{"id":221825,"date":"2019-11-06T16:00:53","date_gmt":"2019-11-06T10:30:53","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=221825"},"modified":"2019-11-08T12:34:01","modified_gmt":"2019-11-08T07:04:01","slug":"hp-hc-if-income-of-victim-is-more-than-rs-40000-petition-under-s-163-a-of-mv-act-cannot-be-dismissed-as-it-mandates-compensation-on-structured-formula-basis-and-not-as-interim-m","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/06\/hp-hc-if-income-of-victim-is-more-than-rs-40000-petition-under-s-163-a-of-mv-act-cannot-be-dismissed-as-it-mandates-compensation-on-structured-formula-basis-and-not-as-interim-m\/","title":{"rendered":"HP HC | If income of victim is more than Rs 40,000, petition under S. 163-A of MV Act cannot be dismissed as it mandates compensation \u2018on structured formula basis\u2019 and not as interim measure"},"content":{"rendered":"

Himachal Pradesh High Court<\/strong>: Sandeep Sharma, J., allowed an appeal which questioned the legality of the Order passed by the Motor Accident Claims Tribunal, H.P. where they dismissed the application of the appellants stating that it was not maintainable as they had failed to demonstrate that the income of the deceased Kishan Singh was not less than the maximum limit of Rs 40,000 per annum.<\/p>\n

The issue placed before the Tribunal was, \u201cWhether the petitioners (successors-in-interest of deceased who was employed by the respondent) were entitled to claim compensation in the sum of Rs 15,00,000 along with interest from the respondents jointly and\/or severally on account of the death of the deceased in the accident in question as alleged?\u201d The Tribunal held that since the income of the deceased was exceeding the maximum limit of Rs 40,000 per annum which is a maximum limit to maintain a petition under Section 163-A of MV Act, the petition so filed by the petitioners in view of the ration was not maintainable.<\/p>\n

The appellants argued that de hors <\/em>the fact as to whether the income of the deceased is Rs 40,000 or more per annum, once the claim petition has been filed by the claimant, maybe under Section 163-A of the Motor Vehicles Act, the same has to be decided by the Tribunal on merit and the claim petition cannot be thrown out on flimsy grounds of income.<\/p>\n

Division Bench of Himachal Pradesh High Court in Oriental Insurance Co. Ltd. <\/em>v. Sihnu Ram,<\/em> 2016 SCC OnLine HP 2224<\/a> held that once the jurisdiction of the Claims Tribunal has been invoked and during trial evidence has come to the effect that the accident was outcome of rash and negligent act and income of the victim was more than Rs 40,000, the petition under Section 163-A of the Motor Vehicles Act cannot be dismissed. They further held that the mandate of Section 163-A of the Motor Vehicles Act is to provide compensation \u2018On Structured formula Basis\u2019 and was not an interim measure. Once it is granted, the victims cannot file a claim petition under Section 166 of the MV Act for grant of enhanced compensation. But, in case the Claims Tribunal comes to the conclusion that the income of the victim is more than Rs 40,000 per annum, it is not supposed to dismiss the claim petition. If the claim petition is dismissed on this ground then the aim, purpose and object of Sections 158(6), 163-A and 166(4) of the Motor Vehicles Act would be defeated.<\/p>\n

