Case Note & Summary
The present appeal arises from a judgment and award dated 18.08.2006 passed by the Motor Accident Claims Tribunal (Auxiliary), Nadiad in MACP No.186/1990, whereby the Tribunal partly allowed the claim petition and awarded Rs.5,94,000/- but did not grant interest for the period from the date of filing (02.02.1990) till the restoration of the petition (31.07.1999). The original claimants, being the appellants, challenged this denial of interest. The claim petition had been dismissed for non-prosecution on 25.11.1997 and was restored on 31.07.1999 upon an application by the claimants. The appellants argued that there was no fault on their part and that interest should be awarded for the entire period. The respondent insurance company contended that the Tribunal correctly disallowed interest for the interregnum. The High Court, after hearing both sides and perusing the record, held that the dismissal was not attributable to any fault of the claimants and that the Tribunal had erred in denying interest for that period. The Court modified the award, directing that interest at 7.5% per annum be paid from the date of filing of the claim petition (02.02.1990) till the date of realization, including the interregnum period. The appeal was accordingly allowed.
Headnote
A) Motor Accident Claims - Interest - Interregnum Period - Motor Vehicles Act, 1988, Section 171 - Claim petition filed on 02.02.1990, dismissed for non-prosecution on 25.11.1997, restored on 31.07.1999 - Tribunal disallowed interest from date of filing till restoration - Held that since dismissal was not due to any fault of claimants, interest at 7.5% per annum is payable for the entire period from date of filing till realization (Paras 5-6).
Issue of Consideration
Whether the claimants are entitled to interest on the awarded amount for the period during which the claim petition remained dismissed for non-prosecution and was subsequently restored.
Final Decision
Appeal allowed. The impugned judgment and award is modified to the extent that the claimants are entitled to interest at the rate of 7.5% per annum on the awarded amount from the date of filing of the claim petition i.e. 02.02.1990 till the date of realization.
Law Points
- Interest on compensation
- Motor accident claims
- Restoration of petition
- Interregnum period
- No fault of claimant
Case Details
2026 LawText (GUJ) (02) 728
R/First Appeal No. 2295 of 2009
Kishan Y. Dave for Appellants; Not mentioned for Respondents
Sheelaben Wd/o Parasmall Sagarmal Baldota & Ors.
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Nature of Litigation
First appeal against judgment and award of Motor Accident Claims Tribunal partly allowing claim petition but denying interest for interregnum period.
Remedy Sought
Appellants sought modification of award to include interest from date of filing till restoration.
Filing Reason
Claim petition filed on 02.02.1990 for compensation; dismissed for non-prosecution on 25.11.1997; restored on 31.07.1999; Tribunal awarded compensation but denied interest for the period of dismissal.
Previous Decisions
Tribunal partly allowed claim petition and awarded Rs.5,94,000/- with interest at 7.5% per annum from 31.07.1999 till realization.
Issues
Whether the claimants are entitled to interest on the awarded amount for the period during which the claim petition remained dismissed for non-prosecution and was subsequently restored.
Submissions/Arguments
Appellants argued that there was no fault on their part and interest should be awarded from date of filing till realization.
Respondent insurance company argued that Tribunal correctly disallowed interest for the interregnum period.
Ratio Decidendi
Interest on compensation under Section 171 of the Motor Vehicles Act, 1988 should be awarded from the date of filing of the claim petition till realization, and the period during which the petition remained dismissed for non-prosecution cannot be excluded if the dismissal was not due to any fault of the claimant.
Judgment Excerpts
It is apparent from the record that the claim petition came to be dismissed for non-prosecution on 25.11.1997... However, the learned Tribunal has not awarded the interest for the period commencing with effect from 02.02.1990 till 31.07.1999 on the ground that the claim petition came to be dismissed and thereafter, it was restored... In the opinion of this Court, the learned Tribunal has committed an error in not awarding the interest for the said period.
The impugned judgment and award is modified to the extent that the claimants are entitled to interest at the rate of 7.5% per annum on the awarded amount from the date of filing of the claim petition i.e. 02.02.1990 till the date of realization.
Procedural History
Claim petition filed on 02.02.1990; dismissed for non-prosecution on 25.11.1997; restored on 31.07.1999; Tribunal passed award on 18.08.2006 partly allowing claim but denying interest for interregnum; appeal filed on 2009; heard and decided on 18.02.2026.
Acts & Sections
- Motor Vehicles Act, 1988: Section 171
