SC bats for direct transfer of compensation
The Supreme Court (SC), in Parminder Singh v Honey Goyal & Others, issued directions to ensure direct transfer of motor accident claim compensation to claimants’ bank accounts to minimize delays and ensure timely payments.
Direct transfer would be applicable in all cases
The SC adds that even though the above directions are being issued for bank transfer of the amount of compensation in motor accident cases, the Courts/Tribunals are free to follow this process in any matter, whenever any amount is to be paid by one party to another.
Claimant should provide bank account to MACT
For that purpose, the claimant(s) to furnish their bank account particulars to the Tribunal along with the requisite proof.
At the stage of passing of the award the Tribunal may direct that the amount of compensation be transferred in the account of the claimant and if there are more than one then in their respective accounts.
Open an account in case of no account
If there is no bank account, then they should be required to open the bank account either individually or jointly with family members only. Any change in the bank account particulars of the claimant(s) during the pendency of the claim petition should be updated before passing of the final award.
It may be ensured that the bank account should be in the name of the claimant(s) and if minor, through guardian(s) and in no case it should be a joint account with any person, who is not a family member.
Bank Transfer should be treated as valid discharge
The transfer of the amount in the bank account, particulars of which have been furnished by the claimant(s), as mentioned in the award, shall be treated as satisfaction of the award. Intimation of compliance should be furnished to the Tribunal.
Copy of this order would be send to all the High Courts
The SC directed the Registry to send the copy of this order to all the High Courts, the National Judicial Academy and the State Judicial Academies, for implementation among the courts & tribunals.
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