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
| 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
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.
The petitioner's restraint order for payment of compensation should not prejudice the claimants' entitlement to interest on the compensation awarded till the date of actual receipt.
The court can allow modification of an order if both parties agree to the correction.
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....
The necessity of including the Insurance Company in claim proceedings under the Motor Vehicles Act is crucial for valid awards.
In motor accident claims, appellate court may enhance compensation without claimants' cross-objection for justness; however, interest on enhanced portion from judgment date if claimants delayed filin....
The High Court must examine appeals on their merits; an undertaking given under pressure does not preclude rights to challenge an award substantively.
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