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  • S. 30 of the Advocates Act and S. 14 of the Bar Councils Act.
  • S. 30 of the Advocates Act or S. 14 of the Bar Councils Act.
  • S. 30 of the Advocates Act and S. 14
  • MOTOR VEHICLES ACT
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Citation Codes
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citation codes
Case Number
Attorney(S)
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  • S. 30 of the Advocates Act and S. 14 of the Bar Councils Act.
  • S. 30 of the Advocates Act or S. 14 of the Bar Councils Act.
  • S. 30 of the Advocates Act and S. 14
  • MOTOR VEHICLES ACT
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

Six petitioners filed the Original Petition now before the Court. Petitioners 1–5 are brothers of one Nohah Victor, who died on 31-01-1984. The 6th petitioner is the Advocate representing petitioners 1–5. The first five petitioners had filed M.A.C. No. 174 of 1984 before the Motor Accidents Claims Tribunal, Calicut (the Tribunal / first respondent), seeking compensation for death of Nohah Victor arising from a motor vehicle accident.

On 29-11-1984 the Tribunal awarded Rs. 15,000/- under S.92A of the Motor Vehicles Act and directed the Kerala State Road Transport Corporation to pay Rs. 15,000/- within two weeks. The amount was not initially deposited but was later collected and deposited in the Tribunal pursuant to directions in O.P. No. 5223 of 1986.

The petitioners filed I.A. No. 2970/86 asking that the cheque for Rs. 15,000/- be issued in the name of their Advocate (the 6th petitioner). By Ext. P-3 dated 30-09-1986 the Tribunal directed that five cheques of Rs. 3,000/- each be issued to the petitioners on production of separate payment schedules and receipts, and disallowed the prayer to issue the cheque in the name of the advocate. The Tribunal relied on Circular No. 3 of 1986 (Ext. P-4) issued by the High Court, specifically Clause (b) thereof.

The petitioners sought writ of certiorari to quash Ext. P-3, and alternatively sought quashing of Clause (b) of Ext. P-4 (to the extent it was read as a bar to issuing cheques in the name of advocates), and sought a direction to issue the cheque for Rs. 15,000/- to the 6th petitioner (their Advocate).

Legal Issues Presented

  1. Whether the Tribunal (1st respondent) correctly interpreted and applied Clause (b) of Circular No. 3 of 1986 (Ext. P-4) in disallowing payment of the awarded compensation by cheque in the name of the petitioners' Advocate and instead directing payment to the claimants.
  2. Whether Clause (b) of Circular No. 3 of 1986 is mandatory in nature (i.e., must cheques be issued to the claimant or a nominated claimant in the presence of the advocate) or merely permissive.
  3. Whether Clause (b) of Ext. P-4, if construed as prohibiting issue of cheques in the name of advocates, violates S.30 of the Advocates Act or S.14 of the Bar Councils Act.

Arguments of the Parties

Petitioners' Arguments (as advanced by counsel for petitioners, Mr. P.K. Musa)

  • The Tribunal misconstrued Circular No. 3/86 (Ext. P-4), particularly Clause (b), and thereby wrongly disallowed the issue of the cheque in favour of the petitioners' Advocate.
  • R.10 of the Motor Accidents Claims Tribunal Rules, 1977 permits a party to appear through a legal practitioner; the Vakalath executed in M.A.C. 174/84 specifically authorised the Advocate to receive all amounts due to the petitioners.
  • Under R.360 of the Civil Rules of Practice, payment due to a party can be made over to the pleader if the Vakalath authorises such payment.
  • The first respondent (K.S.R.T. Corporation) did not object to issuing the cheque to the Advocate, yet the Tribunal refused based on Ext. P-4.
  • If Clause (b) is construed to bar issuing cheques in the name of advocates, it would be unconstitutional and violative of S.30 of the Advocates Act and S.14 of the Bar Councils Act.

