The National Insurance Co Ltd vs Kamalla Nagaratnamma 3 Others
2021 Latest Caselaw 1376 AP

             THE HON'BLE Ms JUSTICE J.UMA DEVI

                      M.A.C.M.A No.978 of 2005

JUDGMENT:

Questioning the award, dated 27.03.2004, passed in M.V.O.P.No.681

of 1999, on the file of the Chairman, Motor Accidents Claims Tribunal-cum-

District Judge, Guntur (for short "the Tribunal"), where the 1st respondent,

who is the wife of deceased Hanumantharao is awarded with compensation

of Rs.50,000/- as against her total claim of Rs.1,00,000/-, the National

Insurance Company Limited with whom the offending Ambassador Car

bearing No.AP7E-1234 is insured has come before this court, disputing its

liability to pay the compensation.

Though several grounds are urged in the grounds of appeal, during

course of hearing, it is only contended by the counsel of the appellant-

insurance company that the interest awarded on compensation amount is on

higher side and the same is to be scaled down.

I have read the award challenged in this appeal. It appears that the

trial court after coming to the opinion that there was negligence on the part

of the deceased Hanumantharao and the driver of the offending Ambassador

Car bearing No.AP7E-1234, apportioned the negligence between the

deceased and driver of the offending car in the ratio of 60 : 40.

The trial Judge though has taken the view that the claimant is entitled

to get compensation of Rs.90,000/-, as the negligence on the part of driver of

the offending car is at 40%, directed the appellant-insurance company to pay

Rs.50,000/- towards compensation to the claimant as per the preposition of

law laid down under Section 140 of Motor Vehicles Act, as negligence is not

the criterion to decide the claim therein and compensation can be awarded

even though there is no fault on the part of driver of the offending vehicle.

                                           2                                JUD,J
                                                                  MACMA_978_2005

Now the question before this court is whether the interest awarded on

compensation amount is higher side and the same needs to be reduced

reasonably?

Having gone through the award under challenge, it is noticed that a

direction is given to the appellant-insurance company to pay compensation

amount of Rs.50,000/- with interest @9% p.a. from the date of filing of the

petition till realization with proportionate costs.

The learned counsel for the appellant though raised several grounds

questioning the award, but confined her argument to the extent of granting

of higher rate of interest by the court below. She contends that the rate of

interest granted by the court below at 9% on the compensation amount is on

higher side and the same is to be scaled down.

On appreciation of the material on record, this court finds no factual or

legal error in granting compensation of Rs.50,000/- to the claimant by the

Tribunal on account of death of her husband in the accident. However, this

court finds that the interest awarded by the court below @9% p.a. on the

compensation amount is excessive, hence, inclined to modify the award

reducing the rate of interest from 9% to 7.5% per annum as per decision of

the Apex Court in Rajesh v Rajbir1.

In the result, the MACMA is allowed partly to the extent indicated

above. There shall be no order as to costs.

Pending miscellaneous applications, if any, shall stand closed in

consequence. No costs.

__________________ J.UMA DEVI,J Date: 04.03.2021 Dsr

(2013) 9 SCC 54