Transfer compensation to victims' bank accounts to stop `leakage': HC

CHENNAI: In a game-changer ruling, the Madras high court has said in all forms of compensation ­ be it in motor accident or in land acquisition cases ­ the money should be transferred directly to the bank accounts of the litigantvictim to avoid `leakage'. A bench of Justices V Ramasubramanian and T Mathivanan, noting that time has come for the judiciary to embrace technology and incorporate it into court proceedings, said such e-transfer of funds would help claimants realise the full compensation and take control of the funds without interference from anyone.“We feel that time may have come for technology to be fully incorporated into court proceedings for the convenience it offers to stakeholders.
Such course of deposit and disbursement could be followed in all motor accidents claims as well as land acquisition,” the bench said. We feel that such course of deposit and disbur sement could be followed in all motor accidents claims as well as land acquisition claims involving payment of compensation to beneficiaries, through the auspices of court or lok adalat proceedings,“ said the bench.
Benefits of direct transfer of funds are phenomenal, the bench said, and wanted the courts to mention the PAN details of the claimants so that the tax payable by the latter would be 10% and not 20%.
The judges were passing orders on an appeal filed by Royal Sundaram Alliance Insurance which challenged award of `91.72 lakh compensation to the family of a software engineer, T Sakthivel, killed in a road accident in October 2013.