2016 Supreme(Del) 3708
IN THE HIGH COURT OF DELHI AT NEW DELHI
J.R. MIDHA, J.
MOHD RIZWAN – Petitioner
Versus
UCO BANK – Respondent
C.M. (MAIN) No. 957 of 2016
Decided On : 04-10-2016
For the Petitioner: Mr. Lokesh Kumar Mishra.
For the Respondents: Mr. Sarfaraz Khan and Mr. Ataur Rehman.
The main legal point established in the judgment is that the directions given in previous cases regarding the release of award amounts in a phased manner and the conditions to be imposed on fixed deposits must be followed by the Claims Tribunal.
Headnote:
Claims Tribunal - Release of Award Amount - New India Assurance Co. Ltd. v. Ganga Devi, (2010) 4 ACC 28, Modified Claims Tribunal Agreed Procedure - Rajesh Tyagi v. Jaibir Singh, (2015) 1 ACC 838 (Del.) - The court discussed the directions given in the cases of New India Assurance Co. Ltd. v. Ganga Devi and Rajesh Tyagi v. Jaibir Singh regarding the release of award amount in a phased manner and the conditions to be imposed on fixed deposits. The court found the direction of the Claims Tribunal to keep a significant amount in FDRs for 10 years to be in clear violation of the directions given in the aforementioned cases. The court allowed the petition and directed the bank to keep a specified amount in FDRs for varying durations and release the balance amount to the petitioner.
Fact of the Case:
The Claims Tribunal awarded a sum to the petitioner, with a portion released and the balance kept in FDRs for 10 years. The petitioner sought release of a larger amount for medical treatment, which was rejected by the Claims Tribunal.
Finding of the Court:
The court found the direction of the Claims Tribunal to keep a significant amount in FDRs for 10 years to be in clear violation of the directions given in previous cases. The court allowed the petition and directed the bank to keep a specified amount in FDRs for varying durations and release the balance amount to the petitioner.
Issues: The main issue was the rejection of the petitioner's application for release of a larger amount by the Claims Tribunal, and the violation of the directions given in previous cases regarding the release of award amounts in a phased manner.
Ratio Decidendi: The court held that the direction of the Claims Tribunal to keep a significant amount in FDRs for 10 years was in violation of previous directions given in similar cases, and therefore set aside the decision of the Claims Tribunal.
Final Decision: The petition was allowed, and the court directed the bank to keep a specified amount in FDRs for varying durations and release the balance amount to the petitioner.
J.R. MIDHA, J.
1. Vide award dated 12th May, 2016, the Claims Tribunal awarded Rs.22,90,495/- to the petitioner along with interest @ 9% per annum. The Claims Tribunal released Rs.20,495/- to the petitioner and directed the balance amount to be kept in four FDRs of equal amount for a period of 10 years.
2. The petitioner filed an application for release of Rs.7 lakh which was rejected by the Claims Tribunal vide order dated 15th September, 2016, which is under challenge in this petition.
3. The petitioner is present in Court along with his counsel and he submits that he has taken loan of more than Rs.8 lakh for his treatment. The particulars of the loan are given in the affidavit dated 01st October, 2016.
4. In New India Assurance Co. Ltd. v. Ganga Devi, (2010) 4 ACC 28, this Court directed the Claims Tribunals to consider releasing the award amount to the victims in a phased manner. The relevant para of the judgment is reproduced hereunder:-
“15. It was pointed out by the counsel for the claimants that the Claims Tribunals were passing directions for releasing part of the award amount and the remaining amount was kept in fixed deposit for a long period due to which the claimants were unable to meet their exigencies and had to approach the Tribunal again and again for release of the award amount. It was suggested by the counsel for the claimants that a direction be given to the Claims Tribunal to keep the amount in fixed deposit in such a manner that the claimants get the award amount in a phased manner which will take care of their exigencies such as illness, marriage of children, education etc.
16. The Claims Tribunal to consider keeping the award amount in fixed deposit in a phased manner depending upon the financial status and financial needs of the claimants. For example, if a sum of Rs.5,50,000 has been awarded to the claimants, Rs.50,000 may be released immediately and the remaining amount of Rs.50,000 may be kept in 10 fixed deposits of Rs.50,000 each for a periods of six months, one year, one and a half years, two years and so on till five years or one year, two years, three years and so on till ten years.
17. If the claimants are school/college going children, the maturity period of the fixed deposit receipts be kept preferably in the month of ‘March’ every year so that the family is able to meet the annual expenses towards the admission and tuition fee of the children.”
5. In the Modified Claims Tribunal Agreed Procedure formulated by this Court in Rajesh Tyagi v. Jaibir Singh, (2015) 1 ACC 838 (Del.), this Court observed that:-
“28. Protection of the award amount
The Claims Tribunal shall, depending upon the financial status and financial need of the claimants, release such amount as may be considered necessary and direct the remaining amount to be kept in fixed deposits in phased manner (for example, if a sum of Rs.5,50,000/- has been awarded to the claimants, Rs.50,000/- may be released immediately and the remaining amount of Rs.5,00,000/- may be kept in 10 fixed deposits of Rs.50,000/- each for a periods of six months, one year, one and a half years, two years and so on till five years or one year, two years, three years and so on till ten years). The Claims Tribunal may also consider imposing following conditions with respect to the fixed deposits:-
(i) The interest on the fixed deposits be paid monthly to the Claimants.
(ii) The monthly interest be credited automatically in the saving account of the claimants.
(iii) Original fixed deposit receipts be retained by the bank in safe custody. However, a passbook of the FDRs be given to the claimants along with the photocopy of the FDR. At the time of maturity, the fixed deposit amount shall be automatically credited in the savings bank account of the Claimants.
(iv) No cheque book be issued to the claimants without permission of the Court. However, a photo identity card b