Case Note & Summary
The Supreme Court was dealing with the issue of filing fake claim petitions for compensation under the Motor Vehicles Act and the Workmen Compensation Act. The Court had earlier constituted a Special Investigating Team (SIT) to investigate suspicious claims. The SIT filed a status report indicating that 1376 suspicious claims were received from various districts in Uttar Pradesh between 2015 and 2021. Out of these, 247 cases were enquired into, leading to 198 accused persons being prima facie found guilty of cognizable offences, and 92 criminal cases were registered. Charge sheets were filed in 32 cases, and final reports in 4 cases. Notably, 28 advocates were named as accused in 55 cases, and charge sheets against 11 advocates in 25 cases were forwarded to trial courts. The SIT reported that the investigation was hampered by the Covid-19 pandemic and that insurance companies were not ready to be complainants, requiring the investigating officer to become the complainant. The Court directed the SIT to expedite the enquiry and file a further affidavit detailing the number of cases where charge sheets were filed, the dates of filing, the courts where filed, and the number of cases where charges were framed. The Bar Council of Uttar Pradesh filed a response affidavit apologizing for any omissions and stating that it had taken steps to initiate disciplinary proceedings against errant advocates. The Bar Council of India had suspended 28 advocates, and the Bar Council of Uttar Pradesh constituted disciplinary committees and issued notices to 27 advocates (one advocate having died). The Court appreciated these steps and directed early conclusion of disciplinary proceedings. The Court also heard submissions on the modus operandi adopted by advocates, which included converting non-road accident injuries into road accident claims, fraudulent implantation of vehicles and drivers, multiple claims for the same accident, and use of fake documents. The investigating officer of the SIT also filed a note detailing various modus operandi, including cases of hit and run, known vehicles without insurance, fictional accidents, and connivance between vehicle owners, drivers, and advocates.
Headnote
A) Criminal Law - Fake Claim Petitions - Motor Vehicles Act, 1988 and Workmen Compensation Act, 1923 - SIT Investigation - The Supreme Court monitored the investigation into 1376 suspicious claims received by the SIT, out of which 247 enquiries were completed, 198 accused found prima facie guilty, and 92 criminal cases registered. The Court directed the SIT to expedite the enquiry and file a further affidavit on charge sheets and framing of charges. (Paras 1-4) B) Legal Profession - Misconduct by Advocates - Advocates Act, 1961 - Disciplinary Proceedings - The Bar Council of Uttar Pradesh suspended 28 advocates and constituted disciplinary committees to conclude proceedings within three months. The Court appreciated the steps taken and directed early conclusion of disciplinary proceedings. (Paras 5-6) C) Motor Vehicles Act - Modus Operandi - Fake Claims - The Court noted various modus operandi adopted by advocates, including converting non-road accidents into road accident claims, fraudulent implantation of vehicles and drivers, multiple claims for the same accident, and fake/fabricated insurance policies and documents. (Para 7)
Issue of Consideration
Whether the filing of fake claim petitions for compensation under the Motor Vehicles Act and the Workmen Compensation Act by advocates and others constitutes a serious issue requiring court-monitored investigation and disciplinary action.
Final Decision
The Court directed the SIT to expedite the enquiry/investigation and file a further affidavit pointing out in how many cases charge sheets have been filed, the dates of filing, the courts where filed, and in how many cases charges have been framed. The Court appreciated the steps taken by the Bar Council of Uttar Pradesh and directed early conclusion of disciplinary proceedings.
Law Points
- Fake claim petitions
- Motor Vehicles Act
- Workmen Compensation Act
- SIT investigation
- Bar Council disciplinary proceedings
- modus operandi of advocates
