SC orders direct bank transfers as Rs 1,085 cr lies unclaimed in accident tribunals
The
Supreme Court
on Tuesday asked the
motor accident claims tribunals
to directly credit the compensation amount to claimants' bank accounts as huge money to the tune of Rs 1085 crore is lying unclaimed in the motor accident claims tribunals (MACT) and
labour courts
across the country.
Issuing a slew of directions to ensure that the compensation is paid to claimants under the
Motor Vehicles Act
1988 or the Workmen's Compensation Act 1923, a bench comprising justices Abhay S. Oka and Ujjal Bhuyan said that 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 to be renewed till further instructions.
Observing that the issue was of great concern, the judges said that though the claimants were held entitled to these amounts, they had not withdrawn the same.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 is very disturbing, the top court said.
The bench of Justices Abhay S. Oka and Ujjal Bhuyan noted that the States have not framed rules under Section 176 of the Motor Vehicles Act regarding the filing of applications before the tribunals. Till such rules are framed, the SC directed the high courts to frame practice directions.
It 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.
Based on a letter received from BB Pathak, a retired District Judge from Gujarat, the Court had initiated a suo motu case last year.
Among a series of direction, the top court said that while passing an interim or final order of grant of compensation, the MACTs shall call upon the person or persons held entitled to receive compensation to produce their bank account details. The high courts have been asked to create a dashboard on which the information regarding compensation amounts should be regularly updated.
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