MP High Court: Motor accident compensation can be disbursed to any nationalised bank account, not just Union Bank
- Case
- Smt. Basanti Bai and Ors. v. Union of India and Ors.
- Bench
- Justice Vivek Agarwal
- Citation
- 2024 LiveLaw (MP) 144
- Decided
- Statutes
- Source
- LiveLaw
In Smt. Basanti Bai and Ors. v. Union of India and Ors., the Madhya Pradesh High Court (Justice Vivek Agarwal) on 2024-04-03 held that motor accident compensation can be disbursed to any nationalised bank account of the claimant's choice, not exclusively to a Union Bank of India account, clarifying the Motor Vehicles Act, 1988.
Ratio Decidendi · Legal Principle Established
Claimants in motor accident cases have the right to receive compensation in any nationalised bank account of their choosing, and cannot be compelled to open an account with a specific bank for this purpose.
Practice & Procedural Impact for Advocates
Advocates should advise clients that they are not restricted to opening accounts with Union Bank of India for receiving motor accident compensation. Litigants should ensure their preferred nationalised bank account details are provided to the Motor Accident Claims Tribunal (MACT) for direct disbursement.
Key Legal Takeaways
- 1Motor accident compensation can be credited to any nationalised bank account.
- 2Claimants cannot be forced to open an account with a specific bank (e.g., Union Bank of India).
- 3The MACT must ensure compensation is disbursed to the claimant's chosen nationalised bank account.
The Legal Issue
The Madhya Pradesh High Court addressed a petition concerning the disbursement of motor accident compensation. The core issue was whether claimants could be compelled to open an account with a specific bank, such as the Union Bank of India, to receive their compensation amount, or if they had the liberty to receive it in any nationalised bank account of their choice.
Court's Reasoning
Justice Vivek Agarwal of the Madhya Pradesh High Court, in the case of Smt. Basanti Bai and Ors. v. Union of India and Ors., clarified that there is no legal mandate requiring motor accident claimants to open an account specifically with the Union Bank of India for receiving compensation. The Court held that claimants are entitled to receive their compensation in any nationalised bank account they prefer. The Court observed that the practice of insisting on a Union Bank account was an unnecessary restriction on the claimants' rights and convenience.
What Follows
The Madhya Pradesh High Court directed that the compensation amount awarded to the claimants must be disbursed to their respective nationalised bank accounts, as per their choice. The Court explicitly stated that the claimants should not be forced to open an account with the Union Bank of India. This ruling ensures that claimants have flexibility in receiving their compensation and are not subjected to additional procedural burdens.