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1994 DIGILAW 1008 (SC)

Legal Aid And Advice Centre v. State Of T. N.

1994-09-09

B.P.JEEVAN REDDY, SUHAS C.SEN

body1994
ORDER 1. Heard learned counsel for the parties. 2. Rule 20 of the Motor Vehicles Tamil Nadu Rules, 1989 framed by the Government of Tamil Nadu contains certain very salutary provisions designed to ensure that the compensation paid in motor vehicles accidents claims really reaches the claimants. The said provisions appear to be in consonance with the guidelines indicated in a decision of the Gujarat High Court in Muljibhai Ajarambhai Harijan v. United India Insurance Co. Ltd. [(1982) 1 Guj LR 756] which were approved by this Court in G.M., Kerala SRTC v. Susamma Thomas [ (1994) 2 SCC 176 : 1994 SCC (Cri) 335] disposed of on 6-1-1993. Having done that and for reasons which are not clear to us, the Government published in the Tamil Nadu Government Gazette, a draft amendment proposing to omit sub-rules (8), (9), (10) and (11) of Rule 20. Certain amendments were also proposed to sub-rules (13) and (14) as well. In our opinion, the proposed amendments are ill-advised an militate against the laudable object underlying Rule 20 as originally framed. Since the rule as originally framed is in consonance with the guidelines approved by this Court, we are sure that the Tamil Nadu Government will not finalise the said amendments proposed in Tamil Nadu Government Gazette, Part III, Section 1-A published on 2-8-1989. In case the said amendments are already effected, the Tamil Nadu Government shall consider their repeal and restoration of the original Rule 20. 3. The writ petition is disposed of with the above directions, forthwith. 4. Liberty to mention. Copy of the guidelines has been made Appendix A and is attached herewith. APPENDIX A (i) The claims tribunal should, in the case of minors, invariably order the amount of compensation awarded to the minor to be invested in long-term fixed deposits at least till the date of the minor attaining majority. The expenses incurred by the guardian or next friend may however be allowed to be withdrawn; (ii) In the case of illiterate claimants also the claims tribunal should follow the procedure set out in (i) above, but if lump sum payment is required for effecting purchases of any moveable or immovable property, such as, agricultural implements, rickshaw, etc. The expenses incurred by the guardian or next friend may however be allowed to be withdrawn; (ii) In the case of illiterate claimants also the claims tribunal should follow the procedure set out in (i) above, but if lump sum payment is required for effecting purchases of any moveable or immovable property, such as, agricultural implements, rickshaw, etc. to earn a living, the tribunal may consider such a request after making sure that the amount is actually spent for the purpose and the demand is not a ruse to withdraw money; (iii) In the case of semi-literate persons the tribunal should ordinarily resort to the procedure set out at (i) above unless it is satisfied, for reasons to be stated in writing, that the whole or part of the amount is required for expanding the existing business or for purchasing some property as mentioned in (ii) above for earning their livelihood in which case the tribunal will ensure that the amount is invested for the purpose for which it is demanded and paid; (iv) In the case of literate persons also the tribunal may resort to the procedure indicated in (i) above, subject to the relaxation set out in (ii) and (iii) above, if having regard to the age, fiscal background and strata of society to which the claimant belongs and such other considerations, the tribunal in the larger interest of the claimant and with a view to ensuring the safety of the compensation awarded to him thinks it necessary to so order; (v) In the case of widows the claims tribunal should invariably follow the procedure set out in (i) above; (vi) In personal injury cases if further treatment is necessary the claims tribunal on being satisfied about the same, which shall be recorded in writing, permit withdrawal of such amount as is necessary for incurring the expenses for such treatment; (vii) In all cases in which investment in long-term fixed deposits is made it should be on condition that the Bank will not permit any loan or advance on the fixed deposit and interest on the amount invested will be paid monthly directly to the claimant or his guardian, as the case may be; (viii) In cases tribunal should grant to the claimants liberty to apply for withdrawal in case of an emergency. To meet with such a contingency if the amount awarded is substantial the claims tribunal may invest it in more than one fixed deposit so that if need be one such FDR can be liquidated.