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2026 Supreme(Gau) 480

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
ROBIN PHUKAN, J. 
Afazuddin Ahmed, S/o Late Najur Ali – Petitioner 
Versus
Md Rabiul Ali And Ors., S/o Md. Afsar Ali – Respondent 
MACApp./309 of 2017
Decided On : 05-02-2026

Advocates Appeared:
For the Appellant : Mr. N.D. Bhuyan
For the Respondent: Ms. R.D. Mozumdar, Mr. R.C. Paul.

Interest under Section 171 of the Motor Vehicles Act should be awarded from the date of filing of claim until payment, ensuring fair compensation for claimants delayed by legal processes.

Headnote:(A) Motor Vehicles Act, 1988 - Section 171 - Award of interest - Court held that the Tribunal failed to award interest from the date of filing the claim petition despite guidelines provided under Section 171 - Appellant entitled to interest at 9% per annum from the date of filing of claim till payment. (Paras 11.1 and 11.4)

(B) Compensation - The Tribunal ordered compensation amount reduced for contributory negligence of the claimant, leading to deductions. The initial amount of Rs. 3,30,000/- was assessed without adequate consideration of medical expenses. (Paras 5 and 6)

Facts of the case:
The appellant sustained serious injuries due to the negligent driving of an auto rickshaw, resulting in a claim for compensation of Rs. 14,00,000/-. The Tribunal awarded Rs. 2,97,000/- after deducting for contributory negligence. (Paras 3 and 4)

Findings of Court:
The Tribunal was found to have improperly calculated the interest and compensation amounts, failing to consider expenses adequately. (Paras 10 and 11)

Issues: Main questions included the calculation of compensation and awarding of interest for delayed payment of compensation. (Para 5)

Ratio Decidendi: The court determined that interest should be awarded from the claim petition's filing date to ensure fair compensation for the claimant’s loss due to delay. (Paras 11.1 and 11.4)

Result: Appeal partly allowed; interest at 9% directed from the date of filing claim until payment.

Table of Content
1. accident details and injuries sustained by claimant. (Para 4)
2. arguments on compensation assessment and interest. (Para 5 , 6)
3. court's analysis on interest entitlement. (Para 10 , 11)
4. final order on payment of interest and costs. (Para 12 , 13 , 14)

JUDGMENT :

ROBIN PHUKAN, J.

Heard Mr. N.D. Bhuyan, learned counsel for the appellant. Also heard Ms. R.D. Mozumdar, learned counsel for the respondent No. 2; and Mr. R.C. Paul, learned counsel for the respondent No. 3. None appears for the respondent No. 1.

2. This appeal, under Section 173 of the M.V. Act, 1988, is directed against the judgment and award, dated 21.07.2015, passed by the learned Member, Motor Accident Claims Tribunal, Nalbari, in MAC Case No. 9/2008.

3. It is to be noted here that vide impugned judgment and award, dated 21.07.2015, the learned Member, Motor Accident Claims Tribunal, Nalbari (‘Tribunal’, for short) had directed the respondent No. 2/United India Insurance Company Limited to pay a sum of Rs. 2,72,000/-, being the compensation, to the appellant/claimant, within 60 days from the date of award, and also directed that in the event of failing to pay the same, the amount will carry interest @ 6% per annum, which would be calculated from the date of award till final payment.

4. The background facts, leading to filing of the present appeal, are briefly stated as under:

“On 01.05.2007, at about 3 p.m., Md. Afazuddin Ahmed, the appellant/claimant, was standing on the left side of the road, then suddenly one Auto Rickshaw, bearing Registration No. AS-01-J-9792, driven in a rash and negligent manner, knocked him down from the front side. As a result, Afazuddin Ahmed had sustained serious injuries on his person. He was taken to Azara Primary Health Centre, from where he was referred to Gauhati Medical College and Hospital. After two days of treatment at Gauhati Medical College and Hospital, he was shifted to Popular Nursing Home, Patna by his family members and admitted there on 06.05.2007. During the course of treatment at Patna, he had to undergo several operations. And because of the injuries suffered by him, he became disabled. In connection with the accident, one FIR was also lodged with the police, upon which Azara P.S. Case No. 135/07, under Sections 279/338/427 IPC was registered against the driver of the offending vehicle, which was insured with the United India Insurance Company Limited, the respondent No. 2 herein, and the vehicle had a valid insurance coverage at the relevant time.

Thereafter, Afazuddin Ahmed/appellant had instituted one claim petition, seeking compensation amounting to Rs. 14,00,000/-. During the pendency of the said claim petition, the appellant had also filed an amendment claim petition impleading himself as opposite party No. 3, being the owner and driver of the vehicle, bearing Registration No. AS-01-N-3985, and also impleaded the New India Assurance Company Limited, the insurer of his vehicle, being the opposite party No. 4. The respondents/opposite parties had filed their written statement denying their liabilities.

Thereafter, taking evidence of the claimant and his witnesses and after hearing learned counsel for both the parties, the learned Tribunal, vide impugned judgment and award dated 21.07.2015, had assessed the compensation, which the appellant is entitled to, at Rs. 3,30,000/-.

Having assessed the compensation at Rs. 3,30,000/-, the learned Tribunal had directed that 10% of the aforesaid amount shall be deducted on account of contributory negligence, on the part of the claimant/appellant and directed that a sum of Rs. 2,97,000/- shall be paid to the appellant/claimant deducting the amount i.e. Rs.25,000/ which has already been paid to the appellant/claimant as interim compensation. It was further provided that the opposite party No. 2, i.e. the respondent No. 2 herein, shall pay the amount of Rs. 2,72,000/- within a period of 60 days from the date of award i.e. 21.07.2015, and in the event of failing to

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