Bombay High Court

MAHARASHTRA STATE ROAD TRANSPORT CORPORATION (MSRTC), NASHIK THR.DIVISIONAL CONTROLLERversusNATHU SHIVRAM JAGTAP(DECEASED-DELETED AND ANR.)

Decided: 23 January 2026
Disposal: Dismissed
Bench: R M JOSHI

Holding

The Tribunal was correct in awarding Rs.6,25,000 with 7% interest, and the appeal is dismissed.

Summary

The appellant, Maharashtra State Road Transport Corporation, appealed against a Motor Accident Claims Tribunal award of Rs.6,25,000 with 7% interest to the claimants under Section 163A of the Motor Vehicles Act. The accident on 23 June 2018 involved an MSRTC bus and a jeep, the deceased being a passenger in the jeep. MSRTC contended that the bus driver was not negligent and that the interest awarded was excessive. The High Court noted that the involvement of the state bus and the deceased's lack of responsibility meant negligence was not a material issue, and the Tribunal's award was appropriate. Consequently, the Court dismissed the appeal, ordered the statutory deposit with interest to be transferred to the Tribunal, and disposed of pending applications.

Issues considered

Whether the bus driver was negligent in the accident under Section 163A of the Motor Vehicles Act
Whether the compensation amount of Rs.6,25,000 and the interest rate of 7% per annum awarded by the Tribunal are justified

Legislation cited

Motor Vehicles Act — s. 163A, 173

Subjects

Motor Vehicles Act
Section 163A
Section 173
compensation
negligence
interest
Motor Accident Claims Tribunal
appeal dismissed

Judgment

                                            29-FA-1018-2024.DOC




                                                            Ajit Pathrikar



       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
               CIVIL APPELLATE JURISDICTION
               FIRST APPEAL NO. 1018 OF 2024

Maharashtra State Road Transport
Corporation (MSRTC), Nashik
Thr. Divisional Controller                         ...Appellant
      Versus
Nathu Shivram Jagtap (deceased-deleted)
And Anr.                                           ...Respondents

                          WITH
          INTERIM APPLICATION NO. 10045 OF 2024
                           IN
              FIRST APPEAL NO. 1018 OF 2024
                          WITH
           INTERIM APPLICATION NO. 282 OF 2026
                           IN
              FIRST APPEAL NO. 1018 OF 2024


Mr. P. D. Rananaware a/w Manjeet Lotankar, for the Appellant.
Mr. Pritesh Bohade, for the Respondents.


                    CORAM        R. M. JOSHI, J.
                    DATED:       23rd JANUARY 2026
PC:-


1.     By consent of both sides, heard finally at the stage of

admission.




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                                            29-FA-1018-2024.DOC




2.    This Appeal, filed under Section 173 of the Motor

Vehicles Act, takes exception to the Judgment and Order

dated 4th January 2024 passed in M.A.C.P. No. 1087 of 2018,

filed under Section 163A of Motor Vehicles Act, granting

compensation of Rs.6,25,000/- to the Claimants with interest

at the rate of 7% per annum from the date of the petition till

realisation of the amount.



3.    There is no dispute about the fact that the accident

occurred on 23rd June 2018. There was involvement of a State

Transport Bus bearing No. MH-14-BT-4716 and a jeep bearing

No. MH-15-EB-3619. Further, admittedly, the deceased was a

passenger in the jeep. The Appellant-MSRTC takes exception

to the said Judgment and Award on the ground that, having

regard to the nature of the accident, no negligence can be

attributed to the driver of the bus.



4.    Learned counsel for the Appellant-MSRTC submits that

the Tribunal has committed error in not considering the fact

that there was no negligence on the part of the driver of the


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                                             29-FA-1018-2024.DOC




ST bus in occurrence of the accident and in such

circumstances, the Tribunal was not justified in passing the

impugned Judgment and Award. He also takes exception to

the same on the ground that excessive interest has been

granted by the Tribunal.



5.   Learned counsel for the Claimants supported the

impugned Judgment and Award.



6.   In view of the undisputed fact with regard to the

involvement of the ST bus in the occurrence of the accident

and also considering that the deceased was not responsible for

the occurrence of the accident, being a passenger in the jeep

involved in the accident, there was no reason for the Tribunal

to go into the issue of negligence in a claim under Section

163A of the Motor Vehicles Act. The Tribunal has rightly held

that the Claimants are entitled to receive Rs.5,00,000/- with

5% annual increase. Consequently, the award passed to pay

compensation of Rs.6,25,000/- is just and proper. The interest




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                                            29-FA-1018-2024.DOC




at the rate of 7% per annum granted by the Tribunal cannot

be considered as excessive.



7.     In view of the above, there are no merits in the Appeal.

Hence, the following order:


                              ORDER


(i)    The Appeal is dismissed.


(ii)   The statutory deposit along with interest, if any, be

       transferred to the Tribunal.


(iii) All pending applications, if any, stand disposed of.


(iv) R & P be sent back to the Tribunal.



                                               (R. M. JOSHI, J.)




                              Page 4 of 4
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