Whether a person who is entitled to receive compensation by way of a claim
before the Motor Accident Claim Tribunal can be said to have given up its status
as an indigent person by virtue of the amount?
The article discusses a recent Supreme Court judgement dated May 27, 2024, which
addressed whether a claimant entitled to compensation from a Motor Accident
Claims Tribunal loses their indigent status by virtue of the compensation
awarded. The case involved a claimant, injured in a road accident, who was
initially awarded a partial compensation by the tribunal. Dissatisfied, she
appealed to the Gujarat High Court to file as an indigent person but was denied
based on the compensation awarded, which she had not yet received.
The Supreme
Court, citing precedents and emphasizing the importance of access to justice,
overturned the High Court's decision, allowing the claimant to appeal as an
indigent person. The court highlighted that the claimant's indigent status
remained until actual receipt of compensation and underscored the necessity for
proper inquiry by appellate courts under CPC provisions. The Supreme Court
directed the Gujarat High Court to expedite the appeal process, reinforcing the
principle that financial inability should not hinder access to justice.
Introduction
Reminding of what justice Krishna Iyer j. has observed in State of Haryana v.
Darshan devi "The poor shall not be priced out of the Justice market by
insistence on court-fee and refusal to apply the exemptive provisions of Order
33, CPC" .the supreme court in a recent judgement dated 27th May 2024 considered
whether a person who is entitled to receive compensation by way of a claim
before the Motor Accident Claim Tribunal can be said to have given up its status
as an indigent person by virtue of the amount slated to be received.
Meaning of "Indigent Person"
Order 33 of cpc deals with the suits by indigent persons. Any person is indigent:
- When he not possessed of sufficient means, other than the property exempt from attachment by a decree, enabling him to pay the fee prescribed by the law for the plaint in such case.
- Where no such fee is prescribed, when he is not entitled to property worth 1000 rupees other than the property exempt.
It provides for exemption from court fees to persons who are classified as
indigent, who are also called by the inappropriate name of "paupers".
Facts of the case
In the present scenario the claimant was hit by a truck while she was riding
pillion on a bike. The accident resulted in her sustaining injuries making her
undergo plastic surgery. She was earning Rs.3000/- per month but the accident
sustained her permanent disablement, making her not able to work thereafter. A
claim was filed by her for compensation amounting to Rs.10 lakhs with 18%
interest.
The tribunal vide award dated 17th October 2016, awarded a compensation of
Rs.2,41,745 with 9% interest from the date of claim petition to the date of
realization, dissatisfied by which the appellant approached the high court of
Gujrat by way of regular first appeal No.2611/2017. Misc. Civil Application
No.3/2018
The High Court by order dated 7tth August, 2018 dismissed the Misc.Civil
Application observing as under:
"It is a matter of record that the claimants filed claim petition before the
Tribunal and claimed Rs.10,00,000/-, whereby the Tribunal by partly allowing the
claim petition vide the impugned award, awarded a sum of Rs,2,41,745/- along
with 9% interest from the date of claim petition till its realization. In light
of the aforesaid, the applicant- appellant cannot be considered to be indigent
person and therefore, he has to pay court fees first. Ms. Rana, learned counsel
for the applicant, however, submits that, till date, no amount is received by
the applicant. It is open for the applicant to pursue the said remedy before
appropriate forum. In view of the above, present application is not entertained.
Time to deposit Court fees is granted for 8 weeks from today."
Supreme Courts stand on the case
The supreme Court in deciding the case referred to various precedent including
Mathai M. Paikeday v. C.K Antony, wherein the concept of an indigent person has
been discussed at length. The court also referred to R.V. Dev v. Chief
Secretary, Govt. of Kerala in para 8 whereof it was observed: "When an
application is filed by a person said to be indigent, certain factors for
considering as to whether he is so within the meaning of the said provision are
required to be taken into consideration therefor. A person who is permitted to
sue as an indigent person is liable to pay the court fees which would have been
paid by him if he was not permitted to sue in that capacity, if he fails in the
suit at the trial or without trial. Payment of court fees as the scheme suggests
is merely deferred. It is not altogether wiped off."
