- (1.) THIS appeal is directed against the judgment and award dtd.4.3.2008 passed by the learned Motor Accident Claims Tribunal, Pali in Claim Case No.3/2005 ? Smt. Ranki and ors. V/s M/s Libra Finance and Career Pvt. Ltd., whereby the learned Tribunal while awarding compensation, has not awarded interest in addition to the amount of compensation.
(2.) THE only point which arises for consideration and is pressed by the claimants -appellants in the present appeal is that the learned Tribunal has not awarded any interest on the compensation amount of Rs.4,00,000/- awarded in favour of the claimants for the death of Buddha Ram in an accident which took place on 28.5.2004 despite Section 171 of the Motor Vehicles Act. The learned counsel for the appellants, Mr. Moti Singh submitted that Section 171 of the Motor Vehicles Act, 1988 clearly provides for award of interest where any claim is allowed and such interest may be allowed by the Tribunal in addition to the amount of compensation at such rate and from such date not earlier than the date of making the claim as may be specified in this behalf. He submitted that in para 15 of the impugned award, the only reason given by the learned Tribunal is that since claim is filed under Section 163A of the Act providing for structured formula for computing the compensation, interest cannot be awarded but said reason is not justifiable. He, therefore, submitted that appropriate interest may be awarded on the compensation of Rs.4,00,000/- already distributed to the claimants. The learned counsel for the respondent ? Insurance Company however supported the impugned award. Section 171 of the Act which is relevant for the present controversy reads as under: "171. Award of interest where any claim is allowed :- Where any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf." Having heard the learned counsels, this Court is of the opinion that the reason assigned by the learned Tribunal for not awarding any interest is erroneous. The Act provides for computation of compensation in three manner; (i) no fault liability under Section 140 of the Act, (ii) structured formula under Section 163A of the Act and (iii) fault liability claim under Section 166 of the Act depending on the evidence led by the claimants. Merely because the compensation has been computed according to structured formula under Section 163A of the Act, Section 171 of the Act providing for interest on the awarded sum does not become redundant in such cases. The interest of such computation of compensation under Section 163A of the Act also ought to have been awarded. The death in question took place on 28.5.2004, whereas the compensation amount has been paid to the claimants on 4.3.2008 after lapse of 4 years. As it well settled, the interest is nothing but compensation to the claimants for their due money having been utilized so far by the respondents/non-claimants, who were liable to pay and reimburse such claim. The interest is, therefore, generally an automatic attachment of the amount of compensation and unless there are over- riding reasons, the interest should normally be awarded on the amount of compensation.
(3.) ACCORDINGLY, the present appeal of claimants is allowed and the award of the learned Tribunal is modified to the extent that the respondents including the respondent Insurance Company shall be jointly and severally liable to pay interest @9% per annum from the date of filing of claim petition till the date of payment to the claimants. This amount of interest may be paid to the claimants within a period of 3 months from today. No order as to costs.;