Madukurina H. Patel and another v. National Insurance Company Limited
2002-08-23
A.KULASEKARAN, P.SATHASIVAM
body2002
DigiLaw.ai
P.Sathasivam, J.: The petitioners herein- respondents 1 and 2 in C.M.A. No.1106 of 1997 filed the above petition under Sec.151 of the Code of Civil Procedure seeking direction to ensure that the claimants are not deprived of the benefit of interest on the sum of Rs.7,36,620 lying to the credit of M.C.O.P. No.375 of 1995, Chief Judge, Court of Small Causes, Madras. 2. In the affidavit filed in support of the above petition it is stated that by order dated 29.8.2001 this Court dismissed the appeal, i.e., C.M.A. No.1106 of 1997 filed by the National Insurance Company. The only modification made by the Division Bench in the award of the Motor Accident Claims Tribunal, is that it has reduced the rate of interest to 9% from 12%. The petitioners are entitled to withdraw the amount as per the orders of this Court dated 29.8.2001. Accordingly, their counsel made enquiries and found that a sum of Rs.7,36.260 was laying to the credit of M.C.O.P. No.375 of 1995 on the file of Chief Judge, Court of Small Causes, Chennai, without being invested in any one of the Nationalised Bank. It is further stated that by order dated 8.1.1999, this Court permitted the petitioners to withdraw 50% of the amount deposited by the Insurance Company to the extent of Rs.6,04,549 out of Rs.13,40,809 as per orders in C.M.P. Nos.1131 of 1997 and 5875 of 1998. While permitting the petitioners to withdraw 50% of the award amount, this Court directed investment of the balance award amount in any one of the Nationalised Bank, so that the petitioners may get the benefit of accrual, in the event of success in the appeal. However, the petitioners were informed that a sum of Rs.7,36,260 lying to the credit of M.C.O.P. No.375 of 1995 has remained uninvested and idle. Accordingly, to ensure that the claimants do not lose to the benefit of interest, they filed the present petition for suitable direction from this Court. 3. Based on the specific averments made in the affidavit, we called for a report from the Chief Judge, Court of Small Causes, Madras for non compliance of order in C.M.P. Nos.1131 of 1997 and 5875 of 1998.
3. Based on the specific averments made in the affidavit, we called for a report from the Chief Judge, Court of Small Causes, Madras for non compliance of order in C.M.P. Nos.1131 of 1997 and 5875 of 1998. Though in the report dated 16.8.2002, Chief Judge, Court of Small causes, Chennai has informed that the claimants were permitted to withdrawal their respective share as per the order of this Court dated 8.1.1999, the fact remains that 50% of the amount had not been invested and even the same was withdrawn by the claimants. Mr.Vijayaraghavan, learned counsel appearing for the petitioners fairly admits that because of the mistake of the Registrar of Court of Small Causes, Chennai though the petitioners had lost the valuable interest amount due to non investment, for the benefit of other claimants/ victims of the motor accident, requests this Court to issue appropriate directions/ guidelines to all the Tribunals dealing with Motor Accident cases. Accordingly, while dismissing C.M.P. No.19530 of 2001, we issue the following guidelines to all the Motor Accident Claims Tribunals. 4. By virtue of powers conferred under Sec.176 of the Act read with 211 of the Motor Vehicles Act, 1988, the Government of Tamil Nadu framed Rules, i.e., Tamil Nadu Motor Vehicles Accident Claims Tribunal Rules, 1989. Among the other Rules, Rule 20 speaks about elaborate procedure being followed while disposing the claim petition and steps to be followed after disposal of depositing award amount, permission to withdraw investment of money etc. Sub-clause (12) of Rule 20 makes it clear that the Claims Tribunal, shall in the matter of investment of money, have regard to a maximum return by way of periodical income to the claimant and make it deposited with public sector undertaking of the State or Central Government which offers higher rate of interest. Sub-clause 13 says that the Claims Tribunal shall in investing money direct that the interest on the deposits be paid directly to the claimants or to the guardian of the minor claimants by the institutions holding the deposits under the intimation to the claims tribunal. 5. Taking note of the elaborate procedure prescribed in the Tamil Nadu Motor Vehicles Accident Claims Tribunal Rules, 1989, in addition to these Rules, the following instructions, guidelines may also be strictly adhered to by all the Tribunals dealing with the Motor Accident Cases.
5. Taking note of the elaborate procedure prescribed in the Tamil Nadu Motor Vehicles Accident Claims Tribunal Rules, 1989, in addition to these Rules, the following instructions, guidelines may also be strictly adhered to by all the Tribunals dealing with the Motor Accident Cases. "(a) It is and shall be obligatory on the respondent depositing the award sum before the Motor Accident Claims Tribunal (in short "MACT") to inform such deposit to the counsel for claimants without fail. As per O.21, Rule 2, C.P.C., it is the duty of judgment debtor to inform the decree holder of such deposit and failure would invite interest liability on the judgment debtor until date of information. The decision of the Supreme Court in Rajasthan State Road Transport Corporation, Jaipur v. Smt.Poonam Pahwa, (1997)3 L.W. 280 in relation to such deposit of award sums before MACT shall be scrupulously adhered to by respondents depositing the award sums and failure to do so would invite the consequences flowing therefrom. (b) On such deposit, it shall be the duty of the MACT to ensure that deposited sum was credited to the account of M.C.O.P. and relevant entry made in the Register maintained for such purpose. The process of crediting the amount of entries being made shall be expedited since it is now observed that there is considerable delay in the said procedure. (c) It shall be open to the claimants to seek appropriate directions from the concerned M.A.C.Ts. to direct investment in nationalised bank and other Government Institutions and also suitable directions to the said bank and Government Institutions for crediting the periodical interest accruals to the named account of the claimants directly. (d) On such deposit, MACT shall wait for a period of 3 months to enable the claimants to seek directions for withdrawal or investments as may be permitted in the circumstances. On lapse of the said period of 3 months from the date of deposit, MACT shall as a matter of rule, without exception, ensure that the deposited sums were invested in a nationalised bank for a minimum period of 3 years. (e) The MACTs shall maintain a separate Register for the purpose of entering the following particulars in all MACT claims.
(e) The MACTs shall maintain a separate Register for the purpose of entering the following particulars in all MACT claims. (i) Number of MCOP; (ii) Amount claimed;(iii) Amount awarded; (iv) Date of award; (v) Amount of deposited; (vi) Amount withdrawn, if any details of orders in M.Ps.; (vii) Amount invested with details of Bank and Government Institutions, branch, amount, mode of investment; (viii) Periodical interest accruals on investments made in bank and Government Institutions shall be duly entered in the Register. The register shall be made available for scrutiny and use by counsel on record in the claims. (f) It shall also be obligatory for MACTs to issue certified copies of details of deposits, investments made, interest payments received etc., so that it shall be retained as permanent record by claimants, who may be minors or those who change their residence. Such certified copies of deposits made, investments made, interest payments received etc., would serve as permanent record for future follow-up. (g) It shall be obligatory for the District Judge once in three months to call for details of deposits made and investments thereon and those awaiting investments so that follow up action can be taken and compliance done with the said instructions. (h) In so far as MACT claims in which High Court is seized of the matter, investment of the deposited award amount shall be in accordance with orders passed by the High Court. It shall be obligatory for the Tribunals to comply with the orders of the High Court and with regard to the investment of the deposited sum send a compliance report thereon within 1 week to the High Court.