Making digital mode of transaction mandatory for paying compensation to workmen and road accident victims, the High Court of Karnataka has issued guidelines to the commissioner for workmen, tribunals and trial courts to receive and disburse compensation through NEFT/RTGS mode only.
While directing the commissioner, tribunals and subordinate courts to open a separate bank account to receive compensation amounts from employers, insurance companies and transport corporations, the court said that these legal forums have to collect, without exception, the particulars of bank accounts and other details from claimants before the commencement of trial or evidence presentation.
The court said that the guidelines were necessary to avoid complications and help innocent and illiterate victims. Justice B. Veerappa issued the guidelines in a recent judgment on noticing a legal lacunae in compensation transfer in connection with an appeal. The compensation amounts will have to be transferred only through digital mode even in cases that are amicably settled in Lok Adalat proceedings, the court said.
It will be mandatory to secure the correct name and address of the claimant/victim, the particulars of his or her bank account, including IFSC code, and the first page of the bank account passbook containing photographs of the claimant, duly attested by an authorised bank officer, the court said. It made it clear that the addition of any person or information to the details provided will have to be scrutinised by the legal forum.
The court also said that a copy of the PAN card of the claimant also should be obtained and marked, and in the absence of PAN card, the legal forum should advise him or her about the importance of having PAN card to avoid higher tax deduction at source, and provide them help to get the card. The Aadhaar of the claimant also can be verified and an attested copy marked, the court said.