LexIN RE: COMPENSATION AMOUNTS DEPOSITED WITH MOTOR ACCIDENT CLAIMS TRIBUNALS AND LABOUR COURTS versus NA
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[2025] 4 S.C.R. 1613 : 2025 INSC 530 In Re: Compensation Amounts Deposited with Motor Accident Claims Tribunals and Labour Courts (Suo Motu Writ Petition (C) No. 7 of 2024) 22 April 2025 [Abhay S. Oka* and Ujjal Bhuyan, JJ.] Issue for Consideration Issue arose in this suo motu writ petition with respect to the large amounts of unclaimed compensation lying deposited with MACTs and Labour Courts under the Motor Vehicles Act, 1988 and the Workmen’s Compensation Act, 1923. Headnotes† Motor Vehicles Act, 1988 – ss.166, 176 – Workmen’s Compensation Act, 1923 – Large amounts of unclaimed compensation lying with MACTs and Labour Courts – Email received from a retired District Judge – Suo motu action by Supreme Court – Directions issued: Held: Rules u/s.176, 1988 Act not made by the State Governments – Till rules are not framed, High Courts to issue practice directions or formulate rules of procedure by incorporating the provisions, as directed, for claims under the 1988 Act and claims for compensation under the 1923 Act – Central Project Co-ordinator of e-court project or Registrar (Computer/IT) of the High Courts, with the help of the State Government, to create a dashboard on which the information regarding the amounts lying deposited in connection with the compensation granted under 1988 or 1923 Acts shall be regularly uploaded with all details – High Courts to issue administrative directions to the MACT and Commissioners under the 1923 Act to initiate a massive drive to ascertain the whereabouts of the persons who have been held to be entitled to receive compensation, but have not taken the same – This shall be done by taking the assistance of the District and Taluka Legal Services Authorities and para-legal volunteers – State Governments to provide assistance to the Legal Services Authorities of the local police officers/revenue officers of the district and taluka to trace the claimants who are held entitled to receive compensation – State * Author 1614 [2025] 4 S.C.R. Supreme Court Reports Legal Services Authorities to monitor compliance with the directions issued in terms thereof and report compliance within four months – Directions issued bind the MAC Tribunals and the Commissioners under the 1923 Act till rule-making power is properly exercised by the Government – However, if the Rules framed by the State Government or practice directions issued are consistent with the above directions, the Rules or the practice directions, as the case may be, shall be followed notwithstanding this order – Directions by Supreme Court. [Paras 9-11] List of Acts Motor Vehicles Act, 1988; Workmen’s Compensation Act, 1923. List of Keywords Suo motu Writ Petition; Unclaimed compensation; Section 166 and 176 of Motor Vehicles Act, 1988; Motor Accident Claims Tribunal (MACT); Labour Courts; Commissioners under the Workmen’s Compensation Act, 1923; Practice directions; Directions by Supreme Court; Compensation dashboard. Case Arising From Civil Original Jurisdiction: Suo Motu Writ Petition (Civil) No. 7 of 2024 Under Article 32 of the Constitution of India Appearances for Parties By Courts Motion. Ms. Meenakshi Arora, Sr. Adv./Amicus Curiae, Ms. Vishakha Advs. for the appearing parties: High Court of Madras: Deepayan Mandal, Mridul Bansal, Naman Varma. High Court of Calcutta: Partha Sil, Ms. Sayani Bhattacharya, Srijit Datta. High Court of Delhi: Kanhaiya Singhal, Prasanna, Ajay Kumar. High Court of Judicature at Allahabad: Ms. Charu Ambwani. High Court of Bombay: Prashant Shrikant Kenjale. State of Gujarat: Ms. Deepanwita Priyanka. [2025] 4 S.C.R. 1615 In Re: Compensation Amounts Deposited with Motor Accident Claims Tribunals and Labour Courts Judgment / Order of the Supreme Court Order Abhay S. Oka, J. 1) An email was received by this Court from Shri B. B. Pathak, a retired District Judge from Gujarat. In the e-mail dated 25th May 2024, Shri Pathak pointed out that large amounts payable by way of compensation under the Motor Vehicles Act, 1988 (for short, ‘the 1988 Act’) and the Workmen’s Compensation Act, 1923 (for short, ‘the 1923 Act’) are lying deposited with the Motor Accident Claims Tribunals (for short, ‘the MAC Tribunals’) and Labour Courts. Hon’ble the Chief Justice of India passed an administrative order on the basis of information received by e-mail from Shri B. B. Pathak for registration of the present Suo Motu Writ Petition. 2) On 8th July 2024, this Court issue
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