116 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 02.04.2026 THE ORIENTAL INSURANCE CO. LTD.

....Appellant Versus MANISHA RANI AND OTHERS ...Respondents CORAM: HON'BLE MR. JUSTICE PARMOD GOYAL Present: Mr. Punit Jain, Advocate for the appellant.

Mr. Rao Ajender Singh, Advocate for the respondents.

PARMOD GOYAL, J. (ORAL)

CM-4374-CII-2026 The present application has been filed for condonation of delay of 37 days in filing the appeal.

For the reasons stated in the application, delay of 37 days in filing the appeal is condoned.

Application stands disposed of.

Main Case Appellant/insurance company is aggrieved by award of interest @7.5% p.a. over the amount of Rs.1,06,72,740/- which claimants are otherwise entitled to receive from their employer as ex gratia payment under the Haryana Compassionate Assistance Rules/Policy 2006.

2. Facts in the present case are not in dispute.

Petitioners/respondents were found entitled to total compensation of Rs.1,26,81,276/-. It was also found that under ex gratia payment scheme salary of deceased employee was payable to the claimants and accordingly, in terms of directions of Hon’ble Supreme Court, the amount received by claimants from the employer of deceased amounting to Rs.1,06,72,740/- was ordered to be deducted from total compensation determined as Rs.1,26,81,276/-. Admittedly, payment is being received from the employer and claimants would continue to receive said payment till 2037. However, no interest upon said amount can be levied upon appellant/insurance company from the date of filing of claim petition till its actual realization. The liability of appellant/insurance company in the present case under the award is Rs.1,26,81,276 – Rs.1,06,72,740 = Rs.20,08,536/-, therefore, appellant/ insurance company is liable to pay interest from the date of filing of claim petition till actual realization of amount of Rs.20,08,536/- alone @7.5% and not on remaining amount which claimants would receive from their employer under ex gratia payment scheme. Accordingly, order dated 09.01.2026 declining clarification on application moved by appellant/insurance company is set aside and it is clarified that appellant/insurance company is liable to pay interest only on the amount of Rs.20,08,536/- and not on entire compensation amount.

3. The second argument raised on behalf of appellant/insurance company is with regard to compensation of Rs.50,00,000/- received by claimants from HDFC Bank. Admittedly, deceased was operating his salary account with HDFC Bank and being their customer, bank had insured life of its customer and accordingly, upon death of deceased compensation of Rs.50,00,000/- was paid by bank. The said amount of Rs.50,00,000/- cannot held to be receivable on account of accidental death having nexus to the accident in the present case. The amount was received by deceased under contract with HDFC Bank being a customer of the bank for availing facilities from said bank, therefore, amount received from bank cannot be counted towards compensation payable on account of rash and negligent driving of respondent No.1 while driving offending vehicle No.HR73-4830.

No benefit would accrue to insurance company on this account.

4. The contentions raised on behalf of appellant/insurance company is without any merit. Appeal is disposed off in above terms.

5. Refund of statutory amount be issued to appellant/insurance company on showing payment of entire compensation amount to the claimants before Executing Court. No application for refund on judicial side would be required, office would process refund and pay it to insurance company after verifying payment of entire compensation.

6. Pending application(s), if any, is/are disposed of accordingly.

(PARMOD GOYAL)

02.04.2026 JUDGE chiranjeev