Hon’ble Supreme Court of India granted an interim stay on the Delhi High Court’s order passed in an Appeal where Pre-Deposit Conditions was Higher Than Limit Prescribed Under Motor Vehicle Act
CASE DETAILS : PRADEEP KUMAR v. MASTER ANKIT & ANR. SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 30751/2024
The Hon’ble Supreme Court India is set to consider the legal issue whether the Courts could demand a deposit amount beyond the statutory limit for entertaining appeals against claims awarded under the Motor Vehicles Act, 1988.
Delhi High Court order which imposed a condition of 50% of the compensation award as a deposit by the petitioner was challenged and matter was referred to The bench of Justices CT Ravikumar and Sanjay Karol
” A question of seminal importance in the case on hand as to whether an appeal under Section 173 of the Motor Vehicles Act, 1988 could be entertained on deposit of Rs.25,000/-(Rupees Twenty Five Thousand Only) or 50% of the amount awarded, whichever is less and whether the Courts could insist for deposit of amount which is higher than the statutory prescribed amount as a condition precedent for entertaining such an appeal?”
Before the High Court, the petitioner moved an appeal against the award granted in favour of the respondents by the Tribunal on April 1, 2023. However, the Court imposed a deposit condition higher than the statutory limit prescribed under Section 173 of Motor Vehicle Act 1988
The condition imposed by the Delhi High Court read as follows :
“In the meanwhile, considering the reasons that have been given by the learned Trial Court, the appellant herein is directed to deposit 50% of the compensation with accrued interest with the learned Tribunal within four weeks from today, without prejudice to the rights and contentions of the parties.”
“In case, the amount of compensation is not deposited by the appellant, the claimant shall be at liberty to proceed for execution of the impugned award against the appellant as per law.”
It may be noted that Section 173 of Motor Vehicle Act 1988 allows appeals to be filed with a deposit of either Rs. 25,000 or 50% of the awarded amount, whichever is less.
The Apex Court has issued notice and sought a response from the central Govt through the Attorney General for India, since the provision under a Central enactment is the question.
Hon’ble Supreme Court of India has granted an interim stay on the Delhi High Court’s order until the next date of hearing.
Matter will now be heard in the month of September.
