Internet and library facilities,

    which were indispensable for getting relevant content on the subject, as well as subscriptions to

    online databases, and journals, which were instrumental in writing relevant text.

    Special thanks goes out to my seniors who have been relentless in their help and supporting

     providing any material whenever reuired and my colleagues, who always stood by me,

    irrespective of the decisions taken by me. !ithout their support this project would not have seen

    the light of the day.

    "I"#$  %U&'('I

    ).(. **.). +-'S.

    ID(/(0U**( '(0I-'(* *(! U 'I"#&SI0/,

    & (I1U&  +2(00IS%(&

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    TABLE OF CONTENTS

    Contents Page No.

    1. Introduction33333333333333333333333333..4

    2. Statutory 1rovision+2laims 0ribunal333333333333333.......5

    3. 6(207 0wo Dimensional 8urisdiction333333333333333....9

    4. :ualifications of (ppointment of 6embers of 2laims 0ribunals33333....;

    5. 1ecuniary 8urisdiction3333333333333333333333,..;

    6. Status of 0ribunal33333333333333333333333,,3<

    . 8urisdiction of 2laims 0ribunals33333333333333333,3..=

    !. #xclusive 8urisdiction7)ar of 2ivil 2ourts33333333333.3.33>?

    ". 2laimant to 2hoose 8urisdiction3333333333333333.33..=

    1#. 'o *imitation to file 2laim333333333333333333.33.=

    11. 'o 8urisdiction7 when death occurred due to heart attack33333333...>?

    >@. )(& -' 8U&ISDI20I-' -A 2-'SU6#& DIS1U0# DSS(* A-&U6 3>>

    >4. 2laimant to 2hoose 1lace of 8urisdiction333333333333333.>@

    14. 8urisdiction7 when collision between train and motor vehicle3333333.>415. 0ribunal jurisdiction to set aside (ward333333333333333..>5

    16. 8urisdiction to entertain claim by Indigent person3333333333...3>B

    1. 1rocedure and 1owers of 2laims 0ribunal3333333333333...3>;

    1!. 2onclusion3333333333333333333333333..3..><

    1". )ibilography333333333333333333333333...3..>=

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      MOTO$ %E&'CLES CLA'MS T$'B(NALS

    )($'SD'CT'ON AND POWE$S

    'NT$OD(CT'ON

    6otor "ehicles 0ribunals are the tribunals empowered by State %overnment to adjudicate upon

    claims for compensation arising out of motor vehicles accidents, resulting death or bodily injury

    to persons or damages to any property of third parties. 2hapter CII of the 6otor "ehicles (ct,

    >==4=.

    • 2laims tribunals can adjudicate any claim for compensation in respect of accidents. In

    view of express wordings of sec >9B of 6otor "ehicles (ct, >=

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    ,the 2laims tribunal like any other 0ribunal at work in the state, shall be subject to the

    general power of superintendence over all courts and tribunals throughout the territories

    in relation to which it exercises jurisdiction.

    STAT(TO$* P$O%'S'ON

    SEC 165 o+ Moto, %e-/0es A/t 1"!! esta0s-es MOTO$ %E&'CLES CLA'MS

    T$'B(NAL MACT

    Sec >9B dealing with the establishment of claims tribunals and also provides for ualification and

    appointment of members of tribunals. (ccording to this sec state government shall notify to

    establish the claims tribunal, which is mandatory in nature. 2laims tribunals establishes for the

     adjudication upon claims for compensation in respect of accidents involving the death of, or 

     bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a

    third party.> #xplanation to this sec specifies that whatever claims for compensation in respect of 

    accidents involving the death of or bodily injury to persons arising out of theE use of motor 

    vehiclesE includes claims for compensation under section >5? and sec >94( also.

    Sec 165. C0a7s T,8na0s

    > .( State %overnment may, by notification in the -fficial %aFette, constitute one or more6otor (ccidents 2laims 0ribunals +hereafter in this 2hapter referred to as 2laims 0ribunal for 

    such area as may be specified in the notification for the purpose of adjudicating upon claims for 

    compensation in respect of accidents involving the death of, or bodily injury to, persons arising

    out of the use of motor vehicles, or damages to any property of a third party so arising, or both.