Tribunal's Position (as recorded in Ext. P-3)

  • The Tribunal relied upon Circular No. 3/86 dated 25-01-1986 and interpreted Clause (b) as directing that compensation amounts due to claimants (other than minors or persons suffering disability) be paid by issuing cheques to the claimant or one of the nominated claimants in the presence of the advocate concerned.
  • The Tribunal held that the direction in Ext. P-4 is mandatory in nature and therefore ordered issuance of five cheques of Rs. 3,000/- each to the petitioners on production of separate payment schedules and receipts, disallowing the prayer to issue the cheque to the Advocate.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Srisailam Devastanam v. Bhavani Pramilamma, 1983 Acc CJ 580 : AIR 1983 Andh Pra 297 (Para 50) That the Tribunal should take care to see that the amount awarded is received in full by the legal representatives of the deceased or victims of the accident. The Court relied on this decision as part of the historical background showing concern that claimants were not receiving full compensation; it formed part of the justification for Circular No. 3/86 and supported construing Clause (b) as protective of claimants' rights.
Polavarapu Somarajyam v. A.P.R.T. Corporation, 1984 Acc CJ 18 : AIR 1983 Andh Pra 407 Approved the view that Tribunals should ensure award amounts reach claimants/legal representatives in full. Used to show subsequent judicial approval of the protective approach that led to the Committee's recommendation and the Circular; supported the Court's view that Clause (b) seeks to prevent misappropriation.
Erukulapathi Lakshmisaraswati v. State Bank of India, 1984 Acc CJ 595 Also approved the view that Tribunals should ensure award amounts are received in full by claimants/legal representatives. Similarly relied upon as part of the sequence of authorities evidencing judicial concern which underpinned the Circular and justified a protective construction of Clause (b).
Re Neath and Brecon Ry., (1874) LR 9 Ch App 263 Principle that permissive language may be construed as compulsory when a power is vested for the benefit of specifically pointed-out persons and for public good; enabling words can be construed as compulsory in such contexts. The Court cited this authority to justify construing the apparently permissive word "can" or "may" in Clause (b) as mandating the protective procedure prescribed by the Circular.
Ramji Missar v. State of Bihar, AIR 1963 SC 1088 (p. 1092) That the word "may" might be permissive but will be construed as referring to a compellable duty when it refers to a power conferred on a Court or other judicial authority. The Court relied on this Supreme Court authority to support the proposition that Clause (b)'s enabling language should be construed as compulsory in the context of protecting claimants before judicial tribunals.

Court's Reasoning and Analysis

The Court examined the historical background and context leading to Circular No. 3/86 (Ext. P-4). The Tribunal and various Tribunals had reported suspected malpractices: sizable awards were being made but claimants (many illiterate and poor) were not receiving full amounts because significant portions were being appropriated when cheques were issued to counsel or others.

In response, a Committee of Judges of the High Court was constituted to recommend procedures to ensure that awards of compensation reached victims or their legal representatives in full. The Committee solicited and considered representations from Tribunals, Bar Associations, Insurance Companies and others. The Committee noted complaints that when cheques were issued to counsel, substantial portions were taken as fees and illiterate claimants suffered; accordingly the Committee recommended that compensation amounts due to claimants (other than minors or persons suffering disability) be paid by issuing cheques to the claimant or one of the claimants nominated by the others in the presence of the advocate concerned. The Registrar issued Circular No. 3/86 in pursuance of these recommendations.

The Court then addressed the language of Clause (b) of the Circular, acknowledging that its wording is prima facie permissive (uses words like "can" or "may"). However, the Court emphasized that, given the background, purpose and public-objective of the Circular — namely to protect vulnerable claimants from misappropriation and to ensure the award reaches the entitled persons — Clause (b) must be construed as mandatory. The Court applied established principles of construction: enabling or permissive words may be construed as compulsory when a power is conferred to secure a public good or to effectuate rights of specifically pointed out persons. To support this legal proposition the Court cited Re Neath and Brecon Ry. and Ramji Missar v. State of Bihar.

Applying the above to the facts, the Court concluded that the Tribunal's interpretation of Clause (b) as mandatory was correct. Consequently, the Tribunal was entitled to order cheques to be issued to the claimants (or nominated claimants) in the presence of their advocate and to disallow the petitioners' request to have the cheque issued in the name of their Advocate. The Court also found that Clause (b) does not violate S.30 of the Advocates Act or S.14 of the Bar Councils Act; the petitioners' counsel had not substantiated how Clause (b) violated those statutory provisions.

