SC bars dismissal of delayed motor accident claims till Nov 25

New Delhi: In a major relief for road accident victims across India, the Supreme Court on Friday issued an interim order directing Motor Accident Claims Tribunals and High Courts not to dismiss compensation petitions on the grounds of being time-barred. The order came while the apex court was hearing a plea challenging Section 166(3) of the Motor Vehicles Act, introduced through the 2019 amendment, which imposes a six-month limitation period from the date of an accident for filing a compensation claim.

A bench of Justice Aravind Kumar and Justice NV Anjaria noted that several similar petitions have been filed nationwide, all questioning the constitutionality of this amendment. Since the outcome of this case could affect numerous others, the Court directed that the matter be heard expeditiously and re-listed it for November 25.

The bench further clarified that, until a final decision is made, no claim petitions should be dismissed on limitation grounds under Section 166(3).

“There are multiple petitions across the country concerning the same issue, and any finding by this Court would have a bearing on those pending matters. Therefore, the hearings should be expedited. It is made clear that, during the pendency of these petitions, tribunals and High Courts shall not dismiss claim petitions as time-barred under Section 166(3) of the Motor Vehicles Act, 1988,” the bench stated.

The Court granted both parties two weeks to complete their pleadings, warning that failure to do so would forfeit their right to file further submissions.

The petition, filed by an advocate, challenged the constitutionality of the 2019 amendment, arguing that the six-month limit is arbitrary and violates the fundamental rights of accident victims guaranteed under Articles 14, 19, and 21 of the Constitution. The petitioner also contended that the amendment, effective April 1, 2022, restricts access to justice for road accident victims and undermines the humanitarian intent of the Motor Vehicles Act, which was designed to ensure fair compensation.

Historically, the 1939 Act required claims to be filed within six months. However, this restriction was removed in 1994, allowing victims to seek compensation without a time limit. The 2019 amendment, through Act 32 of 2019, reintroduced Section 166(3), which now states: “No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident.”

The petitioner also argued that the amendment was enacted without public consultation, Law Commission input, or parliamentary debate, rendering it “unreasoned, arbitrary, and irrational.”

“The government failed to consider stakeholder opinions or provide justification for the amendment. The change disregards the rights of road users and accident victims,” the petition stated.

The Supreme Court had earlier issued notice on this petition in April last year, and the matter now awaits a final hearing later this month.
(With Live Law inputs)