Friday, 7 February 2020

Supreme Court: Motor accident claim tribunal should give interest on compensation from date of application

The High Court enhanced the amount of compensation by
Rs.14,70,000/and
awarded interest @ 7.5% per annum but
directed that the interest of 7.5% shall be paid only from the
date of filing of the appeal. This is also incorrect. We are
constrained to observe that the High Court was not right in
awarding interest on the enhanced amount only from the date of
filing of the appeal. Section 171 of the Act reads as follows :
“171. Award of interest where any claim is allowed.—
Where any Claims Tribunal allows a claim for
compensation made under this Act, such Tribunal may
direct that in addition to the amount of compensation

simple interest shall also be paid at such rate and from
such date not earlier than the date of making the claim
as it may specify in this behalf.”
Normally interest should be granted from the date of filing of the
petition and if in appeal enhancement is made the interest
should again be from the date of filing of the petition. It is only if
the appeal is filed after an inordinate delay by the claimants, or
the decision of the case has been delayed on account of
negligence of the claimant, in such exceptional cases the interest
may be awarded from a later date. However, while doing so, the
tribunals/High Courts must give reasons why interest is not
being paid from the date of filing of the petition. Therefore, we
direct that the entire amount of compensation including the
amount enhanced by us shall carry an interest of 7.5% per
annum from the date of filing of the claim petition till
payment/deposit of the amount.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 735 OF 2020

KAJAL Vs  JAGDISH CHAND 

Deepak Gupta, J.


Dated:February 05, 2020.
Read full judgment here: Click here
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