{"id":235899,"date":"2020-09-17T14:05:51","date_gmt":"2020-09-17T08:35:51","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=235899"},"modified":"2020-09-25T00:29:19","modified_gmt":"2020-09-24T18:59:19","slug":"bom-hc-in-motor-accident-cases-is-there-a-hard-and-fast-rule-to-award-interest-from-the-date-on-which-the-claim-application-is-made-law-regarding-s-171-mv-act-discussed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/17\/bom-hc-in-motor-accident-cases-is-there-a-hard-and-fast-rule-to-award-interest-from-the-date-on-which-the-claim-application-is-made-law-regarding-s-171-mv-act-discussed\/","title":{"rendered":"Bom HC | In motor accident cases, is there a hard and fast rule to award interest from the date on which claim application is made? Law regarding S. 171 MV Act discussed"},"content":{"rendered":"

Bombay High Court:\u00a0<\/strong>V.L. Achliya, J., while addressing the issue with regard to the interest on compensation awarded in a motor accident case, observed that,<\/p>\n

\n

“…discretion vests with the tribunal to award the interest at ‘such rate’ and from ‘such date’ over the compensation awarded.”<\/span><\/p>\n<\/blockquote>\n

Appellants being aggrieved by the decision of the Motor Accident Claims Tribunal preferred this appeal with a limited challenge of award of interest.<\/p>\n

Claimants presented a claim petition under Section 166 of the Motor Vehicles Act seeking compensation of Rs 2 lakhs on account of the accidental death of the deceased who dies in a motor accident.<\/p>\n

At the time of the accidental death, the deceased was earning Rs 6,000 per month.<\/p>\n

Claimants assessed the compensation to be payable as Rs 14,51,000 but restricted the claim petition to Rs 2 lakhs.<\/p>\n

\n
\n
\n

Motor Accident Claims Tribunal, Parbhani allowed the claim petition and awarded compensation of Rs 3,64,500 [inclusive of NFL] with interest @ 6% per annum from the date of petition till realization.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Being dissatisfied with the quantum of compensation awarded by the Tribunal, the claimants have preferred Appeal.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

In the first appeal, Appellate Court had remanded the case to the Tribunal for deciding the same afresh. While remanding the case, Appellate Court observed that the amount already withdrawn by the claimants under the earlier award would be retained by them and the same shall be subject to further order to be passed by the tribunal.<\/p>\n

Further, the Tribunal awarded the compensation of Rs 10,22,208 making the respondent liable to pay the same. Tribunal directed that after deducting the compensation amount of Rs 3,64, 500 which was awarded earlier the claimants shall entitle to recover the balance amount with an interest of 6% per annum from the date of passing Award till its realization.<\/p>\n

Aggrieved with the interest from the date of passing of the Award the appellants preferred this appeal.<\/p>\n

Decision<\/span><\/p>\n

Bench referred to Section 171 of the Motor Vehicles Act which provides for the award of interest over the compensation awarded which spells out that discretion vests with the tribunal to award the interest at ‘such rate’ and from ‘such date’ over the compensation awarded.<\/p>\n

\n
\n
\n
\n

There is no statutory obligation cast upon the Tribunal to award the interest from the date of making application for compensation. The only restriction that has been cast upon Tribunal under Section 171 of Motor Vehicles Act is to ensure that interest to be awarded be a simple interest and same shall be payable not earlier than the date of making claim.<\/p>\n<\/blockquote>\n

Thus, except the embargo cast upon that interest can not be awarded from the date earlier to date of making claim, no other restrictions have been imposed upon the discretion of the Court\/ Tribunal to award interest.<\/span><\/p>\n

To understand the meaning of Section 171 of the Motor Vehicles Act, Court referred to the decision of the Supreme Court in Abati Bezbaruah v. Geological Survey of India<\/em>, (2003) 3 SCC 148<\/a>.<\/span><\/p>\n

Further, the bench stated that no hard and fast rule can be laid down as to the rate at which interest to be awarded and date from which such interest to be payable.<\/p>\n

\n

While awarding interest, the Tribunal has to take into consideration the facts and circumstances of individual case.<\/span><\/p>\n<\/blockquote>\n

