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Question Bank
Question
What is the core legal principle governing the release of compensation awarded by a court or tribunal to a successful claimant?
Solution
The core legal principle is that once a court or tribunal has passed a final and executable award or decree, the successful claimant has an immediate and indefeasible right to receive the money. The adjudicating authority's duty, especially in execution proceedings, is to ensure the forthwith release of the adjudicated amount to the rightful owner. There cannot be a judicial restraint on the release of the money, and the claimant is not required to explain the purpose for which the funds are needed. The authority's role is limited to verifying the claimant's identity and ensuring proper indemnification against a double payment, not to act as a financial advisor or impose conditions that delay access to the compensation.
Question
What is the legal status of a Fixed Deposit Receipt (FDR) created from compensation money, and can a claimant access it before its maturity date?
Solution
A Fixed Deposit Receipt (FDR) created from compensation money is fundamentally the moveable property of the claimant. The claimant, as the absolute owner of these funds, has the right to access the money at any time, including before the maturity date of the FDR. A tribunal acts unlawfully if it fixes a long-term maturity date for such an FDR, as if dealing with a minor's property, and then refuses its pre-mature release. The claimant is not obligated to file a separate application or show any special "need" to break the FDR. The act of requiring such justification constitutes an error of law and an undue delay in granting access to what rightfully belongs to the claimant.
Question
What is the limited scope of a Tribunal's power in execution proceedings concerning the disbursement of funds?
Solution
In execution proceedings, the scope of a Tribunal's power is strictly confined to ensuring the satisfaction of the decree. Its primary functions are to verify that the decree-holder is the rightful recipient and to facilitate the seamless transfer of funds. The Tribunal must not overstep this boundary by imposing pre-conditions, offering unsolicited financial advice, or questioning the claimant on how they intend to spend their money. It is not the business of the Tribunal to manage the claimant's finances or to postpone the release of funds based on its own notions of prudence. Such actions amount to an abdication of duty and a failure to execute the court's mandate.
Question
Explain the distinction between "pecuniary losses" and "non-pecuniary losses" in the assessment of damages for personal injury?
Solution
In the assessment of damages for personal injury, the compensation is categorized into two distinct heads. Pecuniary losses refer to the tangible financial harms suffered by the plaintiff. These include quantifiable items such as loss of future earnings and medical and other expenses incurred as a direct result of the injury. Conversely, non-pecuniary losses compensate for intangible, non-monetary harms. These are subdivided into categories such as pain and suffering, loss of amenities of life, and loss of expectation of life. A comprehensive award must account for both these streams of loss to fully atone for the wrong done to the injured person.
Question
What constitutional provision can be invoked to challenge the procedural orders of a tribunal when no other statutory remedy is available?
Solution
When a tribunal passes a procedurally flawed or unlawful order during execution, and no other statutory appeal is provided for by the governing law (like the Motor Vehicles Act), a aggrieved party can invoke the supervisory jurisdiction of the High Court under Article 227 of the Constitution of India. This constitutional provision allows the High Court to call for the records of any proceeding before a subordinate court or tribunal to ensure that such bodies act within the bounds of their authority and do not perpetrate a miscarriage of justice. A revision petition filed under this article is the appropriate remedy to challenge orders that are perverse or demonstrate a grave error in understanding the basic law.
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