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2023 Supreme(Gau) 970

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Nizara Goswami W/o. Lt. Tutul Sarma – Appellant
Versus
United India Insurance Co. Ltd. and 2 Ors. – Respondents
WP(C) 7117 of 2017
Decided on : 11-08-2023

Advocates:
Advocate Appeared:
For the Appellant :Mr. R. K. Talukdar, Advocate:Mr. H. J. Tamuli, Advocate
For the Respondent:Mr. Shisir Dutta, Sr. Advocate:Mr. S. Dutta, Advocate

The main legal point established is that the amount already paid pursuant to an interim order should not be considered while computing interest, as per the principles established in Gurpreet Singh Vs. Union of India (2006) 8 SCC 457.

Headnote:

MAC Appeal - Motor Accident Claims Tribunal - 20.08.2013 - 9% interest, 12.11.2016 - Gurpreet Singh Vs. Union of India (2006) 8 SCC 457 - Interim order adjustment

Fact of the Case:

The petitioner sought compliance with an order for payment of balance compensation. The respondent insurance company had deposited an amount in compliance with an interim order, and the petitioner claimed entitlement to a further amount.

Finding of the Court:

The court analyzed the interim order, the award, and the subsequent directions. It found that the amount already paid should not be considered while computing interest. The court allowed the petition and directed the respondents to deposit the balance amount with interest and costs.

Issues: Compliance with the order for payment of balance compensation, interpretation of the interim order and its impact on interest calculation.

Ratio Decidendi: The court held that the amount already paid pursuant to an interim order should not be considered while computing interest, following the principles established in Gurpreet Singh Vs. Union of India (2006) 8 SCC 457.

Final Decision: The petition was allowed, and the respondents were directed to deposit the balance amount with interest and costs within 60 days.

JUDGMENT :

1. The instant writ petition has been filed seeking a direction that the order dated 12.11.2016 passed in MAC Appeal No.50/2015 by this Court be complied with and also seeking a direction upon the Respondents i.e. the United India Insurance Company Ltd. and its officials to pay the balance amount to the Petitioner.

2. It reveals from the records that an award was passed on 20.08.2013 in MAC Case No.230/2009 by the Member, Motor Accident Claims Tribunal, Sonitpur, Tezpur whereby an amount of Rs.19,27,548/-was arrived at as the just and reasonable compensation and it was further directed that the said amount of Rs.19,27,548/-would carry an interest @ 9% per annum from the date of institution of the case i.e. on 07.07.2009 till realization. Further to that, an amount of Rs.1,000/- was also imposed as cost.

3. It appears that the Respondent No.1 filed an appeal before this Court being MAC Appeal No.50/2015 i.e. almost after 2 (two) years from the passing of the said award. The said appeal was admitted and there was a direction to deposit 50% of the said awarded compensation. In terms with the said directions, the Respondents herein who were the Appellants in MAC Appeal No.50/2015 deposited an amount of Rs.12,00,000/-. The matter was placed before the Lok Adalat held on 12.11.2016. In the said Lok Adalat the following order was passed which is reproduced hereinunder:

    “Mr. A.N. Das, Manager, United India Insurance Co. Ltd., Guwahati Regional Office is present. So also, Smt. Nizara Goswami, respondent No.1 /claimant.

The Insurance Company has filed this appeal challenging the legality and validity of the judgment and award dated 20.08.2013 passed by the Member, Motor Accident Claims Tribunal, Sonitpur in MAC Case No.230/2009 awarding compensation of Rs.19,27,548.00 with interest @ 9% per annum from the date of institution of the case.

Mr. Das, the Manager, submits that an amount of Rs.12,00,000/(twelve lakhs) has been paid to the claimant till date.

On proper instruction, he submits that in the spirit of the Lok Adalat, Insurance Company is willing to withdraw the appeal. However, he submits that the amount already paid by the Insurance Company should be deducted while computing the interest amount.

In view of the fair submission made, this appeal is disposed of on withdrawal on the following terms. The balance amount shall be deposited by the Insurance Company in the Registry of this Court within 30 days from today whereafter claimant would be entitled to collect the said amount on proper identification. It is made clear that the amount already paid to the claimant would not be taken into consideration while computing the interest amount.

Appeal is disposed of.”

4. Pursuant to the said order, an amount of Rs.11,50,000/-was paid to the Claimant/Petitioner in the month of March, 2017 which as per the Respondents is the full and final settlement pursuant to the order dated 12.11.2016. It was the case of the Petitioner herein that the Petitioner is entitled to a further amount of Rs.8,12,100/-which was not paid in terms with the order dated 12.11.2016 and as such the Petitioner had represented before the Respondent No.2 vide the communications dated 05.06.2017 and 15.06.2017. As nothing was done on behalf of the Respondents, the instant writ petition has been filed.

5. It appears from the records that this Court vide an order dated 20.11.2017 had issued notice making it returnable by 4 (four) weeks. In pursuance to the said notice, an affidavit-in-opposition was filed by the Respondent Nos. 1 and 2. In the said affidavit-in-opposition, it was mentioned that one Mr. A. N. Das, the Officer who represented the Insurance Company had submitted that the appeal may be settled provided the amount already paid to the Claimant of Rs.12,00,000/-would not be taken into consideration while computing the interest amount. In paragraph No.5, it was

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