KHUSHNUMA BEGUM vs NEW INDIA ASSURANCE CO. LTD. .

The Supreme Court held that a claim for compensation under the Motor Vehicles Act, 1988 can be maintained even in the absence of negligence or rashness on the part of the driver, as established in Section 140 which provides for no-fault liability. The Court found that the accident was caused by the bursting of the jeep's front tyre, leading to the death of Haji Mohammad Hanif, and upheld the Tribunal's direction for the insurance company to pay Rs.50,000/- as compensation under no-fault liability. The appeal was allowed in part, affirming the compensation awarded by the Tribunal.