Supreme Court Expresses Concern Over Quality Of MACT Judgments, Calls For Clear And Reasoned Findings

The Supreme Court on Monday (July 20) expressed displeasure with the lack of legal reasoning in the Motor Accident Claim Tribunals' decisions. The Court observed that many tribunal orders merely reproduce pleadings and evidence without adequately explaining how the facts lead to the ultimate conclusion.

“The Tribunals are bodies that people approach, seeking compensation as a consequence of either accidents or deaths, both being entirely unwelcome scenarios. Then, it is only to be expected of the Tribunals that whatever their conclusion be, the same must be supported by adequate and clear reasoning.”, the Court observed.

The Court noted that it had encountered several cases where the nature and quality of tribunal orders had caused it "considerable disturbance."

Referring to the case before it, the Court observed that although the Tribunal had extensively recorded the submissions of the parties and the evidence led during the proceedings, it failed to meaningfully analyse that material or explain how it supported the final outcome.

“In this case for example, the Tribunal elaborately recorded the submissions and evidence. However, its correlation with the facts of the case and effect of this correlation on the end result was lacking.”, the Court said.

A bench of Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh made the aforesaid observations while deciding an appeal arising out of a motor accident compensation dispute, stressing that claimants approach MACTs after suffering accidents or losing loved ones and are therefore entitled to decisions supported by clear and cogent reasoning.

The Court dismissed an appeal filed by Oriental Insurance Co. Ltd. and upheld the insurer's liability to pay compensation in respect of a bus accident that occurred in Nepal. Although the appeal primarily concerned the insurer's liability under a motor insurance policy for an accident outside India, the Court used the occasion to underline the importance of judicial reasoning in motor accident compensation cases.

The Court reminded the MACTs about their judicial responsibility to arrive at a conclusion with a proper legal reasoning, making for an aggrieved party convenient to challenge the decision or to settle the dispute.

“…we may observe that in certain cases that have come up before this Court, including the present one, the tone tenor and extent of the orders passed by the concerned Tribunals has caused us considerable disturbance…The clearer the reasoning and higher the fidelity to the judgments and orders passed by this Court in as much as it is the law that applies to the entirety of the country, the large gap between the date of institution and the date of disposal of such claim petitions will see reduction, as also the number of appeals.”, the judgment authored by Justice Karol said.

Cause Title: THE ORIENTAL INSURANCE CO. LTD. VERSUS DURG ROADWAYS PRIVATE LIMITED & ORS.

Citation : 2026 LiveLaw (SC) 696

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Appearance:

For Petitioner(s) : Mr. Abhishek Kumar Gola, Adv. Mr. Anshul Mehral, Adv. Mr. Arun Kumar Nagar, Adv. Mr. Ravinder Singh, Adv. Mr. Mohit Singh, Adv. Ms. Ragini Agarwal, Adv. Mr. Sudhir Naagar, AOR

For Respondent(s) : Mr. Ashutosh Ghade, AOR Ms. Saloni Meshram, Adv.