“Unclaimed Compensation Lying With MACTs, Labour Courts A Pan-India Issue”: SC

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The Supreme Court on Friday highlighted the significant issue of unclaimed compensation funds lying with Motor Accident Claims Tribunals and labour courts across India.

A bench comprising Justices Abhay S. Oka and Augustine George Masih questioned why claimants, who have been awarded compensation, are not coming forward to collect their money. “This is a pan-India issue,” the bench noted.

During a hearing on July 8, the bench referenced an administrative order by Chief Justice of India D.Y. Chandrachud, which initiated a suo motu writ petition based on a May 25 email from a retired district judge of Gujarat. The email highlighted that large amounts of compensation were unclaimed and lying with MACTs and labour courts. It mentioned that in Gujarat alone, around Rs 2,000 crore remained unclaimed, with no efforts being made to locate the rightful beneficiaries.

The bench had then requested responses from the Gujarat government and the Registrar General of the Gujarat High Court. In the hearing on Friday, the counsel for the Gujarat High Court referred to the email from the retired judge. The bench asked, “Why the claimants do not come forward to take compensation? Assist us on that,” adding that “some directions have to be issued.”

Expressing concern that genuine claimants may be missing out on their rightful compensation, the apex court indicated it would first address the situation in Gujarat before considering similar actions for other states. The court also requested the Gujarat High Court’s counsel to assist as an amicus curiae and scheduled the next hearing for September 2.