United India Insurance Company Limited vs Manoj Verma and Others

Hemant Gupta, J.—The challenge in the present revision petition is to the order passed by the learned Executing Court on 10.6.2002, whereby the objections filed by the petitioners regarding computation of amount due and payable to the respondents, were dismissed.

The learned Tribunal awarded a sum of Rs. 2,42,000/- inclusive of interest and interest @ 12% on a sum of Rs. 2,02,000/- i.e., principal, from the date of Award (wrongly mentioned as from the date of petition) till realization, vide Award dated 13.6.1986,

In appeal, the Award was modified and a sum of Rs. 3,60,000/-was awarded to the claimants along with interest @ 15% p.a., from the date of filing of the claim petition till realization.

As per the claimants, they are entitled to the amount of Rs. 3,66,000/- and interest from the date of filing of the claim petition and that the amount as and when paid by the Insurance Company is to be adjusted towards the interest first. The issue whether the part payment by a Judgment Debtor, is required to be adjusted towards the payment of interest in the first instance, has been examined by the Hon''ble Supreme Court in Gurpreet Singh Vs. Union of India (UOI), , wherein the principle of adjustment of the decretal amount in parts, has been explained in detail.

In view of the said judgment, I am of the opinion that the calculations carried out by the learned Executing Court, cannot be sustained. The same is required to be redone in view of the principles laid down in the above judgment.

Consequently, the impugned order dated 10.6.2002 is set aside. The learned Executing Court is directed to recalculate the amount payable by the Insurance Company, in view of the judgment of the Supreme Court in Gurpreet Singh''s case (supra).