NEW INDIA ASSURANCE COMPANY LTD. Vs. RAJU @ MUZAHIR HUSSAIN & ORS.
LAWS(RAJ)-2012-5-254
HIGH COURT OF RAJASTHAN
Decided on May 23,2012

NEW INDIA ASSURANCE COMPANY LTD. Appellant
VERSUS
Raju @ Muzahir Hussain Respondents

JUDGEMENT

Mohammad Rafiq, J. - (1.) THESE two appeals have been preferred by the appellant - The New India Assurance Company Ltd. for modification of the award dated 16.5.2011 passed by the Motor Accident Claims Tribunal, Jaipur so far as it relates to the direction in respect to the payment of interest of Rs. 1,29,416 from 5.10.2004 (i.e. the date of filing of the claim petition) to 11.5.2006 (i.e. date of notice of the claim petition to the appellant) and for setting aside the order dated 30.9.2011 in SBCMA No. 7093/2011. In SBCMA No. 7097/2011, it has been prayed that award dated 16.5.2011 be modified so far as it relates to the direction in respect to the payment of the interest of Rs. 30,581 from 23.9.2004 (i.e. the date of filing of the claim petition) to 23.6.2006 (i.e. the date of notice of the claim petition to the appellant) @ 9% p.a. and for setting aside the order dated 30.9.2011. Contention of the learned Counsel for the appellant is that the Tribunal ought not to have awarded interest to the claimants for the entire, duration when the claim petition remained pending. While the claim petition was filed by claimant -respondent No. 1 -Raju @ Muzahir Hussain on 5.10.2004 in SBCMA No. 7093/2011, claimant -respondent No. 1 -Smt. Shagufta Begam filed claim petition on 23.9.2004 in SBCMA No. 7097/2011. Tribunal passed the order on 30.9.2011 directing that interest @ 9% p.a. should be awarded.
(2.) COUNSEL argued in SBCMA No. 7093/2011 that claimants failed to comply with the order passed by the Tribunal on various dates for production of certain documents and thereafter matter remained pending before the Tribunal and even the notices were issued to the claimants for filing an order. Notices of the claim petition were received by the appellant very belatedly, which time was consumed for no fault of the Insurance Company. The Insurance Company cannot therefore be held liable for the interest for the said period. Learned Counsel relied on the judgment of Madhya Pradesh High; Court in Oriental Fire and General Insurance Co. Ltd. v. Rani Singh and Others, 1995 (1) T.A.C. 444 (M.P.). I am not persuaded to uphold the argument of the learned Counsel for the appellant because even the Tribunal has taken certain time in finally deciding the matter. Even if the claimants failed to produce the documents for some time, the claimants cannot be deprived of the interest of the intervening period because quantification of the compensation has been made by the Tribunal when the award was passed. If and when quantification of compensation is made by passing the final award, Insurance Company would be required to pay compensation. If the compensation has been paid with certain delay, that would still mean that claimants were entitled to receive such compensation much earlier, atleast on the date of filing claim petition and for all this time, money was retained by the Insurance Company and was otherwise not paid to the claimants. Delay in quantification of compensation may have been caused due to the procedure in the working of the Tribunal, part of which may also be attributable to the claimants in approaching the Tribunal and then in producing evidence and documents in time but all those steps are part of the procedure for which the claimants cannot be held responsible. The insurance companies in the matters like present one, should refrain from approaching this Court by filing frivolous appeals challenging award of compensation of such small amount. I do not find any merit in either of the appeals, which both are dismissed.;


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