UNITED INDIA INSURANCE COMPANY LTD. Vs. LABH SINGH

JUDGEMENT

(1.) THE present appeal filed by the Insurance Company had been admitted vide order dated 29.05.2001 on the limited question of rate of interest.

(2.) THE claim petition had been filed by Labh Singh -respondent, claiming compensation on account of injuries received by him in an accident which took place on 01.03.1998. The claimant had suffered disability of 48% as per the certificate (Ex. P -26) on account of the amputation of his right leg below the knee. The claimant was working as Private Contractor of wood work with Sood Transport MW Industrial Area, Chandigarh and was also doing private job at home. The income of the claimant was assessed at Rs. 5000/ - per month and a compensation of Rs. 3,20,200/ - was awarded along with interest at the rate of 12% per annum, from the date of filing of this application till the date of payment. The Tribunal has awarded a sum of Rs. 25,000/ - on account of pain and suffering. Assessing the income of the claimant as Rs. 5000/ - per month, the loss of income for six months is assessed at Rs. 30,000/ -. The Tribunal has assessed the loss of earning capacity at Rs. 2,59,200/ -(Rs. 28800x9). The age of the claimant was 52 at the time of accident.

(3.) THERE can be no quarrel with the preposition that normally the rate of interest granted should be commensurate/approximate with the prevalent bank rate. However, keeping in view the peculiar facts of this case, the equities shall be balanced if the rate of interest is maintained at 12% per annum as awarded by the Tribunal.