By Dr Swati Jindal Garg
In a landmark suo motu case, the Supreme Court has intervened to address a staggering backlog: over Rs 1,085 crore in compensation remains unclaimed in Motor Accident Claims Tribunals (MACTs) and labour courts across the country. To tackle this, the apex court has laid down a set of mandatory procedural guidelines aimed at ensuring that rightful claimants receive their dues without unnecessary delay.
The case came to the Court’s attention via an email from BB Pathak, a retired district judge from Gujarat, who raised alarm over huge sums lying idle. Taking swift note, the chief justice of India ordered the registration of a suo motu writ petition. The matter was heard by a Division Bench comprising Justices Abhay S Oka and Ujjal Bhuyan.
Following preliminary review, the top court demanded detailed data from the state of Gujarat and the Registrar General of the Gujarat High Court. The numbers were staggering: Rs 661 lakh in unclaimed compensation in labour courts, and over Rs 282 crore in MACTs in Gujarat alone. Similar data was later submitted by the High Courts of Allahabad, Calcutta, Bombay, and Goa.
Highlighting the urgency, the Bench declared the issue one of “great concern,” emphasizing that the amounts in question are not mere statistics—they represent real people who have suffered loss and injury.
NEW GUIDELINES FOR FASTER DISBURSAL
To plug the systemic gaps, the apex court issued comprehensive directives:
- Claim applications under the Motor Vehicles Act, 1988 must include detailed personal information, including Aadhaar, PAN, and bank account details of the claimants or their legal representatives.
- Lack of such details won’t stall registration, but Tribunals must demand them at the notice stage.
- While granting compensation (interim or final), the Tribunals must collect updated bank account details, a banker’s certificate or a cancelled cheque, and maintain records.
- If a long time has lapsed, fresh details must be sought before releasing funds.
- Compensation may be directly transferred to claimants’ bank accounts via consent awards or orders.
- Claimants must keep their contact and account information updated for smoother transactions.
Additionally, to ensure transparency, the Court ordered the Central Project Coordinator of the e-court project, along with Registrar (IT) of High Courts, to develop a digital dashboard. This platform will track and display compensation amounts lying with Tribunals, aiding claimants, courts, and administrators alike.
HIGH COURTS ORDERED TO ACT
The Supreme Court directed all High Courts to issue administrative orders to MACTs and labour commissioners to conduct outreach drives identifying eligible, but unpaid claimants. The Court also asked High Courts to submit compliance reports outlining unclaimed sums still pending disbursal.
Interestingly, some High Courts have already proposed unique remedies. The Bombay High Court cited international practices and its own Civil Manual, which requires transfer of unclaimed funds to the state treasury after a certain period. Other courts have formed expert committees to devise strategies for systematic disbursal.
WHY MACT MATTERS
The MACT is a special court empowered to award compensation in cases of injury, death, or property damage due to motor accidents. Victims or their legal heirs can file claims against vehicle owners, drivers, or insurers. The MACT is meant to offer a lifeline—but for too many, that help is still out of reach.
With the Supreme Court’s firm intervention, the process of justice may finally accelerate. Whether it’s a grieving family or an injured worker, those waiting on compensation now have a clearer path—and the system has a renewed responsibility to deliver.
—The author is an Advocate-on-Record practising in the Supreme Court, Delhi High Court and all district courts and tribunals in Delhi
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