Court No. - 38
Case :- FIRST APPEAL FROM ORDER No. - 301 of 2005 Appellant :- G.M. U.P.S.R.T.C. Aligarh Respondent :- Smt. Sarvesh Sharma Counsel for Appellant :- M.M.Sahai Counsel for Respondent :- M.N. Siddiqui,Sunil Kumar Yadav
Hon'ble Siddharth,J.
1. Heard Sri M.M. Sahai, learned counsel for the appellant and Sri M.N. Siddiqui, learned counsel appearing for claimant/respondent.
2. This appeal has been preferred by the appellant against the judgement and order dated 20.12.2000 passed by Motor Accidents Claims Tribunal/District Judge, Kannauj in M.A.C. Case No. 2/70/2000 (Smt. Sarvesh Sharma Vs. U.P. State Road Transport Corporation).
3. The relief sought is that the aforesaid award may be set-aside.
4. Learned counsel for the appellant submitted that the Tribunal has allowed the claim petition of the claimant for a sum of Rs. 2,63,000/- towards compensation regarding death of the son of the claimant but has awarded interest @ 15% p.a. which is on the higher side and deserves to be reduced to 6% p.a. from the date of filing of claim petition till the payment of amount of compensation to the claimant.
5. Learned counsel for the claimant/respondent has vehemently opposed the submission of learned counsel for the appellant and has submitted that the interest awarded is not on the higher side since when the accident in dispute took place in the year 1999, this interest rate was prevalent and was being awarded by the Motor Accidents Claims Tribunals in all the cases.
6. After hearing the learned counsel for the parties, this Court finds that in the case of Neeta Vs The Divisional Manager, MSRTC (2015) 3 SCC 590, where accident took place on 22.03.2011, the Apex Court allowed 9% rate of interest and held that interest awarded by Tribunal at 8% was erroneous. Para-11 of the judgment reads as under:-
11. "The appellants are also entitled to the interest on the compensation awarded by this Court in these appeals at the rate of 9% per annum along with the amount under the different heads as indicated above. The Courts below have erred in awarding the interest at the rate of 8% per annum on the compensation awarded by them to the Appellants without following the decision of this Court in Municipal Corporation of Delhi, Delhi Vs. Uphaar Tragedy Victims Association and Ors. MANU/SC/1255/2011: (2011) 14 SCC 481. Accordingly, we award the interest at the rate of 9% per annum on the compensation determined in these appeals from the date of filing of the application till the date of payment."
7. In Kanhsingh Vs. Tukaram, 2015 (1) SCALE 366 where accident had taken place on 02.07.2006 but Tribunal awarded no interest. Court held that this is erroneous and 9% interest should have been allowed in view of the principles laid down in Municipal Corporation of Delhi Vs Association of Victims of Uphaar Tragedy (2011) 14 SCC 481.
8. In Kalpanaraj and Others Vs Tamil Nadu State Transport Corporation, (2015) 2 SCC where accident took place on or before 1994, High Court had awarded interest at the rate of 9% per annum which was challenged that it is on higher side. Court upheld said rate of interest.
9. In Shashikala and Others Vs Gangalak-shmamma and Another, (2015) 9 SCC 150, where accident had taken place on 14.12.2006, Court allowed 9% rate of interest from the date of claim petition till the date of realization.
10. In Asha Verman and Ors Vs Maharaj Singh & Ors, 2015 (4) SCALE 329, High Court awarded interest at the rate of 8%.
Accident took place on 27.11.2016. It was held that 8% interest is on lower side and it should be 9%.
11. In Surit Gupta Vs United India Insurance Company, (2015) 11 SCC 457, accident took place in July, 1990. Punjab and Haryana High Court had awarded interest at the rate of 6%. Court held that it is on lower side and it should be 9%.
12. In Chanderi Devi and another Vs Jaspal Singh and others, (2015) 11 SCC 703, date of accident is September 2006 and the incumbent died on 04.10.2006. Court awarded 9% interest.
13. In Jitendra Khimshankar Trivedi Vs Kasam Daud Kumbhar and Others, (2015) 4 SCC 237, incident was on 21.09.1990. Tribunal awarded 15% interest which was reduced to 9% Gujarat High Court. Court held that it is on higher side and awarded 9% interest following its decisions in Amresh Kumari Vs Niranjan Lal Jagdish Parshad Jain, 2010 ACJ 551 (SC) and Mohinder Kaur Vs Hira Nand Sindhi, (2007) ACJ 2123 (SC).
14. In view of the above pronouncements of the Apex Court regarding the rate of interest on the compensation awarded to the claimants in Motor Accidents Cases, this Court deems it appropriate to reduce the rate of interest in the award from 15% to 9% per annum.
15. The appellant will deposit the remaining amount of award along with interest @ 9% per annum on the entire amount of award before the Tribunal within two months and the interest on the 50% amount which was deposited earlier in terms of interim order dated 06.08.2001 from the date of filing of claim petition till the actual deposit shall be adjusted accordingly.
16. The award stands modified to the extent stated above.
17. The appeal is partly allowed.
Order Date :- 29.9.2021/KS