NEW INDIA ASSURANCE CO LTD v. HEIRS OF DECD.RATILAL MOHANLAL
Case at a glance
Provisions considered
Judgment
CORAM : MR.JUSTICE Y.B.BHATT MR.JUSTICE H.H.MEHTA Date of decision: 17/10/2001 ORAL JUDGEMENT (Per : MR.JUSTICE Y.B.BHATT)
1.(cid:9)Heard the learned counsel for the appellant and learned counsel for respondent nos.1/1 and 1/2 (original claimants). Appeal admitted. Ms Paurami B. Sheth appears for respondent nos.1/1 and 1/2 and waives service of notice in the appeal.
2.(cid:9)On a joint request of learned counsel, this appeal is taken up for hearing today.
3.(cid:9)This is an appeal under section 173 of the Motor Vehicles Act, 1988 at the instance of the Insurance Company, challenging the judgement and award passed by the Motor Accident Claims Tribunal (Auxi II), Surendranagar, under section 168 of the said Act.
4.(cid:9)Learned counsel for the appellant has pressed this appeal only on the ground of interest awarded by the Tribunal on the amount of compensation determined as payable.
5.(cid:9)The Tribunal in fact has awarded interest at the rate of 12% per annum on the compensation determined by it, from the date of the claim petition till realization. It is in the context of this rate of interest that we are required to examine the present appeal.
6.(cid:9)The question of interest is no doubt within the discretionary jurisdiction of the Tribunal, but in the light of various decisions of this court, the rate of interest has to be tempered with the economic reality prevailing in the country and the rates of interest prevailing generally in the market from time to time.
7.(cid:9)After considering various relevant and pertinent factors, this court has in a number of decisions adopted a slab system of awarding interest, particularly where the interest awarded by the Tribunal has not been so exorbitant so as to shock the conscience of the court. Thus, on the facts and circumstances of the case, and in consonance with the earlier decisions of this court as also this Bench, we hold and direct that the original claimant shall be entitled to interest on the amount of compensation awarded by the Tribunal under the impugned award at the rate of 12% per annum from the date of the claim petition upto 31st December 1999, and at the rate of 9% thereafter till realization.
8.(cid:9)The impugned judgement and award are modified only to the aforesaid extent and rest of the award stands confirmed.
9.(cid:9)This appeal is, therefore, partly allowed to the aforesaid extent with no order as to costs. Decree accordingly. Direct service permitted. ******* *ar*
Questions this judgment answers
Which statutory provisions did this judgment involve?
Constitution of India; Motor Vehicles Act, 1988 — s. 173.
Which court decided this case, and when?
Gujarat High Court, on 17 Oct 2001. The bench was Y B BHATT, H H MEHTA.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.