Smt. Nirmala Sahu wife of Gajadhar Sahu v. Both are resident of village Heth Bagra, P.S. Gola, P.O. Barlanga, District Hazar
Case Details
IN THE HIGH COURT OF JHARKHAND AT RANCHI M.A. No. 29 of 2000(R) National Insurance Company Ltd. 3, Middleton Street Calcutta, District- 24, Pargana West Bengal, represented through their Divisional Manager, S.N. Ganguly Road, Main Road Ranchi, P.S. Kotwali, District Ranchi. … … Opposite Party No.3/Appellant 1. Gajadhar Sahu son of Deo Narayan Sahu 2. Smt. Nirmala Sahu wife of Gajadhar Sahu Versus Both are resident of village Heth Bagra, P.S. Gola, P.O. Barlanga, District Hazaribagh. … … Claiments/Respondents
Legal Reasoning
3. Smt. Asha Devi, husband’s name of fathers’ name not known to the applicants/Respondents carrying an business at C/O Sharda Sharma Sanjawal, Purtan Bazar, P.O. & District Kharagpur, (West Bengal) owner of Truck Tanker No. WBG-5981 … … Opposite Party No.1 /Respondent 4. Md. Kalim @ Md. Kalam Son of Nisam Khan @ Madariya Niwasi, Resident of Nisan Nagar P.S. Hindpiri, Ranchi 834001, District Ranchi, owner of Trakkar No. BPV-8457. … … Opposite Party No. 2/Respondents --- CORAM :HON'BLE MRS. JUSTICE ANUBHA RAWAT CHOUDHARY --- For the Appellant For the Resp. Nos.1 & 2 For the Respondent No.4 --- : Mr. G.C. Jha, Advocate : Mr. Shiwam Lath, A.C. to Mr. A.K. Lall, Advocate : Mr. Ashish Kr. Thakur, Advocate 18/25.07.2024 1. 2. Heard the learned counsel for the parties. This appeal has been filed against judgment dated 16.07.1999 and award singed on 10.08.1999 by learned 2nd Additional Motor Vehicle Accidents Claims Tribunal, Hazaribag in claim case No. 170 of 1990 awarding a sum of Rs. 1,60,000/- with interest @12% per annum from the date of filing of the case with a further stipulation that on account of failure to pay the amount, interest @15% shall be charged. 3. The learned counsel for the appellant has submitted that the compensation amount with interest has already been deposited by the 1 appellant and the appellant is confining his arguments only to the extent to the penal interest. 4. The learned counsel submits that once there is statuary liability for payment of interest and there is no further provision for payment of penal interest, the learned court was not justified in awarding the penal interest @15% on account of default. He submits that the interest as awarded by the court would certainly continue @12%. 5. He has relied upon the judgment passed by the Hon’ble Supreme Court reported in (2004) 2 SCC 370 in the case of NATIONAL INSURANCE CO. LTD. VS. KESHAV BAHADUR AND OTHERS and has referred to paragraph 13 of the said judgment and submit that there is no express or implied power in the Act to grant penal interest. Paragraph 13 of the said judgement is quoted as under: - “13. Though Section 110-CC of the Act (corresponding to Section 171 of the New Act) confers a discretion on the Tribunal to award interest, the same is meant to be exercised in cases where the claimant can claim the same as a matter of right. In the above background, it is to be judged whether a stipulation for higher rate of interest in case of default can be imposed by the Tribunal. Once the discretion has been exercised by the Tribunal to award simple interest on the amount of compensation to be awarded at a particular rate and from a particular date, there is no scope for retrospective enhancement for default in payment of compensation. No express or implied power in this regard can be culled out from Section 110-CC of the Act or Section 171 of the new Act. Such a direction in the award for retrospective enhancement of interest for default in payment of the compensation together with interest payable thereon virtually amounts to imposition of penalty which is not statutorily envisaged and prescribed. It is, therefore directed that the rate of interest as awarded by the High Court shall alone be applicable till payment, without the stipulation for higher rate of interest being enforced, in the manner directed by the Tribunal.” 2 6. The Learned counsel for the appellant has also relied upon a judgment passed by this court in the case of Reliance General Insurance Company Limited Vs. Rinki Kumari reported in 2023 SCC OnLine Jhar 3874. “20. So far, interest component is concerned, the penal interest due to failure of payment of award amount within time appears to be not justified under law as the statutory period for filing the appeal under Motor Vehicle Act, 1988 is 90 days. Therefore, the Tribunal should have at least waited for 90 days before directing the Insurance Company to pay penal interest. Thus, the part of the order imposing penal interest @9% is set aside.” 7. The learned counsel has submitted that the details of the amount deposited by the appellant before the learned court is mentioned as under:- “In reference to MA case 29/2000, MACT case-17/1990 Gajadhar Sahu and others vs NICL we are depositing the cheques as follows: 1. Cheque no- 720001 in the name of Gajadhar Sahu and Nirmala Devi for an amount of Rs. 258069/-, dated 09-07- 2024. 2. Cheque no- 720084 in the name of Gajadhar Sahu and Nirmala Devi for an amount of Rs. 80000/-, dated 09-07- 2024.” 8. The learned counsel for the appellant has not argued on any other point. 9. The learned counsel for the respondents has no objection to the extent of deletion of payment of penal interest in view of the aforesaid judgment passed by the Hon’ble Supreme Court. 10. Considering the short point involved in the present case and having gone through the judgment passed by the Hon’ble Supreme Court in National Insurance Company Limited (Supra), this Court is of the considered view that award of penal interest by the impugned order cannot be sustained in the eyes’ of law and accordingly the award of penal interest is set-aside and the claimants would be entitled 3 to simple interest till payment. The impugned award is accordingly set aside to the aforesaid extent and modified accordingly. 11. Let this order be communicated to the concerned court through “FAX/email”. 12. Office is directed to remit the statutory amount to the concerned court. Rakesh/- (Anubha Rawat Choudhary, J.) 4