Rama and Another vs Budhabhai Raising Thakore and Others

Ravi R. Tripathi, J.—Both these First Appeals are notified ''For Orders''.

In First Appeal No. 2220 of 1999, the remarks shows that Respondent No. 1 is ''unserved'', as ''not residing at given address''.

2.1 On perusal of papers, learned advocate Mr. Mehta for the Appellants requests that he be permitted to delete Respondent No. 1, who is a driver.

3.0 Learned advocate Mr. Niral Mehta for the Appellant in both these First Appeals submitted that both the appeals involve a very short question for consideration of this Court. He, therefore, requested that, taking into consideration the fact that the appeals are of the year 1999, the same may be taken up for Final Hearing. Learned advocate Mr. Nair for Respondent No. 3 - Insurance Company has no objection. Hence, the matters are taken up for Final Hearing.

The learned advocate for the Appellants submitted that the learned Tribunal has committed an error in awarding interest on a part of the amount awarded ''from the date of filing of the Motor Accident Claim Petition'', whereas, on the remaining part of the amount awarded, ''from the date of the award''.

4.1 First Appeal No. 2219 of 1999 arises from the award in Motor Accident Claim Petition No. 424 of 1990, wherein, the learned Tribunal has passed the following order:

The claim petition of the present applicant is hereby partly allowed and all the opponents are hereby directed to pay the compensation to the claimants i.e. Rs. 1,96,000/- along with the proportionate cost and interest as per the following direction:

(i) The opponents do pay the interest at the rate of 12% per annum on Rs. 24,000/ from the date of the filing of the petition i.e. 31.5.90 till this order.

(ii) All the opponents shall pay interest at the rate of 12% on Rs. 1,96,000/- from the date of order till its realization.

4.2. First Appeal No. 2220 of 1999 arises from the award in Motor Accident Claim Petition No. 425 of 1990, wherein, the Tribunal has passed the following order:

The claim petition of the present Petitioners is hereby partly allowed. All the opponents are hereby directed to pay the compensation to the claimants i.e. Rs. 53,000/- along with the proportionate costs and interest as per the following direction:

(i) The opponents do pay the interest at the rate of 12% per annum on Rs. 24,200/ from the date of the filing of the petition i.e. 30.5.90 till this order.

(ii) All the opponents shall pay interest at the rate of 12% on Rs. 53,000/- from the date of order till its realization.

4.3. Learned advocate Mr. Nair for the Respondent - Insurance Company submitted that the learned Tribunal has not committed any error and has rightly awarded interest in two different modes, bifurcating the amount in two different fractions. He also submitted that, in the event, the Court is going to allow the First Appeals, then the Court must take into consideration the present rate of interest and the fluctuations in the rate of interest in the market. The learned advocate submitted that the interest cannot be allowed at the rate of 12% in any case.

Taking into consideration the rival submissions, this Court is of the opinion that the learned Tribunal has committed an error in allowing the interest only on an amount of Rs. 24,000/- ''from the date of filing of petition (Motor Accident Claim Petition) i.e. 31st May 1990 till the date of award'' in First Appeal No. 2219 of 1999 (Motor Accident Claim Petition No. 424 of 1990) and awarding interest only ''from the date of order till realization'' on an amount of Rs. 1,96,000/-. Similarly, on an amount of Rs. 24,200/- ''from the date of filing of petition (Motor Accident Claim Petition) i.e. 30th May 1990 till the date of award'' in First Appeal No. 2220 of 1999 (Motor Accident Claim Petition No. 425 of 1990) and awarding interest only ''from the date of order till realization'' on an amount of Rs. 53,000/

5.1 The distinction, which is sought to be drawn by the learned Tribunal is not in accordance with law. It is only in the event, the amount is payable towards expenses, which are to be incurred in future then, the interest is not to be allowed from the date of filing of the claim petition. Otherwise, the claimant is entitled to interest on the entire amount of award from the date of filing of the claim petition till the amount is realized.

5.2 Accordingly, the judgment and award in both the Motor Accident Claim Petitions i.e. Motor Accident Claim Petition Nos. 424 of 1990 and 425 of 1990 are modified and it is ordered that all the opponents shall pay interest on Rs. 1,96,000/- from the date of filing of the claim petition No. 424 of 1990 i.e. 31st May 1990 and on Rs. 53,000/- from the date of filing of the claim petition No. 425 of 1990 i.e. 30th May 1990 till its realization. However, the interest rate is reduced from 12% to 9%.

6.0 The First Appeals are accordingly allowed.