38.6c New Delhi, India, Thursday, October 09, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Judiciary

SC pitches for directly transferring compensation sum in claimants' bank accounts in MV Act cases [Read Judgment]

By Jhanak Sharma      21 March, 2025 05:41 PM      0 Comments
SC pitches for directly transferring compensation sum in claimants bank accounts in MV Act cases

NEW DELHI: The Supreme Court has directed for streamlining the process for payment of compensation in road accident by directly transferring the amount in the bank accounts of the claimants, to ensure that the insurance companies and the claimants are saved from hassles of the court processes.

Voicing concern over the mode of payment, a bench of Justices J K Maheshwari and Rajesh Bindal said the general practice followed by the insurance companies, where the compensation is not disputed, is to deposit the amount before the Motor Accident Claims Tribunal. Instead of following that process, a direction can always be issued to transfer the amount into the bank accounts of the claimants with intimation to the tribunal, it said.

The bench noted no uniform practice is followed regarding deposit of the amount before the tribunal, namely whether the amount will remain in government treasury or will be transferred in bank to be kept in interest bearing fixed deposit so that claimants do not suffer on account of interest for any delay in disbursement after deposit.  

"In case this process (transfer to bank accounts of claimants) is followed, the gap would be bridged. The real object of the beneficial legislation, namely to compensate for the loss of earning member of the family or for the injuries suffered by the claimants, will be achieved and compensation can be disbursed without any delay," the bench said.

The court here ordered for paying enhanced compensation of Rs 36.84 lakh to Parminder Singh, then 21-year-old youth who suffered 100 % disablity and quadriplegia, after the accident in 2014. The appellant was a state level Volleyball player and was pursuing studies to become a veterinary doctor.

With regard to the mode of payment in such cases, the bench said, this is an era of technology, where now artificial intelligence is taking over and the bank transactions can happen instantly with the help of technology.

"Our country has done wonders in digital payment transactions," the bench said, referring to the website of Ministry of Finance, Government of India, stating that the value of such transaction has grown from Rs 952 lakh crores to Rs 3,658 lakh crores.

It also noted the UPI transactions are likely to cross 20,000 crores in the financial year 2024-25.

"It is a matter of common knowledge that now under various schemes of the Government, funds are transferred to the beneficiaries directly in their bank accounts. As per the rough estimate, about 80% of the adult population in the country have bank accounts," the bench said.

The bench also pointed out a lot of matters come to the court in which the amount is required to be paid to the litigants and the normal practice used to be, and still prevalent is to deposit the amount in court and thereafter to be withdrawn by the litigant. Withdrawal of the amount deposited in the court by any litigant certainly needs time and also expenses.

In cases of compensation under the Motor Vehicle Act, the tribunals at the initial stage of pleadings or at the stage of leading evidence may require the claimants to furnish their bank account particulars, the court suggested.

The court pointed out it is also a fact that a substantial amount of compensation in motor accident cases remains deposited in the tribunal as the claimants may not have approached the tribunal for release for various reasons and such delay resulted in loss of interest to the claimants.

According to an RTI response from Insurance Regulatory Development Authority of India, towards the end of 2022- 23 there were 10,46,163 claim cases pending throughout the country before the Tribunals. The number of cases increased from 9,09,166 towards the end of 2019-20. Meaning thereby that there was an increase of 1,36,997 cases in a span of three years. This is besides the fact that large number of cases are regularly filed and decided, the court noted.  
 

 [Read Judgment]



Share this article:

About:

Jhanak is a lawyer by profession and legal journalist by passion. She graduated at the top of her cl...Read more

Follow:
FacebookTwitterLinkedinInstagram


Leave a feedback about this
Related Posts
View All

Another CBI Officer Investigating Rakesh Asthana Moves SC Against Transfer, Makes Startling Revelations Another CBI Officer Investigating Rakesh Asthana Moves SC Against Transfer, Makes Startling Revelations

After A.K. Bassi, another CBI officer who was investigating corruption allegations against Special Director Rakesh Asthana moved the Supreme Court.

