TARUBALA NASKAR Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) The petitioners' application under section 166 of Motor Vehicles Act giving rise to M.A.C. Case No. 34 of 1997 was allowed on contest against the insurance company with costs of Rs. 6,000 to be paid by insurance company and ex parte against the rest without cost. The learned Tribunal directed the insurance company to pay compensation to the tune of Rs. 5,32,660 to the claimants. Mode of payment of the awarded amount was also prescribed in the said award. It was also provided in the said award that if the said awarded amount is not paid by the insurance company to the claimants within 30 days from the date of passing of the said award, then the awarded amount will cany interest at the rate of 12 per cent per annum from the date of filing of the said case till realization of the said money.

(2.) Insurance company was not satisfied with the said award. Hence, the insurance company filed an appeal being F.M.A.T. No. 3588 of 1999. The said appeal was disposed of by the Division Bench of this Hon'ble Court on 17.6.2002. The judgment which was impugned in the said appeal was modified to the extent that the awarded compensation will be to the tune of Rs. 4,82,660 instead of Rs. 5,32,660 as contained in the ordering portion of the impugned order. The remaining part of the said award which was impugned in the said appeal remained undisturbed. As a result, insurance company was required to pay the said compensation money of Rs. 4,82,660 within 30 days from the date of disposal of the said appeal. The provision relating to payment of interest which was provided in the original award in the event of failure to deposit the awarded amount within 30 days from the date of disposal of the claim petition remained undisturbed in appeal. Thus, if it is found that the insurance company has failed to deposit the modified awarded amount within 30 days from the date of disposal of the appeal, insurance company cannot avoid its liability for payment of interest in terms of the award of the Tribunal which was affirmed in appeal.

(3.) The said appeal was disposed of on 17.6.2002. The modified awarded amount was deposited by the insurance company on 26.9.2002. Thus, this court has no hesitation to hold that the modified awarded amount was deposited after 30 days from the date of the disposal of the appeal. As a result, this court is of the view that the insurance company cannot avoid payment of interest on the modified awarded amount at the rate of 12 per cent per annum from the date of filing of the claim petition tiii realization of the said money.