R.BASANT, N.K.BALAKRISHNAN
National Insurance Co. Ltd. – Appellant
Versus
M. K. Moidu – Respondent
N.K. Balakrishnan, J.
The short question that arises for consideration is whether the direction made by the Tribunal to pay interest at the rate of 12% per annum from the date of petition till the date of realisation, on the appellants' failure to deposit the compensation with interest at 9% within three months from the date of the award is penal in nature and if so whether it is illegal and unsustainable.
2. The learned Tribunal directed that the appellant should deposit the amount deter- mined as compensation with interest at 9% per annum from the date of petition till the date of realisation. The learned Tribunal further directed that if the amount is not deposited within a period of three months from the date of the award, the amount of compensation awarded will carry interest at the rate of 12% per annum from the date of the petition till the date of realisation. The learned counsel for the respondent would submit that there is nothing illegal in the direction so issued by the learned Tribunal, for, the object and purpose of the default clause as aforesaid is to put pressure on the insurance company not to delay but to make them prompt to deposit the amount within the
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