Supreme Court Orders Nationwide Drive To Disburse Pending Compensation From MACTs and Labour Courts
In a landmark move aimed at unlocking thousands of crores worth of unclaimed compensation, the Supreme Court of India has directed all High Courts and State Legal Services Authorities to initiate a time-bound nationwide drive to trace rightful claimants under the Motor Vehicles Act, 1988 and the Workmen's Compensation Act, 1923. The case was initiated suo motu following an email from Shri B.B. Pathak, a retired District Judge from Gujarat, who flagged that massive sums meant for accident victims and their families remained undistributed in Motor Accident Claims Tribunals (MACTS) and Labour Courts across the country.
A Bench comprising Justices Abhay S. Oka and Ujjal Bhuyan laid down comprehensive procedural safeguards to ensure the timely disbursement of compensation. These include mandatory bank account verification, streamlined documentation, direct bank transfers, and the creation of a centralised dashboard to track pending amounts.
The Court also mandated the involvement of para-legal volunteers, district administration, and the police to trace claimants, and asked State Governments to assist the Legal Services Authorities in implementing these directions.
A Coordinated Effort Across High Courts
Data submitted during the proceedings revealed staggering figures: Gujarat alone has over ₹288 crore pending under MACT and Labour Court awards, followed closely by other major jurisdictions. The Court relied heavily on submissions from various High Courts and the amicus curiae to understand and address the scale of the issue.
Noteworthy Contributions
Significantly, the compilation of responses from multiple High Courts was coordinated and submitted by Ms. Vishakha, Advocate-on-Record for the High Court of Gujarat. Her submissions helped the Court contextualise the extent of unclaimed compensation and facilitated the framing of uniform directions to ensure that justice reaches those long entitled to it.
Her compilation included not only the raw figures from different states but also practical suggestions that contributed to the Court's final roadmap.
Looking Ahead
All High Courts have been directed to implement the directions at the earliest and submit compliance reports by July 30, 2025. The matter is now listed for further monitoring on August 18, 2025. This judgment is expected to significantly streamline the disbursement of compensation and reaffirm the Court's commitment to ensuring that legal entitlements translate into real-world relief.
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