Supreme Court Seeks Amicus Curiae's Suggestions On Compensation Amounts Lying Unclaimed In MACT & Labour Courts

At the outset, the Senior Advocate Meenakshi Arora appearing for the Gujarat High Court, submitted that the person who send this letter petition, he is retired district judge and he has already filed a Writ Petition Public Interest Litigation (PIL) in the Gujarat High Court.

Justice Oka said, "In any case, this is a Pan India issue. Now you tell us, what process should be followed, because the details of the claimant will be available with the respectful tribunals".

The Court said, "Why claimants do not come forward to take the money? Just suggest us. Suppose we issue directions that something has to be done at the time of disposal of writ petition under Motor Vehicles Act or Workmen Compensation Act. So, what directions can be issued? Just help us."

The Senior Counsel responded, that directions are needed to ensure that the money reaches to the person entitled to it, that is the whole idea. 

The Bench said, "Normally in workmen compensation Act it (compensation) will be deposited in advance. There is an appeal period, so some directions have to be issued. Just find out and assist us. We can apply those directions to all other States."

The Court expressed its concern and said, "There may be very genuine claimants who are entitled to these amounts, but maybe because of poverty or whatever reasons they are able to withdraw."

To the Bench's concern, Arora submitted that there are a lot of cases of migration because very often these are labourers and under Workman compensation Act they go back to their parent State and then they do not pursue the matter.

Taking note of the submissions, the Court asked the Senior Counsel to assist the Bench. "Something has to be done when the Court passes the award," it said. 

To this, the Arora suggested, "One will have to put his mind to it. There should be alternative addresses that should be given for permanent place of residence. So, there is an alternative way."

Accordingly, the Court asked the Senior Counsel for the High Court to assist it as an Amicus Curiae, to put some suggestions on record and scheduled the matter for further consideration on September 2. 

On the last hearing, the Court had said that Chief Justice of India D.Y. Chandrachud ordered the case based on an email received by the court on May 25, 2024. It had noted that in the email, it is mentioned that large amounts payable by way of compensation are unclaimed and are deposited with the MACT and Labour Courts. The email had further stated that in the State of Gujarat alone, Rs. 2000 crore is lying deposited by way of compensation, and no effort has been made to trace the beneficiaries of the compensation.

Consequently, the Court had issued notices to the State of Gujarat, through the Secretary of the Department of Law and Justice, and the Registrar General of the Gujarat High Court, with a returnable date of July 26, 2024. "For the time-being, we issue notice to the to State of Gujarat, Secretary of Department of Law and Justice and to the Registrar General of the Gujarat High Court. The notice is made returnable on July 26," the Bench had said.

In the interim, the Court had directed the Registrar General of the Gujarat High Court and the Law Secretary of Gujarat to take immediate steps to compile data on the compensation amounts currently held by the MACTs and labour courts in the State. "Meanwhile Law and Justice Secy and Registrar General of High Court to take steps to collect the data of compensation amounts deposited in the Motor Accident Claims Tribunal to the State as well as before the Labour Courts,” the Court had ordered.

Cause Title: In Re Compensation Amounts Deposited With Motor Accident Claims Tribunals and Labour Courts [SMW(C) No. 7/2024]