Research › Search › Judgment

J&K High Court · body

2017 DIGILAW 1070 (JK)

Bajaj Allianz General Ins. v. Irshad Ahmed

2017-12-18

R.SUDHAKAR

body2017
JUDGMENT : R. Sudhakar, J. 1. The appellant-Insurance Company is on appeal challenging the award dated 30.10.2014 passed by the Motor Accident Claims Tribunal, Doda. 2. It is a case of accident. On 25.09.2006 claimant-respondent aged 36 years at the time of accident, boarded the ill-fated vehicle bearing registration No. JK06-0791 which was on its way to Dunadi Kishtwar to Doda it met with an accident due to rash and negligent driving of its driver due to which claimant-respondent sustained multiple injuries. He was taken to the Hospital, at Kishtwar and thereafter he was shifted to Doda Hospital, where he remained admitted for three months. His permanent disability has been assessed by the doctor at 60%. He filed a claim petition on 01.10.2007 before the Tribunal (MACT, Doda) seeking compensation which was allowed by the Tribunal on 30.10.2014. The claimant was granted a sum of Rs. 7,90,000/- as compensation alongwith interest @ 8% per annum from the date of institution of the claim petition till its realization. 3. The finding of negligence on the part of the driver of the offending vehicle, the liability of the Insurance Company and quantum of compensation is not seriously disputed by the appellant-Insurance Company. 4. The only plea of the appellant-Insurance Company is that interest @ 8% per annum awarded by the Tribunal is on the higher side. 5. Interest is undoubtedly compensation for delayed payment of the principal compensation amount being awarded by the Tribunal in fatal/injury cases on the basis of well-settled principles for assessment and computation of damages. 6. Section 171 of the Act confers discretion on the Tribunal to award appropriate rate of interest, it reads as under:- "171. Award of interest where any claim is allowed: Where any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf." 7. While exercising discretion for determining the rate of interest to be awarded on the amount of compensation, several factors have to be taken into consideration. While exercising discretion for determining the rate of interest to be awarded on the amount of compensation, several factors have to be taken into consideration. The Tribunal has awarded interest at the rate of 8% per annum on the amount of compensation from the date of filing of the claim petition till realization of the award amount, it is a discretionary relief granted by the Tribunal. However, considering the period of accident and injury, the date of filing of the claim petition the interest rate should be commensurate with precedent RBI parameters as on the date of the award. 8. Thereafter, without disturbing the principal amount of compensation awarded by the Tribunal, considering the prescribed RBI rate of interest the rate of interest in this case is reduced from 8% to 7.5% per annum from the date of institution of the claim petition till realization. However, there shall be no interest on loss of income in future, as in a case of injury. 9. With the aforesaid modification, appeal is allowed as above. 10. MP No. 01/2017 is also allowed.