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Judgment
THIS is an application filed by the complainant for execution of the order dated 28th July 2004 of this Commission, by which the Commission had directed as under: In the result, the complaint is partly allowed. The Insurance Company is directed to pay Rs. 12.6 lakh. The complainant is also entitled to have said amount with interest. Admittedly, the complainant applied to the Insurance Company for consequential loss by its letter dated 17.01.1994. Hence, we direct that the complainant would be entitled to recover the said amount with interest at the rate of 9% per annum from 01.02.1994 till its payment.
THE opposite party/United India Insurance Co. Ltd. (in short, the Insurance Company) had challenged the aforesaid order of this Commission before the Supreme Court. By its interim order dated 17.12.2004, the Apex Court inter alia directed the Insurance Company to deposit Rs.5 lakh, without prejudice to the claims involved, before this Commission. Finally, by order dated 20th October 2010, the Apex Court dismissed the Civil Appeal filed by the Insurance Company and further ordered that the amount of Rs.5 lakh deposited by the Insurance Company pursuant to the Apex Courts order dated 17.12.2004 be paid to the complainant together with interest accrued thereon. By our order dated 18th February 2011, a cheque for Rs.29,39,724/- was handed over by the Insurance Company to the counsel for the complainant.
We have heard the learned counsel for the parties. It is agreed by the learned counsel for the parties that the only issue involved in this execution application relates to the methodology of calculation of interest on the amount of Rs.12.6 lakh originally awarded by this Commission by its order dated 28th July 2004. Both the parties have submitted affidavits along with calculations of the amount payable according to their respective understanding of the order.
AFTER going through the two sets of calculations filed under affidavits by the complainant and the Insurance Company, we find that the methodology of calculations of the Insurance Company is correct, inasmuch as it has adjusted the sum of Rs.5 lakh deposited on 31st January 2005 (pursuant to the order dated 28.07.2004 of the Apex Court) against the principal amount awarded, viz., Rs.12.6 lakh and calculated interest on Rs. 7.6 lakh @ 9% per annum with effect from 01.02.2005 to 18.02.2011. The calculation furnished by the complainant takes the total of Rs.12.6 lakh and the interest thereon upto 31.01.2005 and works out interest on the difference of that total and Rs.5 lakh, thus leading to part of the interest being compounded. Compound interest is not permissible under the order sought to be executed. The payment made by the Insurance Company on 18.02.2011 takes into account the sum of Rs. 5 lakh deposited with this Commission on 31.01.2005. Learned counsel for the complainant, therefore, states that this amount (so far lying deposited with this Commission) and the interest accrued thereon may be released to the complainant. Registry is directed to (a) verify the position and, if no disbursement of the said amount has been taken place so far, (b) release the amount of Rs. 5 lakh along with upto date accrued interest thereon to the complainant within one week from the date of this order.
EXECUTION Application No. 34 of 2010 is disposed of in the aforesaid terms.