[Motor Accident compensation] Madras High Court takes steps to set up foolproof system in MACTs after Rs 1.5 crores embezzlement

After the misappropriation of Rs 1.5 crores from funds marked for compensation in motor accident cases came to light, the Madras High Court has set up a Special Bench to examine how a robust and fool-proof system can be set up in Tamil Nadu to avoid such events in the future. .The Bench has been given a mandate to "streamline the existing practice and usher in a foolproof mechanism in the matter of disbursal of compensation amounts in the MCOP jurisdiction.".The said Bench will deal with the audit of motor accident case funds in all districts, including monitoring the investigation of criminal complaints lodged against recalcitrant officials until chargesheets are filed..As a first step, the special Bench of Justices PN Prakash and Abdul Quddhose on Friday directed the appointment of District Judges as nodal officers, who may be trained on how to inspect the records of Motor Claims Original Petition (MCOP) Tribunals or Motor Accident Claims Tribunals (MACT), so that they can be set straight if not in order..The Special Bench was constituted on the orders of Chief Justice Sanjib Banerjee on June 15. .What prompted the move?.The incident triggering the move arose in Patukkottai district, where a staff member of the Additional District Court III was arrested for the alleged misappropriation of Rs 1.5 crores from amounts deposited for MCOP compensation. .Three committees were also constituted to look into aspects concerning the issue i.e. the High Court inspection committee, a three-member sub-judge committee and an Additional District Judge-cum-Principal Sub Judge committee..The reports submitted by the three committees is stated to have "disclosed several appalling features in the system of record maintenance in the MCOP Courts in the district which had paved the way for embezzlement.".The High Court's order also gave details some of such "appalling features" in the following terms:."It was noticed that the actual number of Fixed Deposit Receipts pending in the Courts did not find a reflection in the ledgers; in hundreds of cases, the Transport Corporations and Insurance Companies had deposited the compensation amounts without mentioning the MCOP case numbers to the credit of which they ought to be deposited or to a different head, as a sequel to which, the compensation amounts had not reached the claimants; in several hundreds of cases disposed of decades ago, lakhs of rupees were found lying in the Civil Court Deposit (CCD) without being invested in Fixed Deposits, thereby depriving the claimants of their legitimate interest component," the order stated..The Chief Justice was also informed by portfolio judges that the situation in other districts may be no better, while suggesting certain remedial measures..Opining that the matter needs to be looked into on the judicial side, the Chief Justice directed the constitution of a Special Bench so that "appropriate directions can be issued from time to time for regularising the records and to put in place a robust, foolproof and uniform system throughout the State in order that there would not be any scope for such possible misappropriation in future.".What the Special Bench has ordered now.On Friday, the Court directed the appointment of Additional Registrar (Inspection) of the Madras High Court, K Seetharaman as the Chief Nodal Officer, to be assisted by S Sethuraman, Section Officer (Inspection) and M Ilayaraja, Assistant, Accounts Sections (Assistant Chief Nodal Officers). .Further, the order also specified the names of judicial officers who have been appointed as District Nodal Officers and Assistant Nodal Officers. .Advocate N Vijayaraghavan was appointed as Amicus Curiae, who, on Friday, submitted that the root cause for such incidents relates to the non-compliance with the Court's earlier directions in the case of The Divisional Manager, The Oriental Insurance Company Ltd., Kannur vs. Rajesh and two others..In that case, the High Court had issued various directions for insurance companies and transport corporations on how to deposit compensation amounts in motor accident cases. .The Amicus also informed the Court that while some insurance companies have tweaked their system to comply with the said order, this exercise has not been undertaken by all insurance companies, leading to irregularities. .The Court, therefore, cautioned insurance companies and transport corporations to strictly comply with the earlier directions in the Oriental Insurance Company case. ."Accepting the suggestion of the learned Amicus Curiae, we direct all the Insurance Companies, both private and public, and Transport Corporations to strictly comply with the aforesaid directions issued by the Division Bench, in letter and spirit ... we make it clear that any infraction of the directions issued by the Division Bench of this Court ... will be viewed seriously," stated the order..Among other directions, the Court also directed the Chief Nodal officers to send a report of the three-member sub-judge committee and the High Court Inspection Committee to the Director of the Tamil Nadu State Judicial Academy. .With due approval from the Governors, the Judicial Academy is to conduct a sensitisation programme at the three centres in Chennai, Madurai and Coimbatore for District Nodal Officers and Assistant District Nodal Officers in order to highlight the present state of affairs at MACTs and to examine the steps required to set right things..The matter will be heard next on July 7. .[Read Order]

[Motor Accident compensation] Madras High Court takes steps to set up foolproof system in MACTs after Rs 1.5 crores embezzlement

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