Savitaben Wd/O Mahipatbhai Chauhan vs Gujarat Gramin Bank Baroda

Gujarat High Court

Savitaben Wd/O Mahipatbhai Chauhan vs Gujarat Gramin Bank Baroda on 1 January, 2024

Author: Gita Gopi

Bench: Gita Gopi

                                                                                         NEUTRAL CITATION




     C/SCA/21575/2023                                      ORDER DATED: 01/01/2024

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            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 21575 of 2023

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                  SAVITABEN WD/O MAHIPATBHAI CHAUHAN
                                 Versus
                      GUJARAT GRAMIN BANK BARODA
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Appearance:
MR. MAULIK M SONI(7249) for the Petitioner(s) No. 1
for the Respondent(s) No. 1,2
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 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                                 Date : 01/01/2024

                                  ORAL ORDER

1. Advocate Mr. Chirag Aydi for Mr. Maulik M.Soni, learned advocate for the petitioner submits that the petitioner is a widow staying with two children, one son and another minor daughter, and an aged mother-in-law. Mr. Chirag submitted that the Motor Accident Claims Petition No.140 of 2019 was filed on the vehicular death of the husband. The Compensation of Rs.13,63,600/- was granted by the Tribunal with 8% interest, and the amount deposited was appropriated in the ratio as per award.

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2. Advocate Mr. Chirag submitted that the petitioner as a widow had asked for premature withdrawal of the Fixed Deposit Receipt, as the house, wherein they are residing, required construction and for making a Pukka house, and necessary building articles were already purchased, and delivery challan of Bujaran Tiles are placed on record to prove the expenses; in spite of that the learned Tribunal disbelieved the same considering the quotation of the materials and estimation of the labour expenses, of Mark 3/4, as not credible.

3. Advocate Mr. Chirag submitted that the construction was to be done immediately, hence, delivery of the building materials were done, and with the labour charges the cost has come to Rs.2,16,500/-. Advocate Mr. Chirag submitted that the petitioner has not asked for the amount of other co-claimants, but the amount which is in Page 2 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined the Fixed Deposit Receipt No.288127, which is in the name of the claimant.

4. After a long battle of litigation, the petitioner could finally get the compensation amount and considering the fact that the petitioner is managing the family affairs, she can prudently exercise her discretion and manage her funds and can individually decide about systematic planning for investing the money.

4.1 The case of A. V. Padma & Ors. v. R. Venugopal & Ors., (2012) 3 SCC 378 refers to the guidelines issued in the case of General Manager, Kerala State Road Transport Corporation, Trivandrum v. Susamma Thomas & Ors., (1994) 2 SCC

176. In Susamma Thomas's case (supra), while approving the judgment of this Court in the case of Muljibhai Ajarambhai Harijan Page 3 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined Vs. United India Insurance Co. Ltd., 1982 (1) GLR 756, the Apex Court has offered the following guidelines:

"(i) The Claims Tribunal should, in the case of minors, invariably order the amount of compensation awarded to the minor be invested in long term fixed deposits at least till the date of the minor attaining majority. The expenses incurred by the guardian or next friend may, however, be allowed to be withdrawn;

(ii) In the case of illiterate claimants also the Claims Tribunal should follow the procedure set out in (i) above, but if lump sum payment is required for effecting purchases of any movable or immovable property such as, agricultural implements, rickshaw, etc., to earn a living, the Tribunal may consider such a request after making sure that the amount is actually spent for the purpose and the demand is not a ruse to withdraw money;

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(iii) In the case of semiliterate persons the Tribunal should ordinarily resort to the procedure set out at (i) above unless it is satisfied, for reasons to be stated in writing, that the whole or part of the amount is required for expanding and existing business or for purchasing some property as mentioned in (ii) above for earning his livelihood, in which case the Tribunal will ensure that the amount is invested for the purpose for which it is demanded and paid;

(iv) In the case of literate persons also the Tribunal may resort to the procedure indicated in (i) above, subject to the relaxation set out in

(ii) and (iii) above, if having regard to the age, fiscal background and strata of society to which the claimant belongs and such other considerations, the Tribunal in the larger interest of the claimant and with a view to ensuring the safety of the compensation awarded to him thinks it necessary to do order;

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(v) In the case of widows the Claims Tribunal should invariably follow the procedure set out in (i) above;

(vi) In personal injury cases if further treatment is necessary the Claims Tribunal on being satisfied about the same, which shall be recorded in writing, permit withdrawal of such amount as is necessary for incurring the expenses for such treatment;

          (vii)     In        all          cases         in        which
          investment          in         long       term           fixed

deposits is made it should be on condition that the Bank will not permit any loan or advance on the fixed deposit and interest on the amount invested is paid monthly directly to the claimant or his guardian, as the case may be;

(viii) In all cases Tribunal should grant to the claimants liberty to apply for withdrawal in case of an emergency. To meet with such a contingency, if the amount awarded is substantial, the Claims Tribunal Page 6 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined may invest it in more than one Fixed Deposit so that if need be one such F.D.R. can be liquidated."

