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Informist, Tuesday, Apr. 22, 2025

 

NEW DELHI – The Supreme Court on Tuesday asked motor accident claims tribunals that they should direct that compensation amounts be deposited directly to claimants' bank accounts in cases of consent award or when passing orders of disbursement and withdrawal. The court gave directions to ensure the disbursal of INR 10.85 billion of unclaimed amounts which were payable by way of compensation and were deposited with motor accident claims tribunals and labour courts across India. 

 

When motor accident claims tribunals pass an order of deposit of compensation amounts with them, direction should be given to invest those amounts in fixed deposit with any nationalised bank and the same is to be renewed till further instructions. Observing that the issue was of great concern, the top court said that though claimants were held entitled to these amounts, they had not withdrawn the same. The fact that so many successful claimants have been deprived of compensation was very disturbing, the apex court said. 

 

The bench of Justices Abhay S. Oka and Ujjal Bhuyan said that under section 176 of the Motor Vehicles Act, 1988, rule-making powers had been conferred on state governments to provide for the form of application for claims for compensation. However, it is not clear how many states have exercised this rule-making power, the court said.

 

Due to lack of exercise of the rule-making power by state governments, the respective high courts can either frame rules of procedure or issue practice directions to ensure that material details are disclosed while filing claim applications, the court said. Till the rules are not framed, the high courts will either issue practice directions or formulate rules of procedure by incorporating the provisions suggested by the apex court, said the bench.

 

Other directions include that while passing an interim or final order of grant of compensation, motor accident claims tribunals have to call upon the person or persons held entitled to receive compensation to produce their bank account details. The top court asked high courts to create a dashboard on which the information regarding the amounts deposited regarding compensation granted under the Motor Vehicles Act and the Workmen's Compensation Act, 1923, will be regularly uploaded with all details.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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