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Supreme Court: Awarded Compensation But Unpaid? You Can Still Appeal as Indigent

In a landmark decision on May 27, the Supreme Court addressed whether an individual awarded monetary compensation but not yet paid can file an appeal as an indigent. An indigent person, lacking the financial means to pay court fees, is still entitled to seek legal recourse.

The Bench, comprising Justices J.K. Maheshwari and Sanjay Karol, highlighted the essence of Order XXXIII and Order XLIV of the CPC, 1908. These provisions ensure that financial constraints do not bar an individual from accessing justice.

The case involved an appellant injured in an accident, who was granted compensation by the Motor Accident Claims Tribunal. She claimed Rs. 10 Lakhs but was awarded only around Rs. 2 Lakhs. Dissatisfied, she sought to appeal as an indigent in the High Court. The High Court dismissed her application, noting the awarded compensation, yet acknowledged she hadn’t received any payment.

The Supreme Court criticized this decision, referencing past rulings, including Union Bank of India v. Khader International Construction & Ors., which emphasized that court fees for indigent plaintiffs are deferred, not waived. This provision supports those unable to afford the fees initially.

The Supreme Court concluded that the High Court erred in rejecting her application, as her indigent status persisted without receiving the compensation. The lack of inquiry into her financial status further compounded the High Court’s mistake.

Instead of remanding the case, the Supreme Court allowed the appellant to file her appeal as an indigent person, considering the delay already experienced. The High Court was urged to expedite the appeal’s resolution within six months.

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