Gujarat High Court

Savitaben Vajabhai Baria vs Manager, Baroda Gujarat Gramin ... on 6 April, 2023

Bench: Gita Gopi

     C/SCA/5262/2023                                       ORDER DATED: 06/04/2023




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 5262 of 2023

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                     SAVITABEN VAJABHAI BARIA
                              Versus
               MANAGER, BARODA GUJARAT GRAMIN BANK
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Appearance:
MR MAKBUL I MANSURI(2694) for the Petitioner(s) No. 1
MS SABINA M MANSURI(3631) for the Petitioner(s) No. 1
for the Respondent(s) No. 1,2
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 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                                Date : 06/04/2023

                                  ORAL ORDER

1. Mr. Mansuri, learned advocate for the

petitioner states that the application is

made with a prayer to quash and set aside

the order dated 20.1.2023 passed in MACMA

(FDR) no.50/23 in MACP No.1425/10 by the

MACT (Aux), Panchmahal at Godhra with a

further direction to permit the petitioner

to withdraw the amount of FDR no.273446

deposited in Baroda Gujarat Gramin Bank,

Godhra Branch, Panchmahal. Mr. Mansuri

submits that the petitioner is a woman and

C/SCA/5262/2023 ORDER DATED: 06/04/2023

her son met with an accident on 17.6.2009

and he succumbed to the serious injuries.

The award was drawn in the Lok Adalat on the

basis of the amicable settlement and

accordingly, the amount of Rs.7,50,000/- was

granted on 13.7.2019.

2. Mr. Mansuri submits that on depositing the

award amount, the learned Tribunal permitted

the disbursement and 40% amount was allowed

to the petitioner, while 60% amount was

deposited in the fixed deposit on 13.2.2020.

years, a prayer had been made before the

Tribunal for granting the money to the

claimant as she wanted the same to build her

house which is in a dilapidated condition

and is very old and she has no other source

of income to build new house.

C/SCA/5262/2023 ORDER DATED: 06/04/2023

4. Mr. Mansuri submits that Manti Gram

Panchayat had certified the fact about the

present condition of the house of the

petitioner and according to the certificate,

house is Kachcha house and due to rain, the

house could not be suitable for residential

purpose as all the 4 walls are totally

grounded and the house is totally damaged.

Photographs to that effect have been

produced. Mr. Mansuri submits that the

petitioner is in dire need of money and the

amount has been received on the death of

son.

5. The learned Tribunal, while rejecting the

application, has referred to the judgment in

the case of General Manager, Kerala State

Transport Corporation Vs. Susamma Thomas &

Ors., reported in (1994) 1 TAC 323 to

observe that the application does not fall

under the category of emergency. Reference

C/SCA/5262/2023 ORDER DATED: 06/04/2023

of the above judgment was made by the

learned Tribunal with an observation that

the guidelines so laid down by the Hon'ble

Supreme Court in the said judgment is to

ensure that the compensation amount cannot

be wasted.

6. Reliance is placed on the judgment in the

case of A.V. Padma & Ors. Vs. R. Venugopal &

Ors., reported in (2012) 3 SCC 378 to contend

that the Tribunal is required to give a

thoughtful consideration to the genuine

requirements of the claimant and should avoid

mechanical approach ignoring the object and

spirit of the Act. A.V. Padma's case (supra)

refers to the guidelines issued in the case

of General Manager, Kerala State Road

Transport Corporation (supra). In Susamma

Thomas's case (supra), while approving the

judgment of the Gujarat High Court in the

case of Muljibhai Ajarambhai Harijan Vs.

C/SCA/5262/2023 ORDER DATED: 06/04/2023

United India Insurance Co. Ltd., reported in

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;

(iii) In the case of semi-

literate 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

C/SCA/5262/2023 ORDER DATED: 06/04/2023

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;

(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





      C/SCA/5262/2023                                       ORDER DATED: 06/04/2023

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 may invest it in more than one Fixed Deposit so that if need be one such F.D.R. can be liquidated."

7. 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

C/SCA/5262/2023 ORDER DATED: 06/04/2023

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 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 fictitious grounds. The guidelines

C/SCA/5262/2023 ORDER DATED: 06/04/2023

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 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.

C/SCA/5262/2023 ORDER DATED: 06/04/2023

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 approach on the part of the Tribunals is necessary in the interest of justice."

8. Here the petitioner lady had lost son. The

certificate about current situation of a

residential house of the Gram Panchayat is

produced on record and further to support

the same, photographs are also produced on

record.

9. In A.V. Padma's case (supra), guidelines had

been laid down for the investment to be made

C/SCA/5262/2023 ORDER DATED: 06/04/2023

initially in FDRs in accordance to the

class, which needs protection. 70% of the

amount was kept in the FDR of the present