State Of Punjab & Ors vs Bhajan Kaur & Ors

The Supreme Court ruled that Section 140 of the Motor Vehicles Act, 1988 does not have retrospective effect, affirming that statutes are presumed to be prospective unless explicitly stated otherwise. The Court clarified that under the previous Motor Vehicles Act, 1939, the no fault liability was limited to Rs. 15,000, which was later increased to Rs. 50,000 under the 1988 Act, effective from 14.11.1994. The Court held that without a clear provision for retrospective application, the new liability limits cannot be applied to accidents occurring before the enactment of the 1988 Act.