Oriental Insurance Co. Ltd. vs Tupuri Bala Das and Others

H.K. Sema, J.—This appeal is directed against the Award dated 22.12.97 passed by the learned Tribunal in M.A.C.T. Case No 41/92 awarding Rs. 1,37,400/- to the claimant including Rs. 25,000/- as no fault liability.

I have heard Mr. B.N. Sarmah, learned Counsel for the Petitioner as well as Mr. B Debnath, learned Counsel for the Respondents.

The Tribunal has ordered Divisional Manager, Oriental Insurance Company Limited to pay the entire awarded amount. This appeal has been preferred by the Insurance Company.

At the outset, it is submitted by Mr. B.N. Sarmah that the Appellant is not aggrieved of the quantum of the awarded amount, but they are aggrieved only against the interest. In this view it is not necessary to recite the facts and circumstances leading to the filing of the claim petition.

The tribunal has awarded interest at the rate of 12% per annum from the date of filing the claim (25.11.92) till the payment is made. Although the claim petition was filled on 25.11.92, the award has been made on 22.12.97. It is urged by Mr. Sarmah that the delay in disposing of the MACT case was not caused by the Respondent and they should not be held responsible for the delay in disposing of the MACT for not fault of theirs.

In this connection, Mr. Sarmah has produced a certified true copy of the court proceeding and the same has been perused. To mention only fee instances:

(a) Claim petition was filed on 25.11.92, but the notice was issued to the Respondents for the first time on 15.6.93 fixing 16.7.93 after almost a year.

(b) Than again on 20.4.93, the case was fixed for 10.5.94 and again on 17.5.94 the case was fixed on 21.1.95, than again the case was taken up on 26.6.96.

Also a bare perusal of the order sheet, the delay in disposing of the claim case was due to the irregularities in the order passed by the Tribunal in the order sheets.

A bare perusal of the order sheet, it is very clear that the delay in disposing of the claim petition cannot be attributed to the Respondents/Appellant. In this view, the award of the interest at the rate of 12% per annum from the date of filing till the payment is made was not warranted.

In the result, this appeal is allowed. The award of interest w.e.f. 25.11.92 till the realisation of the awarded amount is hereby set aside while keeping the awarded amount intact. The Appellant is directed to pay the awarded amount in one instalment within a period of two months from today. If the Appellant fail to pay the awarded amount within the stipulated time, the awarded amount shall carry an interest at the rate of 12% per annum from the date the payment is due till the payment is made.

Appellant is allowed to withdraw Rs. 25,000/- deposited before this Registry. Appeal is allowed.