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ABHAY S. OKA, UJJAL BHUYAN
In Re: Compensation Amounts Deposited With Motor Accident Claims Tribunals And Labour Courts – Appellant
Versus
. – Respondent
Key Points: - The Supreme Court issued directions to address the issue of large unclaimed compensation amounts deposited with Motor Accident Claims Tribunals (MAC Tribunals) and Labour Courts under the 1988 and 1923 Acts (!) (!) . - Applications for compensation can be made by injured persons, property owners, or legal representatives of deceased victims, including duly authorized agents (!) (!) . - MAC Tribunals must direct claimants to produce bank account details (including cancelled cheques or banker certificates) before passing interim or final orders (!) (!) . - In cases of consent awards or compromises, tribunals may direct the direct release of compensation amounts to the claimants' bank accounts (!) . - State Governments are directed to assist Legal Services Authorities, police, and revenue officers in tracing claimants who have not withdrawn their compensation (!) (!) . - Unclaimed amounts deposited with tribunals must be invested in fixed deposits with nationalized banks with standing instructions for renewal (!) . - High Courts are directed to create dashboards to monitor unclaimed amounts and submit compliance reports to the Supreme Court by July 30, 2025 (!) (!) . - These directions remain binding on MAC Tribunals and Commissioners under the 1923 Act until rule-making power is properly exercised by State Governments (!) .
ORDER :
(ABHAY S. OKA, J.)
1) An email was received by this Court from Shri B. B. Pathak, a retired District Judge from Gujarat. In the e-mail dated 25th May 2024, Shri Pathak pointed out that large amounts payable by way of compensation under the Motor Vehicles Act, 1988 (for short, 'the 1988 Act') and the Workmen's Compensation Act, 1923 (for short, 'the 1923 Act') are lying deposited with the Motor Accident Claims Tribunals (for short, 'the MAC Tribunals') and Labour Courts. Hon'ble the Chief Justice of India passed an administrative order on the basis of information received by e-mail from Shri B. B. Pathak for registration of the present Suo Motu Writ Petition.
2) On 8th July 2024, this Court issued notices to the State of Gujarat as well as the Registrar General of Gujarat High Court, directing them to produce before this Court the data of compensation amounts lying deposited with the MAC Tribunals as well as before the Commissioners under the 1923 Act. By the order dated 26th July 2024, this Court requested Ms. Meenakshi Arora, the learned senior counsel appearing for the High Court of Gujarat, to assist the Court as amicus curiae. On the basis of a preliminary note containing
Disbursement of amount of Compensation - Application for compensation can be made by persons who have sustained injuries or by owners of damaged property and in case of fatal accidents, by all or any....
Mode of payment of compensation in motor accident cases – Direction can always be issued to transfer amount into bank account(s) of claimant(s) with intimation to Tribunal – Courts/Tribunals can alwa....
The Claims Tribunal cannot entertain claims filed more than six months after an accident, as dictated by Section 166(3) of the Motor Vehicles Act, ensuring strict procedural compliance.
The court affirmed its limited jurisdiction under Articles 226 and 227, allowing petitioners to seek recovery of misappropriated compensation without further directives.
Motor Accident Claim – Compensation modified - Tribunal may release the money with certain stipulations and that guidelines have to be followed but not rigidly followed as precedents.
Point of law: Scheme is a social welfare scheme requiring liberal construction and application of benefit to needy people.
The main legal point established in the judgment is the importance of conducting thorough inquiries, calling for necessary documents, and ensuring just compensation to the claimants as per the provis....
The court ruled that previous claims' dismissals do not bar re-trial in cases lacking strict adherence to procedural rules in motor accident compensation cases, emphasizing access to justice.
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