The Single Judge reduced the interest rate from 12% to 7.5% per annum in an insurance appeal, applying the Supreme Court's judgment in Sarala Varma, and disposed of the matter with no order as to costs.
Interest rate reduced from 12% to 7.5% per annum; appeal disposed.
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THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 425 OF 2001
DATED: 07.02.2012
BETWEEN:
National Insurance Co. Ltd
.. Appellant/R2
And
Aktharunnisa Begum and others
.. Respondents
THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 425 OF 2001
JUDGMENT:
Heard Sri Ravishankar Jandyala, learned counsel appearing for the appellant and there is no representation on behalf of the respondents.
2. The appeal is filed by the insurance company against the Award dated 06.06.2000 passed by the Motor Accidents Claims Tribunal-cum-III Additional District Judge,Warangal in O.P.No.225 of 1999 challenging the quantum of compensation granted by the learned Tribunal on the ground that it is excessive.
3. Against the claim of Rs.6 lakhs. The learned Tribunal granted an amount of Rs.5,38,980/- together with interest at the rate of 12% per annum from the date of petition till the date of realisation.
4. At the hearing of the appeal, the learned counsel appearing for the appellant submitted that the rate of interest granted by the
leaned Tribunal is not as per the judgment rendered by the Hon’ble Supreme Court in Sarala Varma and others V Delhi Transport Corporation and anothe r[1] . Accepting the contention of the learned counsel, the interest granted by the learned Tribunal is reduced from 12% per annum to 7.5% per annum from the date of petition till the date of realization.
5. With the above reduction in the rate of interest, the appeal is disposed of. There shall be no order as to costs.
___________________ Date: 07.02.2012 R. KANTHA RAO, J kvrm
THE HON’BLE MR JUSTICE R. KANTHA RAO
CMA NO. 425 OF 2001
DATED: 07.02.2012
2 issues framed by the court
Whether the interest rate of 12% per annum granted by the Tribunal should be reduced in light of the Supreme Court judgment in Sarala Varma.
What is the correct rate of interest payable on motor accident claims?
Colour shows how this judgement treated each authority
Sarala Varma and others V Delhi Transport CorporationApplied¶17
2009 ACJ 1298
2 provisions across 2 enactments
National Insurance Co. Ltd
Aktharunnisa Begum
R. KANTHA RAO
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
