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2025 Supreme(Jhk) 382

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Sanjay Kumar Dwivedi, J.
New India Assurance Co. Ltd. - Petitioner
Versus
Manjhli Manjhian @ Manjhli Manjhiain, W/o Late Lai Chand Soren and ors. - Opposite Parties
C.M.P. No. 448 of 2024
Decided On : 11-02-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Manish Kumar, Advocate.
For the Opposite Party :Mr. M.B. Lal, Advocate, Mr. Rajiv Kumar Karan, Advocate.

Court upheld the order requiring timely payment of a compensation award, emphasizing adherence to mediation agreements and the importance of compliance with court orders despite clerical errors.

Headnote:(A) Article 227 of the Constitution of India - Execution of award - Petitioner insurance company challenged the order to pay Rs. 8,07,617/- along with interest at 9% per annum made by District Judge-I-cum-P.O. (MAC), Dhanbad - Delay in payment noted due to errors in claimant’s name - Compromise agreement established a principal amount of Rs. 30 lakhs to be paid within one month, which was not adhered to - Court upheld the order directing timely payment of the award. (Paras 2-6)

(B) Mediation settlement - The court affirmed the importance of adhering to mediation agreements and court orders regarding payment timelines - Delay due to clerical errors was deemed insufficient to justify non-compliance. (Para 5)

Facts of the case:
The petition filed by the petitioner challenged the execution order for the payment of an award which included principal and interest due to delays attributable to name corrections of claimants.

Findings of Court:
The court found that the petitioner had failed to comply with payment timelines set by both the High Court and subsequently agreed mediation terms; thus, the learned court's order was justified.

Issues: The main issues addressed were the reasonability of delaying payment due to clerical errors and the compliance with mediation and court orders.

Ratio Decidendi: The court ruled that non-compliance with payment timelines as per mediation agreements and court orders warranted enforcement of the award without further delay.

Result: Petition dismissed.

Table of Content
1. quashing of payment order under article 227 (Para 2 , 3)
2. agreement to pay and compliance issues (Para 4)
3. court affirms order; no merit in petition (Para 5 , 6)

JUDGMENT :

Sanjay Kumar Dwivedi, J.

Heard learned counsel appearing for the petitioner-insurance company and learned counsel appearing for the opposite party Nos. 1 to 5.

2. This petition has been filed under Article 227 of the Constitution of India for quashing of the order dated 02.02.2024 passed in Execution Case No. 16 of 2019 by the learned District Judge-I-cum- P.O. (MAC), Dhanbad, whereby the learned court has been pleased to direct the petitioner to make payment of Rs. 8,07,617/- along with interest @ 9% per annum within 30 days from the date of order dated 08.05.2023 in terms of order dated 03.08.2018, passed by this Court in M.A. No. 96 of 2010.

3. Mr. Manish Kumar, learned counsel appearing for the petitioner-insurance company submits that the claimants have moved before this court for enhancement of the award in M.A. No. 96 of 2010. He submits that award was already made in favour of the claimants by the learned Tribunal and the insurance company has been directed to pay the awarded amount of Rs. 6 lakhs without interest. He further submits that the said M.A. was allowed by order dated 03.08.2018 and the petitioner was directed to pay the total compensation amount of Rs. 13,79,608/-along with simple interest @ 9% per annum thereon from the date of filing of the claim application till the date of actual payment of the amount, less the amount, if any, paid by the Petitioner to the claimants within three months from the date of receipt/ production of the copy of the order. He then submits that thereafter the petitioner and Respondents agreed to settle the matter before Mediation Centre, Dhanbad on 26.06.2019 vide Misc. Case No. 1130/2019 and it was agreed that the petitioner shall pay a sum of Rs. 30,00,000/- towards the awarded principal amount and interest. He submits that the claimants have filed a petition before the learned court for correcting the name of claimant Nos. 1 and 2 being Civil (Misc.) Case No. 49 of 2019, which was allowed by order dated 18.05.2022. He also submits that after coming to know about the aforesaid order, the petitioner has issued a cheque dated 06.04.2023 amounting to Rs. 28,37,961/- after deducting the TDS in favour of claimants and deposited the same before the Executing Court on 12.04.2023, which was received by the claimants. He submits that the matter was compromised on 22.06.2019 and the total agreed amount was Rs. 30 lakhs and the same was agreed to be paid within one month. He further submits that the delay has occurred as there was spelling mistake in the name of the claimant Nos. 1 and 2 and Rs. Rs. 28,37,961/- after deducting the TDS has already been paid and now the learned court has illegally directed to pay the interest from the date of filing of the claim application till the actual payment. On these grounds, he submits that the impugned order may kindly be set aside.

4. Mr. M.B. Lal, learned counsel appearing for the O.P. Nos. 1 to 5 submits that the High Court has disposed of the M.A. No. 96 of 2010 by order dated 03.08.2018 directing the insurance company to satisfy the award within three months, however, in the compromise, the petitioner has agreed to pay the same within one month. He submits that within the stipulated period, neither in terms of the order of the High Court nor in terms of the compromise, the amount was paid, however, the amount was only paid on 12.04.2023. On these grounds, he submits that the learned court has rightly passed the said order.

5. It is an admitted position that the enhancement case was allowed and disposed of directing the insurance company to satisfy the award to the tune of Rs. 13,79,608/- along with simple interest @ 9% per annum from the date of filing the claim application till the date of actual payment within three months, however, in the meantime, both the

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