Gujarat High Court
Savitaben Wd/O Mahipatbhai Chauhan vs Gujarat Gramin Bank Baroda on 1 January, 2024
Author: Gita Gopi
Bench: Gita Gopi
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
