{"id":231512,"date":"2020-06-29T16:21:22","date_gmt":"2020-06-29T10:51:22","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=231512"},"modified":"2020-07-10T10:56:55","modified_gmt":"2020-07-10T05:26:55","slug":"covid-19-lockdown-kar-hc-procedure-to-securely-release-payments-to-claimants-in-mv-cases-workmens-compensation-act-matrimonial-cases-la-compensation-cases-evolved","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/06\/29\/covid-19-lockdown-kar-hc-procedure-to-securely-release-payments-to-claimants-in-mv-cases-workmens-compensation-act-matrimonial-cases-la-compensation-cases-evolved\/","title":{"rendered":"COVID-19 Lockdown | Kar HC | Procedure to securely release payments to claimants in MV cases, Workmen\u2019s Compensation Act, Matrimonial cases &\u00a0LA Compensation cases — evolved"},"content":{"rendered":"

Karnataka High Court:\u00a0<\/strong>A Division Bench of Abhay Shreeniwas Oka, CJ and Vishwajith Shetty, J., laid down the guidelines to be followed for payment of dues to the claimants in Motor Vehicle Accident Claim cases, Workmen\u2019s Compensation Act, 1923 Matrimonial Cases and Land Acquisition Compensation cases etc.<\/p>\n

Due to the partial functioning of the district and trial Courts in the State in view of the COVID-19 Pandemic, entry of litigants in the Courts premises has not been permitted.<\/p>\n

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The above has resulted in large number of litigants and especially the claimants and victims in Motor Vehicle Accident Claim cases, claimants under the Workmen\u2019s Compensation Act, 1923 and claimants in Land Acquisition Compensation cases etc., to not being able to receive the amounts to which they are legitimately entitled, though the amounts payable to them are lying deposited in the judicial accounts of Khajane-2 (for short \u2018K-2\u2019).<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Thus, in view of the above it is necessary to evolve a procedure to securely release payments to the litigants.<\/p>\n

Additional Advocate General submitted that recipients of payments from K-2 are required to file certain documents for recipients registration like UIDAI, PAN or authentic photo identity.<\/p>\n

They must also disclose their bank account particulars. AAG further pointed that it would be ideal if the mandate form generated by K-2, which is prescribed by the Reserve Bank of India, is signed by the recipients, as the said mandate form contains all the account particulars of the recipients.\u00a0<\/span><\/p>\n

Court stated that AAG was right in his submission that it is necessary to ensure that the amount should go to the real recipients.<\/p>\n

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After implementation of K-2, the payments from judicial deposits are done only by way of electronic clearing by transferring the amounts directly to the accounts of the claimants and the cheques are not being issued. In case of current deposits (deposits which have not lapsed), the payment is authorized by the Court by generating the bills on K-2.<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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As far as the mode of payment through judicial accounts in K-2 is concerned, there are no specific Rules in Chapter XXVII of the Karnataka Rules of Civil Practice, 1967. The only provision is that when an amount exceeding Rs 5,000 is payable to a party, it shall be paid by drawing an account payee cheque only. Thus, the embargo is on paying a sum exceeding Rs 5000 by cash.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n

At present, all the payments to litigants are being made by direct transfer to their bank accounts from K-2 and the earlier practice of issuing account payee cheques has been stopped.<\/p>\n

Thus in the present COVID-19 times, following guidelines shall be adopted by the Courts for making payments:<\/p>\n