PEPSU RD. TRPT. CORPN. PATIALA vs KULWANT KAUR .

The Supreme Court held that Section 140 of the Motor Vehicles Act, 1988 does not operate retrospectively and the quantum of no fault liability is determined by the statute in a prospective manner, as established in R.L. Gupta v. Jupitor General Insurance Co. [1990(1) SCC 356]. The Court reversed the Punjab and Haryana High Court's decision to award Rs.50,000/- and directed that the amount payable should be Rs.15,000/- as per the applicable law at the time of the incident. The appeal was allowed accordingly.