Award of compensatory costs in certain cases
Section 172 of the Motor Vehicles Act, 1988 deals with award of compensatory costs in certain cases. 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 p The Act came into force on 01 Jul 1989.
(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 misrepresentation, 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.
Section 172, The Motor Vehicles Act, 1988 (Act 59 of 1988).
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.
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… to remand the matter to give an opportunity to the claimants to examine the investigating officer or any other witness to prove his case and if the Tribunal finds that the claimant has colluded with the owner of the offending vehicle and has filed the claim petition the Tribunal has to exercise the power under Section 172 of the Motor Vehicles Act. Hence, he sought for allowing the appeal. 7. On the other hand, Sri Vasudeva Murthy, learned counsel appearing for the claimants has raised the following contentions: Firstly, the accident occurred due to the negligence of the driver of the Tata Sumo. He came in a rash and negligent …
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… Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondent. 2 3. The costs directed to be paid as per the order impugned, no doubt, is compensatory in nature. Section 172 of the Motor Vehicles Act ('the Act') deals with the award of compensatory costs. Sub sections (1) and (2) of Section 172, which are relevant in the context, read thus: > (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 …
Questions about Section 172
What does Section 172 of the Motor Vehicles Act deal with?
Section 172 of the Motor Vehicles Act is headed "Award of compensatory costs in certain cases". 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 p
How do I find court cases under Section 172 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 172, section 172 MV Act, section 172 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 172 of the Motor Vehicles Act come into force?
Section 172 of the Motor Vehicles Act, cited as MV Act 172, 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 15 Oct 2026. This page is not a substitute for legal advice.