M. P. State Road Transport Corporation v. Mahila Choti Bai
1989-11-03
R.C.LAHOTI
body1989
DigiLaw.ai
JUDGMENT : ( 1. ) THIS is an appeal under section 110-D of Motor Vehicles Act, 1939 arising out of an interim award passed under section 92-A of the Act by the Claims Tribunal. The appellant has been ordered to pay a compensation of Rs. 15,000/- with interest at the rate of 12% per annum from the date of application till the date of payment. The grievance raised by the appellant is that section 92-A of the Act does not contemplate payment of interest and hence the impugned interim award is liable to be set aside to the extent to which it directs payment of interest. ( 2. ) THE provisions relating to the Claims Tribunals and award by them on applications for compensation are to be found placed in Chaper VIII of Motor Vehicles Act, 1939. Jurisdiction to award "interest on a claim being allowed by the Claims Tribunal was conferred by section 110-CC of the Act. The provision, as it originally stood, provided that the Court or Tribunal allowing a claim for compensation made under that Chapter (i. e. , Chapter VIII) might direct payment of simple interest from a date not earlier than the date of making the claim. The award of compensation depended (and still depends) on proof of liability of the wrong doer under the Law of Torts. However, by virtue of Amendment Act No. 47 of 1982, a new Chapter VII-A entitled "liability without fault in certain cases" was added, with effect from 1-10-1982. Chapter VII-A consists of sections 92-A to 92-E. Section 92-A provides for award of compensation by the owners of the vehicles without proof of fault on their part, to the tune of Rs. 15,000/- in case of death and Rs. 7,500/- in case of permanent disablement. The liability is absolute and is not dependent on a claim application being filed by the claimant. In other words, the owner of the vehicle is obliged to compensate the victim no sooner the accident occurs. In the event of the victim not being compensated, he is entitled to make a claim for compensation independent of or along with or during the hearing of the application for compensation under section 110-A. ( 3.
In other words, the owner of the vehicle is obliged to compensate the victim no sooner the accident occurs. In the event of the victim not being compensated, he is entitled to make a claim for compensation independent of or along with or during the hearing of the application for compensation under section 110-A. ( 3. ) IT is noteworthy that the same Amendment Act of 1982 which has inserted Chapter VII-A has also effected amendment in section 110-CC of the Act substituting the word Act for the word Chapter. Meaning thereby, that the Court or Claims Tribunal allowing a claim for compensation made not only under Chapter VIII but under any other provision of the. Act has been empowered to award interest on compensation. A Division Bench of this Court observed in Oriental Insurance Co. v. Pritamlal, 1989 MPLJ 580 , that after introduction of Chapter VII-A in the Act, the Claims Tribunal is empowered to pass two awards, one on the basis of no fault liability and the other on proof of negligence or tort. ( 4. ) IT, therefore, follows that if the owner or the insurer does not satisfy its liability under section 92-A of the Act, and therefore, arises an occasion for the victim to claim compensation under section 92-A of the Act inviting an award (interim one) by the Court or Tribunal, it is empowered to award the compensation with interest awardable under section 110-CC of the Act. ( 5. ) THE abovesaid view finds support from a Division Bench decision of High Court of Karnataka in Mohammad Iqbal v. Bhimaiah, 1985 ACJ 546. ( 6. ) THE learned counsel for the appellant has placed reliance on a Single Bench decision of this Court in M. P. S. R. T. C. v. Veer Singh (Misc. Appeal No. 95 of 1984 (G), decided on 13-1-1987, digested as 1987 (1) MPWN 93 ). In that case, award of compensation with interest at the rate of 6% per annum was challenged by the judgment-debtor in appeal. While dismissing the appeal, this Court observed: "it is no doubt true that interest is not contemplated for the amount of compensation which is payable under section 92-A of the Act, but on that ground alone, the appellant cannot avoid its liability to pay interest. Had he deposited the amount of Rs.
While dismissing the appeal, this Court observed: "it is no doubt true that interest is not contemplated for the amount of compensation which is payable under section 92-A of the Act, but on that ground alone, the appellant cannot avoid its liability to pay interest. Had he deposited the amount of Rs. 15,000/- payable under section 92-A of the Act within a reasonable time and without awaiting for any decision of the Court in that regard, it would have been reasonable on its part to urge that it was not liable to pay any interest on the amount of compensation payable under section 92-A of the Act. However, in the present case, I find that the amount of Rs. 15,000/- was paid during the pendency of this appeal before this Court. Under the circumstances, I do not find any justification for setting aside the award of interest made by the Claims Tribunal on the amount of Rs. 15,000/-directed to be paid under section 92-A of the Act. " The provisions of section 110-CC along with the effect of amendment were not placed before the Court. Even then, this Court upheld the award of interest because of the conduct of the person liable to compensate in delaying payment of compensation on the principle that the victim should be placed in the same position as far as practicable as he would have been placed if the amount of compensation was promptly paid. Hence, the observation made therein that interest is not contemplated for the amount of compensation payable under section 92-A of the Act cannot be read as advancing the contention of the appellant. ( 7. ) THE appeal is, accordingly, dismissed with costs. Counsels fee Rs. 250/-, if certified.