AI Overview...
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Waiver of Penalty Interest Due to Insurance Company's Fault - In cases where the fault lies with the insurance company, courts and tribunals have shown leniency by waiving penalties or interest on delayed payments, especially when the insurer's actions or inactions cause the delay. For example, in insurance-related disputes, courts have ordered the waiver of interest and penalties when the insurer is at fault, recognizing that the delay was not attributable to the claimant EMPLOYEES PROVIDENT FUND ORGANIZATION VS JAI CORPORATION LTD. - Gujarat, Economic Transport Organization VS Charan Spinning Mills (P) Ltd. - Consumer, Commander Coast Guard Region (East) VS O. Konavalov - Madras.
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Interest on Delayed Payments and Compensation - Courts have consistently directed the payment of interest on awarded sums from the date of application or default, emphasizing that interest is meant to compensate for the loss of money value due to delay. However, when the delay is caused by the insurer or a fault on their part, courts tend to waive or reduce such interest or penalties Union of India VS Rina Devi - Supreme Court, Economic Transport Organization VS Charan Spinning Mills - Supreme Court.
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Legal Provisions and Judicial Approach - Sections of relevant laws (e.g., Insurance Act, Railways Act) provide for the recovery of interest and damages for delayed payments. Courts interpret these provisions in light of the fault, often waiving penalties if the insurer is responsible for the delay, as seen in judgments where the insurer's fault was a key factor EMPLOYEES PROVIDENT FUND ORGANIZATION VS JAI CORPORATION LTD. - Gujarat, Union of India VS Rina Devi - Supreme Court.
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Discretion to Waive Penalties and Interest - Courts and authorities have the discretion to waive penalties or interest when justified by circumstances, such as insurer fault, non-delivery, or procedural issues. For instance, in cases of non-delivery of flats or refunds, authorities have considered waiver requests based on jurisdictional and fault considerations International Land Developers Private Limited VS Aditi Chauhan - Punjab and Haryana.
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Summary - The main insight is that penalty interest is generally recoverable but can be waived when the delay or fault is attributable to the insurance company or other liable parties. Courts prioritize equitable considerations, often waiving penalties to prevent unjust enrichment of the insurer or to acknowledge their fault EMPLOYEES PROVIDENT FUND ORGANIZATION VS JAI CORPORATION LTD. - Gujarat, Economic Transport Organization VS Charan Spinning Mills (P) Ltd. - Consumer, Commander Coast Guard Region (East) VS O. Konavalov - Madras.
Analysis and Conclusion:
When the fault lies with the insurance company, courts tend to waive or reduce penalty interest and damages, emphasizing fairness and the insurer's responsibility for delays. This approach ensures that penalties are not unjustly imposed when the delay is attributable to the insurer's fault, aligning with legal principles of equity and justice.
Search Results for "Debt Recovery Tribunal Penalty Interest Waived as the Fault was of Insurance Company"
2008 0 Supreme(Guj) 272 • India - Gujarat
K.M.THAKER
Act, 2002 — Section 2(2-C), 3, 9, 13(2), 13(4), 13(7), 13(8), 13(9), 15 — Recovery of Interest and damages for delayed payment of ... Tribunal. ... Commissioner for recovery set aside by the P.F. ... Commissioner or such other Officer as may be authorized may recover from the employer by way of penalty.” Thus, the said Section speaks of default by an employer and provides for recovery of damages from employer and similarly Section 7Q also provides for recove....
2018 5 Supreme 418 • India - Supreme Court
ADARSH KUMAR GOEL, ROHINTON FALI NARIMAN
(e) Railways Act, 1989 – Section 124A – Rate of interest ... Kerala High Court took the same view in United India Insurance Company Ltd. versus Alavi, (1998) 3 LLN 285. ... 10. ... To compensate for loss of money value on account of lapse of time and for the denial of right to utilize the money when due, interest was required to be paid [Para 26]. Accordingly, this Court directed payment of interest on the awarded sum from the date of application till the date of recovery. ... Doing so....
