BOTLA NAGAMANI Vs. UNITED INDIA INSURANCE COMPANY LTD

JUDGEMENT

(1.) THIS Appeal arises out of Judgment and Decree, dated 15 -04 -2004, in OS. No. 34 of 2000, on the file of the Court of the learned IV Additional District Judge, Kakinada. The limited aspect raised in this Appeal pertains to non -award of pendente lite interest on the decretal amount.

(2.) THE husband of the appellant obtained an insurance policy covering the risk of accident. On his death, the appellant made a claim for payment of insurance amount. The claim was repudiated by the respondent - Insurance Company on the ground that the death of the policy holder has not occurred on account of accident but due to suicide. The appellant has, therefore, filed the abovementioned suit for payment of insurance amount of Rs. 10 lakhs along with interest @ 12% p.a., from the date it has fallen due till the date of realization. The lower Court, by its Judgment and Decree, dated 15 -04 -2004, decreed the suit directing payment of the insurance amount of Rs. 10 lakhs within three months therefrom, failing which, interest @ 9% p.a., was directed to be paid from the date of expiry of three months till the payment. Feeling aggrieved by the non -award of interest from the date of filing the suit till the date of decree, the appellant has filed this appeal.

(3.) THE appellant has claimed interest @ 12% before the lower Court. However, the lower Court has not given any reasons for denying the same. I am, therefore, of the opinion that the lower Court has not exercised its discretion properly by denying interest without assigning any reasons. Therefore, on the facts and in the circumstances of the case, this Court is of the opinion that interests of justice would be met, if the appellant is awarded interest @ 6% p.a., from the date of filing of the suit till the date of the decree.