SARASWATI BAI Vs. DAMODAR PRASAD

JUDGEMENT

(1.) THIS appeal filed under Section 110 -D of the Motor Vehicles Act, 1939, is by the claimant who has only been awarded a sum of Rs. 6,000/ - as compensation on account of death of her son in a motor accident because of rash and negligent driving of the truck by Respondent No. 1.

(2.) IT is not in dispute that Appellant's son Bedilal died in the accident on 11th March, 1980 caused by the Respondent No. 1 who was not only the owner of the truck but also driver of the same at the relevant time. Learned Tribunal on appreciation of oral evidence on record has held that the death was caused by the rash and negligent driving of Respondent No. 1. Since the Respondents have not appealed against the award the finding of rash and negligent driving has become final. The Appellants submission in this appeal is that a sum of Rs. 6,000/ - is not even a compensation for the life of a buffalo or a cow and therefore, the award should be modified by enhancing the same by a further sum of Rs. 15,000/ -.

(3.) THIS is one of those unfortunate cases where the Appellant has been dragged into the court without any justification. The truck was insured and therefore, the entire liability was covered by the policy. The facts were otherwise clear. In spite of it, nothing whatsoever had been done by the Respondent insurance company to settle the claim. The purpose of nationalizing the insurance business was to see that cases of poor and needy are settled in a just and reasonable manner without delay. This is also the desire of our welfare State. It is unfortunate that the Respondent No. 3 which is an instrumentality of our State created for establishing the welfare order is not aware of its obligations and has taken no steps whatsoever to settle this just and lawful claim. A perusal of the impugned order indicates that interest at the rate of 6 per cent only has been awarded. Award of such a low rate of interest is one of the reasons why such cases are not settled out of court and are brought into them to be dragged on for years. The money remaining with the owner or insurance company fetches more interest than 6 per cent. Award of 6 per cent interest is, therefore, considered as an encouragement to frivolous and unnecessary litigation. The interest of justice, therefore, requires that the rate of interest is increased from 6 per cent to a minimum of 12 per cent per annum from the date of institution of the claim. Under the circumstances, the aforesaid amount of compensation shall carry interest at the rate of 12 per cent per annum w.e.f. 8.9.1980, the date on which the claim was filed. The Appellant shall also be entitled to the costs of this appeal. Counsel's fee Rs. 250/ -.