Section 171 of the Motor Vehicles Act does not provide the rate at which interest has to be payable nor the date from which interest to be awarded.<\/p>\n

\n
\n
\n

Adding to the above, Court stated that the only restriction that has been put under Section 171 of the Motor Vehicles Act over the exercise of powers of the Tribunal is not to award interest from the date earlier to fling of claim petition and interest to be awarded to be simple interest.<\/p>\n

Hence tribunal’s order is clear and unambiguous and the present appeal was dismissed in light of the same. [Sangita v. Allanur, 2020 SCC OnLine Bom 931<\/b><\/a>, decided on 24-07-2020]<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bombay High Court:\u00a0V.L. Achliya, J., while addressing the issue with regard to the interest on compensation awarded in a motor accident case, <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[31947,2591,30951,19791,31551,43495],"class_list":["post-235899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-accidental-death","tag-Interest","tag-mact","tag-motor-vehicles-act","tag-mv-act","tag-section-171-of-mv-act"],"yoast_head":"\nBom HC | In motor accident cases, is there a hard and fast rule to award interest from the date on which claim application is made? 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Manohar, J. held that reading Section 167 of the Motor Vehicles Act, 1988\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":211197,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/02\/ker-hc-claim-filed-under-mv-act-withdrawn-after-interim-award-subsequent-proceedings-under-workmens-compensation-act-not-barred\/","url_meta":{"origin":235899,"position":2},"title":"Ker HC | Claim filed under MV Act withdrawn after interim award \u2013 subsequent proceedings under Workmen\u2019s Compensation Act not barred","author":"Bhumika Indulia","date":"March 2, 2019","format":false,"excerpt":"Kerala High Court: The Division Bench of K. Harilal and Annie John, JJ. dismissed an appeal filed by an insurance company against the order of Commissioner for Workmen\u2019s Compensation (WCC) directing it to pay a certain sum of money to the respondent herein. Respondent herein had filed an application under\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":217586,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/01\/utt-hc-compensation-increased-considering-the-raise-in-annual-notional-income-of-a-non-earning-member-pursuant-to-1994-amendment-in-mv-act\/","url_meta":{"origin":235899,"position":3},"title":"Utt HC | Compensation increased considering raise in annual notional income of a non-earning member\u00a0 pursuant to 1994 amendment in MV Act","author":"Bhumika Indulia","date":"August 1, 2019","format":false,"excerpt":"Uttaranchal High Court: Sudhanshu Dhulia, J., allowed the appeal filed by the appellants against the award passed by the Motor Accident Claims Tribunal, Rudrapur in MACT Case No. 153 of 2013, whereby compensation of Rs 3,00,000 was awarded to the claimants. The facts of the case are that, Roshni, the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":208065,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/14\/ph-hc-appeal-against-compensation-under-mv-act-dismissed-as-insurer-fails-to-show-drivers-license-was-invalid\/","url_meta":{"origin":235899,"position":4},"title":"P&H HC | Appeal against compensation under MV Act dismissed as insurer fails to show driver’s license was invalid \u00a0","author":"Bhumika Indulia","date":"January 14, 2019","format":false,"excerpt":"Punjab and Haryana High Court: This appeal was filed before a Single Judge Bench of Lisa Gill, J., by the Insurance Company challenging its liability to pay compensation to the claimants which was awarded by the Motor Accident Claims Tribunal. Facts of the case were that the claim petition was\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":235511,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/08\/madras-hc-can-mact-deal-with-claims-policies-other-than-accident-claims-provisions-of-mv-act-contractual-statutory-liability-cannot-be-equated-hc-elaborates\/","url_meta":{"origin":235899,"position":5},"title":"Madras HC | Can MACT deal with claims & policies other than Accident Claims provisions of MV Act? Contractual & Statutory liability cannot be equated: HC elaborates","author":"Bhumika Indulia","date":"September 8, 2020","format":false,"excerpt":"Madras High Court:\u00a0S.M. Subramaniam, J., while addressing a motor accident claim, observed that, Once, the policy is contractual in nature and the parties have signed the agreement, then such a contract cannot be construed or brought within the ambit of statutory liability. The Cholamandalam MS General Insurance Company Limited is\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/235899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=235899"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/235899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/74381"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=235899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=235899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=235899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}