Case Note & Summary
The appeal was filed by Reliance General Insurance Company Limited under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment dated 3rd May 2018 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.205 of 2013. The dispute arose from a motor accident where the deceased Manohar Manikrao Agarkar was riding a motorcycle and was hit by a Xylo vehicle insured by the appellant. The Tribunal awarded compensation to the respondents (legal heirs of the deceased) and fixed negligence solely on the driver of the Xylo vehicle. The appellant-insurance company raised two primary issues: (1) contributory negligence on the part of the deceased motorcyclist, and (2) the rate of interest at 7.5% per annum awarded by the Tribunal. The appellant argued that the deceased was negligent in taking a U-turn without proper care. The respondents opposed the appeal, supporting the Tribunal's findings. The High Court examined the evidence and found that the Tribunal's finding of negligence on the part of the Xylo driver was based on the evidence on record and was not shown to be perverse. Therefore, the court declined to interfere with the finding on negligence. However, regarding the interest rate, the court noted that the prevalent rate of interest at the time was around 6% per annum and, following recent decisions, reduced the interest rate from 7.5% to 6% per annum from the date of petition till realization. The appeal was partly allowed to the extent of the reduction in interest rate, and the rest of the award was confirmed.
Headnote
A) Motor Accident Claims - Contributory Negligence - Deceased Motorcyclist - The appellant-insurance company contended that the deceased motorcyclist was negligent in taking a U-turn without proper care, but the Tribunal found the Xylo driver solely negligent based on evidence. The High Court held that the finding of negligence is a finding of fact and not shown to be perverse, hence no interference is warranted (Paras 2-5). B) Motor Accident Claims - Interest Rate - Reduction from 7.5% to 6% - The Tribunal awarded interest at 7.5% per annum. The High Court, following the prevalent rate of interest and recent decisions, reduced the rate of interest to 6% per annum from the date of petition till realization (Paras 6-7).
Issue of Consideration
Whether the Tribunal erred in not attributing contributory negligence to the deceased motorcyclist and in awarding interest at 7.5% per annum.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified to the extent that the rate of interest is reduced from 7.5% per annum to 6% per annum from the date of petition till realization. The rest of the award is confirmed.
Law Points
- Contributory negligence
- Interest rate
- Motor Vehicles Act
- 1988
- Section 173
- Appeal against award
