Page 154 - The Motor Vehicles Act, 1988

140 THE MOTOR VEHICLES ACT, 1988 SECTION 172

it may, for reasons to be recorded in writing, direct that the insurer who may be liable
in respect to such claim, shall be impleaded as a party to the proceeding and the insurer
so impleaded shall thereupon have, without prejudice to the provisions contained in
1
sub-section (2) of [section 150], the right to contest the claim on all or any of the grounds
that are available to the person against whom the claim has been made.
COMMENT
Insurer cannot challenge the quantum of compensation or negligence or contributory
negligence.—Bhagwati Bai v. Manjeet Singh 2004 (1) CDR 85 (Raj.)
171. Award of interest where any claim is allowed
Where any Claims Tribunal allows a claim for compensation made under this
Act, such Tribunal may direct that in addition to the amount of compensation simple
interest shall also be paid at such rate and from such date not earlier than the date of
making the claim as it may specify in this behalf.

COMMENT
Awarding of interest is entirely discretionary. That there is no claim for interest is no ground
for disallowing the same. For a claim for interest even pleading is not needed for the same may be
allowed on oral submission.—Shanti Devi v. C.S. Chadha AIR 1993 Del 373
172. Award of compensatory costs in certain cases
(1) Any Claims Tribunal adjudicating upon any claim for compensation under
this Act, may in any case where it is satisfied for reasons to be recorded by it in writing
that—
(a) the policy of insurance is void on the ground that it was obtained by
representation of fact which was false in any material particular, or
(b) any party or insurer has put forward a false or vexatious claim or defence,
such Tribunal may make an order for the payment, by the party who is
guilty of mis-representation or by whom such claim or defence has been
put forward of special costs by way of compensation to the insurer or, as
the case may be, to the party against whom such claim or defence has been
put forward.
(2) No Claims Tribunal shall pass an order for special costs under sub-section (1)
for any amount exceeding one thousand rupees.
(3) No person or insurer against whom an order has been made under this section
shall, by reason thereof be exempted from any criminal liability in respect of such mis-
representation, claim or defence as is referred to in sub-section (1).
(4) Any amount awarded by way of compensation under this section in respect of
any mis-representation, claim or defence, shall be taken into account in any subsequent
suit for damages for compensation in respect of such mis-representation, claim or
defence.

1 Substituted for “section 149” by the Motor Vehicles (Amdt.) Act, 2019 (32 of 2019), dt. 9-8-2019,
w.e.f. 1-4-2022 vide SO 859(E), dt. 25-2-2022.