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In Re Compensation Amounts Deposited with Motor Accident Claims Tribunals and Labour Courts

Suo Motu Writ Petition (Civil) · 2025 INSC 530Decided 22 Apr 2025
Suo Motu Writ Petition (C) No. 7 of 2024
Justice Abhay S. Oka

Background

The Supreme Court took suo motu (on its own initiative) cognizance of the issue after a retired District Judge from Gujarat wrote an email alerting the Court that huge sums of court-awarded compensation under the Motor Vehicles Act, 1988 and the Workmen's Compensation Act, 1923 were lying unclaimed with Motor Accident Claims Tribunals (MACTs) and Labour Courts across India. Data collected from several High Courts revealed staggering unclaimed amounts, for example, over Rs. 282 crore in Gujarat, roughly Rs. 239 crore in Uttar Pradesh, and over Rs. 459 crore in Maharashtra, meaning many accident victims or their families entitled to compensation were simply never receiving it.

Decision Breakdown

The Court, with the assistance of an amicus curiae who compiled best practices from various High Courts, issued a comprehensive set of nationwide directions to be followed until proper rules are framed: claim applications must henceforth capture claimants' Aadhaar, PAN, and bank account details upfront; Tribunals must verify these details through bankers' certificates before disbursing money; unclaimed deposits must be kept in interest-bearing fixed deposits with nationalised banks rather than sitting idle; High Courts must set up online dashboards tracking all such pending amounts; and State Legal Services Authorities, together with local police and revenue officials, must actively trace untraceable claimants rather than waiting for them to come forward. Compliance reports were directed to be filed by a set deadline, with the matter kept pending for further monitoring.

Lesson Learnt

If you or a family member ever won compensation from a Motor Accident Claims Tribunal or Labour Court and never collected it, that money may still be sitting deposited and earning interest: always keep your address and bank details updated with the tribunal, and consider a status check through your local Legal Services Authority.

Official source (sci.gov.in)View Judgment (PDF)

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