ICICI Lombard General Insurance Co. Ltd. v. State of Rajasthan
2018-10-03
SANDEEP MEHTA
body2018
DigiLaw.ai
JUDGMENT : SANDEEP MEHTA, J. 1. Through this writ petition, the petitioner Insurance Company craves exercise of this Court's supervisory writ jurisdiction for laying down of appropriate guidelines for the Motor Accident Claims Tribunals in the State of Rajasthan so as to ensure that the awards passed in favour of the victims/claimants genuinely reach their hands and do not fall into the hands of unscrupulous elements. 2. Learned counsel Shri Vinay Kothari, representing the petitioner and Members of the Bar; Dr. Sachin Acharya, Shri Jagdish Vyas and Shri Sanjay Raj Paliwal, Advocates addressed the Court and putforth their suggestions for laying down of proper guidelines. A request was made that extensive/exhaustive guidelines laid down by the High Court of Madras in Civil Misc. Appeal No. 428/2016 should also be adopted in the State of Rajasthan and a direction to the Tribunals with requisite modifications would sub-serve the ends of justice and will ensure that the claimants get their rightful dues in pursuance of the awards passed by the Accident Claims Tribunals. 3. Upon a careful perusal of the guidelines laid down by the Madras High Court in the aforesaid judgment, this Court is of the opinion that incorporating certain amendments which have become necessary by efflux of time, following directions can be given to the Tribunals in the State of Rajasthan so that the amounts of awards passed in favour of the claimants genuinely reach their hands and are not pilfered by unscrupulous elements. 4. The guidelines laid down by the Madras High Court in Civil Misc. Appeal No. 428/2016 with necessary amendments are noted herein below. “PROCEDURE BEFORE PASSING AWARD (i) The Claims Tribunals shall without exception, at the time of commencement of enquiry obtain and ensure that the bank account details of all the claimants are taken on record as follows: The first page of the bank pass-book will compulsorily contain photograph of the claimants/victims, duly attested by the Bank concerned. Wherever the claimants/victims are impleaded as respondents, before the claims tribunal or any other Court, their account details, as above, will have to be furnished.
Wherever the claimants/victims are impleaded as respondents, before the claims tribunal or any other Court, their account details, as above, will have to be furnished. (ii) In case, after disclosure of the bank account details before the Claims Tribunal in terms of Clause (i), a new person is added in the account for any reason whatsoever, it will be incumbent for of the claimant/victim to disclose the same to the Claims Tribunal, indicating the relationship of the newly added person is to the claimant/victim and the purpose. (iii) The Claims Tribunals shall also obtain Pan Card of all the claimants, wherever available or else the requisite declaration shall be taken for TDS purpose. (iv) In case of minor claimants, their bank account details should be obtained and marked. The name of the guardian has to be specified. (v) The Claims Tribunals shall ensure compliance of clause (I) to (IV) above, before conclusion of trial. PROCEDURE AFTER PASSING AWARD (vi) The Claims Tribunals shall, as a matter of rule, direct the insurance companies or transport corporations or such other entities held liable to pay the compensation, to deposit the awarded amount to the credit of the bank account of the Claims Tribunal directly by NEFT or RTGS mode. The Registry will issue appropriate directions in this regard enabling the respective Claims Tribunal or the District Court concerned to open separate accounts, which will bear a suffix “MACT” to identify that the account is in relation to motor accident claims. (vii) The Insurance Companies and Transport Corporations shall instruct their banks to ensure deposit of the awards by way of Direct Bank Transfer to the specified bank account of the Claims Tribunal. The Insurance Company/payee shall also provide this information to the Tribunal in the following format by way of compliance of the award within fifteen days:— Date:— The Judge MACT _______________________ _______________________ Subject: Claim No.________/_________Titled as ___________ V/s _________________ decided on _______________ Sir, In compliance of the award dated ____________ we have remitted a sum of Rs._________/- on___________ in your A/c No.________________________ with ______________ (name of the Bank).
The details of payment are as under:— S. No. Name of claimant Amount of Compensation Interest TDS, If any Net Amount 1 2 3 Total Name of the Insurer/Payee with Address (viii) In turn, the bank of the Claims Tribunal shall receive the deposited sum and save the above information and furnish a statement of account on a daily basis to the Registry of the Claims Tribunal to enable the said Registry to reconcile the deposits of compensation and the respective MAC No. towards which such deposits were made. (ix) On such deposits being made, the insurance companies and transport corporations shall submit a letter to the Registry of the Claims Tribunal enclosing a copy of the said bank advice, in prescribed format, as per which the deposit was made to the bank account of the Claims Tribunal so as to enable the Claims Tribunal to keep tab on the deposits made and to correlate the same with the MAC No. for which they were made, which is a fundamental need for a smooth implementation of this well intentioned scheme. The Payment advice for remittance of compensation is as under: PAYMENT ADVICE FOR REMITTANCE OF COMPENSATION From: ………… Bank. ……………… To: …………… Court …………………… MAC No:— ………………………. We confirm remittance of compensation as follows on instructions of ……………………………. (insurance company/transport corporation):— (x) The Insurance Companies, Transport Corporations and such other entities making such deposit, shall also serve a copy of the payment advice as per Clause (iv) on the claimants or their counsel as the case may be. (xi) Insofar as tax deduction at source is concerned, Form 16-A of the IT Act should be submitted in the Tribunal who shall hand the same to the claimant concerned so as to enable him/her to seek refund of tax deducted. (xii) The Claims Tribunals shall ensure that details of bank account of the Claims Tribunal concerned are incorporated in the award itself, for compliance by those required to satisfy the award. (xiii) As and when an order is passed for disbursal of compensation amount, the Claims Tribunals shall ensure that such disbursal of compensation shall be made directly to the credit of the bank account of the claimant/victim, as the case may by NEFT or RTGS. The bank account details of the claimant/victims shall be incorporated in the award/order of the Claims Tribunal.
The bank account details of the claimant/victims shall be incorporated in the award/order of the Claims Tribunal. (xiv) The Claims Tribunals shall also ensure that in case the claimant or claimants expire pending proceedings and legal representatives are brought on record, the same procedure as above in respect of claimants is strictly adhered to in respect of impleaded legal representatives also. (xvi) The Claims Tribunals shall also ensure that the same procedure as above is followed in case of compromise being recorded in Lok Adalat proceedings. The writ petition is disposed of with above directions. Registry is directed to place the judgment before Hon'ble the Chief Justice for circulation amongst the Motor Accident Claims Tribunals in the State of Rajasthan.