Ayodhya verdict: SC rules in favour of Ram Lalla, Sunni Waqf Board gets alternate land Ayodhya verdict: SC rules in favour of Ram Lalla, Sunni Waqf Board gets alternate land

SC bench led by CJI Ranjan Gogoi has allotted the dispute site to Ram Janmabhoomi Nyas, while directing the government to allot an alternate 5 acre land within Ayodhya to Sunni Waqf Board to build a mosque.

Supreme Court: Money Spent On Judiciary Less Than 1% In All States Except Delhi Supreme Court: Money Spent On Judiciary Less Than 1% In All States Except Delhi

The court guided all states to document their response to the commission's report within four weeks. If any of the states fail to file a response, it will be presumed that they have no objections to the recommendations made by the commission, the court said.

Supreme Court Top Panel Names Chief Justices for Bombay, Orissa and Meghalaya High Courts Supreme Court Top Panel Names Chief Justices for Bombay, Orissa and Meghalaya High Courts

On April 18, 2020, the Supreme Court Collegium recommended new Chief Justices for three High Courts. Justice Dipankar Datta was proposed as Chief Justice of the Bombay High Court, succeeding Justice B.P. Dharmadhikari. Justice Biswanath Somadder was nominated as Chief Justice of Meghalaya High Court, while Justice Mohammad Rafiq was recommended for transfer as Chief Justice of Orissa High Court.

TRENDING NEWS

pmla-appellate-tribunal-orders-immediate-release-of-seized-bmw-x7-in-hemant-soren-land-scam-case
Trending Crime, Police And Law
PMLA appellate tribunal orders immediate release of seized BMW X7 in Hemant Soren land scam case [Read Order]

PMLA tribunal orders ED to release seized BMW X7 in Hemant Soren land scam case, citing lack of proof linking the luxury car to money laundering.

08 October, 2025 08:06 PM
offence-under-category-of-upholding-family-prestige-sc-orders-release-of-man-on-remission
Trending Judiciary
'Offence under category of upholding family prestige,' SC orders release of man on remission [Read Judgment]

SC orders immediate release of life convict who served 22 years for a murder committed to uphold family honour, citing Maharashtra remission guidelines.

08 October, 2025 08:19 PM

TOP STORIES

allahabad-hc-refuses-interim-protection-to-sambhal-mosque-asks-petitioners-to-approach-appellate-court
Trending Judiciary
Allahabad HC Refuses Interim Protection to Sambhal Mosque, Asks Petitioners to Approach Appellate Court [Read Order]

Allahabad High Court refused interim protection to Sambhal mosque, directing petitioners to seek remedy before the appellate court under UP Revenue Code.

06 October, 2025 04:48 PM
calling-off-marriage-after-courtship-not-a-crime-or-breach-of-promise-delhi-hc
Trending Judiciary
Calling Off Marriage After Courtship Not A Crime Or Breach Of Promise: Delhi HC [Read Order]

Delhi High Court grants bail, ruling that ending marriage plans after courtship is not a breach of promise or offence under false promise to marry.

06 October, 2025 05:03 PM
celebrating-bail-on-social-media-not-ground-for-cancellation-without-specific-threat-to-complainant-delhi-hc
Trending Judiciary
Celebrating Bail On Social Media Not Ground For Cancellation Without Specific Threat To Complainant: Delhi HC [Read Order]

Delhi HC rules that celebrating bail on social media isn’t grounds for cancellation unless a specific threat or intimidation is proven.

06 October, 2025 05:25 PM
woman-cannot-claim-maintenance-after-securing-rape-conviction-against-live-in-partner-jammu-and-kashmir-hc
Trending Judiciary
Woman Cannot Claim Maintenance After Securing Rape Conviction Against Live-In Partner: Jammu & Kashmir HC [Read Order]

J&K High Court held that a woman who secured a rape conviction against her live-in partner cannot claim maintenance under Section 125 CrPC.

06 October, 2025 06:08 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email