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  • Motor Vehicles Act of 1939 by the amending Act No. 100 of 1956
  • SECTION 110 MOTOR VEHICLES ACT
  • Section 110-B and Section 110-C
  • Sub-section (3) of Section 110-A
  • Section 110-F
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Citation Codes
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citation codes
Case Number
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Acts
  • Motor Vehicles Act of 1939 by the amending Act No. 100 of 1956
  • SECTION 110 MOTOR VEHICLES ACT
  • Section 110-B and Section 110-C
  • Sub-section (3) of Section 110-A
  • Section 110-F
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

On 15 March 1964 the plaintiff-respondent Jagdish Prasad was knocked down while riding a bicycle on the Kota-Jhalawar road and sustained injuries. The motor truck involved (No. RJR 977) was registered in the name of M/s Yadav Motor Transport Co. The defendants-petitioners were: petitioner No.1 (the registered owner company), petitioner No.2 (a partner of that company) and petitioner No.3 (the driver).

At the time of the accident there was no Motor Accidents Claims Tribunal for the area. Subsequently, by notification dated 9 November 1964 under Section 110 of the Motor Vehicles Act, 1939, the Government of Rajasthan constituted Claims Tribunals and the District and Sessions Judge, Kota was made a Tribunal for the districts of Kota, Bundi and Jhalawar.

After constitution of the Tribunal the plaintiff filed a civil suit claiming Rs. 70,000 in the court of the District Judge; the suit was transferred to the Senior Civil Judge on 12 March 1965. The defendants pleaded, inter alia, that the civil court lacked jurisdiction after constitution of the Claims Tribunal under Section 110 of the Motor Vehicles Act, 1939.

The trial court framed several issues; Issue No. 6 was: "Whether this court has jurisdiction to entertain this suit?" The Senior Civil Judge decided Issue No. 6 in favour of the plaintiff, reasoning that the sixty-day limitation for applying to the Tribunal had already expired by the time the Tribunal was constituted and therefore Section 110-F did not apply to the facts of the case. The defendants filed the present revision against that decision.

During the revision petitioners Nos. 2 and 3 died; petitioner No. 1 remained and the revision was heard on merits. The revising court reversed the Senior Civil Judge's decision, held the suit not maintainable in the civil court, rejected the plaint, and directed that the plaintiff might apply to the Claims Tribunal and seek condonation of delay. The respondent was entitled to refund of the court-fee paid in the Senior Civil Judge's court.

Legal Issues Presented

  1. Whether Section 110-F of the Motor Vehicles Act bars the jurisdiction of the civil court in respect of a claim for compensation that is presented after the constitution of a Claims Tribunal even though the cause of action (the accident) occurred before the constitution of the Tribunal.
  2. The opinion explicitly notes that the related question—whether a civil court may continue trial of cases already entertained before the constitution of the Tribunal—does not arise for examination in this matter.

Arguments of the Parties

Petitioners' Arguments

  • Once a Claims Tribunal is constituted for an area, the jurisdiction of the civil court to entertain suits for compensation is ousted by Section 110-F, which confers exclusive jurisdiction on the Claims Tribunal.

