NEW INDIA ASSURANCE CO LTD Vs. VINOD KUMAR

JUDGEMENT

(1.) This case is pending for the service of respondent No. 2. Counsel for the appellant has submitted that they are seeking relief against respondent No. 1 and not against respondent No. 2. So service of respondent No. 2 is dispensed with.

(2.) Notice of motion in this case was issued on 11.11.2010 when it was submitted by the learned Counsel for the Insurance Company that award of interest on the amount of compensation from the date of accident against the appellant is not legally sustainable, as it was the insured who was liable to pay interest for this intervening period. The insurer is liable only to pay interest from the date of award.

(3.) As far as interest on payment of compensation amount is concerned, it is to be mentioned that earlier this Court is awarding interest at the rate of 9 per cent per annum instead of 12 per cent per annum in some of the cases keeping in view the facts and circumstances of those cases but the position now becomes clear in view of the judgment of Kamla Chaturvedi v. National Insurance Company Limited and others, 2009 120 FLR 149 and in this judgment reliance was also placed to the decision rendered in National Insurance Company Limited v. Mubasir Ahmed, 2007 112 FLR 1033, para 9 of the said judgment reads as under: