COURT ON ITS OWN MOTION Vs. UNION OF INDIA AND OTHERS
LAWS(P&H)-2012-11-137
HIGH COURT OF PUNJAB AND HARYANA
Decided on November 22,2012

COURT ON ITS OWN MOTION Appellant
VERSUS
UNION OF INDIA AND OTHERS Respondents

JUDGEMENT

- (1.) High Court Legal Services Committee held its meeting on 14.05.2012 to sort out certain issues coming in the way of functioning of Daily Lok Adalats and to explore the ways and means to increase the disposal of Daily Lok Adalats.
(2.) In the said meeting, senior officers of various insurance companies were also invited for this purpose. Main reason for holding this meeting was that the Judges of Daily Lok Adalats were finding that certain Insurance Companies had taken procedural decisions which were becoming impediment in settling the cases, particularly the officers of Oriental Insurance Company Ltd. were taking the stand before the Lok Adalats that they have the instructions from Regional Manager that no compromise should be negotiated or entered into with the appellant(s) for enhancement of compensation where the amount of compensation awarded by Motor Accident Claims Tribunal has already been withdrawn by the claimant(s). This meant that almost in all the cases the Company cannot enter into compromise for enhancement of compensation before the Lok Adalat as in 99% of the cases the claimant(s) accepts the amount deposited by the Company which is awarded by the Motor Accident Claims Tribunal and thereafter file an appeal.
(3.) It transpires that this posture was taken having regard to the letter dated 01.12.2011 of the D.G.M. of Oriental Insurance Company vide which decision was communicated to its counsel(s). This letter reads as under:- "Compromise in Appeal cases filed by claimants for enhancement of Award after release of Award by Tribunal: With reference to the above and the correspondence exchanged on the subject, we reiterate that the issue has been discussed at the highest level and it has been decided that in all cases where MACT Award has been released by Tribunal to the petitioners and where claimants have thereafter preferred Appeal in High Court for Enhancement of Award, then such cases should not be compromised in Lok Adalats at your level without consulting Head Office." ;


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