Respondent's Arguments

  • The right to sue in a civil court is a vested right and cannot be taken away retrospectively by Section 110-F; therefore Section 110-F should not be held to apply to claims arising from accidents that occurred before constitution of the Tribunal.
  • The respondent relied on decisions of the Madhya Pradesh High Court and a Single Bench decision of the Punjab High Court (Mulak Raj Bhola Shah v. Northern India Goods Transport Corporation Ltd., AIR 1962 Punj 307) to support the non-retrospective application of Section 110-F.
  • It was further argued that application of the sixty-day limitation in Sub-section (3) of Section 110-A would destroy vested rights or make compliance impossible where the Tribunal did not exist within that sixty-day period; such hardship should preclude retrospective effect.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court in this Opinion
Mulak Raj Bhola Shah v. Northern India Goods Transport Corporation Ltd., AIR 1962 Punj 307 Relied upon by respondent; earlier Punjab Single Bench decision cited on jurisdictional issue between civil court and Tribunal. The court noted the respondent relied on this Single Bench decision; however, it observed that a later Bench decision (Unique Motor and General Insurance Co. Ltd., Bombay, AIR 1965 Punj 102) had overruled the earlier Single Bench decision.
Khatumal Ghanshamdas v. Abdul Qadir Jamaluddin, AIR 1961 Madh Pra 295 Case dealing with continuance of civil suits instituted prior to constitution of the Tribunal. The revising court observed this case did not decide whether civil courts lose jurisdiction as to claims arising before the Tribunal's constitution but presented after, and therefore was of limited assistance to the respondent.
Iqbal Prakash v. State of Madhya Pradesh, 1962 MPLJ 465 Held that a claim for compensation instituted after constitution of the Tribunal could be tried by the civil court because Section 110-F was not retrospective. The revising court considered this Madhya Pradesh decision but did not follow it; the court rejected the view that Section 110-F should be treated as non-retrospective on this basis.
Sushma Mehta v. Central Provinces Transport Services Ltd., AIR 1964 Madh Pra 133 Observed that enactments which destroy existing rights cannot be given retrospective effect without express words; cited Colonial Sugar Refining Co. Ltd. v. Irving. The revising court noted this authority but declined to follow the Madhya Pradesh approach that the Tribunal provisions should not apply to claims arising before constitution of the Tribunal.
Colonial Sugar Refining Co. Ltd. v. Irving, 1905 AC 369 Authority referenced in support of the principle that the right to appeal (and by analogy, remedies) may be a vested right. Referred to by Madhya Pradesh decisions; the revising court discussed the need to distinguish substantive from procedural rights and therefore did not treat the Colonial Sugar analogy as decisive against applying Section 110-F.
Ramkaran v. Ramdas, ILR 54 All 299 (AIR 1931 All 635) Principle that selection of forum and the period of limitation are ordinarily matters of procedure not substantive rights. The revising court cited and relied on this principle to support the conclusion that no litigant has a vested right in a particular forum; therefore Section 110-F can govern forum without being treated as an impermissible retrospective destruction of vested rights.
Hazari Tewari v. Mst. Maktula Chaubain, AIR 1932 All 30 Held that choice of forum is procedural and a new act depriving civil courts of jurisdiction may have retrospective effect as regards forum. The revising court relied on this authority for the proposition that the legislature can change forum rules without violating vested rights in a substantive sense.
Unique Motor and General Insurance Co. Ltd., Bombay v. Kartar Singh, AIR 1965 Punj 102 Held that Section 110-F bars civil court jurisdiction in respect of claims preferred after constitution of the Claims Tribunals even if accidents occurred before constitution. The revising court expressly agreed with the view taken in this decision and treated it as authoritatively supporting the conclusion that Section 110-F bars civil jurisdiction for claims presented after tribunal constitution.
V. C. K. Bus Service (P) Ltd., Coimbatore v. H. B. Sethna, AIR 1965 Mad 149 One of several High Court decisions holding that Section 110-F bars civil court jurisdiction for claims presented after Tribunal constitution. The revising court grouped this decision with others (Madras, Punjab, Gujarat decisions) and agreed with their view that Section 110-F has the stated effect.
Palani Ammal v. Safe Service Ltd., 1966 ACJ 19 (Mad) Madras High Court decision aligning with view that Section 110-F bars civil jurisdiction. Included among decisions which the revising court followed on the question of Section 110-F's effect.
Natverlal Bhikalal Shah v. Thakarda Khodaji Kalaji, ILR (1967) Guj 495 Gujarat High Court decision consistent with the view that Section 110-F bars civil jurisdiction for claims presented after Tribunal constitution. The revising court cited this decision as part of the body of authority it accepted on this question.

