Tuesday, November 22, 2022

SC granted higher the rate of interest on enhanced compensation

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IN THE SUPREME COURT OF INDIA

 CIVIL APPELLATE JURISDICTION 

CIVIL APPEAL NO. 8103   OF 2022

(@SPECIAL LEAVE PETITION (CIVIL) NO. 5851 /2020)

   SHAMSHER SINGH & ORS.                       APPELLANT(S)

                                VERSUS

   LILA RAM & ORS.

    

            RESPONDENT(S)

                        O R D E R

Leave granted.

We  have  heard  Learned  Counsel  for  the

appellants.  The  only  ground  of  challenge  in  this

appeal filed by the claimant is that the High Court

while allowing enhancement of the compensation only

awarded  6%  interest  on  the  enhanced  amount  of

compensation  though  Motor  Accidents  Claims  Tribunal

(‘the  tribunal’)  has  awarded  9%  interest.  Learned

Counsel  for  the  appellants  contends  that  there

appears to be no rationale in not awarding the same

interest which was awarded by the tribunal even on

the enhanced amount of compensation.

Learned Counsel appearing for the Respondent-

insurance  company  tried  to  justify  the  order  by

saying that the High Court has rightly reduced the

rate of interest since the amount of compensation was

being enhanced.

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We are not impressed by this submission made

on behalf of the learned counsel for the respondent. 

We do not find any justification for the High

Court to have reduced the interest component on the

enhanced amount of compensation only because of the

fact  that  the  compensation  awarded  by  the  Tribunal

was being enhanced by it. 

In  view  of  above,  the  part  of  the  impugned

order  passed  by  the  High  Court,  awarding  only  6%

interest  on  enhanced  amount  of  compensation  is  set

aside and the appellants-claimants shall be entitled

for the payment of 9% interest on the total amount

payable as compensation.

The appeal accordingly, stands allowed to the

extent directed above.

…………………………………….J.

[KRISHNA MURARI]

…………………………………….J.

[S. RAVINDRA BHAT]

NEW DELHI;

   03

rd

 November, 2022

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ITEM NO.6               COURT NO.15               SECTION IV-B

               S U P R E M E  C O U R T  O F  I N D I A

                       RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (C)  No(s).  5851/2020

(Arising out of impugned final judgment and order dated  11-08-2014

in FAO No. 875/2002 passed by the High Court of Punjab & Haryana at

Chandigarh)

SHAMSHER SINGH & ORS.                              Petitioner(s)

                                VERSUS

LILA RAM & ORS.                                    Respondent(s)

([MACT MATTER] )


Date : 03-11-2022 This petition was called on for hearing today.

CORAM :

         HON'BLE MR. JUSTICE KRISHNA MURARI

         HON'BLE MR. JUSTICE S. RAVINDRA BHAT

For Petitioner(s) Mr. Arvind Gupta, AOR

Mr. Madhurendra Kumar, Adv.

Mr. Anil Kumar Sahu, Adv.

Mr. Mohit Bidhuri, Adv.

Mr. Utkarsh Sahu, Adv.

Mr. Arun Kumar Tiwari, Adv.

Mr. Nazish Fatima, Adv.

                  

For Respondent(s) Mr. S.L. Gupta, Adv.

Mr. Ashutosh Sharma, Adv.

Ms. Gunjan sharma, Adv.

Mata Prashad Singh, Adv.

Mr. Neeraj Srivastava, Adv.

Ms. Ranjana R. Singh, Adv.

Mr. Gurmeet Singh, Adv.

Mr. Dharam Pal Singh, Adv.

                    Mr. Varinder Kumar Sharma, AOR                 

          UPON hearing the counsel the Court made the following

                             O R D E R

Leave granted.

The order inter alia reads as under:-

“We are not impressed by this submission made

on  behalf  of  the  learned  counsel  for  the

respondent.

We do not find any justification for the High

Court to have reduced the interest component on the

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enhanced amount of compensation only because of the

fact that the compensation awarded by the Tribunal

was being enhanced by it.

In  view  of  above,  the  part  of  the  impugned

order  passed  by  the  High  Court,  awarding  only  6%

interest on enhanced amount of compensation is set

aside  and  the  appellants-claimants  shall  be

entitled  for  the  payment  of  9%  interest  on  the

total amount payable as compensation.”

The  appeal  is  allowed  in  terms  of  the  signed  order.

Pending application(s), if any, stand disposed of.

   (SONIA GULATI)                             (RENU BALA GAMBHIR)

SENIOR PERSONAL ASSISTANT                       COURT MASTER (NSH)

(Signed order is placed on the file)

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