2019 0 Supreme(SC) 1189 • India - Supreme Court
ARUN MISHRA, S.ABDUL NAZEER, M.R.SHAH
under contractual stipulation - Instantly, Licence agreement stipulating interest, penalty, and interest on penalty on default of ... (Para 190) (ac) Draft Licence Agreement - Clause 20 - Interest and penalty - Interest can be levied and compounded ... holding company for purpose of licence fee. ... The TDSAT in the impugned order passed in 2015 has held that the late fee is a penalty and the penalty that has been....
• India - Consumer
K.G.BALAKRISHNAN, R.V.RAVEENDRAN, D.K.JAIN, P.SATHASIVAM, J.M.PANCHAL
District Forum allowed the complaint and directed appellant to pay Rs.447,436/- with interest at rate of 12% per annum from date ... power of attorney executed by the Assured—District Forum allowed the complaint and directed the appellant to pay Rs.447,436/- with interest ... Thereafter,respondents 1 and 2 filed a complaint under the C P Act, 1986 against appellant claiming compensation of Rs. 447,436/-with interest ... /damage, customs penalty or refund of customs duty and all and every debt from whom ....
2006 0 Supreme(Guj) 754 • India - Gujarat
K.M.MEHTA
debt or liquidate demand in money payable by defendant with or without interest. ... debt or liquidate demand in money payable by the defendant, with or without interest. ... The Oriental Insurance Co. & Anr., AIR 1990 Delhi 278 [Para 8.3];; Ficom Organics Ltd. vs. ... cases the court may consider the petitioner s claim for interest and the rate of interest after the court gives a finding that the company s defence to the principal amount of the #HL_....
2022 0 Supreme(P&H) 2111 • India - Punjab and Haryana
AMOL RATTAN SINGH, LALIT BATRA
Authority ordered refunds to complainants due to non-delivery of flats - Petitioner contended orders lacked jurisdiction, sought waiver ... of interest or penalty or compensation and enforcement of order, etc. ... To repeat yet again, sub-section (1) of Section 40 stipulates that the manner of recovery of payment of interest, penalty and compensation, may be prescribed (by rules) for recovery as an arrear of land revenue and does not postulate any other method of such....
2010 1 Supreme 658 • India - Supreme Court
K. G. BALAKRISHNAN, R. V. RAVEENDRAN, D. K. JAIN, P. SATHASIVAM, J. M. PANCHAL
District Forum allowed the complaint and directed appellant to pay Rs.447,436/- with interest at rate of 12% per annum from date ... Thereafter,respondents 1 and 2 filed a complaint under the C P Act, 1986 against appellant claiming compensation of Rs.447,436/-with interest ... power of attorney executed by the Assured- District Forum allowed the complaint and directed the appellant to pay Rs.447,436/- with interest ... /damage, customs penalty or refund of customs duty and all and every debt from whom ....
2025 Supreme(Online)(Mad) 57324 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice ABDUL QUDDHOSE
directed to be paid INR 6,614 Million as damages - Respondents' objections regarding 'buyback' of shares, doctrine of election and waiver ... Equity Insurance Co. Ltd. 1947 SCC Online Oudh CC 87. 16. ... c) The investors had waived their rights by participating in the agreed split-sale strategy adopted by the first respondent Company. ... (b) Having sought such relief, to avoid any allegation of double dipping or double recovery, the respective petitioners had volunteered to return the shares held b....
2015 0 Supreme(Bom) 45 • India - Bombay
R.D.DHANUKA
The arbitral tribunal allowed the claim for creation of fund with interest. ... Claim for interest on interest and arbitration cost awarded in favor of the respondent set aside. ... The court further held that the award of interest on interest and arbitration cost in favor of the respondent was illegal and set ... of the said company and not to the respondent-company inspite of the admitted fact that the appellant was liable to pay the amount to the ....
2001 0 Supreme(Mad) 35 • India - Madras
A.S.VENKATACHALA MOORTHY, C.NAGAPPAN
Inter Cargo Insurance Company acting as underwriters and agents of M/s. T.W. ... In view of this, we can straight away hold that O.S.A.No.350 of 2000 filed by the plaintiff/Insurance Company has to be allowed. ... 16. ... Inter Cargo Insurance Company which has filed the Civil Suit, moved this Court, for withdrawing the claim of arrest and sale of the vessel, (i.e.,) the reliefs sought for in para 22 (b) and (c) of the plaint. ... It can however, be defeated if the res is either (a) ....
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