THE NEW INDIA ASSURANCE COMPANY LIMITED, KOTTAYAM NOW REPRESENTED BY ITS DEPUTY MANAGER, REGIONAL OFFICE, M.G. ROAD, KOCHI Vs. THE MOTOR ACCIDENTS CLAIMS TRIBUNAL, KOTTAYAM

JUDGEMENT

(1.) There is an award passed by the Motor Accidents Claims Tribunal, Kottayam, in O.P.(M.V.)No.507/1988 in favour of the second respondent herein. There is no dispute as regards the award. There is no dispute as to the quantum either. The only question is as to how the payments made by the petitioner against such award into the court has to be appropriated and accounted for.

(2.) According to the petitioner, the payments made by them into court should be first appropriated against the principal and then to the interest. Whereas, the second respondent maintains that in the absence of any specific instruction by the Insurance Company while making such payment, the amount should be first adjusted against the interest and later to the principal.

(3.) The stand of the second respondent was accepted by the Tribunal which passed Ext.P3 order, directing the Insurance Company, the petitioner herein, to remit an additional amount of Rs.5,00,000.00. This order has been impugned by the Insurance Company in this writ petition.