Premature withdrawal of compensation funds deposited in fixed deposits by a Motor Accident Claims Tribunal requires concrete evidence of necessity; unsubstantiated claims regarding medical expenses or debts are insufficient to warrant such release.

D by ig S it U a M lly I T signed 2026:CGHC:17300 SUMIT KUMAR KUMARD 20 a 2 te 6 : .04.17 15:44:23 +0530 NAFR

Order on Board

1. Heard.

2. Present is a writ petition filed under Article 227 of the Constitution of India against the order dated 03.07.2025 passed by learned Principal Motor Accident Claims Tribunal, Ambikapur, District – Surguja (C.G.) in MCC No. 101/2025, whereby the application of the petitioner for premature release of Rs. 4,00,000/- from the fixed deposits has been partly allowed and permitted for premature withdrawal of Rs. 1,50,000/- only out of total Rs. 5,00,000/- from the fixed deposits.

3. Learned counsel for the petitioner would submit that total amount of Rs. 12,25,000/- was awarded in favor of the petitioner and his wife Smt. Durpati as compensation against the death of their son Akash. The said award was passed by National Lok Adalat, Bench No.1, Ambikapur in MACT Case No. 207/2023 vide award dated 21.09.2024. Thereafter, the insurance company has deposited the said amount of compensation. It was also the award that the petitioner as well as his wife Smt. Durpati shall received equal half share of the total amount of compensation and out of the total amount so received by them, Rs. 5,00,000/- in the name of the each of the applicant share be kept in fixed deposits in any nationalised bank for the further period of 7 years. He would further submit that pursuant to the award dated 21.09.2024, an amount of Rs. 5,00,000/- has been kept in the Fixed Deposit at Punjab National Bank, Ambikapur Branch in the name of the petitioner. He would also submit that the mother of the petitioner is suffering from ailment and for her treatment, he borrowed an amount of Rs. 3,00,000/- in the month of January, 2025 from Pushp Kumar and he has to repay the said amount to him for which he is in dire need of money. He also submit that he also has to renovate his existing residential house for which also the huge amount is to be required, and therefore, out of Rs. 5,00,000/- which has been kept in fixed deposits in his name, he may be permitted to withdraw Rs. 4,00,000/- as premature withdrawal. He would also submit that the learned trial Court has erroneously rejected the application on the ground that there is no evidence produced by the applicant with respect to ailment of his mother and also that the agreement filed by the applicant is subsequently executed which can not be believed. He would also submit that learned trial Court has only permitted the applicant for premature withdrawal of the Rs. 1,50,000/- and now the petitioner prays for Rs. 1,50,000/- more for premature withdrawal.

4. I have heard learned counsel for the parties and perused the material annexed with the petition.

5. The amount of Rs. 5,00,000/- kept in fixed deposit in the name of applicant is not in dispute, it is only that he is claiming the premature withdrawal of the Rs. 4,00,000/- from the said amount kept in fixed deposits. It has been transpired from the observation made by the learned Principal Motor Accident Claims Tribunal, Ambikapur that on 22.11.2024, the applicant was paid Rs.1,12,500/- in cash and he has not submitted any document with respect to its use and there is no averment made with that respect. After about 07 months, he made the application for premature releasing of the amount of Rs. 4,00,000/-. They have also observed that though the applicant stated that he borrowed an amount of Rs. 3,00,000/- from one Pushp Kumar in the month of January, 2025 but the agreement was executed in the month of April, 2025. It clearly demonstrate that it is only a paper formalities to substantiate his claim, there is no mode of any transaction has been disclosed by the applicant and even the financial capacity of Pushp Kumar has also not been disclosed in the application except the self- serve statement that he borrowed Rs. 3,00,000/- from Pushp Kumar for treatment of his mother. There is no document submitted by him even there is no any medical doc