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1989 Supreme(Del) 305

High Court Of Delhi
KANTA - Appellant
Versus
JASWANT SINGH - Respondent
First Appeal Order 159 of 1989
Decided On : 08/14/1989

Advocates Appeared:
B.R.SABHARWAL, O.P.GOYAL, Y.D.NAGAR

The grant of interest on compensation is a discretion vested in the court, to be exercised judicially based on the facts and circumstances of a particular case.

Headnote:

Interest - Compensation - The court exercised its discretion not to allow interest on the compensation awarded, considering the delay caused by the claimants and the fact that the awarded compensation met the ends of justice.

Fact of the Case:

The Tribunal awarded compensation to the appellants after accepting evidence of the deceased's income. The Tribunal did not allow interest on the compensation due to delay caused by the claimants.

Finding of the Court:

The court found that the delay in the disposal of the claim was due to the claimants and that the awarded compensation met the ends of justice, thus exercising its discretion not to allow interest on the compensation.

Issues: The issue was whether interest should be allowed on the awarded compensation due to delay in disposal of the claim.

Ratio Decidendi: The court held that the grant of interest is a discretion vested in the court, to be exercised judicially based on the facts and circumstances of a particular case. In this case, the delay caused by the claimants and the adequacy of the awarded compensation influenced the court's decision not to allow interest.

Final Decision: The court dismissed the claim for interest on the compensation awarded.

MALIK, J.

( 1 )

( 2 ) BY a speaking order dated 7th of July 1989, this court for the reasons given in that order, issued notice to the other side restricted to the question of payment of interest. Arguments were advanced today in this regard. The Tribunal awarded a sum of. Rs. 1,20,0001- as compensation, to the appellants. This was done after accepting the evidence of the appellant regarding the income of the deceased. The Tribunal held that the income of the deceased was Rs. 742. 60 per month and the dependency was held to be at Rs. 500. 00 per month. The deceased was about 30 years of age at the time of the death and keeping that fact in view a multiplier of 20 was applied and the awarded figure was arrived at Rs. 1,20,0001 -. The Tribunal d:d not allow interest on the facts and circumstances of this case. Mr. Goyal, learned counsel for the appellants, has today invited my attention to Chameli Wanti and others Vs. Delhi Municipal Corporation and Ors. 1985 A. C. J. 645, a judgement of the Supreme Court. Mr. Goyal s reading is that this judgement lays a law of universal application that interest must be allowed in all cases come what may. I do not read the judgement in the manner in which Mr. Goyal reads it. All that the Supreme Court has said is that the grant of interest is a discretion vested in the court and according to the well settled principles this discretion must be exerciser judicially on the basis of the facts and circumstances of a particular case. In the present case, it is admitted that the delay caused in the disposal of the claim was due to the claimants. Keeping in view the peculiar circumstances of the case and also keeping in view the fact that the appellant has been allowed a handsome amount , of compensation which, in my view completely meet-, the ends of justice, it would be wrong we of discretion to allow interest in such a case. Dismissed.

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