IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

THURSDAY, THE 8TH DAY OF JANUARY 2015/18TH POUSHA, 1936

WP(C).No. 25474 of 2006 (G)

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PETITIONER(S):

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THE ORIENTAL INSURANCE CO. LTD.,

MUVATTUPUZHA, REPRESENTED BY ITS

ADMINISTRATIVE OFFICER, REGIONAL OFFICE,

ERNAKULAM NORTH, KOCHI-18.

BY ADV. SRI.GEORGE CHERIAN (THIRUVALLA)

RESPONDENT(S):

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CHACKO ALIAS CHACKOCHAN,

THOTTAPPILLIL, KADAKKANAD, MAZHUVANNOOR P.O.

BY ADV. SRI.K.JAJU BABU

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON

08-01-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

msv/

WP(C).No. 25474 of 2006 (G)

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APPENDIX

PETITIONER(S)' EXHIBITS

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EXHIBIT P1. TRUE COPY OF THE AFFIDAVIT OF THE RESPONDENT.

EXHIBIT P1(a): TRUE COPY OF THE EXECUTION PETITION.

EXHIBIT P2. TRUE COPY OF THE OBJECTION FILED BY PETITIONER.

EXHIBIT P3. TRUE COPY OF THE ORDER DATED 27.3.2006.

EXHIBIT P4. TRUE COPY OF THE AFFIDAVIT IN IA.1399/2006.

EXHIBIT P4(a): TRUE COPY OF THE IA.NO.1399/2006.

EXHIBIT P5: TRUE COPY OF THE ORDER DATED 27.7.2006 IN IA.1399/2006.

RESPONDENT(S)' EXHIBITS:

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NIL

//TRUE COPY//

P.S.TO JUDGE

Msv/

K. VINOD CHANDRAN, J.

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W.P.(C) No.25474 of 2006 - G

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Dated this the 8^th day of January, 2015

J U D G M E N T

The petitioner, an Insurance Company challenges

Ext.P5 order of the Motor Accidents Claims Tribunal,

Muvattupuzha, on the ground that the claim made by the

claimant, was not sustainable and in effect Ext.P5 order

would result in interest being paid on interest, which is

specifically interdicted by a Division Bench decision of this

Court in Oriental Insurance Co. Ltd. v. Nirmala [2007

(1) KLT 38].

2. The claimant who is the respondent herein

suffered injuries in a motor accident. The vehicle involved in

the accident was insured by the petitioner herein. The

claim petition filed by the respondent was allowed granting

an amount of Rs.3,54,000/-. The petitioner took up the

matter in appeal and in compliance of Section 173 of the

W.P.(C) No.25474 of 2006 - G

2

Motor Vehicles Act (for brevity, 'the MV Act'), 1988 made a

deposit of Rs.25,000/- on 08.08.2003. Subsequently on

24.11.2003, a further amount of Rs.1,00,000/- was also

deposited in compliance to the condition imposed for stay of

execution.

3. Admittedly, the amounts deposited were not

released to the claimant/respondent. Eventually, the appeal

was disposed of reducing the amounts to Rs.2,58,000/-. The

petitioner was also entitled to interest @ 9% from

01.08.1998, the date of filing of the claim petition. The

insurance company deposited the amount of Rs.2,79,086/-

on 02.01.2006, which according to them is in full and final

settlement of the award amounts together with 9% interest.

According to the insurance company the total comes to

Rs.4,04,086/-. The respondent however, claims that there is

deficiency in the interest paid.

4. To understand the claim of the respondent,

Ext.P1(a) statement of the claimant, has to be looked into.

W.P.(C) No.25474 of 2006 - G

3

The claimant has calculated interest from 01.08.1998 to

08.08.2003, the date of deposit of Rs.25,000/-; on the award

amount of Rs.2,58,000/-. Subsequently from the date of

deposit of Rs.25,000/- till 24.11.2003, when Rs.1,00,000/-

was deposited, again interest was calculated on the award

amount. Further computation of interest is from 25.11.2003

to 02.01.2006 when the insurance company had deposited

the entire amounts ie., on 02.01.2006.

In such

circumstance, there can be no infirmity found in the

computation arrived at in Ext.P1. The deposit of Rs.25,000/-

and Rs.1,00,000/- never exceeded the principal