ESHWARAPPA @ MAHESHWARAPPA & ANR. versus C.S. GURUSHANTHAPPA & ANR.

Citation: [2010] 10 S.C.R. 362 · Decided: 18-08-2010 · Supreme Court of India · Bench: AFTAB ALAM · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2010] 10 S.C.R. 362 
A 
ESHWARAPPA @ MAHESHWARAPPA & ANR. 
B 
v. 
C.S. GURUSHANTHAPPA & ANR. 
(Civil. Appeal No. 7049 of 2002) 
AUGUST 18, 2010 
[AFTAB ALAM AND R.M. LODHA, JJ.] 
Motor Vehicles Act, 1988 - ss. 140 and 166 - N9 fault 
compensation - Fatal accident - Death of driver and four 
C occupants, of a private car - Surviving occupant sustained 
serious injuries - While rejection of claim petition, prayer for 
no fault compensation a/so rejected Held: Liability arising 
from s. 140 would almost invariably be passed on to insurer 
to be paid off from the vast fund created by virtue of ss. 146 
D and 147 unless owner of the vehicle causing accident is guilty 
of some flagrant violation of the law - In case of death or 
permanent disablement of any person resulting from motor, 
accident, a minimum amount must be paid to the injured or 
heirs of deceased, independently of the compensation on the 
E principle of fault -
Thus, claimants entitled to no-fault 
compensation uls. 140 - Insurance company directed to pay 
Rs.25,0001- along with simple interest@ 6% p.a. 
A privately owned car met with a fatal accident 
resulting in the death of the driver and the four 
F 
occupants. The fifth passenger sustained injuries. The 
heirs and legal representatives of the driver filed a claim 
for compensation uhder the Workmen's Compensation 
Act, 1923 and the same was rejected holding that the 
accident did not take place in the course of employment. 
G The heirs and legal representatives of the four occupants 
and the fifth passenger sought compensation before the 
Motor Accidents Claims Tribunal and the same was also 
rejected. The tribunal also rejected the express prayer 
made on behalf of the appellants and other claimants for 
H 
362 
ESHWARAPPA @ MAHESHWARAPPA & ANR. v. 
363 
C.S. GURUSHANTHAPPA & ANR. 
grant of the 'no fault compensation' as provided under 
A 
section 140 of the Act. The High Court dismissed the 
appeal by a brief order. Therefore, the appellants filed the 
instant appeal. 
Allowing the appeal, the Court 
B 
HELD: 1.1 The reasons assigned for denying the 
appellants the 'no fault compensation' as provided under 
section 140 of the Motor Vehicles Act, 1988 by the tribunal 
cannot be accepted. The tribunal was gravely in error in 
taking the view that a claim for compensation under C 
section 140 of the Act can succeed only in case it is 
raised at the initial stage of the proceedings and further 
that the claim must fail if the accident had taken place by 
using the car without the consent or knowledge of its 
owner. All that is required to attract the liability under D 
section 140 is an accident arising out of the use of a 
motor vehicles(s) leading to the death or permanent 
disablement of any person. [Para 12) [370-F-H; 371-B] 
F 
1.2 Chapter X of the Act deals with "Liability without 
E 
fault" and contains ss. 140 to 144. Seen in isolation, these 
provisions might appear harsh, unreasonable and 
arbitrary in as much as these create the liability of the 
vehicle(s) owner(s) even where the accident did not take 
place due to any wrongful act, neglect or default of the 
owner or owners of the vehicle or vehicles concerned but 
entirely due to the wrongful act, neglect or default of the 
person in respect of whose death or permanent 
disablement the claim has been made, but the said. 
provisions must be seen along with certain provisions of 
Chapter XI. Section 146 forbids the use of the vehicle in 
G-
a public place unless there is in force, in relation to the 
use of the vehicle, a policy of insurance complying with 
the provisions of that chapter. Section 147 contains the 
H 
364 
SUPREME COURT REPORTS 
[2010] 10 S.C.R. 
A provisions that are commonly referred to as 'Act only 
insurance'. The provisions of sections 146 and 147 are 
meant to create the large pool of money for making 
payments of no fault compensation. Thus, the liability 
arising from section 140 would almost invariably be 
B passed on to the insurer to be paid off from the vast fund 
created by virtue of sections 146 and 147 of the Act 
unless the owner of the vehicle causing accident is guilty 
of some flagrant violation of the law. Thus, the provisions 
of chapter X together with sections 146 and 147 would 
c appear to be in furtherance of the public policy that in 
case of death or permanent disablement of any person 
resulting from a motor accident a minimum amount must. 
be paid to the injured or the heirs of the deceased, as t

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