ORIENTAL INSURANCE COMPANY LIMITED Vs. BANUMATHI

JUDGEMENT

(1.) IN an accident, which occurred on 06.03.2001, the husband of the first respondent died. Legal representatives of the deceased, wife, two minor children, parents claimed compensation of Rs.13,00,000/-. The appellant/INsurance Company, with the leave of the Tribunal, disputed the manner of the accident, negligence on the part of the driver of the vehicle, insured with them, and liability to pay compensation, under different heads.

(2.) HOWEVER, the Tribunal on evaluation of pleadings and evidence, found that the driver of the vehicle, insured with the appellant-Insurance company was responsible for the accident and quantified the compensation, at Rs.10,19,320/-, with interest at the rate of 9% p.a. Being aggrieved by the finding, regarding negligence, quantum of compensation and the rate of interest awarded on the quantum, the appellant-Insurance Company has preferred this appeal.

(3.) PLACING reliance on a decision of the Honourable Supreme Court in Dharampal and others v. U.P. State Road Transport Corporation reported in 2008 ACJ 2041, learned counsel for the appellant submitted that the Tribunal ought to have awarded interest only at the rate of 7.5% per annum, taking into account the prevailing the rate of interest, on the date of passing of the award and not with reference to the date of either accident or the claim petition. He also placed reliance on a decision rendered by the Honourable Supreme Court in Tamil Nadu State Transport Corporation Limited Vs. S. Rajapriya reported in 2005 ACJ 1441 (SC).