FAO-880-2021

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Sr. No. 106

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

CM-7957-7958-CII-2021 in/and

FAO-880-2021

Date of decision: 11.10.2021

HDFC ERGO General Insurance Co. Ltd.

…Applicant/Appellant

Versus

Surjit Kaur and others

…Respondents

CORAM: HON’BLE MR. JUSTICE ARUN MONGA

Present:

Mr. Sanjeev Kodan, Advocate,

for the applicant-appellant.

***

ARUN MONGA, J. (ORAL)

Applicant-Insurance Company seeks to set aside the impugned

order dated 17.10.2017 passed by the learned MACT, Ludhiana, albeit only

to the extent of grant of penal interest in the event of delay in disbursement

of the awarded compensation.

2.

There is a delay of 954 days in filing the appeal. Narrative of

reasons pleaded in paras 2-8 of the accompanied condonation application

under Section 5 of the Limitation Act, is as under: -

“2.

That the impugned order was passed on 17.10.2017

passed by learned MACT, Ludhiana. In para No.24 of the

award, the learned MACT awarded a sum of Rs.54, 64, 500/- in

favour of claimants. The learned MACT, further observed that

the above said amount shall be paid within a period of 2 months

from today (i.e. 17.10.2017) along with interest @ 7% per

annum from the date of accident till its realization, failing

which the amount of compensation shall carry the interest @

9% per annum.

3.

That thereafter the appellant company prepared

cheque/draft no.2873 dated 28.12.2017, an amount of

Rs.68,56,226/- in the name of Learned MACT, Ludhiana. The

said cheque/draft was not accepted by the learned MACT and

SHALINI BHATIA

2021.10.12 15:51

I attest to the accuracy and

integrity of this document

FAO-880-2021

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returned to the appellant. Thereafter, the appellant prepared

four different cheques/drafts in favour of all the claimants.

Cheque No.

Date

Name

Amount

5604

21.02.2018

Surjit Kaur

Rs. 19,74,674/-

5605

21.02.2018

Jaswinder

Kaur

Rs. 16,45,780/-

5606

21.02.2018

Jaspreet

Singh

Rs.16,45,779/-

5607

21.02.2018

Mahinder

Kaur

Rs.13,16,886/-

4.

The said cheques/drafts were en-cashed by the claimants.

Thereafter, the claimants filed the execution for the penal

interest awarded by the learned MACT and the same is still

pending before the learned MACT, Ludhiana.

5.

That the facts mentioned in above said para it is crystal

clear that the appellant company satisfied the award along with

7% interest in the month of February 2018 and the same has

been received by the claimants.

6.

That now the claimants filed the execution for penal

interest which is against the law laid down by the Hon’ble High

court in case FAO No.4920 of 2018 titled as “New India

Insurance Company Limited Vs. Bibi Tajpuriya and Ors.”

Decided on 07.08.2018. In the above said case, this Hon’ble

Court relied upon the judgment of the Hon’ble Apex Court in

case, “National Insurance Company Limited Vs. Keshav

Bahadur” reported as 2004 (ACJ) 648 and set aside the penal

interest imposed by the learned Tribunal.

7.

That it is settled law that the learned MACT cannot

imposed the penal interest despite that the learned MACT

allowed the penal interest in present case. In the present

appeal, the appellant only challenge the penal interest. Due to

these reasons delay of 954 days has been occurred in filing the

appeal.

8. That the delay in filing the accompanied appeal is neither

intentional nor wilful but has occurred due to the reasons

explained above.”

4.

Perusal of the aforesaid would reveal that not only the application has

been filed in a mechanical manner, but even the mandate of law, which

envisages each day’s delay has to be explained, is completely amiss in the

averments of the application.

SHALINI BHATIA

2021.10.12 15:51

I attest to the accuracy and

integrity of this document

FAO-880-2