Case Note & Summary
The case arises from a motor accident claim petition filed under Section 166 of the Motor Vehicles Act, 1988, by the appellants/claimants, who are the legal heirs of the deceased Ravikumar @ Ravindrakumar Devidasrao Pawar. The deceased died in a motor accident on 06/05/2005 while working as a driver at All India Radio Station, Parbhani, earning Rs. 6,600/- per month. The claimants filed a claim petition on 12/07/2005 seeking compensation of Rs. 2 lakhs. The Motor Accident Claims Tribunal, Parbhani, passed a judgment and order on 10/09/2008 awarding compensation but granted interest only from the date of the award until realization, rather than from the date of filing the claim petition. Aggrieved by this limited aspect, the claimants appealed to the Bombay High Court. The sole legal issue was whether interest should be awarded from the date of filing the claim petition or from the date of the award. The appellants argued that as per settled law, interest on compensation in motor accident claims is payable from the date of filing the petition. The respondents did not contest this point. The High Court, after hearing counsel, allowed the appeal, modifying the award to grant interest at the rate of 6% per annum from the date of filing the claim petition (12/07/2005) until realization, instead of from the date of the award. The court held that the Tribunal erred in awarding interest only from the date of the award, and the claimants are entitled to interest from the date of filing the petition.
Headnote
A) Motor Accident Claims - Interest - Date of Entitlement - Section 166, Motor Vehicles Act, 1988 - The claimants sought compensation for death in motor accident; Tribunal awarded interest from date of award instead of date of petition - Held that interest should be awarded from the date of filing of the claim petition as per settled legal position (Paras 3-5).
Issue of Consideration
Whether the claimants are entitled to interest on the compensation amount from the date of filing of the claim petition or from the date of the award?
Final Decision
Appeal allowed. The impugned judgment and order is modified to the extent that the claimants are entitled to interest at the rate of 6% per annum on the compensation amount from the date of filing of the claim petition i.e. 12/07/2005 till its realization, instead of from the date of award.
Law Points
- Interest on compensation
- Date of filing claim petition
- Section 166 Motor Vehicles Act
- 1988
- Motor accident claim
Case Details
2020 LawText (BOM) (07) 2
First Appeal No. 1373 of 2016
Mr. P.N. Kalani for appellants, Mr. M.B. Kolpe for R-1, Mr. M.M. Ambhore for R-2
Sangita w/o Ravikumar @ Ravindrakumar Pawar and others
Allanur Sk. Hanif and The New India Assurance Co. Ltd.
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Nature of Litigation
Appeal against award of Motor Accident Claims Tribunal challenging the date from which interest is awarded on compensation.
Remedy Sought
Claimants sought modification of award to grant interest from the date of filing claim petition instead of from date of award.
Filing Reason
Claimants were aggrieved by the Tribunal's order awarding interest only from the date of award, not from the date of filing claim petition.
Previous Decisions
Motor Accident Claims Tribunal, Parbhani, passed judgment and order dated 10/09/2008 awarding compensation but interest from date of award.
Issues
Whether interest on compensation should be awarded from the date of filing claim petition or from the date of award?
Submissions/Arguments
Appellants argued that as per settled law, interest is payable from the date of filing claim petition. Respondents did not contest this point.
Ratio Decidendi
In motor accident claims, interest on compensation should be awarded from the date of filing of the claim petition, not from the date of the award, as per settled legal position.
Judgment Excerpts
Being aggrieved by the Judgment and Order dated 10/09/2008 passed by learned Member, Motor Accident Claims Tribunal, Parbhani, the appellants/claimants have preferred this Appeal with a limited challenge of award of interest from the date of Award till its realization as against the claim of claimants to award interest from the date of filing of claim petition.
The facts relevant to decision in Appeal are as under. [a] The claimants herein presented claim petition u/s 166 of Motor Vehicles Act on 12/07/2005 seeking compensation of Rs. 2 Lakhs on account of accidental death of deceased Ravikumar @ Ravindrakumar Devidasrao Pawar, who died in motor accident occurred on 06/05/2005.
Procedural History
Claim petition filed on 12/07/2005 under Section 166 of Motor Vehicles Act, 1988. Motor Accident Claims Tribunal, Parbhani, passed judgment and order on 10/09/2008 awarding compensation but interest from date of award. Claimants filed First Appeal No. 1373 of 2016 before Bombay High Court challenging the interest aspect. Appeal heard and decided on 24/07/2020.
Acts & Sections
- Motor Vehicles Act, 1988: 166
