Claimants Directed to Refund Compensation Received Under Both Motor Vehicles Act and Workmen's Compensation Act
In a significant judgment, the Rajasthan High Court's Jaipur Bench has ruled against the practice of seeking dual compensation under both the Motor Vehicles Act, 1988, and the Workmen's Compensation Act, 1923, for the same incident. The verdict, delivered by Justice Anoop Kumar Dhand, addressed the appeals brought by National Insurance Company Ltd., the appellant, against the awards granted by the Workman Compensation Commissioner in two separate cases involving respondents Manju Bai and others.
The appeals stemmed from incidents wherein claimants initially sought compensation under the Motor Vehicles Act, 1988, and subsequently filed claims under the Workmen's Compensation Act, 1923. The court, upholding the doctrine of election as articulated in Section 167 of the Motor Vehicles Act, asserted that claimants must choose one forum for compensation and cannot pursue claims under both statutes for the same event.
Justice Dhand emphasized that the doctrine of election is a fundamental principle that prevents claimants from exploiting multiple legal avenues for additional benefits. The judgment referenced past rulings from the Supreme Court and High Courts, underscoring that the claimants had availed compensation under the Motor Vehicles Act and were not entitled to subsequent claims under the Workmen's Compensation Act.
The court ordered the claimants to refund the compensation received under the subsequent claims along with applicable interest to the insurance company. This decision marks a pivotal reinforcement of legal boundaries concerning compensation claims and aims to prevent the misuse of judicial forums.
Legal experts have hailed the ruling as an important step in ensuring adherence to statutory provisions and safeguarding the integrity of compensation mechanisms. This judgment is expected to influence future cases where claimants might attempt to seek dual compensation for a single incident.
Bottom Line:
Claimants are not entitled to claim compensation under both the Motor Vehicles Act, 1988 and the Workmen's Compensation Act, 1923 for the same incident. Claimants must elect one forum as per Section 167 of the Motor Vehicles Act, 1988.
Statutory provision(s): Motor Vehicles Act, 1988 - Section 167; Workmen's Compensation Act, 1923
