Schemes Framed Under Section 164A Motor Vehicles Act Are Statutory Under Section 2(38-A); Mandatory Publication In Official Gazette Under Section 212 Essential For Legal Enforceability: Supreme Court

"This Scheme is a statutory scheme because it is framed under statutory provision of Section 164A of the Act, 1988. Section 2 (38-A) defines the term Scheme- it means a Scheme framed under this Act. This being a statutory scheme framed under Section 164A of the Act, the same would be covered under Section 212 of the Act, 1988." Observing that interim compensation schemes formulated under the Motor Vehicles Act, 1988 possess statutory character and cannot operate without formal promulgation, the Supreme Court bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan on October 16, 2026, held that schemes formulated under Section 164A are squarely governed by Section 212 of the Act. The Court emphasized that mandatory publication in the Official Gazette is legally indispensable for giving enforceability, validity, and legal effect to such welfare schemes designed for road accident victims.

The proceedings arose out of a contempt petition pointing out non-compliance with the Supreme Court's earlier direction dated April 28, 2025, which had reprimanded the Central Government for failing to implement Section 164A for three years and mandated the framing of an interim relief scheme within four months. In response, the Union Government placed on record the "Compensation to Victims (Interim Relief) Scheme, 2026", circulated internally to State authorities via executive correspondence dated February 23, 2026. However, the petitioner-in-person and the Amicus Curiae pointed out that the scheme had not been published, leaving accident victims entirely unaware of its existence and provisions.

Whether a scheme framed by the Central Government under Section 164A of the Motor Vehicles Act, 1988 constitutes a statutory scheme governed by the mandatory procedural requirements of Section 212 of the Act?

Whether the legal enforceability and operational validity of the Compensation to Victims (Interim Relief) Scheme, 2026 are contingent upon its mandatory publication in the Official Gazette under Section 212(2) of the Act?

Statutory nature of schemes framed under Section 164A of the Motor Vehicles Act

The Supreme Court examined the legal character of the newly drafted Compensation to Victims (Interim Relief) Scheme, 2026, observing that it does not emanate from mere administrative discretion or executive instructions. The Bench underscored that the scheme draws its existence directly from the legislative conferment of power under Section 164A, which was inserted to provide interim relief to claimants praying for motor accident compensation.

The Court referred to the statutory definition under Section 2(38-A) of the Motor Vehicles Act, which defines a "Scheme" as one framed under the provisions of the Act. Consequently, because the interim relief mechanism is traceable to Section 164A, it assumes the character of a statutory scheme and must comply with the overarching statutory checks governing delegated legislation under the enactment.

Mandatory Gazette publication under Section 212 as a condition precedent for enforceability

Drawing the attention of the Union Government to the procedural prerequisites of subordinate legislation, the Bench ruled that Section 212 of the Motor Vehicles Act directly applies to schemes framed under the enactment. Section 212 regulates the publication, commencement, and laying of rules and statutory notifications issued under the Act, ensuring democratic oversight and public notice.

The Court highlighted that under Section 212(2), all instruments framed under the statute must be published in the Official Gazette and, unless a later date is appointed, they come into force only on the date of such publication. The Bench made it clear that mere departmental circulation to Chief Secretaries does not satisfy the statutory mandate, ruling that statutory schemes remain inchoate and legally ineffective unless officially gazetted.

Public notification essential to operationalize beneficial legislation

The Bench underscored that the Motor Vehicles Act is a piece of beneficial social welfare legislation intended to grant prompt succour to motor accident victims and their dependents. The Court observed that keeping statutory relief mechanisms confined to departmental files defeats the very legislative objective behind Section 164A, as the common man cannot assert rights of which they have no legal notice.

Emphasizing the necessity of making the public aware of their statutory rights to interim compensation, the Court instructed the Union to ensure extensive publicity alongside formal notification. The Bench reiterated that legal enforceability requires both legislative formalization through Gazette publication under Section 212 and effective operational dissemination so that claimants can invoke these provisions before Motor Accident Claims Tribunals.

The Supreme Court directed the Union of India to publish the Compensation to Victims (Interim Relief) Scheme, 2026 in the Official Gazette at the earliest, complying strictly with Section 212 of the Act. The Court further directed the Union to clarify whether the scheme covers uninsured vehicles, detail how it proposes to make the scheme operational across the country, and listed the contempt petitions along with the main matter for further consideration on November 25, 2026.

Date of Decision: October 16, 2026

SUPREME COURT OF INDIA 

Bench: Justice J.B. Pardiwala and Justice K.V. Viswanathan