12-year limitation applies to execution petitions under Section 174 of MV Act: Himachal Pradesh High Court

The Himachal Pradesh High Court recently ruled that the 12-year limitation rule applies to execution petitions filed under Section 174 of Motor Vehicles (MV) Act for recovery of money as arrears of land revenue in motor vehicle accident cases [Datta Ram & Others v. United India Insurance Company Limited]..Justice Ajay Mohan Goel disagreed with a Motor Accident Claim Tribunal (MACT)'s finding that the application under Section 174 of MV Act can be filed at any time and there is no limitation for moving it as the recovery is done on the basis of issuance of a certificate by the Collector.The Court reasoned that this procedure for recovery and for satisfaction of decrees is not something which is available only under Section 174."This provision is there in umpteen numbers of statutes wherein, if the party fails to satisfy the judgment/decree etc., then, one can resort to such kind of proceedings for the satisfaction of the judgment/decree. However, in all such like proceedings, the period of limitation still remains 12 years. The party has to approach the executing Court within a period of 12 years," the Court said..The Court was dealing with a road accident case in which the MACT on a claim petition had awarded compensation in 1996. In 2005, the insurance company on appeal was directed to pay the amount and recover it from the owners of the vehicle.The insurance company then filed an execution petition in 2017 for recovery of the ₹50,000 amount paid by it to the claimants. The MACT in 2023 allowed the execution petition, leading to the present challenge before High Court.The vehicle owners in their plea argued that the execution proceedings were initiated after the expiry of limitation period of 12 years. However, the insurance company said there was no merit in the argument. .In the judgement passed on September 9, the Court ruled that the execution petition ought to have been filed within the period of 12 years "from the date of announcement of the award/ order in appeal". The Court noted though the order in appeal was passed in May 2005, the execution proceedings were initiated in November 2017 which was beyond the 12 years from the passing of the award.Thus, the Court said the findings of the MACT could not be sustained. "The findings returned by the learned Court below that an application under Section 174 of the Motor Vehicle Act can be filed at any time and there is no limitation for moving such application because there is no limitation for filing a claim petition for the grant of compensation under the Motor Vehicle Act in the facts of this case are not sustainable," the High Court ruled. .Consequently, it set aside the order passed on the execution petition, holding that the proceedings were time barred.Advocate Ganesh Barowalia represented the petitioners. Advocate Lalit Kumar Sharma appeared for the insurance company..[Read Judgment]