NATIONAL INSURANCE CO LTD MADRAS Vs. KARPAGAM

JUDGEMENT

(1.) THE National Insurance Company has come to this Court against the awards passed by me Motor Accident Claims Tribunal. I do not want to go into the facts of the case, as the only point that has been urged by the counsel for the revision petitioners/appellant in C.M.A., is regarding the quantum of interest awarded by the Tribunal. In all these awards, the Tribunal had granted 18% interest from the date of petition till date of realisation. THE question is whether such rate of interest could be allowed in an award passed by the Tribunal, under the Motor Vehicles Act.

(2.) SECTION 171 of me Motor Vehicles Act, 1988, deals with the award of interest where any claim is allowed. It runs as follows:- "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."

(3.) LEARNED counsel for the petitioner also brought to my notice a decision of our High Court reported in 1997-2-L.W. 575 ( P. Madheswaran and another v. Rani and three others ), wherein Section 171 of the Motor Vehicles Act came up for consideration. In para 6 of the Judgment, after extracting the provisions of Section 171 of the Act, the Division Bench has upheld the award of the Tribunal, wherein interest at 15% per annum has been granted. The Bench has held thus:- "The term "simple interest" is not defined in the Motor Vehicles Act, 1988. In "Dr. A.P. Biswas Law Dictionary", under the caption "interest", it is stated as follows:- "Interest" means rate of interest and includes the return to the made over and above what was actually lent, whether the same is charged or sought to be recovered specifically by way of interest or otherwise.