4.2 Further, in the case of A. V. Padma (supra), while appreciating the guidelines issued in the case of Susamma Thomas (supra), it has been observed as under:

"7. The expression used in guideline No. (iv) issued by this Court is that in the case of literate persons also the Tribunal may resort to the procedure indicated in guideline No.

(i), whereas in the guideline Nos.

(i), (ii), (iii) and (v), the expression used is that the Tribunal should. Moreover, in the case of literate persons, the Tribunal may resort to the procedure indicated in guideline No. (i) only if, having regard to the age, fiscal background and strata of the society to which the claimant belongs and such other considerations, the Tribunal thinks that in the larger interest of the claimant and with a view to ensure the safety of the compensation Page 7 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined awarded, it is necessary to invest the amount of compensation in long term fixed deposit.

8. Thus, sufficient discretion has been given to the Tribunal not to insist on investment of the compensation amount in long term fixed deposit and to release even the whole amount in the case of literate persons. However, the Tribunals are often taking a very rigid stand and are mechanically ordering in almost all cases that the amount of compensation shall be invested in long term fixed deposit.

They are taking such a rigid and mechanical approach without understanding and appreciating the distinction drawn by this Court in the case of minors, illiterate claimants and widows and in the case of semi-literate and literate persons. It needs to be clarified that the above guidelines were issued by this Court only to safeguard the interests of the claimants, particularly the minors, illiterates and others whose amounts are sought to be withdrawn on some Page 8 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined fictitious grounds. The guidelines were not to be understood to mean that the Tribunals were to take a rigid stand while considering an application seeking release of the money.

9. The guidelines cast a responsibility on the Tribunals to pass appropriate orders after examining each case on its own merits. However, it is seen that even in cases when there is no possibility or chance of the feed being frittered away by the beneficiary owing to ignorance, illiteracy or susceptibility to exploitation, investment of the amount of compensation in long term fixed deposit is directed by the Tribunals as a matter of course and in a routine manner, ignoring the object and the spirit of the guidelines issued by this Court and the genuine requirements of the claimants. Even in the case of literate persons, the Tribunals are automatically ordering investment of the amount of compensation in long Page 9 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined term fixed deposit without recording that having regard to the age or fiscal background or the strata of the society to which the claimant belongs or such other considerations, the Tribunal thinks it necessary to direct such investment in the larger interests of the claimant and with a view to ensure the safety of the compensation awarded to him.

10. The Tribunals very often dispose of the claimant's application for withdrawal of the amount of compensation in a mechanical manner and without proper application of mind. This has resulted in serious injustice and hardship to the claimants. The Tribunals appear to think that in view of the guidelines issued by this Court, in every case the amount of compensation should be invested in long term fixed deposit and under no circumstances the Tribunal can release the entire amount of compensation to the claimant even if it is required by him. Hence a change of attitude and Page 10 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined approach on the part of the Tribunals is necessary in the interest of justice."

4.3 In the case of A. V. Padma (supra), the guidelines so issued in the case of Susamma Thomas's case (supra), have been clarified.

Hence, it could be said that sufficient discretion has been given to the tribunal to exercise, considering the need of the petitioner

- claimant. In case of literate person, the Tribunal is required to give relaxation by not adopting pedantic approach of investing the money in long term FDR without recording reasons for investing the money in long term deposits. It has been observed in the decision in A. V. Padma (supra) that the Tribunals are often taking a very rigid stand and are mechanically ordering, almost in all cases, the amount of compensation to be invested in long term FDRs. The deposited money are of the claimants. The literates can Page 11 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined prudently exercise discretion, manage their funds and can individually decide about systematic planning for investing the money.

5. The claimant has stated in her application that her house is in dilapidated condition requires repairing and renovation. The assessment document from the Gram Panchayat shows that the house is partly Pakka House. The necessary documents supported the claim of the petitioner. The need of the family was required to be appreciated by the Tribunal and should have seen that there was no any member in the family to earn, and at the time when the claim petition was raised, the other claimants were not in a stage of earning for the family, even otherwise, independently, the petitioner would have right to repair the residential house, and in spite of having her own money denial of paying the amount would lead to hardship, since in such circumstances, the petitioner would be forced to Page 12 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024 NEUTRAL CITATION C/SCA/21575/2023 ORDER DATED: 01/01/2024 undefined borrow money from others, which may at times carry interest, hence, would make a situation onerous.

6. Considering the need of the petitioner, the order dated 22.11.2023 passed in M.A.C.M.A. (FDR) No.697 of 2022 in M.A.C.P. No.140 of 2019 below Exh.1, is quashed and set aside. The amount in the FDR No.288127 be paid to the petitioner on proper verification of the identity. The petition stands disposed of accordingly.

(GITA GOPI,J) Pankaj Page 13 of 13 Downloaded on : Mon Jan 01 20:45:51 IST 2024