Court says compensation outside statutory schemes must follow clear parameters to avoid arbitrariness; asks Union to verify PM Relief Fund payment to victims’ families
The Allahabad High Court has directed the Uttar Pradesh government to formulate a clear policy for awarding compensation in cases of fire accidents and other non-natural calamities where no statutory framework presently exists. The court said that whenever the State chooses to grant compensation outside a specific law, it must do so on the basis of defined parameters to prevent discrimination, arbitrariness, and unequal treatment among victims.
The direction came while hearing a public interest litigation arising out of a fire tragedy in which 15 young persons died and several others suffered injuries and disabilities. The bench of Justice Rajan Roy and Justice Manjive Shukla noted that the State had informed the court that its compensation policy currently covers only natural calamities, not incidents like the one under consideration.
The court observed that, in the absence of a policy or statutory framework, the principles laid down by the Supreme Court in cases such as Sanjay Gupta v. State of U.P., Municipal Corporation of Delhi v. Uphaar Tragedy Victims Association, and DAV Managing Committee v. Dabwali Tragedy Victims Association would guide compensation assessment. It asked the State to consider these rulings and file an affidavit explaining the compensation already paid to the victims’ families and why enhancement should not be considered.
According to the State, each deceased family had received around Rs. 11 lakh from different sources, including Rs. 5 lakh from the Chief Minister’s Discretionary Fund, Rs. 4 lakh from the State Disaster Response Fund, and Rs. 2 lakh from the Prime Minister’s Relief Fund. However, the victims’ families informed the court that some of them had not received the Rs. 2 lakh assistance from the Prime Minister’s Relief Fund. The court directed the Union of India to verify these facts.
The bench also took note of the condition of one injured victim, Jayant Gupta, aged about 25 years, who is undergoing treatment at King George’s Medical University and is reportedly incurring medical expenses of about Rs. 70,000 per month, while having received only Rs. 50,000 as compensation. Observing prima facie lapses not only on the part of the building owner but also of the authorities that allowed illegal commercial use of the premises, the court said the least the State could do was to bear the treatment expenses.
The High Court directed KGMU not to charge the injured person for treatment and to provide him proper medical care. It further ordered that any expenses incurred should be recovered from the State Government, which must ensure prompt payment. The matter has now been listed for further hearing on 15 October 2026.
Bottom Line :
Public interest litigation arising out of fire tragedy - In absence of any policy or statutory framework for grant of compensation in non-natural calamity incidents, State Government directed to formulate a policy laying down parameters for determination of compensation so as to avoid arbitrariness and discrimination - State also directed to respond on enhancement of compensation to victims' families - Injured victim undergoing treatment directed to be given free medical treatment at KGMU at State expense.
Statutory provision(s): None specifically cited in the judgment
Shivendu Pandey v. State of U.P., (Allahabad)(DB)(Lucknow) : Law Finder Doc id # 2987046
