Supreme Court Modifies Orders on Ex Gratia Compensation for COVID-19 Deaths, Setting Time Limits and Ordering Sample Scrutiny. The Court fixed outer time limits for filing claims and permitted random scrutiny of 5% of applications in select states to verify claims under Section 52 of the Disaster Management Act, 2005.

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Case Note & Summary

The Supreme Court heard an application by the Union of India, Ministry of Home Affairs, seeking modification of its previous orders dated 30.06.2021 and 29.11.2021 regarding ex gratia compensation for deaths due to COVID-19. The application prayed for setting an outer time limit for claimants to lodge their claims and permitting sample scrutiny by a central agency to verify documents. The Solicitor General submitted that approximately 7,38,610 claims had been received, the pandemic had subsided, and without a time limit, there was a risk of false claims. He suggested a four-week deadline and random scrutiny. States like Kerala, Andhra Pradesh, and Maharashtra supported the scrutiny. The Court noted that over nine months had passed since the first order, and genuine claimants likely had approached authorities. It agreed that an outer time limit was necessary to prevent endless claims and false submissions but found the suggested four weeks too short. The Court fixed an outer limit of sixty days from the judgment date for deaths prior to 20.03.2022 and ninety days from date of death for future deaths, with a Grievance Redressal Committee to consider hardship cases. It directed wide publicity of the order. Regarding fake claims, the Court emphasized that making false claims is punishable under Section 52 of the Disaster Management Act, 2005. To address apprehensions, it ordered a random scrutiny of 5% of claim applications in Andhra Pradesh, Gujarat, Kerala, and Maharashtra, to be carried out by the Ministry of Health and Family Welfare within three months, with a report to be submitted. The application was disposed of accordingly.

Headnote

A) Disaster Management - Ex Gratia Compensation - Time Limits for Claims - Disaster Management Act, 2005 - The Court considered the Union of India's application to set an outer time limit for filing claims for ex gratia compensation for COVID-19 deaths, as over 7,38,610 claims had been received and the pandemic had subsided. Held that to prevent endless claims and false submissions, an outer limit of sixty days from the judgment date is fixed for deaths prior to 20.03.2022, and ninety days from date of death for future deaths, with a Grievance Redressal Committee to consider hardship cases. (Paras 1-4)

B) Disaster Management - Ex Gratia Compensation - Sample Scrutiny of Claims - Disaster Management Act, 2005, Section 52 - The Court addressed concerns about fake claims and false certificates for ex gratia compensation. Held that making false claims is punishable under Section 52, and to deter misuse, a random scrutiny of 5% of claim applications in Andhra Pradesh, Gujarat, Kerala, and Maharashtra is ordered, with a report to be submitted within three months. (Paras 5-6)

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Issue of Consideration

Whether to modify previous orders to set an outer time limit for filing claims for ex gratia compensation for COVID-19 deaths and permit sample scrutiny to verify claims.

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Final Decision

The Court fixed an outer limit of sixty days from the judgment date for deaths prior to 20.03.2022 and ninety days for future deaths, with a Grievance Redressal Committee for hardship cases. It ordered random scrutiny of 5% of claim applications in Andhra Pradesh, Gujarat, Kerala, and Maharashtra, to be carried out within three months, and directed wide publicity of the order.

Law Points

  • Disaster Management Act
  • 2005
  • Section 52 - Punishment for false claims
  • Ex gratia compensation
  • Time limits for claims
  • Sample scrutiny
  • Grievance Redressal Committee
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Case Details

2022 Lawtext (SC) (3) 89

INTERLOCUTORY APPLICATION NO. 40111 OF 2022 (APPLICATION FOR DIRECTIONS) IN MISCELLANEOUS APPLICATION NO. 1805 OF 2021 IN WRIT PETITION (C) NO. 539 OF 2021

2022-03-24

M.R. Shah, J.

Shri Tushar Mehta, Shri R. Basant, Shri Rahul Chitnis

Union of India - Ministry of Home Affairs

Union of India & Ors.

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Nature of Litigation

Application for modification of previous court orders regarding ex gratia compensation for COVID-19 deaths

Remedy Sought

Union of India sought modification to set an outer time limit for claims and permit sample scrutiny

Filing Reason

To prevent false claims and endless submission process

Previous Decisions

Orders dated 30.06.2021 and 29.11.2021 directing ex gratia payment for COVID-19 deaths

Issues

Whether to set an outer time limit for filing claims for ex gratia compensation for COVID-19 deaths Whether to permit sample scrutiny to verify claims

Submissions/Arguments

Union of India argued for a four-week deadline and random scrutiny to prevent false claims States supported scrutiny to identify false claims

Ratio Decidendi

To balance the need for genuine claimants to access compensation with preventing false claims, the Court set reasonable time limits and ordered sample scrutiny under Section 52 of the Disaster Management Act, 2005.

Judgment Excerpts

Present application is preferred by the Union of India- Ministry of Home Affairs with the following prayers Shri Tushar Mehta, learned Solicitor General has submitted that after the order was passed by this Court dated 30.06.2021 Having heard Shri Mehta, learned Solicitor General on the request and the prayer made in the application However it is clarified that in case of extreme hardship any claimant could not make an application within the time prescribed Now, so far as the allegation of submitting fake claims on submitting false certificates or obtaining the compensation on submitting the false claim is concerned Nobody can be permitted to avail the ex-gratia compensation by making a false claim and/or submitting the false certificate

Procedural History

Application filed by Union of India seeking modification of orders dated 30.06.2021 and 29.11.2021; hearing conducted; order passed modifying previous orders.

Acts & Sections

  • Disaster Management Act, 2005: Section 52
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