HP High Court Orders Inquiry Into Lawyer For Allegedly Withdrawing MACT Compensation By Misusing Client's Signature

The Himachal Pradesh High Court has ordered an enquiry into a lawyer, after the appellants in an MACT appeal case alleged that their former advocate misused their signatures and fraudulently withdrew accident compensation money.

Justice Vivek Singh Thakur said: “Direct the Chairman, Bar Council of Himachal Pradesh as well as Superintendent of Police, Shimla, to look into the matter personally and ensure to take complaint/application to its logical end, in accordance with law, in a time bound manner and to communicate the action taken on the complaint to applicant No.1-appellant immediately as well as to this Court through Registrar (Judicial) well before next date of hearing.”

The Appellant, Rama devi, filed an application for condonation of 8 years, 8 months, and 14 days' delay in filing an appeal against an award dated August 1, 2015, passed by the Motor Accident Claims Tribunal on account of her husband's death.

She contended that after the award was passed, her counsel before the Motor Accident Claims Tribunal obtained her signatures on blank papers and assured that signatures were required for release of the awarded amount and to file an appeal before the High Court for enhancement of compensation.

Later, in 2023, the appellant found that an additional ₹4.16 lakh had been credited to her bank account but withdrawn through an ATM card allegedly issued in her name without her knowledge. She alleged that the advocate had misused her signatures to withdraw the amount fraudulently.

Thereafter, she filed complaints before Chairman, Bar Council of Himachal Pradesh and the Superintendent of Police, Shimla and stated that the police recorded her statement multiple times, but nothing was communicated to her.

Aggrieved, the Appellant filed the application for condonation of delay, so that she could pursue the appeal for enhanced compensation.

The Court observed that although there was an “extraordinary inordinate delay”, but due to the circumstances of the case, and the uncontested nature of the allegations showed sufficient cause for the delay.

In Brahampal v. National Insurance Co., 2021 the Supreme Court held that the Motor Vehicles Act is a beneficial legislation aimed at securing just compensation for victims, and therefore courts must interpret “sufficient cause” liberally and pragmatically to advance substantial justice.

Thus, the High Court condoned the delay and ordered the appeal to be registered. The matter will be listed for further orders on September 10, 2025.

Case Name: Rama Devi & Others.

Case No.: CMP (M) No.1658 of 2024

Date of Decision: 18.07.2025

For the Appellants: Ms. Tim Saran, Advocate.

For the Respondents: Nemo

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