Source: Supreme Court

Why in News?

Recently, the Supreme Court in the matter of Gohar Mohammed v. Uttar Pradesh State Road Transport Corporation & Ors., has directed the National Legal Services Authority (NALSA) to prepare a scheme with suggestions for implementation of the amended Motor Vehicles Act, 1988 (MV Act) and the Central Motor Vehicles Rules.

What was the Background of Gohar Mohammed v. Uttar Pradesh State Road Transport Corporation & Ors. Case?

• The MV Act has been amended by the Central Legislation and Rules have also been framed.
• Thereafter due to non-implementation of the amended provision, directions have been issued vide order dated 15^th December 2022, in this case.
• When the matter came up for hearing, the Court took suggestions from Amicus Curiae and issued directions for preparation of a scheme under the aegis of NALSA.
• The matter is listed for further hearing on 5^th January 2024.

What were the Court’s Observations?

• A bench of Justices J K Maheshwari and K V Viswanathan directed NALSA to prepare a scheme with suggestions for implementation of the amended MV Act and the Central Motor Vehicles Rules.
• The Court had subsequently directed all States and Union Territories to file compliance reports regarding the same and had criticized the states for their lethargic attitude.

What are the Relevant Legal Provisions Involved in it?

• Motor Vehicles Act, 1988:
  • Replacing the Motor Vehicles Act, 1939, this Act came into force on 1^st July 1989.
  • The Act provides in detail the legislative provisions regarding licensing of drivers/conductors, registration of motor vehicles, control of motor vehicles through permits, special provisions relating to state transport undertakings, traffic regulation, insurance, liability, offences and penalties, etc.
• Motor Vehicle (Amendment) Act, 2019
  • This Act came into effect on 1^st September 2019.
  • This Act defines golden hour as the time period of up to one hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest.
  • This Act increases the minimum compensation for hit and run cases as follows:
    • In case of death, from Rs 25,000 to two lakh rupees.
    • In case of grievous injury, from Rs 12,500 to Rs 50,000.
  • It requires the Central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.
  • It allows the Central government to order a recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users.
  • It provides for a National Road Safety Board, to be created by the central government through a notification.
• This Act defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services). These aggregators will be issued licenses by state
• It increases penalties for several offences under the Act. For example, the maximum penalty for driving under the influence of alcohol or drugs has been increased from Rs 2,000 to Rs 10,000.
• Central Motor Vehicles Rules, 2022:
  • These Rules have come into force on 1^st April 2022.
  • The new Rules are based on the Scheme framed by the Delhi High Court in judgment dated 8^th January 2021 titled Rajesh Tyagi vs. Jaibir Singh.
  • The aforesaid Rules lay down a new procedure for expeditious investigation and adjudication of the Motor Accident Claims.
  • These Rules mandate the timeline for investigation and adjudication of all Motor Accidents Claims within a period of six months to one year.
  • They have revolutionized the motor accidents compensation jurisprudence as the claimants shall get the compensation within one year to the accident.