12-Year Limitation Rule Applies To Execution Petitions U/S 174 Of Motor Vehicles Act: Himachal Pradesh High Court

The Himachal Pradesh High Court has clarified that execution petitions filed by insurance companies under Section 174 of the Motor Vehicles Act, 1988 for recovery of compensation, are subject to the twelve years limitation period under the Limitation Act, 1963.It held that even though the Motor Vehicles Act does not provide a specific limitation clause, the general limitation law cannot be ignored.Justice Ajay Mohan Goel remarked that: “The findings returned by the learned Court below that an application under Section 174 of the Motor Vehicle Act can be filed at any time and there is no limitation for moving such application because there is no limitation for filing a claim petition for the grant of compensation under the Motor Vehicle Act in the facts of this case are not sustainable”.A person named Man Dass had filed a claim petition under Section 166 of the Motor Vehicles Act seeking compensation on account of the death of a person in a road accident. The claim petition was allowed and Rs.50,000 was awarded as compensation. Thereafter, an appeal was filed by the Insurance Company seeking recovery from the vehicle owner. The high modified the award and asked the insurance company to first pay the amount and then later recover it from the owner of the vehicle. Pursuant to this, the Insurance Company filed an execution petition in November 2017 before the MACT, seeking recovery from the vehicle owner. The execution petition was allowed by the tribunal in June 2023 and directed the owner of the vehicle to indemnify the Insurance Company. Aggrieved, by the decision of Tribunal, the owners approached the High Court contending that the execution petition was filed by the Insurance Company after the limitation period had expired and the tribunal had ignored this. In response, the Insurance Company contended that there is no limitation prescribed for filing execution petition under Section 174 of the Motor Vehicles Act.The High Court noted that under the Limitation Act, 1963, the period for execution of a decree or order is twelve years from the date the right to apply accrues. In this case, the limitation commenced in May 2005, when the High Court decided the appeal and reserved the Insurance Company's right to recover from the owner. Since, the execution petition was filed in November, 2017, the court held that it was clearly beyond the prescribed twelve-year period.The court further clarified that even though section 174 of the Motor Vehicles Act, which enables recovery of compensation as arrears of land revenue, does not create an exception to limitation law. Statutory execution provisions in special enactments cannot be interpreted to nullify the limitation prescribed for execution of decrees or orders.Allowing the petition, the High Court set aside the Tribunal's order which allowed the execution petition. Case Name: Datta Ram and others v/s United India Insurance Company LimitedCase No.: CMPMO No. 622 of 2023Date of Decision: 09.09.2025For the Petitioners: Mr. Ganesh Barowalia, Advocate. For the Respondent: Dr. Lalit Kumar Sharma, AdvocateClick Here To Read/Download Order

12-Year Limitation Rule Applies To Execution Petitions U/S 174 Of Motor Vehicles Act: Himachal Pradesh High Court

Mehak Aggarwal

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