    #xplanation.GAor the removal of doubts, it is hereby declared that the expression claims for 

    compensation in respect of accidents involving the death of or bodily injury to persons arising

    out of the use of motor vehiclesE includes claims for compensation under section >5? and section

    >94(. @

    1 The Motor Vehicles Act, 1988, Section 165 (1)

    2 Ibid., !"l#n#tion to Section 165 (1)

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    @ .( 2laims 0ribunal shall consist of such number of members as the State %overnment may

    think fit to appoint and where it consists of two or more members, one of them shall be

    appointed as the 2hairman thereof. 4

    4. ( person shall not be ualified for appointment as a member of a 2laims 0ribunal unless heG 

    + a is, or has been, a 8udge of a igh 2ourt, or

    +b is, or has been a District 8udge, or

    +c is ualified for appointment as a igh 2ourt 8udge

    Hor as a District 8udge.J 5

    +5 !here two or more 2laims 0ribunals are constituted for any area, the State %overnment, 6ay

     by general or special order, regulate the distribution of business among themB.

    In Mn8 B. Me-ta 9. Ba0:,s-na6 it was held by the Supreme 2ourt of India that the power of a

    State %overnment to constitute 2laims 0ribunal is optional, and the State %overnment may not

    constitute a 2laims 0ribunal for certain areas.

    In S8s-7a Me-ta 9. Cent,a0 P,o9n/es T,ans;o,t Se,9/es Lt

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    to designate as claims tribunal, the District 8udge or (dditional District 8udge, provided the latter 

    is ualified to become a District 8udge.

    In An,89B has empowered the claims tribunals to adjudicate upon claims for compensation K 

    i. Aor death or bodily injury to L and

    ii. Aor damage to property of a third party.

    It follows that whereas a claim for damage to property cannot be made under sec >5? or under 

    sec >9B , a claim application under Sec >99 can be made both for death or bodily injury and for 

    damage to property in one and the same proceeding , provided the same accident has given rise

    to a cause of action on death or bodily injury as also for damage to property . (lthough the

    claims tribunal has unlimited jurisdiction in respect of a claim , whether for death or bodily

    8 Anir$dh r#s#d A+b#st# &. St#te o/ %ih#r, AI 1990 (#t.) 49

    9 e Asi#tic Tr#ns"ort () *o. -td. &. M#noh#r -#l, (1966) 68 $n. - (el.) 51.

    10 Anir$dh r#s#d A+b#st# &. St#te o/ %ih#r, AI 1990 A* 238 (#t.) %

    11 e Indi# Ass$r#nce *o. -td. &. Moli# e&i, 1969 A* 164 (M) %

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    injury or for damages to property, yet the (ct has put a ceiling on the liability of the insurer in

    claims for damages to property and in certain cases of death or bodily injury.

     

    Suo motu jurisdiction to take cogniFance of claims for compensation does not extend to

    cases of damages to property.

    ?8a0+/atons +o, a;;ont7ent as Me7e, o+ CLA'MS T$'B(NAL

    Sub sec +4 of sec >9B of the 6otor "ehicles (ct prescribes the ualification and eligibility to

    appointment of a person as a 2laims 0ribunal, stating that the appointee:

    +a is, or has been, a 8udge of a igh 2ourt, or

    +b is, or has been a District 8udge, or

    +c is ualified for appointment as a igh 2ourt 8udge or as a District 8udge 

    PEC(N'A$* )($'SD'CT'ON OF T$'B(NAL> (n07te< )8,s 0he pecuniary jurisdiction of the claim tribunal has a

    double implication, that is, compensation in case of death or bodily injury and in respect of 

    damage caused to any property. Sec >9B of the act of >==5? of the

    (ct. Sec >5? provides for a fixed some, which can neither be less nor more, that B?,??? M7

    in case of death and &s. @B???M7 in case of injury amounting to permanent disablement,

    fault or negligence being out of consideration.

    b. 2ompensation on structured formula basis, under sec >947( of the (ct. Sec >947( also

     provides for a fixed amount of compensation, but the amount has to be picked out from

    various items of Second schedule which has prescribed the amount with reference to age,

    income of the deceased.

