United India Insurance Company … vs V. Mustafa on 15 September, 2008

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MFA.No. 104 of 2001()



1. UNITED INDIA INSURANCE COMPANY LTD.
                      ...  Petitioner

                        Vs

1. V. MUSTAFA
                       ...       Respondent

                For Petitioner  :SRI.MATHEWS JACOB (SR.)

                For Respondent  :SRI.RUBIN JOSEPH

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice HARUN-UL-RASHID

 Dated :15/09/2008

 O R D E R
                       C.N.RAMACHANDRAN NAIR &
                              HARUN-UL-RASHID, JJ.
                  ....................................................................
                                M.F.A. No.104 of 2001
                  ....................................................................
                Dated this the 15th day of September, 2008.

                                         JUDGMENT

Ramachandran Nair, J.

Heard counsel for the appellant. The main challenge is against the

award of interest at 12% and penal interest at 13% for delay in payment

beyond one month granted by the MACT. Even though we find force in

the contention of counsel for the appellant that rate of interest at 12% is

high and time granted for payment, default of which attracts penal interest

also is short, we do not find any ground to interfere with the award because

as against the usual practice of granting interest from date of application,

MACT has granted interest from date of award against which claimant has

not filed appeal. In the circumstances, we feel even at the higher rate of

interest awarded to him, the claimant is a loser. We, therefore, dismiss the

appeal filed by the Insurance Company. However, we make it clear that

2

interest at penal rate will not be payable during the period of stay granted by

this court on the amount stayed.

C.N.RAMACHANDRAN NAIR
Judge

HARUN-UL-RASHID
Judge
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