Sadhelal vs Jagjeet Singh and Another

S.K. Seth, J.—The appeal is directed against the order dated 24.4.1989 passed by the Additional Motor Accidents Claims Tribunal, Jabalpur, in M.A.C. No. 118 of 1986. The Tribunal, vide the said order, allowed the application made by the claimant-appellant u/s 92-A of the Motor Vehicles Act and directed the insurance company, respondent No. 2, to pay an amount of Rs. 30,000/- as interim compensation to the claimant-appellant in respect of the two deaths. The contention raised by the claimant-appellant in this appeal is that in addition to the amount of Rs. 30,000/- the Tribunal should have directed the insurance company, respondent No. 2, to pay suitable interest on the said amount from the date of making of the application.

Having heard the learned Counsel for the parties, in the opinion of this Court, there is merit in the abovesaid contention raised by the claimant-appellant. It is apparent that u/s 92-A read with Section 110-CC of the Act the Tribunal had jurisdiction to award interest at suitable rate on the amount of interim compensation directed to be paid by it to the claimant-appellant. Under the said provisions, the interest could be awarded with effect from the date of making of the claim. Accordingly, in the present case, there was no reason why the Tribunal should not have awarded interest to the claimant-appellant on the amount of interim compensation with effect from the date of making of the application.

For the reasons stated above, the appeal is allowed. The order dated 24.4.1989 passed by the learned Tribunal directing the insurance company, respondent No. 2, to pay an amount of Rs. 30,000/- to the claimant-appellant as interim compensation u/s 92-A of the Motor Vehicles Act is modified to the extent that in addition to Rs. 30,000/- the insurance company, respondent No. 2, shall also pay interest to the claimant-appellant on the said amount at the rate of 10 per cent per annum with effect from the date of making of the application till the date of deposit of the said amount by the insurance company, respondent No. 2.

In the facts and circumstances of the case, there shall be no order as to costs of this appeal.