Holding and Implications

Holding: The Court dismissed the Original Petition. The Court held that the order passed by the Tribunal (Ext. P-3) is valid and justified in law, and that Clause (b) of Circular No. 3/86 (Ext. P-4) is to be construed as mandatory in the light of its purpose and background.

Direct Effect on the Parties:

  • The Tribunal's directive that five cheques of Rs. 3,000/- each be issued to the petitioners (on production of payment schedules and receipts) stands upheld.
  • The petitioners' prayer to have the cheque issued in the name of their Advocate (6th petitioner) was dismissed.
  • Clause (b) of Ext. P-4 is not held to be violative of S.30 of the Advocates Act or S.14 of the Bar Councils Act, according to the Court's assessment and the absence of substantiation from petitioners' counsel.

Broader Implication: The Court construed a procedural protection (Clause (b) of Circular No. 3/86) as mandatory to protect vulnerable claimants and to ensure awards reach entitled persons. The opinion does not state that it sets a new legal precedent beyond applying established principles of statutory/administrative construction to the facts before it.

Disposition: Petition dismissed, in limine. The judgment was to be carbon-copied to counsel for the petitioners on usual terms.

    Lilly Victor And Others v. Motor Accidents Claims Tribunal, Calicut And Others

    1. There are six petitioners in this Original Petition. Petitioners 1 to 5 are brothers of one Nohah Victor, who died on 31-1-1984. The 6th petitioner is the Advocate of petitioners 1 to 5. A petition was filed before the Motor Accidents Claims Tribunal, Calicut (1st respondent) as M.A.C No. 174 of 1984, by the first five petitioners for the grant of compensation on account of the death of Sr. Nohah Victor due to injuries sustained by him in a motor vehicle accident. Ext. P-1 is a copy of the petition filed before the Tribunal. There is a prayer to pay the compensation to petitioners 3 and 4. On 29-11-1984, the Tribunal ordered that the petitioners are entitled to compensation of Rs. 15,000/- under S. 92A of the Motor Vehicles Act. The Kerala State Road Transport Corporation (1st respondent in the petition) was directed to pay Rs. 15,000/- within two weeks from the date of the order. Initially, it was not deposited. The said amount was collected and deposited in the Motor Accidents Claims Tribunal, Calicut, in pursuance to the directions of this Court in O.P No. 5223 of 1986. The petitioners filed I.A No. 2970/86 before the Tribunal for the issue of cheque for Rs. 15,000/- in the name of their Advocate (6th petitioner herein). Ext. P-2 affidavit dt. 8-8-1986 states so. By Ext. P-3 dt. 30-9-1986, the first respondent directed that five cheques for Rs. 3,000/- each shall be issued to the petitioners on production of separate payment schedule and receipts. The prayer for issuing the cheque to the Advocate was disallowed. The first respondent placed reliance on Circular No. 3 of 1986 dt. 25-1-1986, issued by the High Court. The Circular, aforesaid, is Ext. P-4. The petitioners pray for the issue of a writ of certiorari to quash Ext. P-3, and in the alternative, they also pray that if it is considered that Ext. P-4, Cl. (b) is a total bar against issuing cheques in the name of Advocates or to mean that the cheques should be issued only in the name of the claimant or claimants, Ext. P-4, Cl. (b) may also be quashed. The petitioners pray for a direction to the first respondent to issue the cheque for Rs. 15,000/- in the name of the 6th petitioner.

