IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
GITA GOPI, J.
BADLIBEN DITIABHAI PALAS – Petitioner
Versus
VADODARA GUJARAT GRAM BANK, GODHRA – Respondent
Special Civil Application Nos. 18700, 18701, 18702, 18703, 18704 of 2022
Decided On : 29-09-2022
Motor Accident Claim - Premature Encashment - A.V. Padma and Others vs. R. Venugopal and Others, (2012) 3 SCC 378, General Manager, Kerala State Road Transport Corporation, Trivandrum vs. Susamma Thomas and Others, (1994) 2 SCC 176, Muljibhai Ajarambhai Harijan vs. United India Insurance Co. Ltd. 1982 (1) GLR 756
Fact of the Case:
The petitioners sought premature encashment of the Fixed Deposit Receipt (FDR) awarded as compensation for the death of the deceased in a motor accident, to renovate their dilapidated house. The Tribunal rejected the application, leading to the filing of Special Civil Applications.
Finding of the Court:
The Court considered the long delay in finalizing the compensation, the dilapidated condition of the petitioners' house, and the need for the compensation amount for repairs. It granted premature encashment of the FDRs to the petitioners for house renovation.
Issues: Delay in finalizing compensation, rejection of premature encashment application, need for house renovation.
Ratio Decidendi: The Court held that the Tribunal should consider the genuine requirements of the claimants and avoid a mechanical approach, as per the guidelines in A.V. Padma and Susamma Thomas cases. It emphasized the need for discretion in exercising the Tribunal's powers.
Final Decision: The Court granted premature encashment of the FDRs to the petitioners for house renovation and disposed of the petitions accordingly.
ORDER :
ORDER IN SPECIAL CIVIL APPLICATION NOS. 18700 OF 2022, 18701 OF 2022, 18703 OF 2022 AND 18704 OF 2022
1. Heard learned Advocate for the petitioners Mr. Kushal A. Desai, who submits that Motor Accident Claim Petition No. 2 of 2022 was instituted on the basis that on 01.12.2001, the husband of the claimant No. 1 and father of other claimants were traveling in a Jeep bearing Registration No. GJ-17-A-8764 as occupants. The respondent No. 1 was driving the Jeep in a rash and negligent manner with excessive speed and at about 16.30 hours, when the Jeep was passing through the outskirts of Village Rachva, it turned turtle due to excessive speed and the deceased sustained serious injuries and succumbed to death.
2. Learned Advocate for the petitioners submits that the Claim Petition was re-numbered as M.A.C.P. No. 506 of 2017 and came to be decided on 20.07.2019. The petition remained pending for long period of time, i.e. 17 years, 6 months and 19 days. The widow was looking after her three children and maintained them without any monetary support, since the compensation amount could not be decided earlier.
3. It is further submitted that as per the judgment and award on 20.07.2019, Rs. 3,55,120/- was granted together with 7.5% interest per annum from the date of filing of the claim petition till realization. Accordingly, the amount was disbursed in the ratio of 30% - 70% qua claimants No. 1 to 5 and the ratio of the amount fell in the share of claimant No. 6, being a minor was deposited in the Fixed Deposit Receipt (FDR) for a period of 5 years or till the minor attains majority.
4. It is also submitted that since the claimants are residing together and since their house is very old they would like to get the same renovated and they have prayed for premature encashment of the FDR lying in their name, which was deposited as per the order of the Tribunal. It is further submitted that the petitioner had produced the House Tax Receipt, Copy of assessment by Panchayat, estimate for construction and copy of the proposed building plan. Inspite of that, the learned Tribunal disagreed to believe it observing that the documents did not prove that the house of the petitioners is in a dilapidated condition and requires renovation/reconstruction.
5. Learned Advocate for the petitioners has referred to Paragraphs 4 and 5 of the observations of the Tribunal dated 19.07.2022 made in MACMA No. 33 of 2022 to 37 of 2022 and has submitted that the observations are unusual which is not even in accordance with any of pleadings of the petitioners or even on the facts noted in the Motor Accident Claims Petition. It is therefore, submitted that the rejection is bad in law since it is on inconsistent observations and the M.A.C.P. was on the basis of death of deceased and not on injured claimants. It is also submitted that the learned Tribunal ought to have taken care to refer to the facts of the application rather has out-rightly rejected the application. It is further submitted that the learned Tribunal ought to have taken into consideration the date of filing of the petition which was in the year 2002 and in the year 2022, the petitioners have claimed for premature encashment of the FDR on the ground for renovating and re-constructing the dilapidated house.
6. The claimants No. 1 to 5 of M.A.C.P. No. 506 of 2017 (Old M.A.C.P. No. 2 of 2022) have prayed for premature encashment of the FDR on the ground of construction of the dilapidated house. Today, the petitioner appearing in the each/respective petitions, i.e. Special Civil Application No. 18700 of 2022 - Badliben Ditiabhai Palas, Special Civil Application No. 18701 of 2022 - Javsingbhai Ditiabhai Palas, Special Civil Application No. 18703 of 2022 - Savinsingbhai Ditiabhai Palas and Special Civil Application No. 18704 of 2022 - Rajubhai Ditiabhai Palas are present before this Court.
7. An additional A
A.V. Padma and Others vs. R. Venugopal and Others
Muljibhai Ajarambhai Harijan vs. United India Insurance Co. Ltd. 1982 (1) GLR 756
General Manager, Kerala State Road Transport Corporation, Trivandrum vs. Susamma Thomas and Others
The Tribunal should exercise discretion and consider the genuine requirements of claimants, avoiding a mechanical approach in premature encashment of compensation.
The Court emphasized the need of the applicant and the relaxation of rigid investment rules for compensation, citing A.V. Padma and Others vs. R. Venugopal and Others and General Manager, Kerala Stat....
The court emphasized the need for the tribunal to exercise discretion and consider the genuine requirements of the claimant, especially in the case of literate persons, and not mechanically order inv....
Tribunals should consider the genuine requirements of claimants and avoid a mechanical approach in deciding on premature withdrawal of compensation.
The court emphasized the need for thoughtful consideration of the genuine requirements of the claimant and avoidance of a mechanical approach, especially in the case of literate persons, when decidin....
The court emphasized the need for thoughtful consideration of the genuine requirements of the claimant and avoiding a mechanical approach in granting compensation, especially in the case of literate ....
Point of Law : sufficient discretion has been given to the Tribunal not to insist on investment of the compensation amount in long term fixed deposit and to release even the whole amount in the case ....
Judicial discretion must prioritize genuine financial needs of claimants in compensation matters, allowing for decisions that support educational and personal necessities as per individualized circum....
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