The Supreme Court has formulated guidelines for the disbursal of unclaimed compensation amounts lying deposited with motor accident claim tribunals and labour courts.
The Division Bench of Justice Abhay S Oka and Justice Ujjal Bhuyan permitted the Tribunals to issue transfer orders regarding the requisite amounts directly to the bank account of the persons entitled to receive compensation.
Noting that though the claimants were held entitled to the compensation amounts, however, they had not withdrawn the same.
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, 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, it added.
The matter at hand came to light when an email was received from a retired District Judge from Gujarat pointing out that large amounts payable by way of compensation under the Motor Vehicles Act, 1988 and the Workmen’s Compensation Act, 1923, were lying deposited with the Motor Accident Claims Tribunals (MAC Tribunals) and the Labour Courts.
The Chief Justice of India had passed an administrative order on the basis of information received for the registration of this suo motu writ petition.
The Court issued notices to the State of Gujarat as well as the Registrar General of Gujarat High Court, directing them to produce before the Court the data of compensation amounts lying deposited with the MAC Tribunals as well as before the Commissioners under the 1923 Act.
The Apex Court noted that the issue arising in this suo motu petition was of great concern. The amounts represented the compensation granted to claimants in the claims filed under the 1988 and 1923 Acts. The fact that so many successful claimants have been deprived of compensation was very disturbing. It was necessary to find a solution.
The top court of the country further made reference to Section 166, which provided for making an application for compensation to the MAC Tribunal established under the said enactment.
The Bench also explained that under Section 176, rule-making powers have been conferred on the State Governments to make rules providing for the form of application for claims for compensation and the particulars it may contain.
He said it was not clear how many States exercised the rule making power under clause (a) of Section 176 for prescribing the form of the application under Section 166(1), while also explaining that in absence of the exercise of the rule making power under Section 176 of the 1988 Act by the state governments, the respective High Courts can either frame rules of procedure or issue practice directions for ensuring that material details are disclosed while filing claim applications under Section 166(1) of the 1988 Act.
The Bench ruled that filing claim petitions under the 1988 Act, particulars such as names and addresses (local and permanent) of the injured persons or the owners of the damaged property or the legal representatives, along with their Aadhar and PAN details, could be incorporated.
If the aforesaid details were 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 applicants to furnish the information.
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, producing their bank account details along with other important details
If a consent award or consent order was 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.
If there was a long gap between the date of furnishing the account details and the date of filing an application for withdrawal of the amount, the Tribunal be well advised to get fresh account details of the claimants.
The Apex Court further directed that the Central Project Co-ordinator of e-court project or Registrar (Computer/IT) of the High Courts, as the case may be, with the help of the State Government, shall create a dashboard on which the information regarding the amounts lying deposited in connection with the compensation granted under 1988 or 1923 Acts shall be regularly uploaded with all details. It would help all concerned to implement the directions issued under this order.
All High Courts shall issue administrative directions to the MAC Tribunals and Commissioners under the 1923 Act to initiate a massive drive to ascertain the whereabouts of the persons who have been held to be entitled to receive compensation, but have not taken the same.”
The top court of the country ordered the High Courts to take up implementation of the aforesaid directions at the earliest and submit compliance reports to this Court on or before July 30, 2025, so that further directions, if necessary, could be issued.
The Registrar Generals were directed to set out the details of the amounts still lying without disbursement in their reports.
The top court of the country listed the matter for further hearing on August 18.
The post Supreme Court formulates guidelines for disbursal of unclaimed compensation amounts lying with motor accident claim tribunals and labour courts appeared first on India Legal.