General Insurance Council v. State of Andhra Pradesh

~­ ; t r- A GENERAL INSURANCE COUNCIL AND ORS. _v._ STATE OF ANDHRA PRADESH AND ORS. ## JULY 9, 2007 B [DR. ARIJIT PASA YAT AND P.P. NAOLEKAR, JJ.] _Motor Vehicles Act, 1988-s. 158 (6)---Compliance of the provision-_ ' _Held: Since the compliance of the provision is mandatory, it should be_ C _followed-Direction to the State Governments and Union Territories to direct the concerned police officials to comply with the requirement of the provisionOn non-compliance of the direction, action to be taken against erring officials---Centraf Motor Vehicles Rules, 1989-Rule 150 and Form 54._ _Words and Phrases-'As soon as'-Meaning of the expression-In the_ D _context of s. 158 (6) of Motor Vehicles Act, 1988._ The Writ Petition was filed before this Court seeking direction to State Governments and Union Territories to ensure that the mandate of Section 158 (6) of Motor Vehicles Act, 1988 is complied with without exception. E Disposing of the Writ Petition, the Court HELD: I. The language used in sub-section (6) of Section 158 of Motor Vehicles Act, 1988 mandates the police officer to forward a copy of the report to the ClaimsTribunal having jurisdiction and to the concerned insurance company "as soon as any information regarding any accident involving death F or bodily injury is recorded or a report under Section 158 is completed by the police officer." 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. 'As and when' and 'as soon as' are almost synonymous. G 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 ' 192 H -; ' GENERALINSURANCECOUNCILv. STATEOFANDHRA PRADESH[PASAYAT,J.] 193 , forwarded with promptitude. A !Paras 7 and 811196-G; 197-A, Bl _King's Old County Ltd._ v. _Liquid Carbonic Can. Corporation Ltd._ (1942) 2 WWR 603, referred to. ......\ I --'. 2. If action in terms of Section 158 (6) is taken, it will rule out filing of B false claim petitions and the job of the Claims Tribunals will become easier. tpara 611196-AI 3. 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. It is, therefore, directed that all the State Governments C 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 requiremeqt indicated in Rule 150 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 D 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. !Paras 9 and IOI (197-C, D, El E CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 282 of2007. _·{__ G.E. Vahanvati, SG. Vishnu Mehra, Sakshi Mittal and Pramod Dayal for the Petitioners. F Satya Mitra Garg, V.G. Prgasam, Manjit Singh, TY George, Harikesh Singh, Bindu Saxena, Shailendra Swarup, S. Wasim, A. Qadri, D.S. Mahra, MPS Tomar, D.P. Vinay Kumar and D. Bharathi Reddy for the Respondents. The Judgment of the Court was delivered by G DR. ARIJIT PASA Y AT, J. I. 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 H 194 SUPREME COURT REPORTS (2007) .8 S.C.R. A 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 B requirements of the provision by letter dated 6.6.2006 ofthe Go-•ernment 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 C requirements. No action has been taken to comply with the requirements of Section 158 (6). 0 ' ·---r· 2. There is no dispute that there is statutory requirement to comply with the requirement and actual implementation is very disheartening. D 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 E 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." ',. F 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 follows: G 150. _Furnishing of copies of reports to Claims Tribunal.-_ (I) 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 H furnish the required information to the person eligible to claim -. ~ ~. _..,1_ > GENERALINSURANCECOUNCILv.STATEOFANDHRAPRADESH[PASAYAT,J.] 195 i- compensation under section 160, shall furnish the information in Form A 54, within seven days from the date of receipt of the request and on payment of a fee of rupees ten." ## FORM 54 ,; >-, " -•. __.; [Rule 150( I) and (2)] **==> picture [322 x 448] intentionally omitted <==** **----- Start of picture text -----**<br> B<br>ACCIDENT INFORMATION REPORT<br>I. Name of the Police station ............................<br>2. CR Norr raffic accident report ····························<br>3. Date ............................ c<br>4. Name and full address of the injured/deceased . ...........................<br>5. Name of the hospital to which he/she was removed. ····························<br>6. Registration number of vehicle and the type of the vehicle ...........................<br>7. Driving license particulars:<br>D<br>(a) Name and address of the driver ····························<br>(b) Driving licence number and date of expiry ............................<br>(c) Address of the !issuing authority ............................<br>(d) Badge No. In case of public service vehicle<br>E<br>8. Name and address of the owner of the<br>vehicle at the time of the accident ............................<br>9. Name and address of the insurance company'<br>with whom the vehicle was insured and the<br>particulars of he Divisional Officer of the F<br>said insurance company ····························<br>10. Number of insurance policy/Insurance certificate<br>and the date of valditiy of the Insurance policy/insurance<br>company. . ........................... G<br>11. Registration particulars of the vehicle (class of vehicles)<br>(a) Registration No. ····························<br>(b) Engine No. ····························<br>(c) Chassis No. ···························· H<br>**----- End of picture text -----**<br> ||196|SUPREMECOURTREPORTS<br>[2007) 8 S.C.R.|| |---|---|---|---| |A|12.|Routine permit particulars|| ||13.|Action taken,ifany, and the result thereof|| |||6.Thereissubstanceinthe pleaofMr. G.N. Vahanvati, learned Solicitor|| ||General for the petitioner thatifaction in termsofSection 158 (6)istaken,||| ||it will rule out filingoffalse claim petitions and the jobofthe Claims Tribunals||| |B|will become easier.Itisstated by learned counsel that a large numberofcases||| ||alleging sufficient injuries are being filed long after the accidents and this is||| ||adding to the pendencyofthe claims petitions.IfactionintermsofSection||| ||158 (6)istaken,itwill reduce considerably the filingoffalse claims.Ithas||| ||been highlighted|been highlightedinthe writ petition as follows:|| |c|c|"26. Some salient facts which have emerged from a detailed study on|| |||a macro level which are relevant for the purposesofthe instant writ|| |||Petition may be noticed:|| |||26.l As on date there are about1.5million cases pending in different|| |D||Tribunals/High Courts/Supreme Court;|| |||_262_About 4 lakh new cases involving injury/death under the Motor|| |||Vehicles Act, 1988 are reported every year;|)-| |||26.3Claims under the Motor Vehicles Act, 1988 are reported after|| |||about 7 months from the dateofaccident;|| |E||26.4Delayinreporting the claim promotes exaggeration and frauds;|| |||26.5Delayinreporting the claim makes investigation and fact|| |||verification extremely difficult;|| |||26.6Adjudicationofcases take about 3 to_5_years.|| |F||26.7Petitioners Insurance Companies suffer on accountofhigher|| |||claim cost on accountofdelayinthe adjudicationofthe claim|| |||petitions.|| |||26.8Strict implementationofSection 158(6) shall ensure speedier|| |||reporting.toInsurance companies whichinturn will ensure|| |G||expeditious and efficient settlementofclaims."|| 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 accident involving death or bodily injury is recorded H or a report under Section 158 is completed by the police officer." :l, GENERALINSURANCE COUNCIL v. ST A TE OF ANDHRA PRADESH [PASAYA T,J. J 197 .... 8. Use of the expression 'as soon as' implies that there has to be A 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 B 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 . c 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 D 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 150 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 E 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. K.K.T. Writ petition disposed of. F