MV Act | Supreme Court To Hear Plea Challenging 6 Months Limitation To File Motor Accident Compensation Claims

The provision, which took effect on April 1, 2022, has now been challenged on the ground that it curtails the rights of road accident victims by imposing a strict six-month limitation period for filing claim applications. It has been further argued that putting such a cap on filing the claim application undermines the object of this benevolent statute, which is intended to provide benefits to victims of road accidents.

Based on this projection, the petitioner has pleaded that the impugned amendment is not only arbitrary but also violates the fundamental rights of the road accident victims. 

"Declare the amendment w.e.f, 1.4.2022 in view of the Government Notification is arbitrary, ultra-vires and violative of Articles 14, 19 and 21 of the constitution of India and deserves to be set aside," the petition stated. 

A Bench of Justices Sudhanshu Dhulia and Prasanna Bhalachandra Varale issued notice on the petition to the Union of India. 

It may also be noted that the Motor Vehicles Act of 1939 was amended by the 1988 Act, whereby a claim petition was to be filed within six months. However, by way of the amendment in 1994, the time limit was removed for filing a claim petition regarding an accident that occurred at any time. The legislature, with the introduction of Act 32 of 2019, which came into effect on 1.04.2022, brought back the old provisions of 166(3), restricted the entertainment of the compensation application unless it is made within six months from the occurrence of the accident. For ready reference, Section 166 (3) reads as:

"(3) No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident."

The petitioner has also challenged the impugned amendment because the legislation did not consider any opinion or refer to any law commission report or parliamentary debate behind it. In addition, the effective stakeholders were not consulted during the process. 

"The objection and reason behind such amendment is completely silent in the fact and circumstances of the present case, which is one of the most relevant aspect before enacting any new statutory provision or any amendment to the existing provision of a Statute. Hence, this present Writ Petition is in order to protect the interest of the road users and accident victims suffered in view of Motor Vehicles in public place.," the petition added. 

In view of this, it has been submitted that the impugned regulation is "unreasoned, arbitrary and irrational" and violates the fundamental rights of the road accident victims. 

Case Title: BHAGIRATHI DASH v. UNION OF INDIA & ANR., Writ Petition(s)(Civil) No(s). 166/2024