CHAND DEVI Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) The claimants-appellants have filed this appeal on a limited question. The Motor Accidents Claims Tribumal by its order dated 14/3/1995 determined compensation payable to the appellants, to the tune of Rs. 1,80,000 along with interest at the rate of 12 per cent per annum from 21/7/1992 till its realisation. The Tribunal further held that interest at the rate of 15 per cent will be payable if the amount of compensation was not paid within two months. Aggrieved of the order aforesaid, respondent New India Assurance Co. Ltd. filed an appeal which was dismissed by the learned single Judge vide order dated 20.8.2004. While, however, dismissing the appeal, claimants-appellants were held not entitled to interest from 26.8.1996 when while admitting appeal of the respondent insurance company learned single Judge had stayed operation of the award. Stay by learned single Judge obviously continued up to the date when learned single Judge disposed of the matter. For the period from 26.8.1996 up to the date of decision, i.e., 20.8.2004 learned single Judge thus held the claimants-appellants not entitled to any interest. On the counsel contending before learned single Judge that an interim order to stay was granted in favour of the insurance company on 26.8.1996 and, therefore, it was not justified to impose interest on the insurance company at least for the period during which stay order was operating in his favour against the award, learned single Judge observed as follows:

(2.) We have heard the learned counsel for the parties. We are of the firm view that all interim orders passed by a court sink or stand with the final determination of the Us. Once the learned single Judge has found no merit in the appeal preferred by the insurance company either with regard to the quantum of compensation or interest, interim arrangements made during the pendency of appeal could not possibly come to disadvantage of the claimants- appellants. There could be no justification whatsoever so as not to pay interest from the date the single Bench granted stay up to the date of judgment when the appeal preferred by the insurance company was dismissed. Respondent insurance company cannot take advantage of the interim stay granted to it on whatever plea it might have raised when ultimately its appeal was found to be devoid of any merit and was accordingly dismissed.

(3.) In view of the discussion made above, we set aside the directions given by learned single Judge in the impugned judgment dated 20.8.2004 that "the insurance company would be under no obligation to pay interest for the period stay order was operating in its favour and hence, the said amount shall be deducted while calculating the amount of interest". We rather hold and direct that the insurance company shall pay interest for the period mentioned above as well.