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    c. 2ompensation on structured formula basis, under sec >947( of the (ct. Sec >947( also

     provides for a fixed amount of compensation, but the amount has to be picked out from

    various items of Second schedule which has prescribed the amount with reference to age,

    income of the deceased.

    d. 2ompensation which appears to the claims tribunals to be just, under sec >9< of the (ct.

     this sec mandates the tribunal to determine the amount of compensation which appears

     it to be just, and there is no pecuniary limit up to which it can be extended, though it can

    even be nil depending upon whether the claimant has proved or failed to prove his case

    on merits.

    e. In the category of claims under +a above , that is compensation on principle of no fault,

    compensation can be awarded either in cases of death or in cases of permanent

    disablement of any person , and in either case , the fixed and different amounts have been

    fixed respectively for death and permanent disablement. 0he relevant provisions are sub

    sec +> and +@ of sec >5?.>@

    S0(0US -A 0&I)U'(*N

      .C0a7s T,8na0s a s8stt8te o+ /o8,t +o, ;8,;oses o+ /o7;ensaton /0a7s

    Arom a study into the provisions of sec >>? to >>? A of 0he 6otor vehicles act ,>=4=,which are

    now replaced by sections >9B to >;B of 6otor "ehicles >===4= (ct had not been amended, yet whenever and wherever a 2laim 0ribunal is

    set up for any area, the OcourtP must be interpreted to mean a 2laims 0ribunal.

    12 r. ..*h#t$r&edi, 7-# o/ Motor Accident *l#i+s #nd *o+"ens#tion (2010)

    ".53.

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    )($'SD'CT'ON OF CLA'MS T$'B(NAL

    )8,s=B=, but even then the tribunal , set up at

     'asik had no jurisdiction to entertain a claim for compensation in respects of accidents which

    occurred at a place within the territorial jurisdiction of the 'asik court.

    &e0

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    Sec >;B provides for bar of jurisdiction of civil courts. If the claims tribunals have

     jurisdiction to adjudicate, then civil court jurisdiction will be expressly barred. Sec >;B as

    follows.

    • Se/ 15 o+ Moto, %e-/0es A/t> !here any 2laims 0ribunal has been constituted for 

    any area, no 2ivil 2ourt shall have jurisdiction to entertain any uestion relating to any

    claim for compensation which may be adjudicated upon by the 2laims 0ribunal for that

    area, and no injunction in respect of any action taken or to be taken by or before the

    2laims 0ribunal in respect of the claim for compensation shall be granted by the 2ivil

    2ourt.E

    • If at the time of accident , a tribunal has been constituted either7

    a. Aor the area where the accident occurred , b. Aor the area where he himself resides,

    c. Aor the area where the defendant resides,

    The bar of sec 175 shall be attracted, and the claimant shall be required to file his claim only

    and exclusively before one or the other of the above mentioned claims tribunals and he will have

    no option to file his claim in a civil court.

     ut leadin! case in this re!ard that in, Gurbax Singh v. Financial Commissioner 

    it was held by the "upreme #ourt that despite the bar on civil courts $urisdiction under a statute,

    if the special tribunal or authority acts ultra vires or ille!ally, the civil court has power by virtue

    of section % of the #.&.#.to interfere and set matters ri!ht. 'f the provisions of the statute have

    not been complied with or the statutory tribunal has not acted in conformity with the

     fundamental principles of $udicial procedure, the civil courts have $urisdiction to examine such

    case..

    In %att/-e,8:8,8 %00age Pan/-aat 9. No, %en:ata,a7an Dee-st-80813 it was held by the

    apex court that the procedure before the tribunal is simple and not hidebound by intricate

     procedure of pleadings and trial, admissibility of the evidence and proof of facts according to

    law. 0herefore, there is abundant flexibility in the discharge of the functions with greater

    expedition and in expensiveness.

    13 V#tticher$'$r$ Vill#e #nch#:#t &. ori Ven'#t#r#+#n eehsith$l$, 1991 (5) T

    140

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    In Ks-an La0 9. State o+ )a778 an< Kas-7,14 it was held by the court that jurisdiction of

    civil court is not barred where the impugned order, being in violation of mandatory provisions of

    the statute is without jurisdiction and a nullity.

