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2009 Supreme(SC) 1860

SUPREME COURT OF INDIA
D.K. JAIN, H.L. DATTU, JJ.
AMRESH KUMARI – Appellant
Versus
NIRANJAN LAL JAGDISH PD. JAIN AND OTHERS – Respondents
Civil Appeal No. 5777 of 2009 [Arising out of SLP (C) No. 8911 of 2006]
Decided On : 24-08-2009

Important Points

The court ruled that enhanced compensation in a claim petition attracts simple interest at the rate of 9% per annum, calculated from the date of filing the claim petition.

Subject

Civil Law - Motor Accident Claims

Headnote

(A) Compensation - Enhanced compensation - Rate of interest - The appellant is entitled to simple interest @ 9% on the amount of enhanced compensation from the date of filing of the claim petition.

Facts of the case:
An appeal was filed challenging an order regarding the interest payable on the enhanced compensation awarded in a claim petition.

Findings of Court:
The court ordered that simple interest at the rate of 9% shall be paid on the amount of enhanced compensation, with the calculation starting from the date of filing of the claim petition.

Issues: Whether the rate and starting point of interest on enhanced compensation deserved modification.

Ratio Decidendi: The court determined that simple interest at 9% per annum is the appropriate rate for enhanced compensation, payable from the date the claim petition was filed.

Result: Appeal allowed.

ORDER

Delay condoned.

Leave granted.

The appeal is allowed and the impugned order is set aside to the extent that the appellant shall be paid simple interest @ 9% on the amount of enhanced compensation from the date of filing of the claim petition. The appeal stands disposed of in the above terms with no order as to costs.

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