Compensation Received Under SC/ST Rules Must Be Returned If FIR Quashed Due To Settlement: Delhi High Court

The Delhi High Court has recently ruled that any compensation received under the SC/ST Rules should be returned when the legal proceedings are discontinued due to a settlement.

Justice Sanjeev Narula observed that the compensation mechanism under the SC/ST (Prevention of Atrocities) Act read with the Rules is intrinsically linked to the continuation of legal proceedings.

“The intent of the Act and the accompanying Rules is to deter atrocities against members of Scheduled Castes and Scheduled Tribes by ensuring that offenders are prosecuted and that victims are supported throughout the legal process. Compensation serves as a means to facilitate justice, not as an end in itself,” the Court said.

It added that where the victim and the accused amicably settle the matter, the foundational premise of victimization under the Act is effectively negated.

“Therefore, awarding full compensation in such scenarios would be contrary to the spirit of the law. The principle of restitution dictates that one should not be unjustly enriched at the expense of another. In this context, the State should not be compelled to disburse funds when the intended purpose of supporting a victim through prosecution—is no longer applicable,” the Court said.

It added, “Ideally, any compensation received under the SC/ST Rules should be returned when the legal proceedings are discontinued due to a settlement.”

The Court made the observations while dismissing a plea moved by a man (victim) challenging an order passed by the Sub Divisional Magistrate sanctioning an amount of Rs. 10,000 out of Rs. 1 lakh as compensation as per the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Rules in an FIR registered in 2019.

Justice Narula noted that the FIR on the basis whereof the entire claim in the case was founded had been quashed consequent to a settlement between the parties.

“This is a significant development that, in the Court's opinion, substantially undermines the Petitioner's right to seek further compensation,” the Court said.

It added that the compensation under the Act is contingent upon the prosecution of offenses and the victim's active participation in the legal process to bring offenders to justice.

“In these circumstances, the Court cannot issue a direction to increase the compensation awarded to the Petitioner. Consequently, the Court finds no reason to direct the Respondents to grant any additional compensation to the Petitioner,” the Court said.

Title: BALBIR MEENA v. STATE (NCT OF DELHI) AND ORS

Citation: 2024 LiveLaw (Del) 1319

Click here to read order