ALLAHABAD HIGH COURT
V.K.Shukla, J.
Bhagwan Gupta -Appellant
Versus
Motor Accident Claim Tribunal and others -Respondent
C.M.W.P. No. 3246 of 2011
Decided On : 20-01-2011
Motor Accident Claim - Investment of Compensation Amount - Motor Vehicles Act, 1988, Section 168(3), General Manager, Kerala State Road Transport Corporation Trivandrum Vs. Susamma Thomas AIR. 1994 SC 1631, Lilaben Udesing Gohel, Vs. Oriental Insurance Company Ltd. and others reported in AIR 1996 SC 1605, Nagappa Vs. Gurudayal Singh and others reported in AIR 2003 SC 674
Fact of the Case:
The petitioner filed a Motor Accident Claim Petition which was allowed, and an award was passed. The petitioner requested the release of the remaining amount of compensation, which was directed to be reinvested. The petitioner filed a writ petition challenging the order for reinvestment.
Finding of the Court:
The court found that the original award directed the investment of the compensation amount for a specific period, and no further direction for reinvestment was given. Therefore, the order for reinvestment for a further period was not permissible and amounted to a modification of the original award.
Issues: The main issue was whether the order for reinvestment of the compensation amount was valid and in line with the original award.
Ratio Decidendi: The court held that once the original award directed the investment of the compensation amount for a specific period, no further direction for reinvestment was permissible. The court also emphasized the need to protect the interests of claimants as per the guidelines laid down by the Hon'ble Supreme Court.
Final Decision: The court quashed and set aside the order for reinvestment and directed the concerned Motor Accident Claims Tribunal to ensure the release of the balance amount to the petitioner by way of an account payee cheque.
In the present case, petitioner had filed Motor Accident Claim Petition No. 188 of 1997 (Bhagwan Gupta Vs. Triloki Nath Tiwari and others) before Motor Accident Claim Tribunal, Gorakhpur. Petitioner submits that said claim petition in question was allowed on 30.05.2002 and award of Rs. 30,000/- alongwith 9% interest from filing of claim petition was passed. Petitioner submits that pursuant to the said award in question amount of Rs. 19,262/- has been paid by way of account payee cheque and the rest of the amount of Rs. 25,000/- was directed to be invested in fixed deposit for a period of five years. Petitioner submits that accordingly said exercise was undertaken and balance amount in question i.e. sum of Rs. 25,000/- invested in fixed deposit. Petitioner states that the period for which said amount has been invested starting with effect from 03.10.2002 to 03.10.2007 has already expired then thereafter petitioner came up with the request that amount in question be released in his favour. Petitioner stated that in stead of proceeding to release the said amount in question, again said amount in question has been directed to be reinvested. At this juncture present writ petition in question has been filed.
2. Hon'ble Apex Court in the case of General Manager, Kerala State Road Transport Corporation Trivandrum Vs. Susamma Thomas AIR. 1994 SC 1631 has given guidelines to be kept in mind at the point of time of passing award for safeguarding the interest of claimant. The relevant extract of the said judgment is quoted herein below:
(i) The Claims Tribunal should, in the case of minors, invariably order the amount of compensation awarded to the minor invested in long term fixed deposits at least till the date of the minor attaining majority. The expenses incurred by the guardian or next friend may however be allowed to be withdrawn;
(ii) In the case of illiterate claimants also the Claims Tribunal should follow the procedure set out in (1) above, but if lump sum payment is required for effecting purchases of any movable or immovable property, such as, agricultural implements, rickshaw etc., to earn a living, the Tribunal may consider such a request after making sure that the amount is actually spent for the purpose and the demand is not a rouge to withdraw money;
(iii) In the case of semi-literate persons the Tribunal should ordinarily resort to the procedure set out at (i) above unless it is satisfied, for reasons to be stated in writing, that the whole or part of the amount is required for expanding and existing business or for purchasing some property as mentioned in (ii) above for earning his livelihood, in which case the Tribunal will ensure that the amount is invested for the purpose for which it is demanded and paid;
(iv) In the case of literate persons also the Tribunal may resort to the procedure indicated in (1) above, subject to the relaxation set out in (ii) and (iii) above, if having regard to the age, fiscal background and strata of society to which the claimant belongs and such other considerations, the Tribunal in the larger interest of the claimant and with a view to ensuring the safety of the compensation awarded to him thinks it necessary to do order;
(v) In the case of widows the Claims Tribunal should invariably follow the procedure set out in (i) above;
(vi) In personal injury cases if further treatment is necessary the Claims Tribunal on being satisfied about the same, which shall be recorded in writing, permit withdrawal of such amount as is necessary for incurring the expenses for such treatment;
(vii) In all cases in which Investment in long term fixed deposits is made it should be on condition that the Bank- will not permit any loan or advance on the fixed deposit and interest on the amount invested is paid monthly directly to the claimant or his guardian, as the case may be;
(viii)In all cases Tribunal should grant to the claimants liberty to apply for withdrawal in case of an emergency. To meet wit
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