FMAT (MV)/674/2024 of SAHINUR BEGUM AND ORS Vs M/S NEW INDIA ASSURANCE CO LTD AND ANR on 22 July 2026

1. Learned advocate for the appellants-claimants and learned advocate for the respondent No.1-M/s New India Assurance Company Ltd. are present.

2. Heard the learned advocates for the parties.

3. The grievance of the appellants-claimants in the instant appeal is that the learned Trial Judge instead of awarding compensation of Rs.5,00,000/- as provided under Section 164 of the Motor Vehicles Act, 1988 has awarded compensation of Rs.4,12,500/-.

4. Learned advocate for the appellants submits that under the latest amendment made in the Motor Vehicles Act, 1988 the appellants are entitled to compensation of Rs.5,00,000/-.

5. Learned advocate for the respondent No. 1 M/s New India Assurance Company Ltd. submits that the appellants/claimants are not entitled to compensation of Rs.5,00,000/- in view of the decision of the Hon’ble Supreme Court in the case of New India Assurance Company Limited Versus Usha Devi and Others reported in 2025(3) T.A.C. 360 (S.C.).

6. Upon considering the provisions of the Section 164 of the Motor Vehicles Act, 1988 and considering the date of judgement which was on 7th Day of May, 2022, passed by the learned Trial Judge and considering the relevant judicial decisions with regard to the compensation pursuant to amendment of the Motor Vehicles Act in Section 164 this Court is of the view that as the decision relied upon by the learned advocate for the respondent No. 1/Insurance Company, in the case of New India Assurance Company Limited Verses Usha Devi and Ors. (supra) does not deal with the entitlement of the claimants under Section 164 of the Motor Vehicles Act, 1988, this judgment cannot apply in the instant case. As Motor Vehicle Claims legislation is the beneficial legislation and by virtue of the amendment in which the compensation amount in the case of no fault liability is enhanced and made uniform of Rs. 5,00,000/- in case of death it would be just and proper to award compensation of Rs.5,00,000/- to the appellants/claimants.

7. In the facts and circumstances, this appeal FMAT (MV) 674 of 2024 stands disposed. The judgement and award passed by learned Additional District Judge, 3rd Court, Berhampore, Murshidabad in M.V. Case No. 765 of 2015 stands modified to the extent that the appellants/claimants will be entitled to compensation of Rs.5,00,000/- from the respondent No.1-M/s New India Assurance Company Ltd. However with regard to grant of interest with regard to the delay in preferring the appeal the decision relied upon by the learned advocate for the respondent No.1-M/s New India Assurance Company Ltd. in the case of Executive Engineer, Nimna Dudhna Project, Selu, District Parbhani V. State of Maharashtra reported in AIR 2020 (S.C.) 717 cannot apply in this case. In the said case the matter was with regard to the land acquisition and did not deal with the Motor Accident Claim Case. The Motor Accident Claim Case being beneficial legislation the award of interest should not be refused unless there are special reasons. Thus, the appellants/claimants are entitled to compensation of Rs.5,00,000/- alongwith interest @ 6% per annum from the date of filing of the claim case till today.

8. The respondent No.1-M/s New India Assurance Company Ltd. shall deposit Rs.5,00,000/- along with interest @ 6% per annum within eight weeks from the date of communication of this order before Learned Registrar General, High Court, Calcutta. In the event the compensation awarded by the learned Trial Court is already deposited the balance amount be deposited. The appellants/claimants will be entitled to withdraw the compensation amount upon compliance of necessary formalities.

9. This appeal FMAT (MV)674 of 2024 stands disposed of.

10. Urgent photostat certified copies of this order, if applied for, be supplied to the parties upon compliance of all necessary formalities.

(Biswaroop Chowdhury, J.)