2021 Supreme(All) 1277

IN THE HIGH COURT OF ALLAHABAD
SUNITA AGARWAL, KRISHAN PAHAL, JJ.
Dr. Anoop Kumar Bhattacharya And Another - Appellant
Versus
National Insurance Co. Ltd. - Respondent
FIRST APPEAL FROM ORDER No. - 1652 of 2009
Decided on : 14-12-2021

Point of law: The Supreme Court only observed that 12% was ‘too high a rate in comparison to what is ordinarily envisaged in these matters’ and that the decision of the High Court to reduce it to 7.5% did not warrant interference. The observations of the Supreme Court can hardly be construed as capping the rate of interest which may be awarded in claims arising out of motor vehicle accidents at 7.5%. The order of the Tribunal as to interest, therefore, cannot be faulted on that account.

Headnote:

Evidence Act, 1872 - Section 106 - Motor Vehicles Act, 1988 - Section 140, 166, 173 - Motor Accident Claim Petition - Deceased was 24 years old and was in final year of MBA course at ICFAI - It was also contended that deceased was in part time employment in Hyderabad and was earning Rs.13,080 - Claimants prayed for compensation of Rs.92 lacs along with interest at rate of 18% per annum as also the cost of petition - They also prayed for an interim award of Rs.50,000/- under Section 140 of Act, 1988 - Insurer filed written statement - Factum of accident was disputed; age, income and occupation of deceased was also disputed; accident, if at all it took place, was alleged to have occurred due to fault and negligence of deceased and not because of act of driver of offending truck; dependency of claimants on deceased was disputed; driver of offending truck was alleged to have not holding a valid driving license at time of accident; offending truck was alleged to have been driven in violation of terms and conditions of insurance policy - Whether tribunal had adopted a correct approach in opting to altogether exclude from evidence documents such as FIR, charge sheet and site plan which formed part of police record - Whether tribunal was justified in disbelieving testimony of PW-2 on ground that his name did not figure either in FIR or charge sheet or hospital records - Whether claimants satisfactorily discharged burden to prove factum of accident and negligence on part of driver of offending vehicle - Whether tribunal was justified in holding that there was contributory negligence on part of deceased - Whether quantum of compensation determined by Tribunal ‘just’ and in accordance with well settled legal principles; If not, what should be quantum of compensation to which claimants are entitled to.

Finding of the court:

Tribunal had erred in opting to ignore documents such as FIR, charge sheet and site plan, which formed part of police record - Said documents ought to have been taken into consideration by tribunal in adjudication of case of claimants - Tribunal has awarded claimants simple interest at rate of 8 % per annum from date of decision till realization of payment - Tribunal had declined to award interest from date of institution of claim petition stating that claimants were themselves responsible for delay in disposal of their case - No reason is recorded to substantiate said observation - Claimants contended that interest should be awarded from date of filing of claim and not from date of decision – Insurer contended that while tribunal was correct in awarding interest from date of decision, it erred in awarding interest at rate of 8% - Section 171 of the Act, 1988 provides that when a claim for compensation is allowed, the Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as the Tribunal may specify - It is within discretion of Tribunal to direct payment of interest - Provision reads that Tribunal ‘may’ direct payment of interest as opposed to ‘shall’ direct payment of interest – Tribunal may or may not direct payment of interest - If payment of interest is directed, it is open to the Tribunal to prescribe not only rate of interest but also date from which such interest is payable - Provision clearly reads that Tribunal can direct payment of interest at ‘such rate’ and from ‘such date’ as Tribunal may specify - Only limitation is that date from which interest is ordered to be paid should not be earlier than date on which claim was instituted - Technically speaking order of Tribunal directing payment of 8% simple interest from date of decision till realization of payment does not run afoul of Section 171 of the Act, 1988 - Tribunal had awarded interest at the rate of 12% which High Court revised to 7.5%. - Court is of opinion that facts of case warrant that order of Tribunal as to interest be modified so as to direct payment of interest from date of institution of claim petition instead of from date of disposal of claim petition - Tribunal itself has noted that at time of accident claimant was about 61 years old and claimant no.2 was about 57 years old. About 17 years have elapsed since - Claimant no.1 also died. Claimant no.2 is about 74 years old today - Against daunting odds, claimant has spent the later years of her life fighting a long and lonely battle enduring a fate we do not wish on anyone - Tribunal did not award interest from date of filing of claim only on ground that claimants themselves were to blame for delay in disposal of claim petition - Said observation is not substantiated by referring to record - Be that as it may, court is of opinion that given peculiar facts of case, in interest of justice, order of Tribunal as to interest deserves to be modified so as to direct payment of interest from date of institution of claim petition instead of from date of disposal of claim petition - Quantum of compensation awarded by Tribunal stands enhanced to Rs.33,50,000/-. Amount already paid to claimants shall be adjusted against total payable compensation determined - balance amount shall be disbursed to claimant no.2 by the Insurer within eight weeks - Simple interest at rate of 8% per annum is directed to be paid to claimant no.2 on total payable compensation determined above from date of institution of claim petition till realization of payment.

Result : Appeal disposed of