Debdas Mandal vs National Insurance Co. Ltd.

Indira Banerjee and Sahidullah Munshi, JJ.—Re : C.A.N. 1431 of 2014

On going through the application for condonation of delay and after hearing the learned Counsel for the appellant/petitioner in support of the application, we are satisfied that the appellant/petitioner was prevented by sufficient cause from filing the appeal in time.

The delay of 28 days in filing the appeal is condoned. The application for condonation of delay is, thus, allowed.

The office is directed to register the appeal, if it is otherwise in form.

Re : F.M.A.T. 1362 of 2012

Since the appeal has been filed by the claimant/appellant on the short question of the correctness of the interest awarded by the learned Tribunal, the appeal is also heard and disposed of by treating the same as on the days list, by consent of the parties.

The appeal is against a Judgment and Award dated 29th May, 2012 passed by the Motor Accident Claims Tribunal, Fast Track, 1st Court, Tamluk, Purba Medinipur in M.A.C. Case No. 39/2008/M.A.C. Case No. 299/2007 under Section 166 of the Motor Vehicles Act, 1988.

By the judgement and award under appeal, the claim of the appellant/claimant has been allowed on contest against the respondent/insurer (The National Insurance Company Ltd.) and ex parte against the respondent/owner (Rajdeep Khan) and the claimant has been awarded Rs.7,94,400/-.

The respondent/insurer has been directed to pay to pay the amount of compensation of Rs.7,94,400/- to the claimant within a month from the date of the award, failing which the amount would carry simple interest at the rate of 8% per annum from the date of filing of the claim application.

Mr. Jayanta Kumar Mandal, learned Counsel appearing on behalf of the appellant/claimant submits that the learned Tribunal erred in law in not awarding pendente lite interest. Mr. Mandal submits that no reasons have been assigned for not awarding interest to the appellant/claimant from the date of the application and till satisfaction of the award. The awarded amount has been received in full.

The issues involved in this appeal are covered by a Judgment and Order dated 27th March, 2014 of this Bench in F.M.A. 1352 of 2013 with C.A.N. 12464 of 2013 (Sri Suman Khawas & Ors. v. The National Insurance Co. Ltd. & Anr.)

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. 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 the instant case the award was passed on 29th May, 2012. In our view, there was no reason to deprive the appellant/claimant of pendente lite interest. No reasons have, in any case, been disclosed. We thus hold that the appellant/claimant would be entitled to interest at the rate of 8% per annum, as awarded by the learned Tribunal, from the date of submission of the claim application till full liquidation of the awarded amount, but as per reducing balance, if applicable.

The judgement and award under appeal is modified only to the extent indicated above. The interest shall be computed and deposited in the Court below within six weeks from the date of receipt of a certified copy of this order.

The appeal is, thus, disposed of.

Urgent certified photostat copy of this order, if applied for, be supplied to the learned Advocates appearing for the parties, subject to compliance with all requisite formalities.