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.

ORDER

Harsimran Simh Sethi, J. (Oral). - Present petition has been filed challenging the order dated 07.02.2020 (Annexure P-l) passed by the Executing Court, Amritsar, by which Insurance Company has been directed to make the payment of Rs. 5,49,000/- alongwith interest as awarded by the Motor Accident Claims Tribunal, Amritsar, which Award has already attained finality.

2. Learned counsel for the petitioner-Insurance Company argues that the Award dated 10.01.2012, according to which, the claimants were held entitled for a sum of Rs. 29,67,170/- alongwith interest @ 6% per annum was challenged by the petitioner-Insurance Company by filing FAO No. 2747 of 2012 and on the prayer of the petitioner-Insurance Company, this Court stayed the disbursal of compensation amount beyond 50% of the total amount awarded by the Tribunal subject to the condition that the entire awarded compensation amount be deposited with the Tribunal and the said order was duly complied with by the petitioner-Insurance Company. Learned counsel appearing on behalf of the petitioner-Insurance Company submits that the said FAO No. 2747 of 2012 was ultimately dismissed by this Court and the compensation awarded in favour of the claimants was enhanced, which enhancement has already attained finality.

3. The claimants filed execution claiming the payment of balance amount of compensation awarded to them alongwith interest awarded by the Competent Court of Law upto the date of actual release of the compensation amount and the claim of interest upto the date of actual disbursement of compensation to the claimants was being opposed by the petitioner-Insurance Company on the ground that the disbursal of 50% of the amount of the compensation was stayed by this Court though, the total compensation had already been deposited before the Tribunal with interest upto the said date and their liability to pay interest upon the deposit of the compensation in the Tribunal had come to an end.

4. In the present petition, the order passed by the Executing Court dated 07.02.2020 (Annexure P-l) is being challenged where the claimants have been held entitled for interest on the amount which is being released to them now upto the date of actual receipt of the compensation amount by the claimants. Learned counsel for the petitioner argues that once, the disbursal of the amount to the claimants was stayed by this Court while passing order in FAO No. 2747 of 2012, the petitioner-Insurance Company is not liable to pay the interest upto the date when the compensation is actually paid to the claimants as the total amount for which the claimants were found entitled as compensation, had already been deposited before the Tribunal, thereby ending their liability to pay interest thereafter.

5. I have heard learned counsel for the petitioner and have gone through the record with his able assistance.

6. It is an admitted fact that the claimants were never released the amount beyond 50% of the total compensation awarded to them keeping in view the interim order which the petitioner-Insurance Company had got in their favour in FAO No. 2747 of 2012. It is further a conceded position that the said FAO was ultimately dismissed. Once, the amount for which the claimants were held entitled for by the Tribunal or this Court, was not released to them and that too on the asking of the petitioner-Insurance Company though, the said amount was deposited before the Tribunal, claimants are entitled for interest upto the date when they actually received the compensation as claimants never received the said amount though, same remained deposited with the Tribunal. Non-payment of compensation to the claimants was on the prayer of the petitioner-Insurance Company. The said interim order cannot be allowed to operate to the determent of the claimants, which was secured by the petitioner themselves against the claimants once the main FAO was subsequently dismissed.

7. Further as per the Award, on the awarded compensation interes