VED PRAKASH Vs. BHUPIN

JUDGEMENT

(1.) The only question which arises for decision in this appeal is whether the amount deposited by the appellant- owner from time to time in pursuance to an award passed by a Motor Accident Claims Tribunal (MACT) has first to be adjusted towards interest or costs or to the principal amount as awarded by the Tribunal.

(2.) The law is well settled that under the provisions of Order 21 of the Code of Civil Procedure the payments, if any, made by the JD have first to be adjusted towards the amount of costs and interest and only thereafter towards the principal amount due unless the parties have agreed and specified to the contrary. This position of law has been settled by the Apex Court in Meghraj v. Mst. Bayabai, AIR 1970 SC 161 wherein has been held as follows :

(3.) In the present case the facts are that an award of Rs. 2,15,000/- was passed in favour of the claimants and against Ved Parkash owner of the truck. The Insurance Company was exonerated. The awarded amount was to carry interest @ 12% p.a. from the date of petition to the date of deposit of the compensation. The owner of the truck did not deposit the amount in one go. At the time of filing the appeal, the owner only deposited the appeal amount of Rs. 25,000/- which he was bound to deposit under the provisions of Section 173 of the Motor Vehicles Act. He, however, furnished security for payment of the balance amount. The appeal filed by the owner was dismissed on March 4, 2005. While dismissing the appeal on the prayer made by the learned counsel for the owner, the appellant was permitted to deposit the balance awarded amount in 3 months. Thereafter the owner filed CMP No. 229 of 2005 and at his request he was permitted to deposit the balance awarded amount in four installments. The appellant actually deposited the amount in four installments i.e. Rs. 1,19,000/- op 18-5-2005, Rs. 1,19,000/- on 17-8-2005, Rs. 1,19,000/- on 16-11-2005 and Rs. 1,19,000/- on 1-3-2006.