Owner Alone Liable To Pay Interim Compensation Under Motor Vehicle Act: Himachal Pradesh High Court

The Himachal Pradesh High Court held that only the owner of a motor vehicle is liable to pay interim compensation under Section 140 of the Motor Vehicles Act, 1988.

The Court clarified that such liability arises on the “no fault” principle and cannot be extended to the driver. The Court found that the Motor Accident Claims Tribunal erred in imposing joint liability on both the driver and owner.

Referring to Section 2(30) of the Act, the Court reiterated that the registered owner alone bears statutory responsibility for payment.

Accordingly, the Tribunal’s award was modified to fix sole liability on the vehicle owner for the interim compensation.