Award of interest where any claim is allowed
Section 171 of the Motor Vehicles Act, 1988 deals with 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. The Act came into force on 01 Jul 1989.
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.
Section 171, The Motor Vehicles Act, 1988 (Act 59 of 1988).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Jitendra Khimshankar Trivedi vs Kasam Daud Kumbhar
Court's Decision & Legal Precedent
The ratio decidendi of this judgment establishes that: (1) In motor accident compensation claims, the income of a deceased housewife/homemaker must be assessed taking into account both any self-employment income and the monetary value of her unpaid domestic services, which are essential to the family's sustenance and the economy. (2) Oral testimony of family members regarding earning capacity, when unchallenged by respondents and corroborated by knowledge of local economic conditions, provides sufficient basis for income assessment even without documentary proof. (3) Courts have an obligation under Section 168 of the Motor Vehicles Act and Article 142 of the Constitution to award 'just and reasonable' compensation, which permits enhancement of awards even when claimants do not appeal, to ensure complete justice. (4) Compensation must include, beyond loss of dependency, conventional damages for loss of consortium and loss of love and affection, with substantial awards (Rs. 1,00,000/- each) being appropriate for surviving family members including minor children. (5) The proper approach to income assessment for housewives is to recognize and monetize their invaluable 24-hour services, as the failure to do so perpetuates women's poverty and social oppression.
On this section: Provides for appeals from tribunal awards to High Court, which was the procedural mechanism used by respondents to challenge tribunal's compensation order.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… including inflation, change of economy, policy being adopted by Reserve Bank of India from time to time, how long the case is pending, permanent injuries suffered by the victim, enormity of suffering, loss of future income, loss of enjoyment of life etc., into consideration. No rate of interest is fixed under Section 171 of the Motor Vehicles Act, 1988. Varying rates of interest are being awarded by Tribunals, High Courts and the Supreme Court. Interest can be granted even if a claimant does not specifically plead for the same as it is consequential in the eye of law. Interest is compensation for forbearance or detention of money …
-
… including inflation, change of economy, policy being adopted by Reserve Bank of India from time to time, how long the case is pending, permanent injuries suffered by the victim, enormity of suffering, loss of future income, loss of enjoyment of life etc., into consideration. No rate of interest is fixed under Section 171 of the Motor Vehicles Act, 1988. Varying rates of interest are being awarded by Tribunals, High Courts and the Supreme Court. Interest can be granted even if a claimant does not specifically plead for the same as it is consequential in the eye of law. Interest is compensation for forbearance or detention of money …
-
… including inflation, change of economy, policy being adopted by Reserve Bank of India from time to time, how long the case is pending, permanent injuries suffered by the victim, enormity of suffering, loss of future income, loss of enjoyment of life etc., into consideration. No rate of interest is fixed under Section 171 of the Motor Vehicles Act, 1988. Varying rates of interest are being awarded by Tribunals, High Courts and the Supreme Court. Interest can be granted even if a claimant does not specifically plead for the same as it is consequential in the eye of law. Interest is compensation for forbearance or detention of money …
Questions about Section 171
What have the courts held on Section 171 of the Motor Vehicles Act?
Jitendra Khimshankar Trivedi vs Kasam Daud Kumbhar (03 Feb 2015) is the leading judgment on this section among those set out below: Provides for appeals from tribunal awards to High Court, which was the procedural mechanism used by respondents to challenge tribunal's compensation order.
How do I find court cases under Section 171 of the Motor Vehicles Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 171, section 171 MV Act, section 171 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Jitendra Khimshankar Trivedi vs Kasam Daud Kumbhar (03 Feb 2015).
When did Section 171 of the Motor Vehicles Act come into force?
Section 171 of the Motor Vehicles Act, cited as MV Act 171, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1948 words
- 88. Validation of permits for use outside region in which granted1560 words
- 51. Special provisions regarding motor vehicle subject to hire-purchase agreement, etc1199 words
- 150. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks1102 words
- 96. Power of State Government to make rules for the purposes of this Chapter995 words
- 72. Grant of stage carriage permits868 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.