    2. I heard counsel for the petitioners, Mr. P.K Musa. It was contended that the first respondent totally misunderstood and misconstrued Ext. P-4 Circular issued by the High Court, and in particular, Cl. (b) thereof. Reliance was placed on R. 10 of the Motor Accidents Claims Tribunal Rules, 1977 which envisages that a party can appear through a legal practitioner before the Claims Tribunal. As also in the Vakalath executed by the petitioners in M.A.C 174/84, the advocate was specifically authorised to receive all the amounts due to the petitioners. Counsel for the petitioners submitted that under R. 360 of the Civil Rules of Practice, payment of amount due to a party can be made over to the pleader, if the Vakalath authorises such payment. Apart from the above, in this case, the first respondent — K.S.R.T Corporation — did not object to the issue of cheque to the 6th petitioner-Advocate. Even then, the first respondent-Tribunal passed Ext. P-3 for issuing five cheques for Rs. 3000/- each to the petitioners on production of separate payment schedule and receipts, and rejected the prayer for the issue of cheque to the Advocate. The reliance place on Circular No. 3 of 1986, issued by the High Court, is unjustified. Cl. (b) of Ext. P-4 Circular, does not lay down that the cheques should be issued only in the name of the parties or that cheques should not be issued in the name of the advocate appearing for the parties. If it is so construed, it is unconstitutional and void. It is violative of S. 30 of the Advocates Act and S. 14 of the Bar Councils Act. The petitioners pray that Ext. P-3 may be quashed.

    3. In Ext. P-3, the first respondent Tribunal, stated as follows:

    “As a matter of fact the High Court had directed in circular No. 3/86 dt. 25-1-1986 that “compensation amount due to claimants other than minors or other persons suffering disability can be paid by issuing cheques to the claimant or one of the nominated claimants in the presence of the advocate concerned.” There is no substance in the contention that the above direction is not of a mandatory nature. The argument that ordinarily cheques are to be issued to the advocates and the High Court had only given the Tribunals the option to issue cheques to the parties direct, does not appeal to me. Therefore, five cheques for Rs. 3000/- each shall be issued to the petitioners on production of separate payment schedule and receipts. The prayer for issuing the cheque to the advocate is disallowed.”

    The relevant portion of Circular No. 3/86 dt. 25-1-1986, issued by the High Court of Kerala, is to the following effect:

    “(b) compensation amount due to claimants other than minors or other persons suffering disability can be paid by issuing cheques to the claimant or one of the nominated claimants in the presence of the advocate concerned.”

    The background and context in which the above Circular was issued requires notice. I called for the relevant files from the Registrar of this Court. From the relevant files, the following facts are evident:

    As early as 17-12-1984 the Motor Accidents Claims Tribunal, Manjeri, by addressing a letter to the Registrar, brought to the notice of this Court suspected malpractices in the payment of compensation and requested for remedial measures and directions in that behalf. It was stated that fairly large amounts are awarded as compensation by the Tribunals but the claimants did not receive the whole amount. A majority of the claimants are thoroughly illiterate and poor. The Tribunal also brought to the notice of the Registrar the decision in Srisailam Devastanam v. Bhavani Pramilamma, 1983 Acc CJ 580 : (AIR 1983 Andh Pra 297) (Para 50), wherein stress was laid that the Tribunal should take care to see that the amount awarded is received in full by the legal representatives of the deceased or the victims of the accident. The subsequent decisions, Polavarapu Somarajyam v. A.P.R.T Corporation, 1984 Acc CJ 18 : (AIR 1983 Andh Pra 407) and Erukulapathi Lakshmisaraswati v. State Bank of India, 1984 Acc CJ 595, have approved the said view. A Committee of Hon'ble Judges of this Court was constituted to consider and recommend the procedure to be followed by the Motor Accidents Claims Tribunals to make available to the victims of accidents the compensation awarded by the Tribunals in full measure.

