Kerala High Court Pushes State on Victim Aid Payments and Mediation Overhaul

In a significant push for justice delivery, the Kerala High Court has recorded the state government's sanction of massive funds to clear long-pending victim compensation arrears and mediator fees, while flagging ongoing infrastructure gaps in mediation centres. The Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. issued directions in suo motu WP(C) No. 42844 of 2025 (linked with WP(C) No. 48551/2025), emphasizing urgent reforms amid fiscal and administrative hurdles.

From Suo Motu Alert to Funding Breakthrough

The High Court initiated this public interest litigation on its own motion, highlighting the lack of proper infrastructure in mediation sub-centres across Kerala . Petitioners sought directions for essentials like infrastructure per Ext P3 , support staff, and office stationery. Last week, on March 16, 2026, the court issued a stern warning: failure to release dues to the Victim Compensation Fund and mediators within a week could lead to attaching state treasury accounts—a rare judicial hammer.

Respondents include the State of Kerala (Chief Secretary and Home Department), Union of India (Ministry of Law & Justice), High Court Registrar , Kerala State Legal Services Authority (KeLSA) , and Kerala State Mediation and Conciliation Centre . The case underscores systemic delays: the Victim Compensation Fund, framed eight years ago, remains non-operational despite the state being one contributor among many.

State's Fiscal Plea Meets Judicial Scrutiny

The Additional Chief Secretary, Finance Department , filed a key affidavit on March 21, 2026, detailing the crunch. The state has shouldered victim compensation from its own coffers due to the fund's dormancy, but cited prevailing fiscal constraints as unsustainable. Despite this, it authorized ₹36.50 crores via G.O.(Rt.) No. 2945/2026/Fin (March 17) for reported claims, with ₹12.25,99,000 specifically for mediator honorarium arrears up to December 31, 2025 (G.O.(Rt) Nos. 2914 & 2954/2026/Fin).

KeLSA raised concerns over a March 15 circular potentially blocking disbursals post-March 24, but the Senior Government Pleader clarified via affidavit: funds, including a reallocated ₹56.5 lakhs (March 21), stand cleared. No fresh proposals for post-2025 honorarium pend, though substantial current-year sanctions total ₹12.26 crores, as media reports confirmed.

Infrastructure Woes Still in Spotlight

While payments advance, mediation centres' physical setup lags. The High Court's counsel noted an affidavit on infrastructure issues would be served same-day, prompting the state to respond likewise. Amicus Curiae Adarsh Kumar and counsels like Senior Government Pleader Vinitha B., Deputy Solicitor General O.M. Shalina, and others argued the nuances.

No precedents were cited in this interim order, focusing instead on administrative enforcement under Article 226 writ jurisdiction.

Key Observations

"The Government is only one among several contributors to the said Fund and although orders have been issued for its constitution, the Fund has not been operationalised even after a lapse of eight years from the framing of the Fund Rules."

"The Finance Department has authorised an amount of ₹36.50 Crores for settling the claims reported to the Government... ₹12,25,99,000/- towards full settlement of arrears upto 31 December 2025."

"A sum of ₹56.5 lakhs, which has already been reallocated on 21 March 2026, shall also be permitted to be disbursed notwithstanding the Circular dated 15 March 2026."

Roadmap Ahead: Affidavits, Virtual Hearing, and Accountability

The Bench directed: - State affidavit on infrastructure. - KeLSA affidavit on fund utilization. - Finance Secretary's virtual appearance on March 30, 2026. - Matter listed that day.

This interim order eases immediate payment logjams, potentially disbursing aid to victims and retaining mediators—vital for Kerala's Alternative Dispute Resolution ecosystem. Yet, it signals deeper scrutiny: operationalizing the fund, staffing mediation centres, and sustaining legal aid amid budgets. For victims awaiting redress and a mediation network serving courts statewide, March 30 looms large.

(Interim order dated March 23, 2026; sources include court judgment and contemporaneous reports on G.O.s and court remarks.)