Introduction:

In a significant move, the Supreme Court has instructed the National Legal Services Authority (NALSA) to devise a scheme for the implementation of the amended Motor Vehicles Act and Central Motor Vehicles Rules. This development stems from the Court’s ongoing engagement with matters related to motor accident compensation. The recent order follows the Apex Court’s rebuke to States and Union Territories for their sluggish response in filing compliance reports regarding its previous directives.

Court Proceedings and Issues:

The Supreme Court, comprising Justice J K Maheshwari and Justice K V Viswanathan, had earlier issued directives regarding motor accident compensation in December 2022. The Court expressed dissatisfaction with the states’ lack of compliance and appointed Senior Advocate J. R. Midha as Amicus Curiae to compile reports, legal provisions, and relevant judgments. This move aimed to enhance the implementation of the amended Motor Vehicles Act and the Central Motor Vehicles Rules.

On December 4th, during the hearing, the Court sought suggestions from Amicus Curiae J. R. Midha, representing Union of India, and counsels for General Insurance Council (GIC), Insurance Regulatory and Development Authority (IRDA), and NALSA. Recognizing the need for a comprehensive scheme, the Court directed NALSA to prepare one in collaboration with all stakeholders.

Arguments:

The Amicus Curiae and counsels for various authorities presented arguments emphasizing the lack of compliance by States and Union Territories, citing a ‘lethargic attitude.’ They underscored the urgency of effective implementation of the amended laws to streamline motor accident compensation.

NALSA, as directed by the Court, will play a pivotal role in preparing the scheme. This involves consultations with the Amicus Curiae, State Legal Services Authorities, central and state government officials, GIC, and IRDA. The aim is to create a framework that ensures the proper execution of the amended Motor Vehicles Act.

The Court, acknowledging the labor put in by the Amicus Curiae, directed all State Governments and Union Territories to deposit money with the Court’s Registrar. Each State was instructed to deposit Rs. 30,000, while Union Territories were asked to deposit Rs. 20,000. In the recent hearing, an amount of Rs.2,30,000 was directed to be released to the Amicus Curiae.

Court’s Judgment:  

The Supreme Court’s decision to involve NALSA in preparing a scheme signifies a proactive approach towards effective implementation of the amended Motor Vehicles Act. The Court, dissatisfied with the states’ non-compliance, seeks to streamline the process of motor accident compensation. This move is crucial in ensuring that the amended laws are executed efficiently, addressing issues related to accident victims’ compensation and overall road safety.