The High Court concurred with the decision and allowed the appeal of the appellants. They quashed and set aside the award passed by the Motor Accident Claims Tribunal and remanded the matter back to them directing them to decide the claim petition afresh on merit, on the basis of evidence on record, after affording the parties reasonable opportunity(s) to put forth their respective contentions. [Neema v. Sohan Singh, 2019 SCC OnLine HP 1805<\/b><\/a>, decided on 31-10-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Himachal Pradesh High Court: Sandeep Sharma, J., allowed an appeal which questioned the legality of the Order passed by the Motor Accident <\/p>\n","protected":false},"author":8808,"featured_media":222107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[38173,2728,38174,19791,38175,38172],"class_list":["post-221825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-claim-petition","tag-compensation","tag-income-of-victim","tag-motor-vehicles-act","tag-section-163-a-of-mv-act","tag-section-166-of-the-mv-act"],"yoast_head":"\nHP HC | If income of victim is more than Rs 40,000, petition under S. 163-A of MV Act cannot be dismissed as it mandates compensation \u2018on structured formula basis\u2019 and not as interim measure | SCC Times<\/title>\n<meta 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HC answers","author":"Editor","date":"February 5, 2021","format":false,"excerpt":"Karnataka High Court: A Division Bench of S. Sujatha and Sachin Shankar Magadum JJ., allowed the appeal and set aside the impugned judgment. The facts of the case are such that the deceased, Chandrashekhar along with Kumar and other inmates were proceeding in a Maruthi Van from Kanipakam to Thimmasanapalli\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":145341,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/07\/27\/s-167-of-motor-vehicles-act-bars-dual-claim-of-compensation-both-under-employees-compensation-act-as-well-as-mv-act\/","url_meta":{"origin":221825,"position":1},"title":"S. 167 of Motor Vehicles Act bars dual claim of compensation, both under Employees Compensation Act as well as MV Act","author":"Saba","date":"July 27, 2017","format":false,"excerpt":"Karnataka High Court: While delivering the judgment in a Miscellaneous First Appeal under Section 173(1) of the MV Act, against the judgment passed by the Ist Additional District Judge, Mangaluru, a Single Judge Bench comprising of B. Manohar, J. held that reading Section 167 of the Motor Vehicles Act, 1988\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":225227,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/06\/bom-hc-compensation-granted-under-mv-act-increased-by-adjusting-the-notional-income-in-accordance-with-current-value-of-rupee\/","url_meta":{"origin":221825,"position":2},"title":"Bom HC | Compensation granted under MV Act increased by adjusting the notional income in accordance with current value of rupee","author":"Bhumika Indulia","date":"February 6, 2020","format":false,"excerpt":"Bombay High Court:\u00a0M.G. Giratkar, J., allowed an appeal filed against the order of the Motor Accidents Claim Tribunal (\"MACT\") whereby the appellants-claimants were granted a compensation of Rs 3.7 lakhs. A boy aged 7 years died in a motor accident. Considering the claim raised by the appellants (parents of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":217586,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/01\/utt-hc-compensation-increased-considering-the-raise-in-annual-notional-income-of-a-non-earning-member-pursuant-to-1994-amendment-in-mv-act\/","url_meta":{"origin":221825,"position":3},"title":"Utt HC | Compensation increased considering raise in annual notional income of a non-earning member\u00a0 pursuant to 1994 amendment in MV Act","author":"Bhumika Indulia","date":"August 1, 2019","format":false,"excerpt":"Uttaranchal High Court: Sudhanshu Dhulia, J., allowed the appeal filed by the appellants against the award passed by the Motor Accident Claims Tribunal, Rudrapur in MACT Case No. 153 of 2013, whereby compensation of Rs 3,00,000 was awarded to the claimants. The facts of the case are that, Roshni, the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":379481,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/03\/26\/bom-hc-academic-marks-for-computation-of-future-income\/","url_meta":{"origin":221825,"position":4},"title":"\u201cAcademic marks not measure of earning potential\u201d; Bombay HC enhances Motor Accident Compensation for deceased BHMS student\u2019s family","author":"Soumya Yadav","date":"March 26, 2026","format":false,"excerpt":"\u201cJust as it is true that, academically excellent student may or may not earn well, it is also equally true that academically average or even below-average student may earn very well in practice or profession.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Academic marks for computation of future income","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/Academic-marks-for-computation-of-future-income.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/Academic-marks-for-computation-of-future-income.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/Academic-marks-for-computation-of-future-income.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/Academic-marks-for-computation-of-future-income.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":235899,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/17\/bom-hc-in-motor-accident-cases-is-there-a-hard-and-fast-rule-to-award-interest-from-the-date-on-which-the-claim-application-is-made-law-regarding-s-171-mv-act-discussed\/","url_meta":{"origin":221825,"position":5},"title":"Bom HC | In motor accident cases, is there a hard and fast rule to award interest from the date on which claim application is made? Law regarding S. 171 MV Act discussed","author":"Bhumika Indulia","date":"September 17, 2020","format":false,"excerpt":"Bombay High Court:\u00a0V.L. Achliya, J., while addressing the issue with regard to the interest on compensation awarded in a motor accident case, observed that, \"...discretion vests with the tribunal to award the interest at 'such rate' and from 'such date' over the compensation awarded.\" Appellants being aggrieved by the decision\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/221825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=221825"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/221825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/222107"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=221825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=221825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=221825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}