Case Note & Summary
The case involved a civil appeal concerning compensation awarded by the Motor Accident Claims Tribunal to the appellants for the death of the first appellant's husband. The Tribunal had granted Rs.1,20,000/- as compensation on 12.9.1984 but did not award any interest. Following this, the respondent-Corporation appealed, leading to a stay of 50% of the compensation amount, which was not resolved until the High Court dismissed the appeal after 19 years on 8.7.2003. The appellants filed this appeal seeking interest at 24% per annum on the withheld amount due to the delay caused by the stay. The Supreme Court noted that the appellants should not suffer for the High Court's interim stay and determined that they were entitled to interest at 7.5% per annum from the date of the stay until payment. The court directed the respondent to pay the due amount with interest within four weeks, thereby disposing of the appeal favorably for the appellants.
Headnote
A) Motor Accident Claims - Compensation and Interest - Entitlement to Interest - Motor Vehicles Act, 1988 - The appellants were denied timely compensation due to a stay order, and the court held they should receive interest at 7.5% per annum from the date of stay until payment. The High Court's failure to award interest was deemed prejudicial to the appellants, necessitating compensation for the delay (Paras 3-4).
Issue of Consideration
Whether the appellants are entitled to interest on the withheld compensation amount?
Final Decision
The Supreme Court directed the respondent to pay the balance compensation amount of Rs.60,000/- with interest at the rate of 7.5% per annum from 21.12.1984 until payment, to be completed within four weeks.
Law Points
- Compensation
- Interest
- Motor Accident Claims Tribunal
- Delay in Payment
