Partly allowed

The State of Maharashtra v. Shri Subhash Anant Shetye

Bombay HC19 Apr 2005FA/429/1992

Case brief

AI extract

What is this about?

In this civil appeal, the High Court addressed the appropriateness of the interest rate awarded by the Reference Court in a motor accident compensation case. The Court reduced the interest from 12% to 9% per annum, relying on Supreme Court observations regarding economic changes.

What did the court decide?

Interest rate on compensation reduced from 12% per annum to 9% per annum.

The State of Maharashtra Vs Shri Subhash Anant Shetye — Motor Accident Claims | Bombay HC (2005)

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 IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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CIVIL APPELLATE JURISDICTION.

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FIRST APPEAL NO.429 OF 1992.

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 The State of Maharashtra : Appellants.

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 versus

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 Shri Subhash Anant Shetye : Respondent.

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 Mr.B.R.Patil, Acting Government Pleader for the

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 State.

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 Miss A.S.Prabhu i/by Mr.A.V.Bandiwadekar for the
 respondent.

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CORAM : D.G.DESHPANDE,J.

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 DATED : 19th APRIL 2005.

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ORAL ORDER

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 1. Heard the learned AGP for the State and

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 the advocate for the respondent. The State has
 filed this appeal challenging the judgment of the

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 Reference Court dated 12th November 1991 by which
 the Reference Court awarded Rs.10,000/- for fruit
 bearing trees and Rs.20,000/- for reconstruction
 of building.

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 2. Regarding the compensation for fruit
 bearing trees, the claimant’s oral evidence

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 remained unchallenged and, so far as the

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 compensation for reconstruction of building is
 concerned, the claimant claimed Rs.35,000/-. But
 it was reduced to Rs.20,000/-. Therefore, the
 enhancement awarded at Rs.30,000/- is not
 unwarranted. The learned AGP contended that the
 rate of interest awarded by the reference Court
 at 12% p.a. is on higher scale and it should be
 reduced. He relied upon the judgment of Supreme
 Court reported in 2001 ACJ 428 [Kaushnuma Begum

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and others v. New India Assurance Co. Ltd. and

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others] wherein it has been held by the Supreme

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 Court that with a change in economy the banks
 have lowered the rates of interest on fixed

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 deposits. In that case also earlier 12% interest

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 was awarded by the tribunal but the Supreme Court
 reduced it to 9%. It is true that this judgment
 of the Supreme Court is under the Motor Vehicles
 Act 1939 but so far as interest aspect is

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 concerned, the aforesaid observations of the
 Supreme Court with reference to the change in
 economy and the policy of Reserve Bank of India
 and the present structure can be properly placed
 into service as rightly argued by the AGP. In
 view of this judgment of the Supreme Court, the
 rate of interest has to be reduced and it should

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 be 9% p.a. Hence the order:_-

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 :ORDER:

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 The appeal is partly allowed.

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 Interest awarded by the Reference Court
 at the rate of 12% p.a. is reduced to 9%

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 p.a.

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 No order as to costs.

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 [D.G.DESHPANDE]

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 19/04/2005 JUDGE.

The State of Maharashtra v. Shri Subhash Anant Shetye

Case brief

What is this about?

What did the court decide?

The State of Maharashtra v. Shri Subhash Anant Shetye

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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