Accident claim : Compensation awarded under Motor Vehicle Act is not a ‘debt’, nor a succession, therefore production of succession certificate by heirs of deceased not necessary : Motor Vehicles Act, S. 168, Succession Act, 1952, S. 214(1)

17 Accident claim : Compensation awarded under Motor Vehicle Act is not a ‘debt’, nor a succession, therefore production of succession certificate by heirs of deceased not necessary : Motor Vehicles Act, S. 168, Succession Act, 1952, S. 214(1)

Original claimant Abdul Razak Gulam Rasul Bhurwala had sustained grave injuries in a vehicular accident and therefore, he had moved the M.A.C. Tribunal for compensation. Ultimately, the said original claimant succeeded in the claim petition and the Tribunal awarded amount of Rs.3,48,020 with cost and interest. Consequently, the insurance company deposited amount of Rs.7,72,741 with the Tribunal. However, before the original claimant Abdul Razak Gulam Rasul Bhurawala could realise the amount, he died of natural death. When the heirs of the deceased claimant applied for disbursement of the amount, they were asked to produce succession certificate.

The High Court observed that the Apex Court in the case of Smt. Rakhsana and Others v. Nazrunnisa (Smt.) and Anr., reported in 2000 AIR SCW 4941, held that the succession certificate as envisaged under the Indian Succession Act was only granted in respect of ‘debts’ or ‘securities’ to which the deceased was entitled and the compensation awarded under the Motor Vehicles Act was not a debt, nor a succession. Therefore, a certificate was not required to be obtained in order to claim the compensation awarded under the Motor Vehicles Act. However, it would be open for the Tribunal to make appropriate disbursement if there are any disputes amongst the heirs qua quantum of compensation payable to each of the heirs.