In the case Shashi Shankar vs. The State of Bihar through the Chief Secretary & Anr. (2026), Justice Ajit Kumar of Patna High Court passed an order dated April 27, 2026. The order reads: "Issue notice to the respondent no.2 under both processes i.e. registered cover with A/D as well as ordinary process, for which requisites etc. must be filed within two weeks. Two weeks’ time is granted to the respondents to file counter affidavit. 4. List this case on 12.05.2026. 5. In the meantime, status quo as on today shall be maintained." The Court's direction regarding addition of the District Magistrate, Rohtas at Sasaram as respondent no.3 was complied with during the course of day. The Respondents no. 2 is Presiding Officer, Motor Accident Claims Tribunal, Rohtas. The Tribunal is constituted under Section 165 of the Motor Vehicles Act, 1988, the primary law regulating road transport in India.
The Court passed the order upon hearing the I.A.s praying for stay on the orders of the Tribunal, expunging the adverse remarks against the Rohtas District's In-Charge, Legal Section and for urgent hearing of the case.
Meanwhile, on April 21, 2026, the Tribunal heard the Execution Case no. 01/2014, Branch Manager, Oriental Insurance Company Ltd. vs. Sanjay Kumar Gupta, and passed an order wherein, it has shifted the penalty of Rs 10,000 from Collector, Rohtas to Rohtas District's In-Charge, Legal Section. The case was listed for hearing before the Tribunal on April 28, 2026.
Notably, Section 165 of the Act lays down that the State Government, by notification in the official gazette, may constitute one or more Motor Accident Claims Tribunal, 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, or damages to any property of a third party so arising, or both.
Section 166 of the MV Act specifies that an application for compensation in case of accident may be made by the person who has sustained the injury, or the owner of the property, or, the agent duly authorised by the person injured, or, iv. Any or all Legal representatives of the deceased.
Section 168 of the Act deals with the power of the Claims Tribunal to grant an award by determining the amount of just compensation which shall be paid by the insurer or owner or driver of the vehicle involved in the accident or by all or by any of them, as the case may be. Thus, a conjoint reading of Section 165, 166 and 168 clearly provides that in case of any accident, the person injured or his agent (in case of injury) or the legal representative of the deceased (in case of death) shall file an application under section 166 before the Claims Tribunal specifying all the facts and circumstances of the case and the Claims tribunal, after hearing the parties may pass an award determining the amount of just compensation in favour of the aggrieved person. Provided there is no legal fault at the hands of the driver or owner of the vehicle, in practical discourse the amount of compensation is always paid by the insurance company which is holding the Third Party Risk Insurance Policy of the Vehicle.
Section 173 provides for the statutory right of appeal wherein the claimant/s can challenge the award passed by the Claims Tribunal by preferring an appeal before the concerned High Court within 90 days from the date of the passing of the award.
Section 174 of the Act, reads: "174. Recovery of money from insurer as arrear of land revenue. - Where any amount is due from any person under an award, the Claims Tribunal may, on an application made to it by the person entitled to the amount, issue a certificate for the amount to the Collector and the Collector shall proceed to recover the same in the same manner as an arrear of land revenue."
The Claims Tribunal constituted under Section 165 read with Section 168 is empowered to adjudicate all claims in respect of the accidents involving death or of bodily injury or damage to property of third party arising in use of motor vehicle. The said power of the Tribunal is not restricted to decide the claims inter se between the claimant or claimants on one side and the insured, insurer and driver on the other. In the course of adjudicating the claim for compensation and to decide the availability of defence or defences to the insurer, the Tribunal has necessarily the power and jurisdiction to decide disputes inter se between the insurer and the insured. The decision rendered on the claims and disputes inter se between the insurer and insured in the course of adjudication of claim for compensation by the claimants and the award made thereon is enforceable and executable in the same manner as provided in Section 174 of the Act for enforcement and execution of the award in favour of the claimants.
Where on adjudication of the claim under the Act the Tribunal arrives at a conclusion that the insurer has satisfactorily proved its defence in accordance with the provisions of Section 149(2) read with sub-section (7), as interpreted by this Court above, the Tribunal can direct that the insurer is liable to be reimbursed by the insured for the compensation and other amounts which it has been compelled to pay to the third party under the award of the Tribunal. Such determination of claim by the Tribunal will be enforceable and the money found due to the insurer from the insured will be recoverable on a certificate issued by the Tribunal to the Collector in the same manner under Section 174 of the Act as arrears of land revenue. The certificate is be issued for the recovery as arrears of land revenue only if, as required by Section 168 (3) of the Act the insured fails to deposit the amount awarded in favour of the insurer within thirty days from the date of announcement of the award by the Tribunal.
The Tribunal exercises powers under Section 47 and Order 21 Civil Procedure Code, 1908. Significantly, what is barred by Section 175 of the M.V. Act, 1988, is the jurisdiction of Civil Court and not the procedure to be applied under Civil Procedure Code.
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