    BA$ ON )($'SD'CT'ON OF CONS(ME$ D'SP(TE $ED$ESSAL FO$(M

    In C-a,7an T-,89a008,a, T,ans;o,t Co,;o,aton 9. Cons87e, P,ote/ton Co8n/0   >Bthe

    deceased was travelling in an omni bus which met with an accident while trying to avert a

     bullock K cart. It appears that when the bus driver was in process of overtaking the bullock cart,

    the bullock got panicky whereupon the driver swerved the bus to left and ran in to branches of a

    tree on the roadside resulting in damage to the vehicle, the window panes having been smashed.

    (s the vehicle suddenly swerved and the driver applied the brakes the deceased who was sitting

    in the centre of the rear seat was thrown in the front and hit against the iron side bar, sustaining a

    serious head injury. Subseuently he succumbed to the injury. 0he 2onsumer 1rotection 2ouncil,

    0amil 'adu on behalf of the legal representative of the deceased, lodged a complaint before the

     'ational 2ommission under the >=? *acs by way of compensation

    with interest at >?,???M7. (n appeal against the judgement was

     preferred to the Supreme 2ourt. 0he uestion that arose for consideration was whether the

     'ational 2ommission had jurisdiction to entertain the claim application and award compensation

    in respect of an accident involving death of the deceased caused by the use of 6otor "ehicle.

    0he Supreme 2ourt without going in to depth of awarding of compensation by 'ational

    2ommission to the victim, only answer the uestion of law as to whether 'ational 2ommission

    can entertain such case held that 'ational 2ommission has no jurisdiction whatsoever and was

    14 5;ish#n -#l &. St#te o/ #++$ #nd ;#sh+ir, (1994) 4 S** 422

    15 *h#ir+#n Thir$ll$r#r Tr#ns"ort *or"or#tion &. *ons$+er rotection *o$ncil,

    AI, 1995 S* 1384

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    entirely wrong in exercising jurisdiction and awarding compensation. owever, in the facts and

    circumstances of this case, the judgment pronounced by 'ational 2ommission was reversed and

    appellant were not entitled to recover the compensation money already paid to the victim under 

    the orderPs of 'ational 2ommission. ence, claims for compensation arising out of use of motor 

    vehicles cannot be adjudicated by any of the 2onsumer Disputes &edressal Aorums contemplated

    and created under 2onsumer 1rotection (ct, >==9B and>;B. Under S. >>? +@ of 

    >=4= (ct the 0ribunal within whose territorial jurisdiction the accident occurred alone was

    competent to entertain the claim. 0his position was retained in S. >99 +@ of >===5 however added two more forum viF +> the 0ribunal within whose

    local limits the claimant resided or carried on business, and +@ the 0ribunal within whose local

    limits the defendant resided. !ith this amendment the claimant now has the option to choose one

    out of the three forums.Sec >99+> of 6otor "ehicles 2laims 0ribunal,>=99 intent that making of claim application under section >99+> has been left

    totally at the option of the claimant, either to the claims tribunal having jurisdiction over the area

    where the accident took place, or to such tribunal within local limits of whose jurisdiction the

    claimant resides or carries on business or within local limits of whose jurisdiction the defendant

    resides.

    'n K8s87 De9 9. D8nga,a716 it was held that in view of the word orE which separates three

    clauses, the claimant can choose either of the three options and as per legislative intent, there are

    three options implied, whereby he has been given a right to pick one of three places for 

    exercising his option. 'n Mantoo Sa,:a, 9. O,enta0 'ns8,an/e Co. Lt

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    migrant labourer working in district 'anital, sustained injuries in collision between a bus and

    truck at a place in Uttar 1radesh. It was held by the Supreme 2ourt of India that 0ribunal of 

     'anital has jurisdiction to entertain the claim.

    .

    No L7taton > T-e,e s no 07taton +o, nstt8tng a /0a7 +o, /o7;ensaton e+o,e t-e

    C0a7s T,8na0N (fter the omission of  s8 se/ 3 o+ se/ 166 i.e Sub.7sec 4 omitted by (ct B4

    of >==5, sec. B4 +w .e. f. >57>>7>==5. , that is the limitation clause, from sec >99 of the 6otor 

    "ehicles (ct, >=

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    !hen the death occurred due to heart attack then claims tribunals have no jurisdiction to

    entertain the claim petition. 0ribunal are only concern with accident arising out with motor 

    vehicles..

    Natona0 'ns8,an/e s. Lt< 9. C-an

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    "ection 1 of )otor 4ehicle *ct pleadin! ne!li!ence where the claim shall be assessed by the

     ud!e not on the basis of structural formula but on the basis of evidence led.

