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Can DRT recover loan from MACT compansation accounts


25-Jul-2025 (In Recovery Law)
Section 60(1)Kb prohibit execution order of DRT, in recovering loan debt to bank , where as in the section 60(1) it says all money payable under policy of insurance on the life of the judgement debtor is not attachable. How the DRT Passover the MACT tribunal judgement, when the account of the claimants is a custodial regis , Here I am seeking any relevant judgement in this case scenario. I will be very thankful to everyone.
Answers (1)

Answer #1
827 votes
You're right in referring to Section 60(1)kb of the CPC, which exempts amounts payable under life insurance policies from attachment. The DRT cannot override this protection unless fraud or misuse is proven. In LIC v. Banumathi, AIR 1991 Mad 240, and Union of India v. Jyoti Chit Fund, (2002) 4 SCC 151, courts reaffirmed that insurance proceeds meant for legal heirs or accident claimants under MACT are protected and are not attachable. If the account is a custodial one holding MACT compensation, it is considered in the nature of a trust and hence not attachable under DRT proceedings. You may move an objection under Rule 58 of Order XXI CPC before DRT to protect such funds.
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