Dashi Sardar v. Oriental Insurance Company Limited
2014-06-25
INDIRA BANERJEE, MRINAL KANTI CHAUDHURI
body2014
DigiLaw.ai
JUDGMENT On going through the application for condonation of delay and after hearing learned Counsel for the parties, we are satisfied that the appellant was prevented by sufficient cause from filing the appeal within time. The delay of 112 days in filing the appeal (as per report of the Stamp Reporter) is condoned. The appeal be registered and proceeded with. The application for condonation of delay being C.A.N. 9351 of 2013 is, thus, allowed. Since the appeal is restricted to the issue of legality of the interest awarded by the learned Tribunal, by consent of the parties the same is treated as on day’s list and disposed of on the basis of the papers on record. The claimant/appellant contended that the learned Tribunal erred in awarding simple interest at the rate of 8% from the date of filing of the case till the date of realization of entire amount, only in the event of default in payment of the awarded amount within the time stipulated in the award. The appellant does not question the rate of interest. The appellant, however, contends that she has wrongfully been denied pendente lite interest. Section 171 of the Motor Vehicles Act 1988 provides that where the Tribunal allows a claim application under the said Act, the Tribunal might direct that in addition to compensation, simple interest should be paid at such rate and from such date not earlier than the date of making the claim application, as the Tribunal might specify. It is true that the Tribunal has absolute discretion to determine the rate of interest and also the date from which such interest would be payable, subject to the condition that interest cannot be granted from any date prior to the date of preferring the claim application. However, having regard to the principles of equality envisaged under the Constitution of India, it is not desirable that similarly circumstanced claimants should be treated differently in the matter of awarding interest. In our view, there should be some uniformity in the principles for grant of interest in motor accident claim cases. This is imperative for the ends of justice and also to inspire faith and confidence of litigants in general in the impartiality of the judicial system. The Tribunal has expressly been conferred with the power to grant interest from the date of filing of the claim application.
This is imperative for the ends of justice and also to inspire faith and confidence of litigants in general in the impartiality of the judicial system. The Tribunal has expressly been conferred with the power to grant interest from the date of filing of the claim application. Interest should ordinarily be granted from the date of filing of the claim application, unless there are good reasons for awarding interest from a later date, for example when disposal of the claim application has been delayed due to reasons attributable to the claimants, such as delay in service of notice, repeated adjournments etc. In our view, there was no reason to deprive the appellant claimants of pendente lite interest. No reasons have, in any case, been disclosed. We hold that the claimants were entitled to interest from the date of submission of the claim application till the date of full payment of the awarded amount, as per reducing balance, if applicable. The appellant/petitioner would be entitled to interest at the rate of 8% per annum as awarded by the Tribunal, but from the date of submission of the claim application till full liquidation of the awarded amount, as per reducing balance, if applicable. The judgement and award under appeal is modified only to the extent indicated above. If the awarded amount has not yet been deposited, the same shall immediately be deposited with the learned Tribunal with interest as directed by this order. The appeal is disposed of.