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2017 Supreme(Raj) 1320

IN THE HIGH COURT OF RAJASTHAN AT JAIPUR
Pradeep Nandrajog, J.
Smt. Gurmeet Kaur wife of Late Ashok Singh and Others – Petitioner
Versus
Hazar Khan, Son of Shri. Budh Singh and Others – Respondents
S.B Civil Review No. 84 of 2017
Decided On : 29-11-2017

Advocates Appeared:
For the Petitioner: Mr. N.K. Maloo, Senior Counsel assisted by Mr. Vishnu Bohra & Mr. Ajit Maloo

The prevailing practice of compensating claimants, as well as the directions issued by higher courts, should be considered when issuing directions regarding the disbursement of settlement amounts to claimants.

Headnote:

Review Petition - Motor Accident Claims Tribunals - The court recalled the direction issued in the order dated 11.05.2017, including the direction that the Registry would circulate the order to all Motor Accident Claims Tribunals in the State

Fact of the Case:

A settlement was reached at a Lok Adalat, and a misc. application was filed seeking the disbursement of the settlement amount to the claimants. The court directed that amounts agreed as payable to the claimants should be paid to them upon being deposited with the Tribunals. The Registrar General sought a review, pointing out that the direction was contrary to the Supreme Court's directions due to concerns about agents siphoning away large amounts of compensation.

Finding of the Court:

The court found that the practice of depositing compensation in the name of the claimants for a period of time, paying interest, and then paying the principal was prevalent throughout the country. In light of this, the court disposed of the review petition and recalled the direction issued in the order dated 11.05.2017.

Issues: The main issue was whether the direction issued by the court in the order dated 11.05.2017, regarding the disbursement of settlement amounts to claimants, was in line with the Supreme Court's directions and the prevailing practice of compensating claimants.

Ratio Decidendi: The court considered the prevailing practice of compensating claimants, the concerns raised by the Registrar General, and the directions issued by the Supreme Court in reaching its decision to recall the direction issued in the order dated 11.05.2017.

Final Decision: The court recalled the direction issued in the order dated 11.05.2017, including the direction that the Registry would circulate the order to all Motor Accident Claims Tribunals in the State.

ORDER :

PRADEEP NANDRAJOG, J.

S.B Civil Misc. Application No. 29899/2017:

1. The application seeking leave to appeal is allowed.

S.B Civil Misc. Application No. 2807/2017:

2. For the reasons stated in the application the delay in seeking review is condoned. The application is allowed.

S.B Civil Review Petition No. 84/2017:

3. At a Lok Adalat a settlement was arrived at. Civil Misc. Appeal No. 205/2016 was decided. The order is dated 11.02.2017, The settlement was that Insurance Company would pay further sum of Rs. 2.75 lacs to the claimants. The direction in the settlement was that this amount would be disbursed to the claimants immediately upon being deposited by the Insurance Company with the Tribunal.

4. A misc. application was thereafter filed which was listed before the Court in S.B Civil Misc. Appeal No. 205/2016. The learned Judge directed vide order dated 11.05.2017 that henceforth amounts which are agreed as payable to the claimants before the Lok Adalats' being deposited with the Tribunals should be directed to be paid to the claimants.

5. Seeking review it is pointed out by the Registrar General of this Court that this direction is contrary to the directions issued by the Supreme Court keeping in view the fact that the claimants were not receiving full amounts which were being directed to be paid by the Tribunals on account of agents siphoning away large amounts. The practice throughout this country has been that compensation awarded is deposited in the name of the claimants for a period of time. Interest is paid to the claimants and after the period of time lapses, the principal is also paid over to the claimants.

6. Disposing of the review petition the direction issued in the order dated 11.05.2017 including the direction that the Registry would circulate the order to all Motor Accident Claims Tribunals in the State is recalled.

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