The Claims Tribunal has wide discretion under Section 110-CC of the Motor Vehicles Act, 1939, to determine the rate and date of interest on compensation. However, this discretion should be exercised in accordance with the sound principle that interest should generally run from the date of making the claim application, unless special circumstances exist to disentitle the claimants to interest from that date.

S.S.SANDHAWALIA, J.

1. The nature and scope of the discretion vested in the Claims Tribunal by S.110-CC of the Motor Vehicles Act, 1939 , to award interest on the compensation allowed is the only meaningful issue which falls for determination in this appeal under Cl. X of the Letters Patent.

2. The facts deserve notice only in so far as they are relevant to the issue aforesaid. Dewan Ranbir Singh, father of the appellants, whilst travelling in his car collided with a milk tanker on March 31, 1965 resulting in his death. The appellants and their mother Shrimati Dwarka Devi filed the claim application on May 5, 1965, seeking an award of Rs. 2,18,000/- as compensation for the death of Dewan Ranbir Singh. The State of Punjab and other respondents contested the claim made on behalf of the appellants and their mother, as also the claim made by the dependants of the driver of the car. The Tribunal held that the accident was due to the negligent driving of the milk tanker by its driver and assessed the compensation payable to Shrimati Dwarka Devi at a sum of Rs. 26,000/-. Further it was held that the two appellants were not in any way dependant upon the deceased and were, therefore, not entitled to any compensation. The Tribunal, under S.110-CC of the Motor Vehicles Act, 1939 (hereinafter called the Act ) further directed that interest at the rate of 6 per cent would be payable on the aforesaid amount from the date of the accident. A number of appeals, both by the claimants and the contesting respondents, were preferred against the award of the Tribunal, which were consolidated, heard together and disposed of by the learned single Judge by the judgement which is under appeal.

3. Before adverting to the findings arrived at by the learned single Judge, it deserves highlighting that Shrimati Dwarka Devi, the mother of the appellants had died on May 24, 1971, during the pendency of the claim before the Tribunal, wherein the award was announced on May 31, 1971. The learned single Judge relying on R.6 O.XXII of the Civil P.C. held that as the death of Shrimati Dwarka Devi had taken place after the conclusion of arguments in the case, the proceedings did not abate. He further affirmed the findings of the Tribunal and held that both the appellants were not entitled to any compensation in their own right in view of the fact that on the material date they were not at all dependant on their deceased father Dewan Ranbir Singh and further that at the time of his death he was as old as 70 years of age. However, as regards the compensation of Rs. 26,000/- awarded to Shrimati Dwarka Devi the learned single Judge found the same unexceptionable and affirmed the findings of the Tribunal.

4. Probably it is best to mention at this very stage that no meaningful challenge to the concurrent finding of the Tribunal and the learned single Judge with regard to the quantum of compensation could be raised by Mr. L.M. Suri, appearing for the appellants. It would be wasteful to tread the same ground again and affirming the said finding we uphold the same.

5. The real arena of the controversy is with regard to the date from which the interest at the rate of 6 per cent is to be given on the award. The Tribunal acted apparently under S.110-C of the Act and directed that the claimants would be entitled to interest at the rate of 6 per cent from the date of the accident. The learned single Judge and in our view rightly, held that this was not warranted in view of the provisions of S.110-C, but instead directed that the interest should run with effect from April 1, 1970. In arriving at this decision he was influenced by the fact that S.110-CC was inserted in the Act by Central Act No. 56 of 1969, which came into force from March 2, 1970.

6. Mr. Suri on behalf of the appellants has forcefully contended that the cause of action truly accrues to the appellants from the date of the accident resulting in the death of the victim owing to the established negligence of t