Allowed

Abdulla C.T v. United India Insurance Co.Ltd., Represented by Its Branch Manager

Kerala HC26 Jun 2023RP/1154/2022

Case brief

AI extract

What is this about?

The High Court allowed a review petition to enhance the rate of interest on enhanced compensation from 5% to 7%, directed the Insurance Company to pay simple interest at this rate from the petition date, and dismissed the claimant's request for a 9% rate due to lack of supporting material on prevailing bank rates.

What did the court decide?

Interest on the enhanced compensation amount increased from 5% per annum to 7% per annum from the date of the review petition.

Abdulla C.T Vs United India Insurance Co.Ltd… — Banking and Recovery | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE C. JAYACHANDRAN

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MONDAY, THE 26^TH DAY OF JUNE 2023 / 5TH ASHADHA, 1945

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RP NO. 1154 OF 2022

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AGAINST THE JUDGMENT DATED 05.11.2022 IN MACA 249/2015 OF HIGH

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COURT OF KERALA

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REVIEW PETITIONER/APPELLANT:

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ABDULLA C.T AGED 45 YEARS, S/O. MUHAMMED DAVOOD, M.K. HOUSE, MANIYAT P.O., CHANDERA, KASARAGOD DISTRICT, PIN - 671310 BY ADVS. S.S.ARAVIND M.V.AMARESAN

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RESPONDENT/RESPONDENT:

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UNITED INDIA INSURANCE CO.LTD., REPRESENTED BY ITS BRANCH MANAGER FAIZAL BUILDING, MAIN ROAD,OTTAPALAM. PALAKKAD DISTRICT., PIN - 679101

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OTHER PRESENT:

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SRI.P.K.MANOJ KUMAR

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THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 20.03.2023, THE COURT ON 26.06.2023 DELIVERED THE FOLLOWING:

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R.P.NO.1154 of 2022 in M.A.C.A.NO.249 of 2015

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..2..

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O R D E R

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Dated this the 26^th day of June, 2023

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This Court, by judgment dated 05.11.2022,

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disposed of the above M.A.C.A., enhancing the compensation, with a direction to pay interest at the rate of 5% per annum for the enhanced amount from the

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date of petition till realization. The review petitioner/claimant seeks to enhance the rate of interest by virtue of the present Revision Petition, for which purpose the learned counsel for the review

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petitioner relies on Kaushnuma Begum & Others v. New India Assurance Company Limited 2001 (2) SCC 9.

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According to the review petitioner/claimant, this Court should have granted interest in the rate of 9% per annum.

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Heard the learned counsel for the appellant

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and the learned counsel for the respondent-Insurance

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Company, which filed a counter affidavit to the review.

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R.P.NO.1154 of 2022 in M.A.C.A.NO.249 of 2015

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..3..

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Section 171 of the Motor Vehicles Act, 1988,

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is relevant in this regard and the same is extracted hereunder:

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“ 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.”

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A perusal of the above provision indicates

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that simple interest at 'such rate' and from 'such date' not earlier than the date of making the claim can also be granted along with a compensation. Although, the expression 'such rate' affords discretion on the Court in the matter of grant of interest, a discretion, as always, is to be exercised judiciously, wherefore, it would only be just and reasonable to take stock of the bank rate of interest prevailing as on the date of filing the original petition before the Tribunal. The point of time at which the prevailing interest rate has to be reckoned is also indicated by Section 171 of the Motor

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R.P.NO.1154 of 2022 in M.A.C.A.NO.249 of 2015

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..4..

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Vehicles Act, 1988, in as much as, it specifies 'such date not earlier than the date of making the claim'.

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Although, it was contented to enhance the

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rate of interest to 9%, no material was placed before this Court by the appellant in support of such claim indicating the bank rate of interest prevailing as on the date of the original petition. In this

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circumstance, this Court is of the opinion that, it would be reasonable to enhance the rate of interest to 7%, from 5% already granted by this Court vide the judgment on review.

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It is accordingly ordered and clarified

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that, the enhanced amount, specifically made mention of in paragraph no.5 (end) of the judgment dated 05.11.2022, will carry interest at the rate of 7% from the date of petition. In all other respects, the judgment under review will remain as such.

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Sd/-

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C. JAYACHANDRAN JUDGE

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Abdulla C.T v. United India Insurance Co.Ltd., Represented by Its Branch Manager

Case brief

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Abdulla C.T v. United India Insurance Co.Ltd., Represented by Its Branch Manager

Case brief

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