STATE OF RAJASTHAN Vs. MAHESH KUMAR MADAN

JUDGEMENT

(1.) Heard the learned counsel for the parties. The only point involved in this appeal is that whether any interest can be granted over the compensation awarded under section 140 of the Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act of 1988').

(2.) In this case, the Motor Accidents Claims Tribunal, Hanumangarh (hereinafter referred to as 'the Tribunal') awarded compensation of Rs. 50,000 to claimants on account of no fault liability under section 140 of the Act of 1988. While doing so, the Tribunal also awarded interest over the said compensation at the rate of 8 per cent per annum. According to the learned counsel for the appellant, interest is not allowable in a case where any compensation awarded under section 140 of the Act of 1988.

(3.) I considered the submissions of the learned counsel for appellant and perused the interim award under section 140 as well as under section 171 of the Act of 1988. It is true that in sub-section (2) of section 140 of the Act of 1988, it is mentioned that the amount of compensation, which shall be payable under sub-section (1) of section 140 of the Act of 1988 shall be a fixed sum of Rs. 50,000 in case of death of the victim and a fixed sum of Rs. 25,000 in case of permanent disablement of the injured in the accident. The words "fixed sum" have direct connection only with the amount of compensation. Meaning thereby the compensation shall not be more or less than Rs. 50,000 or Rs. 25,000 as the case may be. Section 140 of the Act of 1988 deals with compensation only whereas section 171 permits the award of interest over the compensation amount. Section 171 says that where any Claims Tribunal allows a claim for compensation under the Act of 1988, such Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf. Meaning thereby the Tribunal has been given jurisdiction to award interest over the compensation irrespective of the fact whether award of compensation is under section 140 or under section 166 of the Act of 1988.