The court emphasized that the intent of Orders XXXIII and XLIV is unmistakable.
"They exemplify the cherished principle that lack of monetary capability does
not preclude a person from knocking on the doors of the Court to seek
vindication of his rights."
The appellant application to file the appeal as an indigent person was rejected
on the ground that she had already received the award of the tribunal, and
therefore she was not indigent anymore, and hence she was required to pay the
court fee. The supreme Court bench of justice J.K. Maheshwari and Justice Sanjay
Karol differed with the single judge bench of the High Court.
The court emphasized on the need to expand the jurisprudence of access to
justice as an essential component of social justice. It also emphasizes the need
to scrutinize the constitutionality of the court-fee levy as a facet of human
rights highlighted in our Nation's constitution. "If the State itself should
travesty this basic principle, in the teeth of Articles 14 and 39-A, where an
indigent widow is involved, a second look at its policy is overdue. The Court
must give the benefit of doubt against levy of a price to enter the temple of
justice until one day the whole issue of the validity of profitmaking through
sale of civil justice, disguised as court-fee, is fully reviewed by this Court."
The learned single judge of High Court reasoned that the claimant-appellant's
application on to file as an indigent person cannot be sustained on the ground
that she had already received compensation by way of an award by the tribunal
due to which she was no longer indigent. The supreme court found this verdict to
be belied by the impugned order itself as the learned single judge has recorded
the submission of the council for claimant-appellant that no money has been paid
to her yet. So even though she had been awarded a sum, her indigency was not
extinguished thereby. the court found the impugned order of the Honorable High
Court to be incorrect in dismissing the Misc. Application.
There is another ground on which the Court found the Honorable High Court to
have erred. The orders XXXIII and XLIV of CPC regarding the deferral of payment
of court fee as noted in Khader International, states that if a suit filed by an
indigent person is successful, the court fee will be deducted from the awarded
amount, treating the person as if they had not filed the suit as an indigent.
Order XLIV Rule 3(2) provides as under:
3. Inquiry as to whether applicant is an indigent person:
- ......
- Where the applicant, referred to in rule 11, is alleged to have become
an indigent person since the date of the decree appealed from, the inquiry
into the question whether or not he is an indigent person shall be made by
the Appellate Court or, under the orders of the Appellate Court, by an
officer of that Court unless the Appellate Court considers it necessary in
the circumstances of the case that the inquiry should be held by the Court
from whose decision the appeal is preferred.
The appellate court did not conduct any inquiry which was necessitated since
nothing on record speaks of the claimant-appellant having filed the claim before
the tribunal as an indigent person.
"On both counts, one, that she had not yet received the money and, therefore, at
the time of filing the appeal she was arguably indigent; and second, that the
statutory requirement under the C.P.C., as described above, was not met - the
order of the learned Single Judge has to be set aside.," the court concluded
The court however instead of remanding the matter back to the High Court for an
inquiry as per order XLIV, considering the time that has passed since the
impugned order in the first appeal, the court allowed the appellant to appeal as
an indigent person. Considering the facts of this case the court requested the
honorable high court of Gujrat that the appeal filled by the claimant-appellant
be decided expeditiously and preferably within six months from the date of
receipt of the copy of this judgement.
Conclusion
The supreme court underscored the fundamental principle that access to justice
shall not be hindered due to financial constraints. The decision highlighted the
court's commitment to ensuring that economic barriers do not prevent individual
from knocking the doors of justice, paving way for further development towards
the goal envisaged in Article 39A of the Indian Constitution.
End Notes:
- Alifiya Husenbhai Keshariya V. Siddiq Ismail Sindhi & Ors S.L.P. (C) No. 729/2020.
- Order 33 of cpc.
- S.L.P. (C) No. 9544 of 2009.
- Orders XXXIII and XLIV
- Article 14
- Article 39-A
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