    In the meanwhile, the various Tribunals, functioning in this State, were addressed, inviting their suggestions for the improvement of the functioning of the Tribunals and for payment of compensation and the procedure to be followed in connection therewith. Notices were sent to various Insurance Companies also. The files disclose that the Bar Associations were also addressed in the matter. The files show that replies were received by the Registrar from the various Bar Associations. The Bus Operators Association had also filed their representations. After adverting to the replies received from various Motor Accidents Claims Tribunals, Bar Associations, Insurance Companies etc., the Committee submitted its report on 7-10-1985. In para 4 of the Report, the Committee adverted to the complaint that when cheques are issued to counsel, a substantial portion of the amount is appropriated towards fee and unknowing and illiterate claimants consequently suffer. In para 11, the Committee recommended that compensation amount due to claimants, other than minors or other persons suffering disability, can be paid by issuing cheques to the claimant or one of the claimants to be nominated by the other claimants in the presence of the advocate concerned. It was directed that in the light of the summary of the recommendations, steps may be taken to issue instructions expeditiously. It is in pursuance thereto, the Registrar issued Ext. P. 4 Circular No. 3/86 to all the Motor Accidents Claims Tribunal in the State. Cl. (b) of Ext. P. 4 (Circular No. 3 of 1986) is in accord with the recommendations of the Committee, aforesaid.

    4. From a perusal of the above, it is evident that, events that led to the issue of Circular No. 3 of 1986 stemmed from the concern voiced by the Motor Accidents Claims Tribunals to the effect that a big slice of the compensation amount is being knocked off and the victims or the claimants, who are illiterate and poor, are not in receipt of the full or proper amount of compensation. An expert Committee of Hon'ble Judges of this court was appointed to go into the matter. The Committee issued notices to various Tribunals, Bar Associations, Insurance Companies etc. After an exhaustive advertence to the various representations of all concerned persons, the Committee recommended that compensation amount due to claimants other than minors or other persons suffering disability can be paid by issuing cheques to the claimant or one of the nominated claimants in the presence of the advocate concerned. The cheques of the Circular is to ensure that the amount awarded by the Tribunals reach the victims or their legal representatives. The Circular is intended to achieve a laudable objective. It is to ensure that the persons who are entitled to receive the amount of compensation are not deprived of it or a substantial portion of it. The mischief sought to be avoided by the Circular was to see that the claimants before the Tribunals are not deprived of the legitimate amounts awarded to them.

    5. Viewed in the background which resulted in the Circular and the purpose sought to be achieved by it, I have no doubt in my mind that Cl. (b) of Ext. P-4 is mandatory. The 1st respondent. Tribunal was justified in stating that the direction contained in Ext. P-4 Circular is mandatory in nature. It is true that the language used in Cl. (b) of Ext. P4 is prima facie permissive permissive. But, considering the historical background and the purpose of the Circular and the objects sought to be achieved, it is really mandatory. The object of Cl. (b) of Ext. P-4 is to effectuate a legal right of the claimants before the Tribunals and to safeguard their right and interest. It is for the sake of public good. It is accepted law that when a power is vested in a public officer or public authority for the purpose of being used for the benefit of persons who are specifically pointed out, that, power ought to be exercised and enabling words are construed as compulsory whenever that object of the power is to effectuate a public good or for the sake of justice. Long ago, in Re Neath and Brecon Ry., James, L.J stated that, “the use of the permissive words in such cases, is the usual courtesy of the Legislature in dealing with the judicature.” The enabling words will be construed as compulsive, and it means in substance that it shall not be lawful to do otherwise. [(1874) LR 9 Ch App 263, 264]. The word “may” might connote merely as enabling or permissive power but it will be construed as referring to a compellable duty, when it refers to a power conferred on a Court or other judicial authority. [See Ramji Missar v. State of Bihar, AIR 1963 SC 1088 at p. 1092].

    6. In the result, I hold that the order passed by the first respondent (Ext. P-3) is valid and justified in law. The interpretation placed on Cl. (b) of Ext. P-4, by the first respondent, is perfectly right. Clause (b) of Ext. P-4 is only regulatory in nature. It does not violate S. 30 of the Advocates Act or S. 14 of the Bar Councils Act. Indeed, counsel for the petitioner did not substantiate as to how and why it is stated that Cl. (b) of Ext. P-4 is said to be violative of S. 30 of the Advocates Act and S. 14 of the Bar Councils Act.

    7. There is no merit in this original petition. It is dismissed, in limine.

    Issue carbon copy of this judgment to counsel for the petitioners, on usual terms.

    Petition dismissed.

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    Comments

    Lilly Victor And Others v. Motor Accidents Claims Tribunal, Calicut And Others
    (Apr 7, 1987)