United India Insurance Company Ltd., Dungarpur vs Motor Accident Claims Tribunal, Dungarpur and Others

Sangeet Lodha, J.—This writ petition is directed against order dt. 20.06.07 of the Motor Accident Claims Tribunal, Dungarpur passed in Civil Misc. Application No. 17/05, whereby the petitioner has been directed to make payment of interest to the respondents-claimants @ 9% instead of 6% in terms of award dt. 19.02.04 passed by the tribunal in Claim Case No. 176/ 99. With the consent of learned counsel appearing for the parties, the matter is finally heard at this stage.

The claim petition filed by the respondents-claimants was decided by the tribunal vide judgment and award dt. 19.2.04, whereby compensation of Rs. 17.09,800/- was awarded in favour of the respondents-claimants along with interest @ 6% per annum from the date of award i.e. 21.07.1999 till the date of payment. It was further directed that the amount shall be paid within a period of 60 days failing which the interest shall be payable @ 9% per annum.

The amount awarded by the tribunal was deposited by the petitioner-Company on 28.4.04, calculating interest payable @ 6%.

The respondents-claimants preferred an application claiming interest on the awarded amount @ 9% in as much as the amount was not deposited by the petitioner-Company within stipulated period in terms of the award. The application preferred has been allowed by the tribunal by the order impugned. Hence, this petition.

Learned counsel for the petitioner submitted that on account of some inadvertent mistake or the part of the counsel appearing for the petitioner-company, the awarded amount could not be deposited within the stipulated period. It is submitted that cheque of amount of compensation was prepared on 8.4.04, which was received by the counsel on 19.04.2004, however, the same was deposited on 28.04.2004 i.e. with delay of 8 days and, therefore, ignoring the bona fide lapse, the tribunal was not justified in directing payment of interest @9% instead of 6% in terms of the award dt. 19.02.04.

Indisputably, the award dt. 19.2.04 passed by the tribunal has attained finality and, therefore, the amount of compensation alongwith interest in terms of the award was required to be deposited within a period of 60 days.

It is to be noticed that payment of compensation by cheque alleged to have been made on 8.4.04, was not deposited by the petitioner-company until 28.4.04. There is nothing on record to show that the cheque was received by the counsel appearing for the petitioner-company on 19.4.04. Be that as it may, in terms of the award passed by the tribunal, the respondents-claimants are entitled for interest @ 9% per annum in as much as the amount of compensation has not been paid within stipulated period. The order impugned passed by the tribunal is in conformity with the terms of the award and, therefore, no case for interference by this Court in exercise of its supervisory jurisdiction under Article 227 of the Constitution of India is made out. The writ petition is, therefore, dismissed.