KAMLA BAI Vs. STATE OF M P

JUDGEMENT

(1.) The question for consideration in the instant writ petition is whether the Madhya Pradesh State Road Transport Corporation (hereinafter referred to as 'M.P.S.R.T.C.') is maintaining the account as mandated under section 146 of Motor Vehicles Act for payment of compensation to the victims of the accidents caused by its vehicles? Another question for consideration is that when the award passed in claim cases are not honoured by M.P.S.R.T.C. as such it has no right to ply the buses and the respondent No. 2 and its authorities and drivers have rendered themselves liable for prosecution and have no right to ply the buses till they are insured.

(2.) Petitioner submits that petition is not against any particular order, but, challenge is to use of motor vehicles in contravention to provisions of section 146 (3) of the Motor Vehicles Act by M.P.S.R.T.C. The petitioner is a widow and she preferred the claim petition for compensation, but, to her surprise even after obtaining the award, M.P.S.R.T.C. has not satisfied it. Petitioner further submits that to her knowledge M.P.S.R.T.C. is not satisfying the award passed against it in several other cases. Few instances have been cited. Petitioner travels in the buses of the M.P.S.R.T.C. Section 146 requires every vehicle be insured, if vehicle is plied without insurance or in violation of provision of section 146, is punishable under section 196 of Motor Vehicles Act. Punishment is to the extent of imprisonment for 3 months or fine which may extend to Rs. 1,000. Under section 146 (3) of the Motor Vehicles Act the State or Central Government is authorized to exempt the vehicles owned by certain authorities; State transport undertaking from the policy of insurance subject to condition that it would establish fund and maintain it for meeting any liability arising out of use of any vehicle of that authority which may be incurred by that authority or any person in its employment may incur to third party. Additional amount is charged by M.P.S.R.T.C. beside the fare from passengers travelling in its vehicle for the aforesaid fund, but, still M.P.S.R.T.C. is not. satisfying the awards passed by the Claims Tribunal. It is not maintaining the fund as required by provisions of section 146 (3) of the Act, which is necessary to be established for enjoying exemption for compulsory insurance. As the fund is not being established and maintained, the M.P.S.R.T.C. cannot be allowed to ply the vehicles without insurance.

(3.) Respondent Nos. 1 and 3 State of Madhya Pradesh in its return contends that in exercise of power conferred under section 146 (3) of the said Act the State Government vide order dated 9.7.1999 granted exemption to the M.P.S.R.T.C: from getting its vehicles insured. It is further directed that a fund be created for payment of compensation in terms of the order R/1/1 dated 9.7.1999. Fund has been created by State Transport Undertaking as per direction of the State Government. Therefore, insurance is not mandatory. The amount towards compensation is being released in accordance with law. As per order R/l/1 exemption under section 146 (3) of the Motor Vehicles Act has been continued and M.P.S.R.T.C. has been authorized to realize Re. 1 per passenger, as surcharge towards the maintenance of compensation account.