Madras High Court Issues Directions In Suo Motu Petition Regarding Motor Accident Fund Misappropriation

While pronouncing orders in a Suo Motu writ petition, the Madras High Court bench of Justice P.N Prakash and Justice Abdul Quddhose made a series of directions to be followed by the Motor Accident Claims Tribunals (MACT) in the state. The court also made suggestions to the Chief Justice and requests to the portfolio judges to issue appropriate directions to put in motion these suggestions. The petition was for directing the respondents - Registrar General, Additional Registrar (Inspection) and State Bank of India to audit the motor accident cases funds in all districts, lodge criminal complaints against recalcitrant officials and monitor the investigation in the matters. Background A retired staff member, Dinakaraja, in the III Additional District Court, Pattukkottai, had misappropriated a sum of Rs.1,51,30,300/- of compensation amounts in the MCOP jurisdiction, which resulted in the then Portfolio Judges viz., Justice P.N Prakash and Justice N. Seshasayee, constituting the following three Committees: ➢ High Court Inspection Committee ➢ 3-Member Sub Judge Committee ➢ Additional District Judge and Principal Sub Judge Committee The High Court Inspection Committee was directed to go into the records of all the MCOP Courts in Thanjavur District upto the year 2016. Likewise, the 3 Member Sub Judge Committee was also given the same mandate in respect of the period aftermath of 2016. The third Committee was directed to inspect the records of the Principal District Court, Thanjavur, E.C.Court, Thanjavur and PCR Court, Thanjavur. The reports submitted by the three Committees disclosed several appalling features in the system of record maintenance in the MCOP Courts in Thanjavur District which had paved the way for embezzlement. Based on the reports of these three committees, the portfolio judges submitted a comprehensive report to the Chief Justice. It was also highlighted that the situation in other districts might also be similar and remedial measures were also suggested. The chief justice was of the view that the issue needs to be looked into on the judicial side and set up a Special Bench with a mandate to streamline the existing practice and usher in a fool proof mechanism in the matter of disbursement of compensation amounts in the MCOP jurisdiction. Measures taken After taking up the task assigned by the Hon'ble Chief Justice, the Bench, by order dated 18.06.2021, appointed Chief Nodal Officer and Assistant Chief Nodal Officers, to assist the Bench. In addition, the Bench appointed judicial officers as District Nodal Officers. The District Nodal Officers were directed to periodically report to the Chief Nodal Officer and the Assistant Nodal Officers were directed to report periodically to the Assistant Chief Nodal Officers. The Chief Nodal Officer and the Assistant Chief Nodal Officers were directed to report to the court. The court also appointed Mr. N. Vijayaraghavan, advocate with exemplary record in dealing with motor accident cases as amicus curiae The court also held open court sittings and also conducted meetings in the Tamil Nadu State Judicial Academy, Chennai. Findings From the inputs received, the court was satisfied that practitioners in the MCOP jurisprudence operate in delineated specific turfs and would not brook encroachment by anyone. It was also found that the practitioners were not alone in this misadventure and were assisted by court staff and sometimes even judicial officers. "MCOP jurisprudence is a gold mine as well a mine field and attempts to clean the Augean stables earlier by various Benches of this Court had not yielded the desired results" the court observed The court refered to the decision of a division bench of this court in The Divisional Manager, Oriental Insurance Company, Kannur vs. Rajesh and 2 others [2016 (3) CTC 128: 2016-2-LW 561], where to protect the interests of the claimant the court directed to the Insurance Companies and Transport Corporations to make online transfer of the award amounts in the account of the MACTs prescribing a format and thereafter, directing the MACTs to transfer the award amounts online to the accounts of the claimants. This however led to another trend where the practitioners connived with the banks and opened bank accounts in the name of the claimants. They obtained ATM cards of the claimants and withdrew money as soon as the award amount were deposited. As these norms for opening accounts were breached even by nationalized banks, the Court deemed it proper to send a copy of the order to regulator- RBI which shall circulate it to all corporate branches of nationalized banks and seek reports. The court also directed RBI to take necessary steps to end this practice and to file a compliance report within a period of 6 months from receiving copy of the order. The court also noted how honest judicial...

Madras High Court Issues Directions In Suo Motu Petition Regarding Motor Accident Fund Misappropriation

Upasana Sajeev

The bench also suggests setting up of separate tribunals and appellate tribunals, like district consumer commission manned by retired District Judges for adjudication of motor accident cases

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