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Madhya Pradesh High Court · body

1994 DIGILAW 702 (MP)

National Insurance Co. Ltd. v. Tara

1994-09-20

T.S.DOABIA

body1994
JUDGMENT The only challenge made by the petitioner in this petition under Article 227 of the Constitution of India is to the grant of interest of the interim compensation payable under section 140 of the Motor Vehicles Act, 1988. The contention of the learned counsel for the petitioner is that the payment of no fault compensation is only an interim measure and it does not finally adjudicate upon the rights of the litigants. It has further been argued that if ultimately a person claiming benefit of section 140 of the Act referred to above is not found entitled to any compensation then the amount is refundable. The learned counsel appearing for the insurance company has placed reliance on a decision given by the Rajasthan High Court in the case of Dhapa Kanwar and others v. Kishanlal and another, 1992 ACT 163. The Rajasthan High Court observed as under: "There being no provision in the Act, no interest is awardable. The Tribunal has power only that which was conferred on it. It was not a Court acting while deciding a claim petition to which Code of Civil Procedure applied and interest could be awarded under section 34 of the same. The legislature does not, to my mind, have any intention to award interest in these proceedings inasmuch as it was a provision made for giving immediate relief to the claimants and it was not thought appropriate that provision for payment of interest should also be made. Payment of no fault compensation being interim measure, it does not govern the rights of the parties fully and finally. Ultimately, the liability of payment of interest would be decided by the Tribunal at the time of passing of a final award. At that time it would make an appropriate order for payment of interest on the sum which is paid by way of no fault compensation also." No decision to the contrary has been cited by the learned counsel for the respondents. The Rajasthan High Court in the case of Dhapa Kanwar (supra) has held that no interest would be payable on the interim amount of compensation payable under section 140 of the Motor Vehicles Act, 1988. This petition is allowed. The order passed by the tribunal is modified to the extent that the amount will not carry any interest. Security amount, if deposited, be refunded.