Branch Manager, The Reliance General Insurance Co. Ltd. v. Premakka @ Prema W/o Late. A. D. Chandraiah
2020-03-05
S.R.KRISHNA KUMAR
body2020
DigiLaw.ai
JUDGMENT : 1. This appeal by the appellant-Insurance Company is directed against the impugned judgment and award dated 02.01.2017 passed in MVC No.489/2014 by the Court of Prl. Senior Civil Judge and CJM, Chitradurga, whereby the Tribunal awarded compensation of Rs.6,61,000/towards the death of one Chandraiah who died in a fatal road traffic accident that occurred on 20.09.2013. 2. Though the matter is listed for orders, with the consent of the learned counsel for the appellant, the matter is taken up for final disposal. 3. Learned counsel for the Insurance company submits that the Tribunal committed an error in fastening the liability to pay compensation upon the Insurance Company without appreciating the fact that the offending vehicle in question did not possess the requisite permit to be driven at the place of occurrence of the accident. He further contended that the interest awarded by the Tribunal @ of 9% p.a. is highly excessive and the same may be reduced to 6% p.a. It is therefore contended that the impugned judgment and award passed by the Tribunal in fastening the liability on the Insurance Company to pay compensation deserves to be set aside. 4. Per contra, learned counsel for the respondents-claimants would support the impugned judgment and award passed by the Tribunal. 5. Insofar as the contention urged on behalf of the Insurance Company with regard to the liability to pay compensation on the ground that the vehicle in question did not possess a valid permit at the place of occurrence of the accident is concerned, in the light of the judgment of the Hon’ble Apex Court in Amruth Paul Singh & Anr. vs. Tata AIG General Insurance Co., Ltd., & Others (2018 AIAR (Civil) 713) and Rani & Others vs. National Insurance Company Ltd., & Ors. (2018 AIAR (Civil) 829) the said contention is hereby rejected. 6. However, learned counsel for the Insurance Company is correct in submitting that the interest payable @ 9% p.a. is excessive and the same deserves to be reduced by this Court. 7. Accordingly, I pass the following order: (i) The appeal is partly allowed. (ii) The impugned judgment and award dated 02.01.2017 passed by the Court of Prl. Senior Civil Judge and CJM, Chitradurga in MVC No.489/2014 is hereby modified. (iii) The quantum of compensation awarded by the Tribunal is confirmed.
7. Accordingly, I pass the following order: (i) The appeal is partly allowed. (ii) The impugned judgment and award dated 02.01.2017 passed by the Court of Prl. Senior Civil Judge and CJM, Chitradurga in MVC No.489/2014 is hereby modified. (iii) The quantum of compensation awarded by the Tribunal is confirmed. However, the claimants-respondents are entitled to interest at 6% p.a. as against 9% p.a. which is awarded by the Tribunal. (iv) Liberty is reserved in favour of the appellant-Insurance Company to pay the compensation in favour of the claimants-respondents and recover the same from Sri.N.Ramesha, 3rd respondent owner of the offending vehicle. (v) The amount in deposit is directed to be transferred to the Tribunal for disbursement.