Court's Reasoning and Analysis

The court's reasoning proceeded in the following steps (as stated in the opinion):

  1. Distinguishing substantive rights from procedural rights: the court held that the right to compensation for bodily injury is a substantive right and ordinarily cannot be taken away by statute except by express words or necessary implication. However, the choice of forum and rules of limitation are matters of procedure, not substantive rights. The court emphasized: "No litigant has or can have vested right in a particular forum."
  2. Treatment of limitation: the court held that limitation (or the opportunity to sue in a particular forum) is not a vested right. Therefore a legislative change which abolishes or alters a forum or limitation rule may apply as a procedural change without being rendered impermissible by the presumption against retrospective legislation.
  3. Reliance on authority and doctrine: the court cited Salmond on Jurisprudence and leading decisions (Ramkaran v. Ramdas; Hazari Tewari v. Mst. Maktula Chaubain) for the proposition that presumption against retrospective construction does not apply to enactments that affect only procedure or forum. The court quoted authorities to illustrate that "in what courts and within what time I must institute proceedings are questions of procedural law."
  4. Assessment of competing case law: the court reviewed Madhya Pradesh High Court decisions (Iqbal Prakash; Sushma Mehta; Khatumal Ghanshamdas) which had taken the opposite view. The revising court found the Madhya Pradesh decisions unpersuasive for the present question. It noted that some Madhya Pradesh cases concerned continuation of suits instituted before constitution of the Tribunal and thus did not squarely decide the exact issue before the revising court.
  5. Adoption of other High Court decisions: the court examined and agreed with several High Court decisions (including Unique Motor and General Insurance Co. Ltd., V. C. K. Bus Service, Palani Ammal and Natverlal Bhikalal Shah) which held that Section 110-F bars the jurisdiction of civil courts over all claims preferred after constitution of Claims Tribunals, even when the accidents occurred prior to constitution.
  6. Consideration of the respondent's hardship argument: the court addressed the argument that the sixty-day limitation in Sub-section (3) of Section 110-A would make it impossible to apply to the Tribunal where the Tribunal did not exist within sixty days of the accident. The court noted that Sub-section (3) gives the Tribunal discretion to entertain applications after sixty days and that the proviso could meet practical difficulties. The court concluded that these difficulties did not justify departing from the plain meaning of Section 110-F.
  7. Conclusion on jurisdiction: applying the procedural/substantive distinction, the court held that Section 110-F removes the civil court's jurisdiction over claims presented after constitution of a Claims Tribunal for the area; the Senior Civil Judge erred in deciding Issue No. 6 in favour of the plaintiff.

Holding and Implications

Core Ruling: The revising court allowed the revision, held that Section 110-F bars the jurisdiction of the civil court in respect of claims presented after the constitution of the Claims Tribunal even though the accident occurred before constitution of the Tribunal, and reversed the Senior Civil Judge's decision on Issue No. 6.

Direct Consequences for the Parties:

  • The court rejected the plaint and held the civil suit not maintainable.
  • The plaintiff was permitted to present an application before the Claims Tribunal and seek condonation of delay in presenting the claim before the Tribunal.
  • The respondent (plaintiff) was entitled to a refund of the court-fee paid in the Senior Civil Judge's court.

The opinion does not set out any statement that it establishes a novel legal principle beyond applying and aligning with existing High Court decisions; the decision's practical effect in this case is the ouster of civil court jurisdiction and direction to pursue remedies before the Claims Tribunal.

    M/S. Yadav Motor Transport Co. v. Shri Jagdish Prasad

    1. This is a defendants revision and is directed against the order of the Senior Civil Judge Baran dated 26th July 1966 deriding issue No. 6 in favour of the plaintiff-respondent and overruling the defendants objections as to the maintainability of the civil suit. The facts giving rise to revision application are briefly these:

    On 15th March 1964 the plaintiff-respondent Jagdish Prasad, while going on a cycle from Kota on the Kota-Jhalawar road was knocked down at about 8 A. M. near 6th furlong of 7th mile by motor truck No. RJR 977 and received some injuries. The truck was registered in the name of M/s, Yadav Motor Transport Co., Nasirabad, the defendant-petitioner No. 1 and the defendant-petitioner No, 2 is said to be one of the partners of the Yadav Motor Transport Co. Defendant-petitioner No. 3 Ghasiram is said to be the driver of the truck. At the time of the accident there was no Motor Accidents Claims Tribunal (hereinafter referred to as the Claims Tribunal) in existence for the area in which the accident took place. However, Government of Rajasthan, in the exercise of the power conferred by Section 110 of the Motor Vehicles Act. 1939 issued notification dated 9th November 1964 constituting Motor Accidents Claims Tribunals for the areas specified in column 3 of the notification. The District and Sessions Judge, Kota was constituted a Tribunal for districts Kota, Bundi and Jhalawar. It was after the constitution of this Tribunal that the plaintiff-respondent Jagdish Prasad filed a suit in the court of the District Judge which was transferred to the court of the Senior Civil Judge on 12th March, 1965, claiming an amount of Rs. 70,000/-as compensation. The defendants resisted the suit and inter alia pleaded that the Civil Court had no jurisdiction to try the suit after the constitution of the Motor Accidents Claims Tribunal under Section 110 of the Motor Vehicles Act, 1939.

