Liability under Section 140 of the Motor Vehicles Act, 1988 does not arise in case of an unidentified offending vehicle

Punjab and Haryana High Court: A Single Judge Bench comprising of B.S. Walia, J. allowed an appeal filed against the order of the Motor Accident Claims Tribunal (MACT) awarding a compensation of Rs. 50,000 to the respondent even when the offending vehicle involved in the accident was unidentified.

The appeal was preferred by the insurance company- United India Insurance Co. Ltd., who was made liable to pay the above-mentioned amount of compensation to the respondent. The appeal required adjudication upon a single question- whether liability can be imposed under Section 140 of the Motor Vehicles Act 1988, in case the offending vehicle is unidentified? Learned counsel appearing for the appellant submitted that a separate provision, Section 161, existed for the cases where the offending vehicle involved in the accident is unidentified.

In order to settle the issue, the High Court perused both the Sections. The Court observed that Section 140 makes provision for the award of compensation amounting to Rs. 50,000 in cases of death or permanent disability, where the offending vehicle is identified. However, for hit and run cases, where the offending vehicle remains unidentified, Section 161 comes into play. That Section fixes the compensation amount at Rs. 25,000 in case of death and Rs. 12,500 in case of grievous hurt. Holding that there is a clear-cut difference in the provisions applicable to the two situations, the Court answered the question framed hereinabove, in negative. The appeal was accordingly allowed and the order of the MACT was set aside. [United India Insurance Co. Ltd. v. Kuldip Kaur, 2018 SCC OnLine P&H 843, dated 01-06-2018 ]

 

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