ORIENTAL INSURANCE COMPANY LTD. Vs. LAXMI KAMAR

JUDGEMENT

(1.) The present writ application has been filed by the Insurance Company praying for quashing of the order dated 25.11.2017 under Annexure-3 whereby the Additional District Judge-cum-3rd M.A.C.T., Jharsuguda has directed the petitioner to pay interest to the claimants on account of delayed payment of compensation amount.

(2.) The opposite party no.1 along with others filed M.A.C. No.50 of 2014 on 25.08.2014 praying for award of compensation. On 12.12.2015 the matter being settled/compromised between the petitioner and opposite party no.1 and other claimants, the National Level Lok Adalat passed the award directing payments in the shape of account payee cheque/demand draft within 2 months from the date of award failing which the compensation amount would carry interest @ 9% per annum from the date of application till realization. The petitioner never challenged such award. The attested copy of the relevant portion of the award so passed has been filed by the learned counsel for the petitioner along with a memo in the court on 8.2.2019. On 15.12.2015 copy of the award was handed over to the learned counsel for the petitioner, who in turn sent the same to the petitioner, which received the copy on 19.12.2015. As per the award though the payments should have been made on or before 11.2.2016, however, the deposits were made only on 18.2.2016. Complaining delay on deposits, a petition under Section 174 of the Motor Vehicles Act, 1988 was moved before the learned 3rd M.A.C.T., Jharsuguda vide Annexure-1 praying for issuance of a certificate for realizing the interest amount on delayed payment. Vide Annexure-2, the petitioner filed its show cause taking the plea that as it received the award of Lok Adalat on 19.12.2015, therefore by depositing the cheques on 18.2.2016, they have complied with the direction of Lok Adalat within the time period fixed by the Lok Adalat. Thus, there has been no delay in carrying out the award of Lok Adalat. Accordingly, the petitioner denied its liability to pay interest. Considering all these factors and relying on the language used in the award, the learned 3rd M.A.C.T. Jharsuguda rejected the plea of the petitioner and directed it to pay interest @ 9% from the date of application i.e. 25.08.2014 to 18.2.2016 to claimants.

(3.) Challenging the same, the present writ application has been filed. Mr. Dutta, learned counsel for the petitioner contended that the learned Tribunal has gone wrong in awarding interest as in the factual background there has been no delay in depositing the compensation. In this context, he pointed out that though the award was passed on 12.12.2015, but a copy of the same was received by the petitioner only on 19.12.2015. Since, the two months period granted by the award was to expire on 18.2.2016, on the said date the deposits were made. Thus, there has been no delay in making deposits. Secondly, he submitted that the claimants having accepted the deposits without any objection, cannot now pray for interest. In this context, he relied upon a decision of this Court dated 30.11.2016 passed in W.P.(C ) No.12084 of 2015 in the case of Nityananda Bag and another v- Branch Manager, Oriental Insurance Company and others.