Supreme Court Takes Suo Moto Cognizance Of Compensation Amounts Lying Unclaimed In MACT And Labour Courts

The Supreme Court has initiated a suo moto Writ Petition addressing the issue of substantial sums of money lying unclaimed in Motor Accident Claims Tribunals (MACT) and labour courts, depriving beneficiaries of their compensation.

During the hearing today, the Bench of Justice Abhay S. Oka and Justice Augustine George Masih said that Chief Justice of India D.Y. Chandrachud ordered the case based on an email received by the court on May 25, 2024.

"As per the administrative order, the Hon'ble Chief Justice of India, a suo moto writ petition has been registered, on the basis of an email dated 25.05.2024, sent by Shri B.P. Pathak, retired District Judge," the Court said. 

The Court 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 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 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 said. 

In the interim, the Court 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 ordered.

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