MACT cases: Supreme Court imposes costs on States which failed to file response on insuring State Corporation vehicles

The Supreme Court last week imposed costs of ₹50,000 on States that had failed to file their replies with regard to insuring vehicles owned or used by State-run undertakings [Bajaj Allianz General Insurance Company vs Union of India and ors]..A Bench of Justices Sanjay Kishan Kaul and MM Sundresh also noted that some responses were submitted after the deadline set by the Court, though, it was on record before the hearing date. The bench said that it has continuously been deprecating such practice and saddled such States with ₹10,000 costs. "Such of the States who have filed it after the cut off date but before today will pay a cost of ₹10,000 each while such of the States which have not complied will pay a cost of ₹50,000 each, to be recovered from the officers responsible for the delay along with compliance of recovery from that officer. The costs be deposited with the Mediation and Conciliation Project Committee within four weeks. The next step would be only to call the Chief Secretaries for noncompliance if it is not so complied with," the Court directed.The order further noted the request by Ministry of Road Transport and Highways, as well as the National Informatics Centre, seeking more time to develop the mobile application for processing motor accident claims. The apex court had, on November 16, 2021, ordered insurance companies to develop a common mobile app, a direction which came as part of the Court's efforts to expedite the process of payment of compensation in motor accident casesAdditional Solicitor General (ASG) Jayant Sud submitted last week that about four weeks time will be taken to get the App operational for Android phones but for Apple phones which has more stringent security checks, it may take about eight weeks. The Court the proceeded to state the following in its order:"It is stated that in terms of the direction (v) on November 16, 2021, this Court had directed to take suitable steps to amend and digitize the claim application forms as per the format reproduced in the report filed by learned ASG on 21.10.2021. Form XIII of the Central Motor Vehicles Rules, 1989 is thus directed to be uploaded digitally on the platform."Towards the claims cases that the General Insurance Council (GIC) and the ASG had identified as being compromisable, the Court ordered that such claims (around 1.55 lakhs) be disposed of at the Lok Adalat slated to be held on August 13.Since the cases span across High Courts and tribunals, the Bench asked them to help facilitate the same during the Lok Adalat. With concerns of Tax Deducted at Source (TDS) being deducted from claims and the refund of the same taking time, the ASG pointed out that the legal question regarding the same is pending before some High Courts too and a quietus needs to be brought to the issue. The Bench ordered that the Registry and ASG look into this so that the matter could be placed along with the present plea for disposal after the Chief Justice of India's approval. Before parting with the order, the Bench directed that Director General of Police of all States must hold awareness workshops on using the app the development of which is in progress. The DGPs should also help make aware as to the steps that have been implemented on ground in relation to the present case. Further, the GIC must share information about pending cases in different fora within 4 weeks.Advocate N Vijayaraghavan appeared as Amicus Curiae along with advocate Vipin Nair..The Supreme Court was hearing pleas in which it had earlier issued directions to expedite the grant of compensation in motor accident cases.The Central Government had earlier agreed to coordinate with all States and the petitioner Bajaj Allianz's case regarding disbursement of compensation and expeditious adjudication of motor accident claims online.The Bench had earlier asked the petitioner-insurance company to come up with draft guidelines towards facilitating a compensation disbursement process and expediting of cases before Motor Accidents Claims Tribunals. The petitioners had also sought a 'functional common online virtual platform' to ensure filing of such claims and settlement..[Read order]