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IndiaPosted at: Apr 23 2025 5:02PM


SC issues guidelines for disbursal of unclaimed compensation lying with MAC Tribunals

New Delhi, Apr 23 (UNI) The Supreme Court on Wednesday took suo motu cognisance of large sums of unclaimed compensation lying with Motor Accident Claims Tribunals (MAC Tribunals) across the country and issued comprehensive procedural guidelines to ensure the timely disbursal of these funds to entitled claimants.
A bench comprising Justice Abhay S. Oka and Justice Ujjal Bhuyan observed that despite compensation being awarded under the Motor Vehicles Act, 1988, and the Workmen’s Compensation Act, 1923, significant amounts remain unwithdrawn by beneficiaries.
The issue was brought to the Court’s attention through an email from a retired district judge in Gujarat, highlighting the troubling backlog of undisbursed funds.
Calling it a matter of “great concern,” the bench noted, “The fact that so many successful claimants have been deprived of compensation is very disturbing. It is necessary to find a solution.”
The Court directed that all MAC Tribunals must facilitate direct transfer of awarded compensation amounts into the claimants’ bank accounts. For this, the tribunals have to ask claimants to submit bank account details supported either by a banker’s certificate or a cancelled cheque, within a reasonable timeframe during interim or final proceedings.
Key directives issued by the Supreme Court include, High Courts must instruct MAC Tribunals to initiate a large-scale effort to trace beneficiaries who have not withdrawn their compensation, While filing claims under Section 166 of the Motor Vehicles Act, 1988, applicants should ideally furnish full names, permanent and local addresses, Aadhaar and PAN details.
However, the absence of these should not result in rejection of applications; tribunals may call for such details during the notice stage.
If there's a substantial delay between providing bank details and applying for withdrawal, tribunals are encouraged to seek fresh and updated account information.
In cases of consent orders, tribunals may order direct deposit of compensation to the claimants' bank accounts.
Claimants are directed to keep their bank account and contact information current to avoid delays in processing.
Further, the Court instructed that the Central Project Coordinator of the e-Courts project or Registrar (IT) of the High Courts, with the support of State Governments, must create a central dashboard displaying real-time data on undisbursed compensation amounts. This step is intended to improve transparency and administrative efficiency.
The Court has called for compliance reports from all High Courts by July 30, 2025, ahead of the next hearing on August 18, 2025.
The Registrar General have also been directed to provide a detailed statement of compensation funds still lying undisbursed.
UNI SNG CS
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