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CASE NO.: Writ Petition (civil)  282 of 2007

PETITIONER: General Insurance Council & Ors

RESPONDENT: State of Andhra Pradesh & Ors

DATE OF JUDGMENT: 09/07/2007

BENCH: Dr. ARIJIT PASAYAT & P.P. NAOLEKAR

JUDGMENT: J U D G M E N T

Dr. ARIJIT PASAYAT, J.  

1.      Prayer in this writ petition is for direction to the various  States Governments and the Union Territories to ensure that  the mandate of Section 158 (6) of the Motor Vehicles Act, 1988  (in short the ’Act’) is complied with without exception. It is  stated that Section 158 (6) of the Act casts a statutory  obligation on the concerned police officers forward to Claims  Tribunal having jurisdiction about the death or bodily injury  any person so recorded in the police station.  Further mandate  is contained in the provision about the sending copy thereof to  the concerned insurer and the owner of the offending vehicle.   The owner of the vehicle is obligated to forward the report to  the Claims Tribunal and the insurer.  The Union of India has  expressed its concern about the apparent non-compliance  with the requirements of the provision by letter dated 6.6.2006  of the Government of India, Ministry of Shipping Road  Transport and Highways, Department of Road Transport and  Highways issued circular to transport Secretaries and  Commissioners of all States and Union Territories IG (Traffic)  police and all the States and Union Territories highlighting   non-compliance with the statutory requirements.  No action  has been taken to comply with the requirements of Section  158 (6).  2.      There is no dispute that there is statutory requirement to  comply with the requirement and actual implementation is  very disheartening.   3.      Section 158 (6) of the Act reads as under: "158 (6): As soon as any information regarding  any accident involving death or bodily injury to  any person is recorded or report under this  section is completed by a police officer, the  officer-in-charge of the police station shall  forward a copy of the same within thirty days  from the date of recording of information or, as  the case may be, on completion of such report  to the Claims Tribunal having jurisdiction and  a copy thereof to the concerned insurer, and  where a copy is made available to the owner,  he shall also within thirty days of receipt of  such report, forward the same to such Claims  Tribunal and Insurer."    

4.      Rule 150 of the Central Motor Vehicles Rules, 1989 (in  short the ’Rules’) deals with the matter. 5.      Form 54 of the Rules provides the format in which the  information is to be given. The Rule and the Form read as

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follows: 150. Furnishing of copies of reports to Claims  Tribunal.-- (1) The police report referred to in sub-section  (6) of section 158 shall be in Form 54. (2) A registering authority or a police officer  who is required to furnish the required  information to the person eligible to claim  compensation under section 160, shall furnish  the information in Form 54, within seven days  from the date of receipt of the request and on  payment of a fee of rupees ten."

   6.      There is substance in the plea of Mr. G.N. Vahanvati,  learned Solicitor General for the petitioner that if action in  terms of Section 158 (6) is taken, it will rule out filing of false  claim petitions and the job of the Claims Tribunals will  become easier.  It is stated by learned counsel that a large  number of cases alleging sufficient injuries are being filed long  after the accidents and this is adding to the pendency of the  claims petitions.   If action in terms of Section 158 (6) is taken,  it will reduce considerably the filing of false claims. It has been  highlighted in the writ petition as follows: "26. Some salient facts which have emerged  from a detailed study on a macro level which  are relevant for the purposes of the instant  writ Petition may be noticed: 26.1    As on date there are about 1.5 million  cases pending in different Tribunals/High  Courts/Supreme Court;    

26.2    About 4 lakh new cases involving  injury/death under the Motor Vehicles  Act, 1988 are reported every year;

26.3    Claims under the Motor Vehicles Act,  1988 are reported after about 7 months  from the date of accident;

26.4    Delay in reporting the claim promotes  exaggeration and frauds;

26.5    Delay in reporting the claim makes  investigation and fact verification  extremely difficult;

26.6    Adjudication of cases take about 3 to 5  years.

26.7    Petitioners Insurance Companies suffer  on account of higher claim cost on  account of delay in the adjudication of  the claim petitions. 26.8    Strict implementation of Section 158(6)  shall ensure speedier reporting to  Insurance companies which in turn will  ensure expeditious and efficient  settlement of claims."       

7.      The language used in sub-section (6) of Section 158  mandates the police officer to forward a copy of the report to  the Claims Tribunal having jurisdiction and to the concerned  insurance company "as soon as any information regarding any

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accident involving death or bodily injury is recorded or a  report under Section 158 is completed by the police officer." 8.      Use of the expression ’as soon as’ implies that there has  to be promptitude in action. To do a thing ’as soon as possible’  means to do it within a reasonable time, with an  understanding to do it within the shortest possible time. [Per  Dysant, J. in King’s Old County Ltd. v. Liquid Carbonic Can.  Corporation Ltd. (1942) 2 WWR 603]. ’As and when’ and ’as  soon as’ are almost synonymous. Whenever these expressions  are used in respect of time and place, they denote  contemporaneous notion. ’As soon as’ and ’forthwith’ both are  to be normally understood as allowing reasonable time, but  latter is more peremptory than the former. But urgency is the  hallmark of both expressions. Expression ’as soon as’ may be  stretched to mean ’as soon as’ practicable. It has to be  forwarded with promptitude. 9.      Since there is a mandatory requirement to act in the  manner provided in Section 158(6) there is no justifiable  reason as to why the requirement is not being followed.   10.     It is, therefore, directed that all the State Governments  and the Union Territories shall instruct, if not already done, all  concerned police officers about the need to comply with the  requirement of Section 158(6) keeping in view the requirement  indicated in Rule 159 and in Form 54.  Periodical checking  shall be done by the Inspector General of Police concerned to  ensure that the requirements are being complied with.  In case  there is non-compliance, appropriate action shall be taken  against the erring officials.  The Department of Transport and  Highway shall make periodical verification to ensure that  action is being taken and in case of any deviation immediately  bring the same to the notice of the concerned State  Government/Union Territories so that necessary action can be  taken against the concerned officials.         11.     The writ petition is accordingly disposed of.