Gauhati High Court Issues Practice Directions To Ensure Disclosure Of Material Details In Claim Petitions Filed Under Motor Vehicles Act

Pursuant to directions dated passed by Supreme Court last month in a suo-motu case, the Gauhati High Court on May 2 issued "practice directions" to ensure "disclosure of material details" while filing claim applications under Motor Vehicles Act in respect of all Motor Accident Claims Tribunals (MACTs)/Courts taking up such claims. 

For context, the Supreme Court had 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 Apex Court had 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. 

Pursuant to the apex court's directions, the High Court in its notification issued by the Registrar General states:

I. While filing claim petitions under the Motor Vehicles Act the 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.

II. If the aforesaid details are not furnished, the registration of the application should not be refused on that ground, but the MACTs/Courts taking up Motor Accident Claim (MAC) cases, 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.

III. While passing an interim or final order of grant of compensation, the MACTs/Courts taking up MAC cases 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/Court shall call upon the claimants to produce the documents within a specified reasonable time.

IV. The person or persons entitled to receive compensation shall keep on updating information regarding the bank accounts, email id, in case there is any change.

V. In the event a consent award or consent order is made, the MACTs/Courts taking up MAC cases 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 (III) 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 MACT/Court, on the basis of the settlement, shall pass a consequential order in the above terms.

VI. It shall be the duty of the Presiding Officers of the MACTs/Courts taking up MAC cases where there are no designated MACTs to verify from the certificate issued by the banker and ascertain whether the account is of the persons held entitled to receive compensation.

VII. The MACTs/Courts taking up MAC cases, 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 or persons 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 MACTs/Courts taking up MAC cases will be required to get fresh account details of the claimants.

VIII. Whenever the MACT/Court taking up MAC cases where there are no designated MACT passes an order of deposit of compensation amount with the Tribunal/Court, 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 the Tribunal/Court.

“This Notification shall come into effect immediately and shall remain in force till appropriate Rules are framed/notified by the respective State Governments,” the notification read.

Click Here To Read Notification