ORIENTAL INSURANCE COMPANY LTD. Vs. KRUSHNA 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 opposite party nos.1 to 5 on account of delayed payment of compensation amount.

(2.) The opposite party nos.1 to 5 filed M.A.C. No.52 of 2014 on 5.9.2014 praying for award of compensation. On 12.12.2015 the matter being settled/compromised between the petitioner and opposite party nos.1 to 5, the National Level Lok Adalat passed the award directing that all the cheques be issued by the petitioner 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 cheques should have been issued on or before 11.2.2016, however, the cheques were deposited only on 18.2.2016. Out of the said cheques, the cheque of opposite party no.5 was erroneously issued in the name of opposite party no.4. Accordingly, the corrected cheque was deposited in favour of opposite party no.5 on 9.3.2016. Complaining delay in issuance of the cheques, 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. The petitioner however admitted that the cheque of opposite party no.5 was erroneously issued in the name of opposite party no.4 and the corrected cheque was deposited on 9.3.2016. The petitioner also narrated the events regarding re-validation of cheques after their lapse and submitted that for such lapse the petitioner is in no way responsible. 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. 5.9.2014 to 18.2.2016 to opposite party nos.1 to 5 and at the same rate from 5.9.2014 to 9.3.2016 to opposite party no.5.

(3.) Challenging the same, the present writ application has been filed.