Munmun Kaur
Published On: January 29, 2022 at 17:45 IST
The Supreme Court on January 27 asked the Central Government to examine a suggestion to deposit the compensation amount awarded by Motor Accident Claims Tribunals in the current account with the initial deposit in FDR for 90 days instead of savings accounts.
A bench comprising Justice Sanjay Kishan Kaul and Justice MM Sundresh asked Additional Solicitor General Jayant K Sud was hearing a Writ Petition filed by Insurance Company Bajaj Allianz. The Petition sought directions and guidelines for facilitating the compensation disbursement process and expedition of cases before Motor Accidents Claims Tribunal.
Earlier, Amicus Curiae N Vijayarghavan had brought to the attention of the Court the difficulties faced by MACTs in handling the savings bank accounts and certain instances of misuse of the funds of the Tribunal on which the Madras High Court had ordered an investigation.
In an Order passed on November 16, 2021, the Bench had rejected the suggestion of Amicus Curiae N Vijayarghavan to deposit the compensation in the current account instead of the savings account as the accrued interest keeps lying unattended. The Bench had observed that the amounts should continue to be credited with the savings account to earn interest but, a general direction was issued that wherever Orders are passed for disbursement of compensation to the beneficiaries, any such interest would enure to the benefit of the beneficiaries and would follow the principal amount.
Although on January 27, the Bench recorded that an additional report has been filed by Amicus Curiae N. Vijayaraghavan that expressed certain difficulties arising from the directions given by the Court on November 16. The Bench observed that the difficulties arose from the misuse of funds in Tamil Nadu. The accrued interest there being more than Rs. 40 Crores. The Bench noted that this fund is stated to be just lying in the account which is not disbursed wherever there is a lack of proper identification as to whom the amount should be disbursed. Further, misuse of the fund had come to light to the extent of 1.5 crores and 33 lakhs in 2 MACT Courts and the matter is being investigated under the supervision of the Madras High Court.
The Bench observed, “On a reading of the aforesaid, it does appear that the MACT courts should seek to watch their time logs with regard to the amount deposited in the courts. That itself cannot require a change of direction. The responsibilities have to be performed”.
Supreme Court directed ASG to examine proposal to deposit MACT awards in current accounts instead of savings sccount.