Oriental Insurance Company Ltd. v. Arvind Kumar & Ors.

Delhi High Court · 12 Sep 2017 · 2017:DHC:5373
R. K. Gauba
MAC A No.414/2016
2017:DHC:5373
civil appeal_allowed Significant

AI Summary

The Delhi High Court reduced the rate of interest on compensation awarded in a motor accident claim from 12% to 9% per annum, modifying the tribunal's award accordingly.

Full Text
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MAC A No.414/2016 HIGH COURT OF DELHI
Date of Decision: 12th September, 2017
MAC.APP. 414/2016 and CM 18656/2017
ORIENTAL INSURANCE COMPANY LTD. ..... Appellant
Through: Mr. Tarkeshwar Nath, Mr. Saurabh Kr. Tuteja and Mr. Onkar Nath, Advocates
VERSUS
ARVIND KUMAR & ORS. ..... Respondents
Through: Mr. Lakhmi Chand, Adv. for R-1
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT
(ORAL)

1. The only issue urged and pressed at the hearing by the appellant / insurance company in appeal is that the rate of interest (12% p.a.) levied by the tribunal on the awarded compensation in favour of the first respondent is excessive.

2. On being asked, the learned counsel representing the first respondent fairly concedes that there were no special reasons for such rate of interest being levied, which is higher than the ordinary. Following the consistent view taken by this court, the rate of interest is reduced to 9% p.a. (nine percent) [see judgment dated 22.02.2016 in MAC.APP. 165/2011, Oriental Insurance Co Ltd v. Sangeeta Devi & Ors.]. The award is modified accordingly. 2017:DHC:5373 MAC A No.414/2016

3. By order dated 17.05.2016, the appellant had been directed to deposit the entire awarded amount with interest at the rate of 9% p.a. (nine percent) with the tribunal and out of such deposit, 50% (fifty percent) was allowed to be released to the claimant. The balance in deposit shall also now be released to the claimant in terms of the impugned judgment.

4. The statutory amount shall be refunded.

5. The appeal and the pending application are disposed of in above terms. R.K.GAUBA, J. SEPTEMBER 12, 2017 yg