Andhra Pradesh High Court
Judges : J.B.KOSHY, M.N.KRISHNAN
ORIENTAL INSURANCE CO.LTD. - Appellant
Versus
NIRMALA - Respondent
Decided On : 11/23/2006
W. P. (C) 17446 Of 2006
Motor Vehicles Act – Section 140,166 and 171 – Code of Civil Procedure, 1908 – Order 21 – Rule 1 – execution proceedings – question of applicability of Order XXI of the Code of civil Procedure to execution proceedings before the Motor Accidents Claims Tribunal – Scope of reference is to consider whether dictum laid down in Sobha Mohankumar v. National Insurance Company Ltd –, 2002 (3)KLT 293 requires reconsideration –contention is whether Order 21, Rule 1 of code of Civil Procedure is applicable to execution proceedings of an award passed by Motor Accidents Claims Tribunal and whether Section 171 of act and other provisions bar application of order 21 of CPC and further whether decree holder is entitled to interest on interest –brief facts necessary for disposal of these writ petitions – Held, It is based on theory of no fault liability – When a final award is passed under provisions of Motor Vehicles Act this amount is also included as part of award amount and amount is arrived at – Therefore, award amount granted under Section 140 takes in characteristic of a compensation awarded under M. V. Act – Therefore, it has to be held that total compensation awarded under Section 166 of M. V. Act will carry interest from date of petition or as otherwise specifically mentioned by Tribunal –As preliminary award amount forms part of final award amount, interest has to be worked out on the total amount awarded from date of petition till amount under Section 140 is deposited and thereafter deduct amount awarded u/s. 140 and then calculate interest on balance amount till it is actually received by claimant – Directions issued – Writ petitions disposed of.
( 1 ) THE first three writ petitions mentioned above had been referred by the learned Judge of this Court by his order dated 9th November, 2005. The scope of reference is to consider whether the dictum laid down in Sobha Mohankumar v. National Insurance Company Ltd. , 2002 (3)KLT 293 requires reconsideration. The contention is whether Order 21, Rule 1 of the code of Civil Procedure is applicable to the execution proceedings of an award passed by the Motor Accidents Claims Tribunal and whether Section 171 of the Motor Vehicles act and other provisions bar application of order 21 of CPC and further whether the decree holder is entitled to interest on interest. The brief facts necessary for the disposal of these writ petitions are as follows. O. P. 22527/04 is filed against the order of the Claims Tribunal, Thodupuzha in E. P. 26/02 in OP (MV) 295/89. The executing court held that the costs and interest have to be adjusted first and the contention of the judgment debtor that it has to be adjusted first towards the principal was rejected. In O. P. 22528/04 the executing Court passed a very similar order and held that the part payments made by the judgment debtor, Insurance Company has to be adjusted towards the interest and then towards principal in that order. In O. P. 17731/05 also the Court held that the same principle has to be followed. In OP (MV) 2749/95 against which W. P. No. 17446/06 is filed, the Motor Accidents Claims Tribunal had taken the same view and arrived at a figure as per the provisions of Order XXI of the cpc. So, the points that arise for determination are;
(1) Whether Order XXI of the Code of Civil procedure is applicable to the execution proceedings before the Motor Accidents Claims tribunal and whether the decision of the apex Court in Prem Nath Kapur v. National fertilizers Corporation of India Ltd. , 1996 (2) SCC 71 would bar such an approach? (2) Whether the claimants are entitled to get interest on interest? And (3) What will be the position with respect to the interim award passed by the Tribunal and deposited by the judgment debtor? (4) What will be the position with respect to the amount deposited u/s. 173 of M. V. Act which is a condition precedent to prefer an appeal? point No. 1:
( 2 ) THIS question deals with the question of applicability of Order XXI of the Code of civil Procedure to execution proceedings before the Motor Accidents Claims Tribunal. The learned Judge of this Court in the case reported in Sobha Mohankumar v. National insurance Company Ltd. , (2002 (3) KLT 293)held as follows :
"the provisions of O. XXI R. 1 are applicable so far as execution of awards of the tribunals, are concerned. The amount deposited by the Insurance Company has to be appropriated in accordance with the procedure contemplated under O. XXI, R. 1 CPC o. XXI, R. 1 (1) deals with the modes of payment of decree amount. Deposit of decree amount before Court is one of the modes contemplated by Sub -. R. (1) (a ). Sub-R. (3) (c)says that when decree amount is deposited in Court, such deposit shall disclose the number of the original suit; name of parties, the manner in which the money remitted is to be adjusted i. e. , whether towards principal or towards interest or costs etc. Hence when deposit is made, it should disclose the manner in which the deposit should be appropriated. If no such statements are there disclosing the manner in which it has to be adjusted, the amount deposited has to be appropriated towards interest and costs first and then towards principal. Since the Insurance Company has not specified the manner in which the deposits were to be appropriated when deposits were made and as the decree holder had not agreed to the same. Hence, the amount deposited will have to be appropriated first towards the interest and thereafter towards the principal. The Tribunal had appropriated the deposits towards principal and thus committed an error. The calculation of interest and the amount menti
REFERRED TO : National Insurance Company Ltd. v. Keshav Bahadur
Rajasthan State Road Transport Corpn., Jaipur v. Poonam Pahwa
Urban Improvement Trust, Jodhpur v. Gokul Narain and another
REFERRED TO : Meghraj v. Bayabai
P.S.L. Ramanathan Chettiar v. Ramanathan Chettiar
Distinguished on : Prem Nath Kapur v. National Fertilizers Corporation of India Ltd.
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