Unclaimed compensation lying with MACTs & labour courts a pan-India issue: SC

The Supreme Court on Friday said huge amounts of unclaimed compensation, payable to the claimants and lying deposited with the Motor Accident Claims Tribunals (MACTs) and labour courts, is a pan-India issue. A bench of Justices Abhay S Oka and Augustine George Masih asked why claimants, who have been awarded compensation, do not come forward to collect the money.

"This is a pan-India issue," the bench observed.

While hearing the matter on July 8, the bench had noted in its order that as per an administrative order of Chief Justice of India D Y Chandrachud, a suo motu (on its own) writ petition was registered on the basis of an e-mail of May 25 sent by a retired district judge of Gujarat.


The July 8 order noted the e-mail mentions that large amounts payable by way of compensation were unclaimed and lying with MACTs and labour courts.

It had said as per the e-mail, in the state of Gujarat alone, a sum of about Rs 2,000 crore was lying unclaimed and no efforts were being made to trace the beneficiaries to whom such compensation was payable.

The bench had then sought responses from the Gujarat government and the Registrar General of the Gujarat High Court in the matter.

During the hearing on Friday, the counsel appearing for the high court referred to the e-mail sent by the retired district judge.

"Why the claimants do not come forward to take compensation? Assist us on that," said to the lawyer. "Some directions have to be issued," it added.

"What we are worried about is that there may be genuine claimants who are entitled for it (compensation)," it said.

The apex court said it will first pass an order limited to Gujarat and thereafter consider doing so for other states.

It requested the counsel appearing for the Gujarat High Court to assist it as an amicus curiae and posted the matter for further hearing on September 2.