SHRIRAM GENERAL INSURANCE COMPANY LTD. Vs. S.SELVAM

JUDGEMENT

(1.) The challenge in this appeal filed by the Insurance Company, is, the rate of interest at 7.5% p.a., awarded by the Motor Accidents Claims Tribunal, Chittoor in MVOP.No.331 of 2014 while granting compensation of Rs.30,85,480/- for the death of one G. Balaji in an accident caused by an Auto bearing No. AP 03 TC 2183, The Tribunal awarded interest at 7.5% p.a., from the date of O.P till the date of deposit and put a rider that if the respondent No.2/Insurance Company failed to deposit the compensation amount within 30 days from the date of the order, the petitioners would be entitled to interest at 9% p.a., which is impugned.

(2.) Heard Smt., A. Jayanthi, learned counsel for appellantinsurance company. Notice on respondents/claimants not served. However, considering the fact that the contention of the appellant is only in respect of rate of interest, we consider that non-service of notice is of no consequence.

(3.) Learned counsel for appellant would argue that the rate of interest awarded by Lower Tribunal at 7.5% p.a., besides exorbitant, devoid of any logic or policy. She contended that the Tribunal has not given any reason, much less cogent reason for awarding high rate of interest. Added to it, the rider put in the Award that in case of insurance company's failure to deposit the compensation amount within 30 days from the date of Award, the petitioners would be entitled to interest at 9% p.a., is quite burdensome to the appellant. Learned counsel would argue that in Sarla Verma and others vs. Delhi Transport Corporation and others, 2009 6 SCC 121, the Hon'ble apex court awarded interest at 6% p.a., from the date of petition till the date of realization and following the suit, in this case also the interest may be scaled down to that extent. She fairly admitted that the appellant/insurance company is not challenging the quantum of compensation awarded by the Lower Tribunal.