NEW INDIA ASSURANCE CO LTD Vs. JAYSHREEBEN CHANDRAKANT CHAUDHARY
LAWS(GJH)-2008-1-119
HIGH COURT OF GUJARAT
Decided on January 29,2008

NEW INDIA ASSURANCE CO LTD Appellant
VERSUS
JAYSHREEBEN CHANDRAKANT CHAUDHARY Respondents

JUDGEMENT

- (1.) THESE appeals under Section 173 of the Motor Vehicles Act, 1988 (for short "the Act") are preferred from the common award dated 22nd September 1998 of MACT (Main), Surat, inter alia, in MACP Nos. 375 of 1989 and 495 of 1989 whereunder the claimants were awarded total compensation of Rs. 5,27,000/- and Rs. 5,03,000/- respectively with interest at the rate of 15% per annum from the date of application till realization. The appeals were restricted to challenging the rate of interest.
(2.) ACCORDING to recent Division Bench judgment of this Court (dated 20th November 2006) in National Insurance Company Limited v. Sureshbhai @ Sureshchandra Maganbhai Parmar in First Appeal No. 2590 of 2006, it is held that while duration for which the claim petitions had remained pending is one of the relevant consideration, the current rate of bank interest prevailing on the date of the award is also another relevant consideration. Even as the claim petitions in that case were filed in the year 1995, the rate of interest was determined at 9% per annum. Having regard to the fact that, in the facts of the present cases the claim applications were made in the year 1989 and the award was pronounced in the year 1998 and in view of prolonged period till now, the rate of interest awarded on the amount of compensation is required to be suitably modified. Accordingly, the appeals are partly allowed with the direction that the claimants shall be entitled to full amount of compensation in terms of the impugned award with interest at the rate of 12% from the date of application till 31st December 1999 and at the rate of 9% from 1-1-2000 till the date of realization. Remaining part of the impugned award remains intact. Appeals stand partly allowed accordingly with no order as to costs. Civil Application in the appeals do not survive and stand disposed as rejected and Rule issued therein stands discharged with no order as to costs. Record and Proceedings may be returned.;


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