    The trial court framed a number of issues. Issue No. 6 covered the defendants* objection as to the maintainability of the suit and reads as follows:

    'Whether this court has jurisdiction to entertain this suit'?

    The trial Judge referred to the cases cited before him by the counsel for the parties and then emphasised the fact: "A claim is to be filed before the Tribunal within two months from the accident, therefore, by the time the Tribunal was constituted no time remained to file this instant claim before the Tribunal as the period of two months from 15th March 1964 had already expired." The judge thereafter observed: "It shows that the bar tinder Section 110-F does not apply to the facts of the instant case as it was a question relevant to any claim for compensation which may be adjudicated upon by the "Claims Tribunal." Without commenting upon the cases he observed: "None of the above cases is on all fours with the case in hand and none of the cases has decided to oust the jurisdiction of the civil court. The likely anomaly is the abrupt closing of remedy in a civil suit by the constitution of the Claims Tribunals on 19th November 1964 without there being any positive alternative remedy to the plaintiff." With these observations the Court decided issue No. 6 in favour of the plaintiff. The defendants have come in revision.

    2. During the pendency of the revision the petitioners Nos. 2 and 3 died but as the petitioner No. 1 is competent to agitate the controversy raised in the revision petition the revision was heard on merit. The question for determination is whether Section 110-F bars the jurisdiction of the civil court in respect of a claim made after the constitution of the Tribunal even though the claim arose out of the accident occurring before the constitution of the Tribunal. It may be mentioned however that the question relating to the jurisdiction of the Civil court to continue the trial of cases which had been entertained before the constitution of the Tribunal does not arise or call for examination.

    3. It may be pointed out that prior to the introduction of Section 110-F in the present form in the Motor Vehicles Act of 1939 by the amending Act No. 100 of 1956 with effect from 16th February 1957, a person suffering injuries in an accident could file a civil suit within one year of the dale of the accident in a civil court. The legislature presumably considering the remedy of a suit inconvenient, dilatory and expensive provided a complete self-contained machinery for adjudication of claims for compensation in respect of accidents involving the death of or bodily injury to the persons arising out of the use of the motor vehicles. Section 110 of the Act provided for the constitution by the State Government by a notification in the official gazette of Motor Accidents Claims Tribunal for such area as may be specified therein for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles. Section 110-A provides for making of applications for compensation. Sub-section (3) of Section 110-A provides that no application for compensation shall be entertained unless it is made within sixty days of the occurrence of the accident. Section 110-B and Section 110-C provide for the award of compensation by the Tribunal, its powers and procedure in be followed and for appeals against awards. Then Section 110-F which is important runs as follows:

    "Bar of Jurisdictions of Civil Courts. ---Where any Claims Tribunal has been constituted for any area, no civil court shall have jurisdiction to entertain any question relating to any claim for compensation which may be adjudicated upon by the Claims Tribunal for that area, and no injunction in respect of any action taken or to be taken by or before the Claims . Tribunal in respect of the claims for compensation shall be granted by the civil court."

    4. The contention of the petitioner is that once a Claims Tribunal is constituted the jurisdiction of the civil court to entertain suits for condensation is ousted as Section 110-F confers exclusive jurisdiction on the Claims Tribunal. The respondent's submission on the other hand is that the right of a suit being a vested right could not be taken away by Section 110-F which cannot be said to have retrospective operation. The learned counsel for the respondent relied upon a few decisions of the Madhya Pradesh High Court and one Single Bench decision of the Punjab High Court reported in Mulak Raj Bhola Shah v. Northern India Goods Transport Corporation Ltd.. AIR 1962 Punj 307.

