JUDGMENT
S.L. Saraf, J.
1. This is an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and order dated 30.11.1993 passed by the Member, Motor Accidents Claims Tribunal Shillong, in MAC Case No. 19 of 1991 for refusal to award interest.
2. The facts are, the claimant’s case that her sister was run over due to the negligence of the driver of the vehicle No. ML 058368 (MLS 8734) and her sister received injuries and later succumbed and died at the hospital. For the said accident, the claimant preferred a claim before the Claims Tribunal, Shillong, and the Claims Tribunal was pleased to pass the claim of Rs. 80,000/- in her favour. However, the Tribunal failed to make any order regarding interest on amount of compensation money payable.
3. The appellant submits before this court that the appellant has no grievance as to the compensation allowed by the Tribunal but the appellant was also entitled to the payment of interest as a matter of right from the date of filing of the claim. Mr. Jindal appearing for the claimant, refers to Section 110-CC of the Motor Vehicles Act, 1939, and to two judgments reported in Assam State Trans. Corporation v. Kamurun Nessa Mazumdar 1991 ACJ 464 (Gauhati) and 1986(1) TAC 223, in support of the above proposition. The Gauhati High Court, in its judgment interprets the provisions of Section 110-CC and observes as follows (para 11):
True it is that the power to award interest is discretionary but it is well settled that the discretion vested in the court or a Tribunal has to be exercised judiciously. It is a part of judicial function. The discretion in the matter of awarding interest does not mean that interest might be allowed or refused at the mere will or pleasure of the court or the Tribunal. It is legal discretion which has to be exercised reasonably according to common sense and justice on consideration of the facts and circumstances of each case. In fact, from a reading of the section in the light of the context, it is clear that ordinarily interest should be awarded at the prevailing rate or rates from the date of making the claim unless in view of the facts and circumstances of the case the court or Tribunal is otherwise satisfied. In other words, the award of interest should be the rule, refusal an exception.
4. The Supreme Court in the judgment in 1986(1) TAC 223 has held that interest be paid from the date of filing of the claim and in the said judgment, the Supreme Court has permitted 12 per cent interest.
5. In view of the aforesaid two judgments, I allow interest at the rate of 12 per cent from the date of filing of the claim till the amount of Rs. 80,000/- was paid by way of compensation and the interest amount may be paid within 6 weeks from today.
The matter is disposed of.