The main legal point established in the judgment is the need for exercising the discretion of awarding interest judicially and judiciously, and the requirement for objective norms, measures, or standards for granting interest on compensation in accident claims cases.

( 1 ) THE parents of one P. Nagarajaiah, who had died in a motor accident involving a lorry bearing No. CTK 9534 and a bicycle on 26-4-1991 on account of rash and negligent driving by the driver of lorry, have approached this Court for enhancement of compensation which has been quantified by the Tribunal at Rs. 75,000/ -.

( 2 ) THE Tribunal has found that the deceased was a bachelor at the time of accident and his parents were aged about 50 and 45 years respectively. Since there was no conclusive proof about the income of the deceased and the family had 8 acres 35 guntas of agricultural land, his services in agricultural operations and income from milk vending was assessed at Rs. 900/- per month. After deducting 1/3 for personal expenses, Rs. 600/- was taken as contribution to the family. Keeping in view average age of the parents of the deceased and the law laid by the Supreme Court in the cases of G. M. KERALA. S. R. T. C. v. SUSAMMA THOMAS, AIR 1994 SC 1631 and U. P. STATE ROAD TRANSPORT CORPN. v. TRILOK CHANDRA, (1996)4 SCC 362, the Tribunal has adopted the multiplier of 10' for estimating the loss of dependency, which was accordingly assessed at Rs. 72,000/- (600 x 12 x 10 ). Apart from this, the Tribunal has also awarded a sum of Rs. 2000/- towards funeral expenses and Rs. 1000/- towards conveyance. Thus, in all, total compensation of Rs. 75,000/- was awarded with interest at the rate of 6% p. a. to be payable from the date of petition till realisation of the compensation awarded.

( 3 ) SO far as quantification of compensation is concerned, learned counsel appearing for the appellant could not make out any case for enhancement thereof. But his submission is that the rate of interest should have been 12% as against 6% awarded by the Tribunal. In support of his submission, he has relied on the judgment of the Supreme Court in the cases of CHAMELI WATI v. DELHI MUNICIPAL CORPORATION, AIR 1986 SC 1191, (Pr. 2) JAGBIR SINGH v. G. M. PUNJAB ROAD WAYS, AIR 1987 SC 70, (Prs. 3 and 4), and HARDEO KAUR v. RAJASTHAN STATE TRANSPORT CORPORATION, AIR 1992 SC 1261, (Pr. 12 ).

( 4 ) IN order to consider the substance of the submission made by the learned counsel for the appellant pertaining to rate of interest, one is immediately required to refer to Sec. 171 of the Motor Vehicles Act, 1988, which corresponds to Sec. 110-CC of the Motor Vehicles Act. 1939. This Section empowers the Claims Tribunal to award simple interest for a given period. It reads thus.-Section 171.- Award of interest where any claim is allowed.- Where any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal may direct that in addition to the amount of compensation simple interest also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf.

( 5 ) THE above statutory provision empowers the Claims Tribunal to award interest in addition to the amount of compensation with restrictions that (i) the interest can be only simple in nature, and (ii) it cannot be for a period earlier than the date of making the claim. Subject to the aforesaid restrictions, discretion has been vested with the Tribunal in relation to rate at which interest has to be paid and the period for which it has to be paid. The outer limit of which has to be necessarily the date of realisation of the amount. But it still needs to be examined as to whether the Tribunal can award interest and that too for a given period at its sweet will or irrationally exercising the statutory discretion vested in it. The binding judicial precedents and principles embodied in Article 14 of the Constitution of india emphatically commands that the statutory or judicial discretion has to be necessarily exercised judicially and judiciously. For exercise of such a discretion in the said manner, there has to be some objective norms, measures or standards with reference to which the discretion of ascertaining rate of interest