    5. Taking up the Madhya Pradesh decisions the earliest case is one reported in Khatumal Ghanshamdas v. Abdul Qadir Jamaluddin, AIR 1961 Madh Pra 295. In that case the controversy related to the continuance of the civil suit which had already been instituted prior to the constitution of the Tribunal and the Court did not decide the question whether after the constitution of the Claims Tribunal the civil court jurisdiction to entertain the claim for compensation in respect of an accident taking place before the constitution of the Tribunal was taken away or not. The respondent's counsel therefore cannot derive much assistance from this case. Another case of the Madhya Pradesh High Court is the decision reported in Iqbal Prakash v. State of Madhya Pradesh, 1962 MPLJ 465 where it was held that a claim for compensation instituted after the constitution of the Tribunal could he tried by the civil court as Section 110-F was not retrospective. The ground for the decision was:

    "to require a claimant to apply to the Tribunal within sixty days of the accident when the Tribunal itself did not exist within that period is to ask him to do the impossible."

    The third case of the M.P. High Court is the decision reported in Sushma Mehta v. Central Provinces Transport Services Ltd., AIR 1964 Madh Pra 133 where it was observed that any enactment which has the effect of destroying an existing right cannot be given retrospective effect without express words. The Court also referred to the case of Colonial Sugar Refining Co. Ltd. v. Irving. 1905 AC 369 where the right to appeal was treated as a vested right, and on analogy extended it to the remedy which a litigant has for obtaining relief by means of a suit.

    6. I have given my careful consideration to the cases of the Madhya Pradesh High Court and have not felt persuaded to follow the view taken by that High Court. In considering the question of vested right a distinction must be drawn between what is a substantive right and the procedural right. The right to compensation for injuries is a substantive right and ordinarily such a right cannot be construed to have been taken away by a statute except by express words of the statute or necessary intendment. The same however cannot be said with respect to the forum in which an action can be agitated. No litigant has or can have vested right in a particular forum. He cannot say as a matter of right that a suit or an application should be tried by this or that forum which existed on the date his cause of action arose. Forum belongs to the realm, of procedure and does not constitute substantive right of a party or a litigant.

    Similarly, limitation cannot be treated as a vested right. A litigant cannot say, where the legislature abolishes a forum that he can wait until the last day of limitation as a matter of right and therefore the court should be retained for his purpose though abolished for other purposes. The matters relating to forum and limitation relate to the law procedure and should be governed by the law in force at the time of the institution of the Tribunal. A reference to authoritative text books on interpretation shows consistent support of a view that the presumption against a retrospective construction has no application to enactments which affect only the procedure and practice of the court even where the alteration which the statute makes, has been disadvantageous to one of the parties. I need only refer to Salmond on Jurisprudence. Salmond considers "that the substantive law is concerned with the ends which the administration of justice seeks; procedural law deals with the means and instruments by which those ends are to be attained He gives the illustration in this manner:

    "Whether I have a right to recover certain property is a question of substantive law, for the determination and the protection of such rights are among the ends of the administration of justice; but in what courts and within what time I must institute proceedings are questions of procedural law, for they relate merely to the modes in which the courts fulfil their functions."

    The same view has been approved in a number of leading cases. In Ramkaran v. Ramdas. ILR 54 All 299 at p. 30ft : (AIR 1931 All 635 at page 639) (FB) Suleman C. J. observed:

    "No doubt, a substantial right is not assumed to be taken away by a new Act unless it expressly says so. But a right to sue in one Court rather than another or a right to wait for a particular period of time before suing is not a substantial right. The selection of forum and the period of limitation are ordinarily matters of procedure only. The selection of a Court in no wav affects the right of suit itself. The Limitation Act does not necessarily extinguish the right though it certainly places a bar against the remedy by suit."

