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1996 Supreme(Ori) 264
IN THE HIGH COURT OF ORISSA
S.N. Phukan, J.
NEW INDIA ASSURANCE CO. LTD. - APPELLANT
Versus
RADHA BEWA AND OTHERS - RESPONDENT
M.A. No. 342 of 1996
Decided On : 01-11-1996
Interest for no-fault liability may be awarded at the time of the final award.
Headnote:
Interest - Motor Accidents Claims Tribunal - The court set aside the award of interest on the compensation for no-fault liability, stating that interest may be awarded at the time of the final award.
Fact of the Case:
The New India Assurance Co. Ltd. appealed against the order of the Fourth Motor Accidents Claims Tribunal, which had awarded a compensation of Rs. 25,000 for no-fault liability with interest at the rate of 12 per cent per annum.
Finding of the Court:
The court set aside the award of interest, stating that interest may be awarded at the time of the final award. The court directed the transmission of the deposited amount to the tribunal and required the balance amount to be deposited within fifteen days.
Issues: The issue was the awarding of interest on the compensation for no-fault liability by the Motor Accidents Claims Tribunal.
Ratio Decidendi: The court held that interest for no-fault liability may be awarded at the time of the final award, and therefore set aside the award of interest in the present case.
Final Decision: The court disposed of the appeal by setting aside the award of interest and directing the transmission of the deposited amount to the tribunal, with the balance amount to be deposited within fifteen days.
JUDGMENT :
S.N. Phukan, C.J. - This is an appeal filed by the New India Assurance Co. Ltd. against the order of the learned Fourth Motor Accidents Claims Tribunal, Puri, passed in M.A.C.T. Misc. Case No. 376/639 of 1994/1993. By the impugned order, the learned Tribunal has awarded a compensation of Rs. 25,000/- for no fault liability with interest at the rate of 12 per cent per annum from the date of the claim, i.e., 1.11.93, till payment. Being aggrieved by the order awarding interest, the present appeal has been filed.
2. Heard the learned Counsel for the appellant.
3. In respect of no fault liability, the question of awarding interest does not arise, as interest may be awarded at the time of final award. Therefore, that portion of the impugned order awarding interest is set aside. As it is stated that a sum of Rs. 12,500/- has been deposited in this Court at the time of filing of this appeal, the said amount shall be transmitted by the Registry to the learned Tribunal and the balance amount out of Rs. 25,000/- shall be deposited within fifteen days. Hence, the misc. appeal is disposed of accordingly.
