ORIENTAL INSURANCE CO.LTD. Vs. DEVA BAI

JUDGEMENT

(1.) This Civil Revision has been filed against the order dated 03.05.2008 passed by 5th Motor Accident Claims Tribunal, Gwalior, in Execution Case No.108/00x03.

(2.) The issue which is involved in the present Civil Revision is whether the amounts deposited by the Insurance Company will be first adjusted towards interest and subsequently towards principal or will they be first adjusted towards principal and then towards interest.

(3.) The contention of the Insurance Company is that in view of the law laid-down by the Supreme Court in the case of Gurpreet Singh Vs. Union of India as reported in 2006(8) SCC 457 and also in the case of Bharat Heavy Electricals Ltd. (BHEL) Vs. R.S. Avtar Singh & Co. as reported in 2013(1) SCC 243, the amounts deposited by the Insurance Company shall be first appropriated towards principal and then towards interest. Learned counsel has also placed reliance on the judgment of Supreme Court in the case of V. Kalabharti & Others Vs. Oriental Insurance Co. Ltd. as reported in 2014(4) MPLJ 290 and submitted that in case of a money decree with interest and cost amount will first be appropriated towards the principal and later on towards the interest. Learned counsel has also placed reliance on the judgment of Himachal Pradesh High Court in the case of Ved Prakash Vs. Bhupia & Others as reported in 2007 ACJ 1874 to bring home the issue that if any amount is deposited in terms of an interim award passed under Section 140 of the Motor Vehicle Act, then the interest will not be payable on the amount deposited by the Insurance Company towards interim award.