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2011 DIGILAW 581 (CAL)

Pramila Shaw v. Oriental Insurance Company Ltd.

2011-04-25

AMIT TALUKDAR, SHUKLA KABIR SINHA

body2011
Judgment Amit Talukdar, J. 1. THIS appeal is simply restricted to the question of grant of interest on the awarded amount. THIS point is now no longer res Integra in view of the Division Bench decision of our Court in the case of Kohinur Begum and Ors. vs. New India Assurance Co. Ltd. and Anr., reported in 2008(2) T.A.C. 711 (Cal.). 2. IT appears in the judgment and order dated 19th June, 2008 under appeal that the learned Judge, Motor Accident Claim Tribunal, 1st Court in M.A.C. Case No. 378 of 2006 did not pass an order in respect of interest save and except applying the default clause. After having heard the learned Counsel for the appellants and the insurance company, we are of the view that since the award has been passed in connection with a proceeding initiated in 2006, it ought to have been visited with a direction for payment of interest. Grant or refusal of interest is pure discretion of a Court in the absence of any statutory embargo. But it is how the discretion is exercised would be the subject-matter for decision before the Appellate Court. No reason for not granting interest has been assigned by the learned Tribunal. 3. WE feel that after all interest being an earning capacity of a person and the claim application having a social purpose it would be appropriate that the awarded amount of Rs.3,29,500/- (Rupees three lacs twenty-nine thousand five hundred) carries an interest at the rate of 8% from the date of filing of the application till the date the claim was finally settled in the manner and proportion as the original compensation has been made. 4. ACCORDING to the learned Counsel for the insurance company the amount of compensation awarded by the Tribunal has already been received by the appellants/claimants. The claim amount of Rs.3,29,500/- is accordingly modified. Interest amount will have to be paid within a period of four weeks from the date of communication of this order. Method of disbursal of the amended amount would be in accordance with the procedure as adopted in the parent order. Thereafter the appellants would withdraw the same from the Tribunal without furnishing any surety.