New India Assurance Co. Ltd. vs VINEET KUMAR GOYAL

THIS is an appeal against the judgment and order dated 13.11.2003 passed by the District Forum, Dehradun.

THE brief facts of the case are that the vehicle of the complainant met with an accident it was insured. THE learned Forum after hearing the parties allowed the compensation of Rs. 64,364/- (Rupees sixty four thousand three hundred sixty four) along with interest @ 10%. THE learned Forum also allowed compensation of Rs. 5,000/- (Rupees five thousand) for mental pain and agony and cost of litigation of Rs. 1,500/- (Rupees one thousand five hundred). Against which order, the present appeal has been filed. The amount of Rs. 64,364/- (Rupees sixty four thousand three hundred sixty four) has been paid. There is no dispute regarding this amount of compensation. It has been paid and since it has been paid and it was not agitated, we need not go into the further merits of the (sic.).

The learned Counsel for the appellant challenged the interest @ 10%. It was ordered to be paid from 13.6.1993 till the date of payment. The amount has been deducted from the bills of the complainant on 13.6.1993, therefore, the learned Forum has directed to pay interest from this date. The claimant has claimed interest @ 18% p.a. The loss of the complainant is there and had the amount not been deducted and had the complainant received this amount, he would have deposited it in some Bank or would have utilized it in some business. In these circumstances, interest @10% cannot be said to be on the higher side.

THE other objection of the learned Counsel for the appellant was that once interest has been directed to be paid there is no question of compensation. We fully agree with this argument. It is settled principle of law that where interest has been given, compensation is not necessary and should not be granted. We are supported by the rulings reported in III (2002) CPJ 124 (NC)=2003 (2) CPC 1 (NC), Sarelec Power Electronics Pvt. Ltd. v. National Research Development Corporation of India, II (2000) CPJ 1 (SC)=IV (2000) SLT 654, Ghaziabad Development Authority v. Union of India; and IV (2003) CPJ 90=2003 (6) CLD (SCDRD-Delhi), Rajpal Mahana v. National Insurance Co. In these monetary transactions, interest itself is in the form of compensation and, therefore, order of compensation is not necessary. THE learned Forum has also granted the cost of Rs. 1,500/- (Rupees one thousand and five hundred). THE complainant has unnecessarily been dragged into litigation, therefore, order of cost is perfectly justified. The order under appeal is to be modified to the extent that the order of compensation of Rs. 5,000/- (Rupees five thousand only) is to be quashed. ORDER The appeal is hereby allowed to the extent that the order of payment of Rs. 5,000/- (Rupees five thousand only) as compensation for mental pain and agony is hereby quashed. Rest part of the order under appeal is hereby confirmed. Appeal allowed.