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Calcutta High Court · body

2015 DIGILAW 583 (CAL)

Manju Majumder v. National Insurance Company Limited

2015-07-16

INDIRA BANERJEE, SAHIDULLAH MUNSHI

body2015
JUDGMENT : The short question in this appeal is whether the learned Tribunal should have denied the claimant appellant pendente lite interest and awarded interest only in case of default. 2. 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. 3. 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. Interest cannot, however, be granted from any date prior to the date on which the claim application had been filed. 4. However, having regard to the principles of equality envisaged under the Constitution of India, there should be some uniformity in the principles for grant of interest in motor accident claim cases. Similarly circumstanced claimants should not be treated differently in awarding interest. In our view, this is imperative for the ends of justice and also to inspire faith and confidence of litigants in the impartiality of the judicial system. 5. The Tribunal having 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 compensation offered is not accepted, or when disposal of the claim application has been delayed due to reasons attributable to the claimants. The examples are illustrative and not exhaustive. In any case, when the Tribunal denies any claimant pendente lite interest from the date of filing of the claim application, it is imperative that the award in respect of interest should be supported by some reasons. In this case, the learned Tribunal has not assigned any reasons at all for denying the appellant claimant pendente lite interest. 6. We are of the view that interest at the rate of 8% per annum as directed by the learned Tribunal should have been awarded from the date of submission of the claim application till full liquidation of the amount awarded, calculated as per reducing balance. 7. 6. We are of the view that interest at the rate of 8% per annum as directed by the learned Tribunal should have been awarded from the date of submission of the claim application till full liquidation of the amount awarded, calculated as per reducing balance. 7. We hold that the petitioner shall be entitled to interest at the rate of 8% per annum from the date of submission of the claim application till full liquidation of the awarded amount, but as per reducing balance, if applicable. 8. Our attention has been to a patent error in the operative part of the judgment and award under appeal, which reads as under: “ Hence, it is ORDERED that the case is allowed on contest against the O.P./Insurance Company and dismissed exparte against the O.P./owners without cost. The O.P./Insurance Company is directed to pay Rs.12,00,000/- to the claimant within two months from this date of the order, in default, the claimant will be entitled to get interest at the rate of Rs.8% per annum on Rs.12 lakhs from the date of filing of this case till realization. ” 9. When the case was allowed on contest against the O.P. Insurance Company, it could not possibly have been dismissed ex parte against the O.P./owners. It is obvious that the owners and the insurer are jointly and severally liable. Possibly, by reason of a typographical error, “dismissed” has been typed in place of “allowed ex parte”. It would be open to the parties to get the order rectified by the learned Tribunal. 10. The appeal is, accordingly, disposed of.