Supreme Court Issues Directions To Ensure Direct Bank Transfer Of Compensation To Road Accident Victims & Workmen

The Supreme Court has passed a set of directions to ensure that the compensation paid to claimants under the Motor Vehicles Act, 1988 or the Workmen's Compensation Act, 1923 are directly credited to their bank accounts.The Court passed these directions after noticing that huge amounts of compensation passed under these laws are lying unclaimed before Courts. Based on a letter received from BB Pathak, a retired District Judge from Gujarat, the Court had initiated a suo motu case last year title "In Re : Compensation Amounts Deposited With Motor Accident Claims Tribunals & Labour Courts."The Court noted that a whopping sum of over Rs 282 crores was lying unclaimed in the MACTs and about Rs 6.61 crores in the Labour Courts in Gujarat. The figure was approximately Rs 239 crores in the MACTS and Rs 92 crores in the Labour Courts in Uttar Pradesh. Likewise, the amounts unclaimed in the MACTS in West Bengal were Rs 2.5 crores, Rs 4.59 crores in Maharashtra and Rs 3.61 Crores in Goa.A bench comprising Justice Abhay S Oka and Justice Ujjal Bhuyan observed that the matter is of a "serious concern.""The amounts represent the compensation granted to claimants in the claims filed under the 1988 and 1923 Acts. Though the claimants are held entitled to these amounts, they have not withdrawn the same. The fact that so many successful claimants have been deprived of compensation is very disturbing. It is necessary to find a solution," the Court observed.DirectionsThe Court noted that the States have not framed rules under Section 176 of the MV Act regarding the filing of applications before the Tribunals. Till such rules are framed, the Court directed the High Courts to frame practice directions incorporating the following conditions : a) While filing claim petitions under the 1988 Act, following particulars shall be incorporated:(i) Names and addresses (local and permanent) of the injured persons or the owners of the damaged property, as the case may be, their Aadhar and PAN details and email-id, if any; and(ii) Names and addresses (local and permanent) of all the legal representatives of the deceased victim of the accident who are claiming compensation, their Aadhar and PAN details and email-id, if any;(b) If the aforesaid details are not furnished, the registration of the application should not be refused on that ground, but MAC Tribunals at the time of issuing notice may direct the applicant(s) to furnish the information and make the issue of the notice subject to making compliance;(c) While passing an interim or final order of grant of compensation, the MAC Tribunals shall call upon the person or persons held entitled to receive compensation, to produce their bank account details along with either a certificate of the banker giving all details of the bank account of the person or persons entitled to receive the compensation including IFS Code, or a copy of a cancelled cheque of the bank account. The Tribunal shall call upon the claimants to produce the documents within a specified reasonable time;(d) A further direction shall be issued to the persons entitled to receive compensation to keep on updating information regarding the bank accounts, email id, in case there is any change;(e) In the event a consent award or consent order is made, the MAC Tribunals may direct the deposit of the compensation amount ordered to be released to the claimants directly to the bank accounts of the persons held entitled to receive compensation. However, the consent terms must contain all relevant account details of the persons entitled to compensation in accordance with clause (c) above. The account details can also be incorporated in the order passed for the disbursement of the amount on the basis of a compromise between the parties. In case of compromise before the Lok Adalats, the MAC Tribunal, on the basis of the settlement, shall pass a consequential order in the above terms;(f) It shall be the duty of the learned Judges presiding over the MAC Tribunal to verify from the certificate issued by the banker and ascertain whether the account is of the persons held entitled to receive compensation;(g) The MAC Tribunals, while passing orders of withdrawal/disbursement, shall, in the ordinary course, pass an order of transfer of the requisite amounts directly to the bank account of the person/s entitled to receive compensation as per the account details furnished. If there is a long gap between the date of furnishing the account details and the date of filing application for withdrawal of the amount, the Tribunal will be well advised to get fresh account details of the claimants;(h) Whenever the MAC Tribunal passes an order of deposit of compensation amount with the Tribunal, there shall be a direction issued to invest the amounts to be deposited in fixed deposit with any nationalised bank and the fixed deposit shall be with the standing instructions to the bank to renew the same after periodical intervals till further orders are passed by...

Supreme Court Issues Directions To Ensure Direct Bank Transfer Of Compensation To Road Accident Victims & Workmen

LIVELAW NEWS NETWORK

Tags