Calcutta High Court (Appellete Side)
Sambhu Nath Sahoo vs The Oriental Insurance Co. Ltd. & Anr on 16 April, 2010
Author: Bhaskar Bhattacharya
Bench: Bhaskar Bhattacharya
1 16.4.2010
ss F.M.A. 1505 of 2009 Sambhu Nath Sahoo Vs. The Oriental Insurance Co. Ltd. & Anr.
Mr. Subir Banerjee Mr. Jayanta Banerjee ... For the appellant Mr. S. Pal ... For the Insurance Co.
This appeal is at the instance of the claimants in proceedings under Section 166 of the Motor Vehicles Act, 1988 and is directed against an award dated 7th January, 2008 passed by the learned Additional District & Sessions Judge, Fast Track, 1st Court, Tamluk, Purba Medinipur in M.A.C. Case No.674 of 2003, thereby awarding a sum of Rs.87,400/- as compensation payable by the Insurance Company.
Being dissatisfied, the claimants have come up with the present appeal.
At the very outset, the learned Counsel for the appellants submits that his clients have received the sum awarded.
The only point taken by Mr. Banerjee, the learned Advocate appearing on behalf of the appellant in this appeal, is that the 2 Tribunal below erred in law in refusing to award any interest on the awarded sum.
After hearing the learned Counsel for the parties and after taking into consideration the provision contained in Section 171 of the Act, we find substance in the contention of Mr. Maity.
In our opinion, in the event the application for compensation succeeds, it is the duty of the Tribunal below to award interest upon the awarded amount from the date of filing of the application till actual payment of the amount at the rate of interest payable by any nationalized bank for the deposit for a period of one year or more. For the unnecessary contest on a genuine claim if the delay occurs in getting compensation, it is the Insurance Company or the owner of the vehicle, as the case may be, is benefited by the delayed disposal of the proceeding and in the process it is the claimants who suffer for the delay. Neither the Insurance Company nor the owner of the vehicle is prejudiced in any way in view of the fact that they have, in the meantime, by investing the awarded amount are capable of earning the amount of interest that would be ultimately awarded by the Court.
We, therefore, modify the award impugned by directing that in addition to the awarded amount, the claimants will also be entitled to get interest at the rate 3 of 8% per annum from the date of filing of the application (8th May, 2003) till actual payment. It is needless to mention that running of interest will stop from the date of deposit of the amount by the Insurance Company.
The Insurance Company is directed to deposit the enhanced amount within a month from date in the Tribunal below in the same manner and proportion as indicated in the award impugned.
Urgent xerox certified copy of this order, if applied for, be handed over to the learned Advocates for the parties within one week from the date of making application upon compliance of all requisite formalities.
(Bhattacharya, J.) (Prasenjit Mandal, J.)