NEW INDIA ASSURANCE COMPANY LIMITED Vs. KAILASH DEVI

JUDGEMENT

(1.) Learned counsel for the appellant submits that the respondent had given up their claim to the balance awarded amount in case the awarded amount of Rs. 1,50,000.00 deposited by the appellant was paid to the respondent without furnishing security. The appellant had accepted this suggestion and as a consequence of which the amount of Rs. 1,50,000.00 was released to the respondents without security.

(2.) The question which comes up for consideration is whether by giving up the claim on the balance awarded amount of Rs.50,000.00 out of Rs.2,00,000.00 the respondents have also given up their claim to interest on the sum of Rs. 1,50,000.00.

(3.) Learned counsel for the appellant submitted that the said amount of Rs.1,50,000.00 was released on the respondent foregoing the balance awarded amount, which also included the amount of interest on the said sum of Rs.1,50,000.00. I am unable to agree. The perusal of the order dated 25/1/1994 passed on C.M. No.1920/93 reveals that the appellant had deposited a sum of Rs.1,50,000.00 on 10/8/1993 as directed by this Court vide orders dated 12/7/1993. The said amount had been ordered to be released to the respondent-claimants on furnishing adequate security. The respondents-claimants were unable to furnish security and availed the benefit of the amount ordered to be released. It was in these circumstances that the learned counsel for the respondents-claimants No.1 to 7 on instructions submitted that the respondents were ready to forego the balance awarded amount of Rs.50,000.00 if the amount of Rs.1,50,000.00 deposited as aforesaid was released without furnishing security. It would be seen that the respondents had only foregone their claim with regard to the balance awarded amount of Rs.50,000.00 and not for the interest on the amount of Rs.1,50,000.00. This becomes apparent from the order dated 25/1/1994 passed in FAO No.148/93 which reads as under:-