JUDGMENT

SEN, J. :- Leave granted.2. This case has arisen out of an insurance claim made by Narendra Pandurang Kadam. Narendra was a bright student studying Industrial Electronics. He stood first in his class and fourth in the college. He was physically fit and a sportsman. On 18-5-1980, at about 6 a.m., Narendra was travelling with one Sunil David on motorcycle bearing No. GDC-7526 along Afonso de Albuquerque Road, Panaji, Goa. When the motorcycle carrying the claimant and his companion had reached a road crossing the bus No. GDC-1574 driven by the Alisaheb Appasaheb Nadar, belonging to Ashok Vishwanath Naik came from the Western section of Albuquerque road, and collided with the motorcycle. As a result of which Narendra sustained serious injuries.

3. Narendras case is that the accident was due to rash and negligent driving on the part of the driver of the bus. He was plying the bus at very High speed, and was unable to control the vehicle at the inter-section. After the accident the motor cycle was dragged to a considerable distance before the bus could be stopped. As a result of the accident, Narendra sustained fracture of the bone in the left leg resulting in permanent shortening of the leg, disability of the right index finger, fracture of the 6th and 7th ribs, loss of vision of both eyes with 100% disability and one of his kidneys had to be removed. The bus was insured with United India Insurance Company Ltd., the appellant herein.

4. Narendra lodged a claim for compensation before the Motor Accident Claims Tribunal, Panaji, Goa. The claim was for Rs. 6,25,000/-. The claim was lodged after more than two years. A preliminary point of limitation was raised by the bus driver, the owner of the vehicle and the Insurance Company. The preliminary objection did not succeed. The Tribunal after a review of the evidence produced before it held that the claimants had proved that the accident was due to rash and negligent driving on the part of the driver of the bus. The Tribunal found that the claimant had been hospitalised at Goa Medical College for three months for treatment of injuries suffered by him. Having regard to the injuries suffered by the claimant, the Tribunal held he was entitled to a compensation of Rs. 1,50,000/-.

5. Aggrieved by the order of the Tribunal, Narendra preferred an appeal to the Bombay High Court. A Division Bench of the Bombay High Court upheld the finding of the Tribunal that the accident was due to rash and negligent driving by the bus driver. The cross-objection filed by the Insurance Company was dismissed. After taking into consideration the prospect of the appellant in life and his potential earning capacity before the accident, it observed that the injuries sustained by the appellant, unfortunately, left him completely disabled and his life, hence-forth, will be miserable. Therefore, the pain and agony, loss of amenities in life and permanent disability, as well as the necessity to provide for future expenses incidental to the injuries sustained, fully justify a higher compensation. The compensation was enhanced from Rs. 1,50,000/- to a total of Rs. 2,70,000/- with interest at the rate of 12 per cent. per annum from the date of the accident till actual payment. This compensation had to be paid jointly and severally by the respondents. Costs were to be paid by the respondents.

6. The Insurance Company has now come up in appeal before this Court. On 17th July, 1987 an order was passed condoning delay of 330 days in preferring this appeal and also directing issue of notice to the respondents. The notice was confined to only one question i.e. whether the direction issued by the High Court relating to the payment of interest was in conformity with Section 110-CC of the Motor Vehicles Act. The appellant was directed to pay Rs. 1,000/- by way of cost to the respondent within two weeks.

7. The contention of the appellant is that a Court or a Tribunal cannot allow interest from a date earlier than the date of