Partly allowed

The National Insurance Co. Ltd. v. Kamalla Nagaratnamma and 3 Others

Andhra Pradesh HC4 Mar 2021MACMA/978/2005

Case brief

AI extract

What is this about?

In this motor accident compensation appeal, the High Court addressed the claim for reduced interest on awarded damages. While upholding the compensation quantum and liability apportionment based on Section 140, the court held that the 9% per annum interest rate was excessive. Relying on precedent, the interest rate was reduced to 7.5% per annum.

What did the court decide?

The interest rate on the awarded compensation is reduced from 9% per annum to 7.5% per annum. The MACMA is allowed to this extent only.

The National Insurance Co. Ltd. Vs Kamalla… — Motor Accident Claims | Andhra Pradesh HC (2021)

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THE HON'BLE Ms JUSTICE J.UMA DEVI

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M.A.C.M.A No.978 of 2005

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JUDGMENT:

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Questioning the award, dated 27.03.2004, passed in M.V.O.P.No.681 of 1999, on the file of the Chairman, Motor Accidents Claims Tribunal-cumDistrict Judge, Guntur (for short “the Tribunal”), where the 1^st respondent, who is the wife of deceased Hanumantharao is awarded with compensation of Rs.50,000/- as against her total claim of Rs.1,00,000/-, the National Insurance Company Limited with whom the offending Ambassador Car bearing No.AP7E-1234 is insured has come before this court, disputing its liability to pay the compensation.

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Though several grounds are urged in the grounds of appeal, during course of hearing, it is only contended by the counsel of the appellantinsurance company that the interest awarded on compensation amount is on higher side and the same is to be scaled down.

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I have read the award challenged in this appeal. It appears that the trial court after coming to the opinion that there was negligence on the part of the deceased Hanumantharao and the driver of the offending Ambassador Car bearing No.AP7E-1234, apportioned the negligence between the deceased and driver of the offending car in the ratio of 60 : 40.

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The trial Judge though has taken the view that the claimant is entitled to get compensation of Rs.90,000/-, as the negligence on the part of driver of the offending car is at 40%, directed the appellant-insurance company to pay Rs.50,000/- towards compensation to the claimant as per the preposition of law laid down under Section 140 of Motor Vehicles Act, as negligence is not the criterion to decide the claim therein and compensation can be awarded even though there is no fault on the part of driver of the offending vehicle.

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JUD,J MACMA_978_2005

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Now the question before this court is whether the interest awarded on compensation amount is higher side and the same needs to be reduced reasonably?

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Having gone through the award under challenge, it is noticed that a direction is given to the appellant-insurance company to pay compensation amount of Rs.50,000/- with interest @9% p.a. from the date of filing of the petition till realization with proportionate costs.

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The learned counsel for the appellant though raised several grounds questioning the award, but confined her argument to the extent of granting of higher rate of interest by the court below. She contends that the rate of interest granted by the court below at 9% on the compensation amount is on higher side and the same is to be scaled down.

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On appreciation of the material on record, this court finds no factual or legal error in granting compensation of Rs.50,000/- to the claimant by the Tribunal on account of death of her husband in the accident. However, this court finds that the interest awarded by the court below @9% p.a. on the compensation amount is excessive, hence, inclined to modify the award reducing the rate of interest from 9% to 7.5% per annum as per decision of the Apex Court in Rajesh v Rajbir¹ .

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In the result, the MACMA is allowed partly to the extent indicated above. There shall be no order as to costs.

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Pending miscellaneous applications, if any, shall stand closed in consequence. No costs.

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__________________ J.UMA DEVI,J

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1 (2013) 9 SCC 54

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Date: 04.03.2021 Dsr

The National Insurance Co. Ltd. v. Kamalla Nagaratnamma and 3 Others

Case brief

What is this about?

What did the court decide?

The National Insurance Co. Ltd. v. Kamalla Nagaratnamma and 3 Others

Case brief

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