    )8,s9= of the (ct lays down the procedure to be followed by the 2laims 0ribunal in setting

    claims compensation. In holding any enuiry under Section >9< of the 6otor "ehicles (ct, >=

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    documents and material objects and for such other purposes as may be prescribedL and the claims

    tribunals shall be deemed to be a /90 /o8,t for all the purposes of sec >=B and chapter 4'  the

    2r .pc, >=;4.E.

    •  0ribunals have  the power of review is an attribute of the civil court , and the basic

     provisions for exercise of power of review are provided in sec >>5 read with order 5;,

    rule > of the 212 , and whenever a a tribunal is expressly vested with or impliedly

    conceded to have such power , these provisions are borrowed from the 212 to tribunal

    in uestion with power to review its own decisions.

    • 0ribunals have all the powers provided in sec >=B and 2hapter CC"I of 2r.pc  which is

    6commencement of proceedings before magistratesE.

     

    0he 2laims 0ribunal may, for the purpose of adjudicating upon any claim for 

    compensation, choose one or more persons possessing special knowledge of any

    matter relevant to the inuiry to assist it in holding the inuiry.

     

    2laims tribunal is a civil court for purpose of sec >>B 212, >=?< which provides for 

    "ISI-'. 0herefore orders passed by tribunals can be revised by high court.

    • 0he claims tribunal shall have all the powers of a civil court for the purpose of taking

    evidence on oath and of enforcing the attendance of witness and all   compelling the

    discovery and production of documents and material objects and for such other purposesas may be prescribed.

    0he tribunals have all the powers to enforce its award, for the purpose of enforcement of its

    awardL tribunal shall have all the powers of a civil court in the execution of decree under the

    212 -&D#& @> as if the award were a decree for payment of money passed.

    • 0he tribunal may implead insurer in certain cases if satisfied that where there is collusion

     between the person making the claim is made or the person against whom the claim is

    made has failed to contest the claim.

    'n K$'S&NA GOPAL %s. DATTAT$A*A It was held that, the claims tribunal is a court of 

     judicature, it must follow that under sec >>B of 212, which is general in terms, the high court is

    entitled to revise the orders of that court. Sec 4 of the 212 clearly lays down that all courts

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    constituted within a civil district are subordinate to the district court and are also subordinate to

    the high court. )oth the conditions are under sec >>B of 212 are thus satisfied. 0here is ,

    therefore , no escape from the conclusion that the orders passed by the claims tribunal can be

    revised under sec >>B of 212.E

    $ag-, Sng- 9s. Sa9ta S-a,7aIn this case the insurer sought to adduce secondary evidence

    to establish that driving of offending vehicles was fake and record of District 0ransport -ffice

    had been destroyed. It was held that when it is shown that document has been destroyed,

    evidence sought to be led by insurer could not be refused, and even otherwise the 0ribunal has to

    follow only a summary procedure for making award and strict rules laid down in the #vidence

    (ct.

    CONCL(S'ON> 

    Mt, Acc4)5t+ Cla*+ T,6u5al MACT de#ls ith +#tters rel#ted

    to co+"ens#tion o/ +otor #ccidents &icti+s or their ne!t o/ 'in .The Trib$n#l

    de#l ith cl#i+s rel#tin to loss o/ li/e>"ro"ert: #nd in$r: c#ses res$ltin

    /ro+ Motor Accidents.

    MACT Cu,t+ #re "resided o&er b: $dici#l

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    has power to set aside , but it doesnPt seems to be in the grounds of procedure. +hat are the

    remedies to the insurance com#anies and owner o' motor vehicles when award obtained by

     'raud R 0hese aspects should be considered by 2laims 0ribunal., and proper implementation of 

    law and procedure should be followed by 6(20 to give relief to the claimant.

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    BIBLOGRAPHY  :

      . ' "I8(/(&(%("(' , 6otor "ehicles *aws ,@?>4 "-*U6# @ +>5, *#CIS '#CIS

    )U00#&!-&0 8

    Dr. &.%.2(0U&"#DI, *aws of 6otor (ccident 2laims and 2ompensation,@??B,

    )harat *aw 1ublications

    •  (vtar Singh, *aw of Insurance @??