Pepsu Rd. Trpt. Corpn. Patiala vs Kulwant Kaur & Ors

The Supreme Court held that the provisions of Section 140 of the Motor Vehicles Act, 1988 do not operate retrospectively, and thus the claimant is entitled to Rs.15,000/- instead of Rs.50,000/- as 'no fault liability'. The Court clarified that the quantum of liability is determined by the statute in a prospective manner, referencing R.L. Gupta v. Jupitor General Insurance Co. (1990) 1 SCC 356. The appeal was allowed, reversing the High Court's decision.