ORIENTAL INSURANCE CO LIMITED Vs. HANSRAJBHAI V KODALA

JUDGEMENT

(1.) Leave granted.

(2.) The common question involved in these appeals is whether the compensation payable under Section 163A of the Motor Vehicles Act, 1988 (hereinafter referred to as "the Act") as per the structured formula basis is in addition or in the alternative to the determination of the compensation on the principle of fault liability, after following the procedure prescribed under the Act

(3.) For convenience we would refer to few facts in Civil Appeal arising out of S.L.P. (Civil) No. 8742 of 1999 in which the judgment and Order dated 4-8-1998 passed by the High Court of Gujarat at Ahmedabad in F.A. No. 2473 of 1996 (reported in 1999 (1) Guj LR 631) is challenged. Petition claiming compensation of Rs. 2,50,000/- was filed before the Claims Tribunal on the ground that one bus bearing registration No. G.J. 3T 9815 met with an accident and Mayur, son of respondents Nos. 1 and 2, aged about 6 years died as a result thereof. The claimants also filed an application under Section 163A of the Act for interim compensation on structured formula basis. The Insurance Company appellant contended that as the bus was not insured with it, is was not liable to pay compensation. The Claims Tribunal granted the prayer of the respondents and directed the appellant to pay Rs. 1,62,000/- to the respondents as interim compensation. The appellants preferred appeal before the High Court contending inter alia that in order to provide quicker relief to the accident victims, Section 163A was inserted and is not meant for interim compensation but is an alternative to the determination of compensation under Section 168. It was further contended that the application under Section 163A was a substantial application and not an interim application. The High Court by judgment and Order dated 4-8-1998 held that the award under Section 163A was an interim award and the claimants were entitled to proceed further with determination of compensation under Section 168 of the Act. That order is under challenge.