NATIONAL INSURANCE CO. LTD. Vs. SIRDIR PYARA SING AND ANR.

JUDGEMENT

(1.) IN this appeal, the sole point urged before us is that the Motor Accidents Claims Tribunal, " the Tribunal", for short, constituted under the Motor Vehicles Act, 1939, for short " the Act ", had no power to award "interest" on compensation in a proceeding under Section 110 of the Act. No other point has been urged.

(2.) THE respondent lost his son aged about 23 years in a motor accident as far back as on May 16, 1965, and lodged his claim for compensation on May 23, 1965. The learned Tribunal awarded compensation of Rs. 20,000 with simple interest at 6% per annum from the date of filing of the claim petition till the realisation of the compensation. The insurer, a nationalised insurance company, a public institution, has waged a battle, and questioned the payment of a paltry amount. The battle is "uneven" - -a public institution v. a private individual. Public bodies should resist the temptation of litigation like a cantankerous litigant for an insignificant amount raising technical pleas. In Trustees of Port of Bombay v. Premier Automobiles Ltd. , the Supreme Court observed that public institutions convict themselves of untrustworthiness out of their own mouth by resorting to such defence. In State of Haryana v. Darshana Devi , when the Government raised the question whether court -fees are payable by the claimants, the Supreme Court observed that the Government had committed a social wrong and injustice in not settling the claim forthwith but fighting like a cantankerous litigant. Their lordships pointed out the solemn duties of the State which undoubtedly include other authorities, under Articles 39(a) and 41 of the Constitution, namely, their duty to render public assistance without litigation in cases of disablement. It has been observed that insurance against third party risk is compulsory, motor insurance has been nationalised, the victims are mostly below the poverty line and litigation is nothing but compounded misery. Their Lordships recommended " on the spot payment of compensation " and critically observed that accident claims were pending before the Tribunal in heartless slowness. Their Lordships have pointed out the need to make pre -trial settlements to narrow down all technical controversies and to bear in mind that it is the prime duty of all " to wipe out every tear from every eye which has judicial relevance. For, law must keep its promise to justice."

(3.) WE have been called upon to decide a stale matter which is no longer important for the appellant company, as the right to get interest from the Tribunal is now a statutory right under Section 110CC of the Act which, of course, came into force from March 2, 1970.