25 May Wednesday

Supreme Court Asks Govt to Consider Depositing MACT Awards Into Current A/c Instead Of Savings

Web Desk(TVM)Updated: Friday Jan 28, 2022

New Delhi : The Supreme Court on Thursday suggested to the Central Government that it consider depositing accident claim amounts awarded by Motor Accident Claims tribunals into current account with initial deposit in FDR for 90 days instead on savings account.

The suggestion was made in the light of concerns expressed by amicus curiae N Vijayaraghavan citing difficulties by MACTs in handling savings bank accounts.  He also brought to the attention of Court misuse of interest monies lying with Tribunals, of which the Madras High Court has ordered an investigation. The problem involving idle interest money arises owing to the time lag between the deposit of the award and the actual disbursement, the amicus curiae pointed out in its additional report.

The Bench comprising Justice Sanjay Kishan Kaul and Justice MM Sundaresh was hearing  a writ petition filed by Insurance Company Bajaj Allianz seeking directions and guidelines for facilitating compensation disbursement process and expedition of cases before Motor Accidents Claim Tribunal.