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2026 Supreme(UK) 61

HIGH COURT OF UTTARAKHAND AT NAINITAL
PANKAJ PUROHIT, J.
Km. Sumitra Yadav @ Sumetry - Petitioner 
Versus 
M.A.C.T. and others – Respondents
Writ Petition Misc. Single No.2815 of 2013
Decided On : 24-03-2026

Advocates Appeared:
For the Petitioner: Mr. Rajesh Joshi, learned counsel.
For the Respondents: Mr. Siddhartha Jain, learned counsel.

The failure of authorities to renew a Fixed Deposit Receipt for a minor claimant led to significant loss of interest, establishing the duty to ensure proper management of judicial awards.

Headnote:(A) Motor Vehicles Act, 1988 - Tribunal's duty - The compensation amount awarded in 1994 was to be kept in Fixed Deposit (F.D.R.) until the petitioner attained majority, but due to administrative lapses, it remained unattended, leading to loss of interest for over a decade. (Paras 1, 10, 11)

(B) Minor's rights - The Tribunal's order ensured the protection of the compensation amount for a minor, emphasizing the need for periodic renewal of the F.D.R. to safeguard the interest entitled to the petitioner. (Paras 4, 12)

(C) Liability of authorities - The Court found systemic failure by the Tribunal and the bank, holding them jointly and severally liable for negligence in maintaining the deposit. (Paras 10, 15, 18)

Facts of the case:
The petitioner’s father died in a motor accident leading to a claim for compensation. An award was made, directing part of the compensation to be kept in an F.D.R. until the petitioner came of age. (Paras 1-3)

Findings of Court:
The Court directed the bank to recalculate the F.D.R. amount, ensuring interest was paid based on the originally directed terms and rules applicable at the time. (Paras 16-18)

Issues: The major issues addressed were whether the F.D.R. was properly renewed and whether the bank and Tribunal failed in their duties regarding the minor's compensation. (Paras 10-12)

Ratio Decidendi: The Court ruled that the order for a minor’s compensation must be adhered to strictly, holding that the bank and Tribunal cannot use procedural lapses to deny rightful interest. (Paras 11, 12)

Result: Writ petition allowed. The order rejecting the petitioner’s claim for interest is set aside.

Table of Content
1. mismanagement of f.d.r. due to administrative failures. (Para 1 , 2 , 3)
2. arguments addressing negligence and responsibility for interest. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. court's analysis on the implications of deposit management. (Para 10 , 11 , 12 , 13)
4. healing the loss by recalculating interest responsibility. (Para 14 , 15)
5. final orders to recalculate and distribute the compensation. (Para 16 , 17 , 18 , 19)

JUDGMENT :

Pankaj Purohit, J.

The present writ petition arises out of a situation where the compensation amount awarded in favour of the petitioner by the learned Motor Accident Claims Tribunal in the year 1994, and directed to be kept in a Fixed Deposit Receipt (FDR) till she attained majority, remained unattended, unrenewed and deprived of interest for more than a decade due to gross administrative lapses on the part of the authorities concerned. The petitioner, upon attaining majority, discovered that the F.D.R. prepared in her favour had neither been renewed periodically nor had interest been credited in accordance with the award of the Tribunal. The learned Tribunal, however, by order dated 04.09.2013, rejected her application seeking payment of due interest, compelling the petitioner to invoke the extraordinary writ jurisdiction of this Court.

2. The brief facts of the case are that on 07.11.1991, the father of the petitioner died in a motor accident caused due to the rash and negligent driving of Truck No.URN-9040 near Sarda Chungi, Tanakpur, District Nainital (now Udham Singh Nagar). At the time of the accident, the petitioner was a minor. Her mother, acting on her behalf, instituted a claim petition before the learned Motor Accident Claims Tribunal, Nainital, being MACP No.403 of 1992 (Smt. Manju Devi & Ors. Vs. Tara Datt & Ors.). The learned M.A.C.T./IVth Additional District Judge, Nainital, vide award dated 30.08.1994, allowed the claim petition and awarded a compensation of Rs.1,24,600/- along with interest @ 10% per annum in favour of the claimants. Out of the awarded amount, a specific share was directed to be kept in a Fixed Deposit Receipt (F.D.R.) in favour of the present petitioner till she attained majority. In compliance with the said award, the Insurance Company deposited the awarded amount before the Tribunal. The share of the petitioner was accordingly directed to be secured in the form of an F.D.R. under the custody and supervision of the Tribunal. Pursuant thereto, on 17.08.1995, an FDR amounting to Rs.46,952/- was prepared in Punjab National Bank, Mall Road, Nainital, for a period of two years. The said FDR matured on 17.08.1997, attaining a maturity value of Rs.59,477/-. However, thereafter, the F.D.R. was neither presented for renewal nor renewed by the authorities concerned. The amount, as later disclosed by the bank, was transferred to an “overdue category account”.

3. From the year 1997 onwards, no interest was credited in favour of the petitioner on the matured amount. The F.D.R. remained unattended for several years while the petitioner, being a minor, had no knowledge, control, or access to the said deposit which remained in the custody of the Tribunal. Upon attaining majority, the petitioner approached the learned Tribunal seeking release of the amount. Vide order dated 07.05.2013, the M.A.C.T. permitted the petitioner to withdraw the F.D.R. amount along with interest. However, on 08.05.2013, the bank released only a sum of Rs.77,569/- in favour of the petitioner. Being surprised at the meagre amount, the petitioner made enquiries and came to know that the FDR prepared in her favour in the year 1995 had not been renewed after its maturity in 1997 and no interest had been credited for a long period extending from 1997 to 2007 and thereafter. The petitioner, therefore, moved an application before the learned M.A.C.T. seeking directions for payment of the entire interest as per the award dated 30.08.1994. In response, the bank filed its reply stating that the F.D.R. was

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