(1) A State Government may, by notification in the Official Gazette, constitute one or more Motor Accidents Claims Tribunals (hereafter in this Chapter referred to as Claims Tribunal) for such area as may be specified in the notification for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both.
Explanation.— For the removal of doubts, it is hereby declared that the expression claims for compensation in respect of accidents involving the death of or bodily injury to persons arising out of the use of motor vehicles includes claims for compensation under [section 164].
(2) A Claims Tribunal shall consist of such number of members as the State Government may think fit to appoint and where it consists of two or more members, one of them shall be appointed as the Chairman thereof.
(3) A person shall not be qualified for appointment as a member of a Claims Tribunal unless he
(a) is, or has been, a Judge of a High Court, or
(b) is, or has been, a District Judge, or
(c) is qualified for appointment as a High Court Judge [or as a District Judge.]
(4) Where two or more Claims Tribunals are constituted for any area, the State Government, may by general or special order, regulate the distribution of business among them.
Legal Commentary & Landmark Judgments: Section 165
Section 165 of the Motor Vehicles Act, 1988 empowers State Governments to constitute Motor Accidents Claims Tribunals (MACT) to adjudicate claims for compensation arising out of motor vehicular accidents.
Sub-sections (2) to (4) govern tribunal qualifications and composition: a Claims Tribunal may consist of one or more judicial members, and a person is not qualified for appointment unless they are, or have been, a Judge of a High Court, or a District Judge, or qualified for appointment as a District Judge. The constitution of Tribunals under Section 165 operates to completely oust the jurisdiction of ordinary Civil Courts under Section 175.
The Claims Tribunal is not an ordinary civil court bound by rigid procedural technicalities; it is a specialized socio-legal forum tasked with determining 'just compensation'. Proceedings before the MACT are summary and inquisitorial in nature. Claimants enjoy simplified filing procedures, exemption from ad valorem court fees in most States, and expedited execution powers under Section 174.