Baldev Raj vs Oriental Insurance Company Ltd. and Others

Reva Khetrapal, J.—Since only a short point arises in this petition, the matter has been heard with the consent of the parties and decided at this stage.

On the last date of hearing i.e. on 15th September, 2011 a detailed order was passed by me, the relevant portion where of reads as under:

The undisputed facts are that on 06.10.1995 an award in the sum of Rs. 3,36,000/- (including interim award) was passed with interest at the rate of 12% per annum from the date of the filing of the petition. As per the award, a sum of Rs. 1,50,000/- was to be paid by the Insurance Company (the judgment debtor No. 3) with proportionate interest and the remaining amount of Rs. 1,86,000/- was to be paid by the judgment debtors No. 1 and 2 (the driver and the owner respectively). The record shows that the judgment debtor No. 3, which is the Insurance Company had allegedly deposited its share of compensation on 02.02.1996 through cheques of Rs. 2,92,950/-, while the Petitioner - the judgment debtor No. 2 had deposited the principal amount of Rs. 1,86,000/- on 16.09.1996 and on 10.10.1996, he had given a bank guarantee for payment of the interest under orders of this Court. It is not in dispute that the sum of Rs. 2,92,950/- deposited by the Insurance Company was withdrawn by the claimants as and when the same was deposited. It is also not in dispute that the claimants had withdrawn the sum of Rs. 1,86,000/- as and when the same was deposited by judgment debtor No. 2-insured Thereafter, two appeals were filed against the award dated 06.10.1995, one for enhancement of the compensation filed by the claimants, being FAO No. 31/1996, and the other filed by the judgment debtor No. 2 -insured being FAO No. 108/1996 with the prayer that the entire liability be fastened on the Insurance Company (the judgment debtor No. 3). Both the said appeals were decided by a common judgment dated 01.06.2010, whereby and whereunder FAO No. 31/1996 for enhancement of the compensation amount was dismissed and the other appeal being FAO No. 108/1996 was allowed to the extent that the entire liability was fastened on the Insurance Company.

Mr. Goyal, the Learned Counsel for the claimants/the Respondents No. 2 to 5 in the present petition states that a sum of Rs. 5,55,625/- was due and payable to the claimants on 15th December, 2010. It is not in dispute that a sum of Rs. 6,31,225/- was deposited by the Insurance Company on 29.09.2010. It is the contention of the counsel for the Insurance Company that the aforesaid amount was deposited under the belief that the sum of Rs. 1,86,000/- had not been deposited by the insured. It is stated that the aforesaid amount of Rs. 6,31,225/- was returned to the Insurance Company under the orders of the learned Tribunal as the said amount was in excess of the sum due and payable to the claimants. However, the sum due and payable to the claimants remains to be paid till date. Mr. Goyal also claims on behalf of the Respondents No. 2 to 5 that they be held entitled to interest on the sum of Rs. 2,43,000/- which according to him is the amount of interest, which accrued on the principal amount of Rs. 1,86,000/- for the period from 24.10.1985 to 16.09.1996. The said claim is disputed by the Insurance Company. From the above, it is apparent that the Petitioner, who had deposited the sum of Rs. 1,86,000/-, which he was not liable to pay is entitled to the interest thereon from 16.09.1996, i.e. from the date of the deposit till the date of realisation. It is also apparent that the Respondents No. 2 to 5/claimants, who had received the sum of Rs. 1,86,000/- on 16.09.1996, are entitled only to the interest thereon from 24.10.1985, that is, the date of the filing of the petition till 16.09.1996, that is, the date on which the sum of Rs. 1,86,000/- was received by them.

In the first instance the Registry is directed to work-out the interest on the sum of Rs. 1,86,000/- deposited by the Petitioner on 16.09.1996 till date.

List on 21st September, 2011, the date fixed in the connected petition, No. CM(M) No. 1055/2011.

Pursuant to the said order, the Registry of this Court has submitted its calculations. The counsel for the parties have also been heard at length.

In my considered opinion, there is no manner of doubt that in view of the orders dated 01.06.2010 passed by this Court in FAO No. 108/1996 the Appellant/owner shall be entitled to refund of principal amount of Rs. 1,86,000/- deposited by him with interest at the rate of 12% per annum from 16.09.1996 i.e. the date of deposit till its realisation from the Respondent No. 1-Insurance Company. There is also no manner of doubt that the Respondents No. 2 to 5/claimants shall be entitled to interest at the rate of 12% per annum on the amount of Rs. 1,86,000/- for the period 24.10.1985 i.e. the date of the filing of the petition to 16.09.1996 when they received this amount.

In view of the above, parties are directed to appear before the learned Claims Tribunal on 17.10.2011 for settlement/payment of claims.

The petition stands disposed of accordingly.