IN THE HIGH COURT OF KERALA AT ERNAKULAM
MACA.No. 156 of 2009()
1. THE UNITED INDIA INSURANCE CO.LTD,
... Petitioner
Vs
1. SASI, S/O.NARAYANAN,ORAPPANKAL HOUSE,
... Respondent
2. SAJI.P,KOYLPPURATHU HOUSE,VEMPALLY.PO.
3. P.V.BABY,PARATHOTTIYIL HOUSE,
For Petitioner :SRI.M.A.GEORGE
For Respondent :SRI.S.PRASANTH
The Hon'ble MR. Justice M.N.KRISHNAN
Dated :06/10/2009
O R D E R
M.N. KRISHNAN, J.
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M.A.C.A. NO. 156 OF 2009
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Dated this the 6th day of October, 2009.
J U D G M E N T
This appeal is preferred against the award of the Motor
Accidents Claims Tribunal, Pala in O.P.(MV)1295/05. The
claim petition was allowed and the Tribunal has awarded a
compensation of Rs.1,04,685/- with 12% interest from
30.9.2004, the date of accident till realisation with costs.
The only challenge before this Court is regarding the rate of
interest as well as the date from which the interest is to be
awarded. I feel that the Motor Accidents Claims Tribunal has
restricted the compensation that is payable under the
Workmen’s Compensation Act and thought it fit to award the
interest as contemplated under the Workmen’s
Compensation Act. The said approach is erroneous. No
party is compelled to move the Tribunal for the purpose of
receiving the compensation under S.167 of the M.V.Act. An
option is given to the party to approach the Workmen’s
compensation Commissioner or the Motor Accidents Claims
M.A.C.A. 156 OF 2009
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Tribunal and therefore it is for the party to decide the forum
and therefore it has to be stated that as the party had
approached the Motor Accidents Claims Tribunal which
functions under the provisions of the M.V.Act only the
provisions of the M.V.Act can be looked into and applied for
the purpose of deciding the case. Actually when
compensation is awarded in such cases a Division Bench of
this Court even held that the compensation is restricted to a
particular amount only which is due from the insurance
company and really if it is not limited the compensation to be
fixed and ordered to be paid by the other opposite party.
But I am not going into those aspects in this case because
there is no such contentions before me. Under S.171 of the
M.V.Act discretionary power is given to the Tribunal to award
simple interest. Unlike the provisions under the Workmen’s
Compensation Act here it is a discretionary jurisdiction vests
with the Tribunal and the normal practice adopted by the
Tribunals are to take into consideration the lending rate,
inflation etc. and grant a reasonable rate of interest.
M.A.C.A. 156 OF 2009
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Recently the Apex Court after considering the materials in
the year 2007 had held that in Motor Accident cases an
interest of 7.5% will be reasonable and that has to be paid
only from the date of making the claim and not from an
earlier date. S.171 of the M.V.Act very clearly states that
the interest shall be paid not earlier than the date of making
the claim. Therefore the finding that the interest has to be
paid from the date of accident cannot be sustained in view of
S.171 of the M.V.Act. Therefore I modify the award of the
Tribunal whereby I hold that the rate of interest which the
claimant is entitled to is 7.5% per annum that too from the
date of petition and the insurance company shall be liable to
pay only the same. Appeal disposed of accordingly.
M.N. KRISHNAN, JUDGE.
ul/-