[Landmark Judgement] Ramla v. National Insurance Company Limited (2019)

Landmark Judgment Law Insider (1)

Published on: 05 October, 2022 at 10:23 IST

Court – Supreme Court of India

Citation – Ramla Vs National Insurance Company Limited (2019) 2 SCC 192

Hon’ble Supreme Court of India has held that Motor Claims Tribunal can award compensation of the amount which is justifiably due and payable under Section 168 of the Motor Vehicles Act, 1988.

Despite the fact that the claimants might have sought for a lesser amount in the claim petition. It is held that “ just compensation” is one which is reasonable on the basis of evidence produced on record before the Hon’ble Motor Claims Tribunal.

Para – 5

Though the claimants had claimed a total compensation of Rs 25,00,000 in their claim petition filed before the Tribunal, we feel that the compensation which the claimants are entitled to is higher than the same as mentioned supra.

There is no restriction that the Court cannot award compensation exceeding the claimed amount, since the function of the Tribunal or court under Section 168 of the Motor Vehicles Act, 1988 is to award “just compensation”. The Motor Vehicles Act is a beneficial and welfare legislation.

A “just compensation” is one which is reasonable on the basis of evidence produced on record. It cannot be said to have become time-barred. Further, there is no need for a new cause of action to claim an enhanced amount. The courts are duty-bound to award just compensation.

Drafted By – Abhijit Mishra

Key Words –  Motor Claims Tribunal, Compensation, Time-Barred.

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