NATIONAL INSURANCE CO LTD Vs. TARA

JUDGEMENT

(1.) HEARD. The only challenge made by the petitioner in this petition under Article 227 of the Constitution of India is to the grant of interest on the interim compensation payable under Section 140 of the Motor Vehicles Act, 1988.

(2.) THE contention of the learned Counsel for the petitioner is that the payment of no fault compensation is only an interim measure and it does not finally adjudicate upon the rights of the litigants. It has further been argued that if ultimately a person claiming benefit of Section 140 of the Act referred to above is not found entitled to any compensation then the amount is refundable.

(3.) THE learned Counsel appearing for the insurance company has placed reliance on a decision given by the Rajasthan High Court in the case of Dhapa Kanwar v. Kisnanlal 1992 ACJ 163 (Rajasthan ). The Rajasthan High Court observed as under: