Supreme Court Takes Suo Motu Case Over Motor Accident Compensation Lying In Deposit Without Being Given To Claimants

The Supreme Court has initiated a suo moto writ petition over large sums of money lying deposited in Motor Accident Claims Tribunals (MACT) and labour courts without being given to the beneficiaries.

A bench of Justice Abhay Oka and Justice Agustine George Masih said that an administrative order has been passed by Chief Justice of India DY Chandrachud initiating a case based on an email sent to the court on May 25, 2024.

The email highlighted an issue regarding large sums of compensation money lying unclaimed with the MACTs and labour courts.

According to the email, approximately Rs. 2,000 crores are lying deposited in Gujarat alone, with no efforts made to trace the beneficiaries of the compensation.

Thus, the Supreme Court issued notice to the State of Gujarat through the Secretary of Department of Law and Justice and the Registrar General of the Gujarat High Court, returnable on July 26, 2024.

In the meanwhile, the court directed the Registrar General of the Gujarat HC and the Law Secretary of Gujarat to take steps to gather data on the amounts of compensation currently deposited with the MACTs and labour courts in the state.

Case no. – SMW(C) No. 7/2024

Case Title – In Re Compensation Amounts Deposited With Motor Accident Claims Tribunals And Labour Courts