The Supreme Court was dealing with a Civil Appeal filed against the Order of the Punjab and Haryana High Court, seeking enhancement of compensation.
The Supreme Court has observed that the delay for any reason in release of compensation in motor accident cases by the Tribunal results in loss of interest to the claimant.
The Court observed thus in a Civil Appeal filed against the Order of the Punjab and Haryana High Court, seeking enhancement of compensation.
The two-Judge Bench of Justice J.K. Maheshwari and Justice Rajesh Bindal remarked, “… substantial amount of compensation in motor accident cases remains deposited in the Tribunal as the claimant(s) may not have approached the Tribunal for release thereof for various reasons. Delay for any reason in release of compensation in motor accident cases by the Tribunal to the claimant(s), where the amount is deposited in Tribunal, as directed, results in loss of interest to the claimant(s). In case the aforesaid process is followed, the gap would be bridged.”
The Bench added that 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 claimant(s), will be achieved and compensation can be disbursed without any delay.
AOR Shashi Kiran represented the Appellant while AOR Rameshwar Prasad Goyal represented the Respondents.
Brief Facts
The Appellant met with an accident in 2014 when he was hit by a car coming from the opposite direction. He was riding his motorcycle at that time. A criminal case was registered against the driver of the car. The Appellant suffered grievous injuries, resulting in his disability and hence, he filed a Claim Petition. His age at the time of accident was 21 years and he aimed to become a veterinary doctor. He was pursuing his studies for the same but he suffered injuries which resulted in quadriplegia i.e., paralysis of all four limbs. He was declared 100% disabled as per the medical certificate issued by the Orthopedic Surgeon, Civil Hospital, Bathinda.
He had incurred medical expenses of ₹2,66,000/- on his treatment and a lump sum amount of ₹2,00,000/- was awarded to him on account of his 100% disability. The Tribunal assessed the compensation payable to the Appellant at ₹5,16,000/-. Being aggrieved by the Tribunal’s award, the Appellant preferred an Appeal before the High Court, which enhanced the compensation from ₹5,16,000/- to ₹ 15,25,600/-. Still dissatisfied, he was before the Apex Court.
Reasoning
The Supreme Court in view of the above facts, emphasised that when the amount is transferred by the Insurance Company in the account of the claimant(s), it shall be the responsibility of the bank to ensure that specified portion thereof is kept in the fixed deposit and the compliance is to be reported by the bank(s) to the Tribunal.
“We may add that directions are being issued for bank transfer of the amount of compensation in motor accident cases, but the Courts/Tribunals can always follow this process in any matter, whenever any amount is to be paid by one party to another, however, ensuring proper compliance”, it said.
The Court, therefore, directed the Registry to send a copy of its Judgment to (1) the Registrars General of all the High Courts for placing the same before the Chief Justice of the High Court for further circulation and compliance by the concerned Tribunals/Courts; and (2) the Directors of the National Judicial Academy and the State Judicial Academies.
Accordingly, the Apex Court disposed of the Appeal.
Cause Title- Parminder Singh v. Honey Goyal and Others (Neutral Citation: 2025 INSC 361)
Appearance:
Appellant: AORs Shashi Kiran, Sadhana Sandhu, Advocates Rau P.S. Girwar, Archana Arora, and K.T. Rau.
Respondents: AOR Rameshwar Prasad Goyal, Advocates Pradeep Gaur, Amit Gaur, and Sweta Sinha.