Harbans Kaur and Another vs Joginder Singh and Others

S.P. Kurdukar, C.J.—These three Letters Patent Appeals can be disposed of by this common judgment since issue involved in all these appeals is restricted to the grant of rate of interest.

The learned Single Judge while enhancing compensation in respect of some of the claimants awarded interest @ 12% per annum from the date of application, on the enhanced amount of compensation. As regards others, learned Single Judge did not award rate of interest of 12% per annum. Such of the claimants, who filed cross-objections for enhancement of compensation and the rate of interest and whose cross objections were dismissed, have filed these Letters patent Appeals praying for grant of higher compensation and rate of interest at 121% per annum.

Mr. Gujral, learned Counsel for the appellants, however, urged only one contention that the learned Single Judge has recorded no reasons as to why rate of interest at 12% per annum be denied to the claimants from the date of application.

We have perused the impugned judgment as well as judgment of the Motor Accident Claims Tribunal.

Mr. Sawhney, learned Senior Counsel appearing on behalf of the respondent No. 2, however, urged that grant of interest is purely a discretionary matter and since the learned Single Judge has exercised the discretion in favour of the respondents, no interference is called for. He also urged that having regard to the date of accident and the date of application, the then prevailing rate of interest was 6% per annum and, therefore, grant of 6% interest to the claimants from the date of application was perfectly legal and valid.

After hearing learned Counsel for the parties and after going through the record, we are of the opinion that there is no justification to deny the appellants the same rate of interest i.e. 12% per annum as awarded to the claimants whose compensation was enhanced by the learned Single Judge. It be also noted that the rate of 12% interest was granted by the learned Single Judge only on the enhanced amount. Having regard to the price index of 1986 as also the facts and circumstances of the case, we are of the opinion that interest of justice would be met if the rate of interest is enhanced from 6% to 12% per annum on the amount, of compensation from the date of application. Order accordingly. It is needless to add that the award of the Tribunal as well as order of the learned Single Judge awarding 6% interest from the date of application stand modified accordingly.

Letters Patent Appeals to stand partly allowed as indicated above. No order as to costs.