    In Hazari Tewari v. Mst. Maktula Chaubain. AIR 1932 All 30 it was argued that the law of limitation available to the plaintiff under pre-existing law was a vested right and that therefore the provisions of the new enactment for the filing of application within a particular time could not be read as retrospective. The learned Judges refuted the contention on the ground that there could be no vested interest in the choice of any particular forum and observed:

    "If the legislature has thought fit to deprive the civil court of its jurisdiction to entertain suits of a particular nature, a plaintiff cannot compel the civil court to hear his suit merely because his cause of action had accrued before the new Act depriving the civil court of its jurisdiction was passed. The choice of forum is a matter of procedure and not a substantive right, and in most cases a new Act would have a retrospective effect so far as the choice of forum is concerned. The analogy of a new Act not affecting a pendiny action does not apply."

    In Unique Motor and General Insurance Co. Ltd., Bombay v. Kartar Singh. AIR 1965 Punj 102. V. C. K. Bus Service (P) Ltd.. Coimbatore v. H. B. Sethna. AIR 1965 Mad 149. Palani Ammal v. Safe Service Ltd. 1966 ACJ 19 (Mad) and Natverlal Bhikalal Shah v. Thakarda Khodaji Kalaji, ILR (1967) Guj 495, a view has been taken that Section 110-F bars the jurisdiction of civil courts in respect of all claims preferred after the constitution of the Claims Tribunals even though the claims arose out of accidents occurring before the constitution of the Claims Tribunals. I have gone through all the judgments and respectfully agree with the view taken in these decisions and I am unable to follow the view taken by the M. P. High Court. As for the Single Bench decision of the Punjab High Court I need only mention that the earlier Single Bench decision relied upon by the petitioner stands overruled by the later Bench decision of the same High Court reported in Unique Motor and General Insurance Co. Ltd., Bombay, AIR 1965 Punj 102.

    7. The learned counsel for the respondent however emphasised the principle that where the retrospective application of a statute prescribing the period of limitation would destroy vested right of action, or Inflict such hardship or injustice as could not have been within the contemplation of legislature then the statute is not any more than any other law to be construed retrospectively and relied upon this principle to support his contention that Sections 110 and 110-A must be held inapplicable to a claim In respect of an accident occurring more than sixty days prior to the constitution of a Claims Tribunal, for in such a case it would be impossible to comply within the period of limitation laid down in Sub-section (3) of Section 110-A and the vested right of action of an applicant would be destroyed. He admitted that under Sub-section (3) of Section 110-A the Tribunal has been given discretion to entertain applications even after the expiry of sixty days but the discretion of the Tribunal does not amount to giving a vested right to a litigant to secure the entertainment of his application after the expiry of sixty days. The difficulties pointed out by the respondent's counsel are not insurmountable and do not warrant a conclusion that a plain and grammatical meaning of Section 110-A should be departed from on the basis of these difficulties.

    Referring to these difficulties the Madras High Court took the view that Sub-section (3) of Section 110-A would not govern applications in respect of claims arising out of accidents occurring more than sixty days before the constitution of the Tribunal, for applications under Sub-section (3) postulate the existence of a Tribunal. The same High Court expressed the opinion that the proviso to Sub-section (3) of Section 110-A can also be used to meet these difficulties. The Punjab and Gujarat High Courts have also met arguments based on these difficulties with reference to the proviso. These difficulties may have some bearing upon interpretation of the provisions governing limitations but they cannot have substantial bearing on the interpretation of Section 110-F. Having regard to all these considerations I am of the opinion that Section 110-F bars jurisdiction of the civil courts in respect of all claims to be made after the constitution of the Tribunals even though the accidents may have occurred before the constitution of the Tribunals. The Senior Civil Judge was not justified in deciding issue No. 6 in favour of the plaintiff and continuing his jurisdiction over the case. His decision on issue No. 6 must be reversed.

    8. I therefore accept this revision and holding that the suit was not maintainable reject the plaint of the plaintiff. It will be open to the plaintiff to present an application before the Tribunal and to secure condonation of the delay in presenting the claim before the Claims Tribunal having regard to the observations made in the order of this Court, The respondent shall be entitled to the refund of the Court-fee paid in the court of the Senior Civil Judge.

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    M/S. Yadav Motor Transport Co. v. Shri Jagdish Prasad
    (Mar 13, 1969)