DBTS shall be followed in all forms of compensations: HC

In a significant ruling, the Madras High Court has said the Direct Benefit Transfer System shall be followed in all forms of compensation, be it in motor accident cases or in land acquisition cases.
Money should be transferred directly into the bank accounts of the litigant/victim to avoid "leakage", a division bench comprising Justice V Ramasubramanian and Justice T Mathivanan said in an appeal by Royal Sundaram Alliance Insurance, which challenged award of Rs 91.72 lakh compensation to the family T Sakthivel, a software engineer, who was killed in a road accident in October 2013.
While stressing the need of judiciary to incorporate the e-technology, the bench said "we feel that time may have come for technology to be fully incorporated into court proceedings, at all stages".

"We feel that such course of deposit and disbursement could be followed in all motor accidents claims as well as land acquisition and in all claims involving payment of compensation to beneficiaries", the judges said in a recent order.
The counsel for the company N Vijayaraghavan sought just compensation to the victim and said the award under challenge was excessive and fanciful.
The judges after reducing the package to Rs 82 lakh, said the lower court should have deducted 20 per cent as income tax instead of 10 per cent as it had done and directed to pay the amount to the family within four weeks.

"As on date, cheques issued in the name of claimants are encashed by only opening new accounts for the purpose of encashment, despite the claimants already having a bank account."
"If the claims are having bank accounts already, it would suffice if the particulars are obtained and e-transfer made to their accounts. Such direct transfer would go a long way in avoiding any leakage", the bench said.
The bench while directing subordinate courts to follow the DBTS scrupulously, in its order said "It is our earnest desire that just compensation awarded to claimants in motor accidents cases should reach the hands of the victims or claimants in full.