Calcutta High Court (Appellete Side)
Sk. Abdul Sattar & Ors vs National Insurance Company ... on 8 September, 2022
8.9.2022
sl.7
Ct No. 654
Sk
F.M.A.T. 756 of 2019
CAN 1 of 2019(Old No. CAN/7718/2019)
Sk. Abdul Sattar & Ors.
versus
National Insurance Company Limited & Anr.
Mr. Saidur Rahman...for the appellants.
Mr. Rajesh Singh ...for the respondents.
Affidavit of service filed by the appellants is taken
on record.
In Re: CAN 1 of 2019 (Old No. CAN 7718 of 2019)
This is an application for condonation of delay
under Section 5 of the Limitation Act read with
Section 173 of the Motor Vehicles Act, 1988.
Mr. Saidur Rahaman, learned advocate appearing
on behalf of the appellants-claimants submits that
there has been a delay of 90 days and he prays for
condonation of delay.
Mr. Rajesh Singh, learned advocate appears on
behalf of the respondent no.1-insurance company.
As respondent no.2-owner did not contest the
claim application before the learned tribunal and the
matter was disposed of exparte against him, hence
service of notice upon the said respondent is
dispensed with.
Upon going through the application for
condonation of delay, it is found that cause shown
is sufficient to condone the delay. Accordingly, the
delay of 90 days in preferring the appeal is condoned.
The application being CAN 1 of 2019 (Old No.
CAN 7718 of 2019) stands disposed of.
The appeal is formally admitted and registered.
FMAT 756 of 2019
Mr. Saidur Rahaman, learned advocate appearing
on behalf of the appellants-claimants submits that
the appeal has been filed for enhancement of award
of compensation on the ground of entitlement of
interest on awarded sum and for loss of estate. He
further submits that the calling for the lower court
records be dispensed with.
In view of submissions made on behalf of the
appellants, the calling for lower court records is
dispensed with for the time being.
Mr. Rahaman, learned advocate appearing for the
appellants at the outset submits that the claimants
have received the compensation amount awarded by
the learned Tribunal. However, no such interest on
compensation amount was awarded at the time of
disposal of the claim application. Accordingly, he
prays that an interest of 6% per annum be allowed on
the awarded sum from the date of filing of claim
application till the date of payment. He further
submits that the claimants are also entitled to loss of
estate which the learned Tribunal ought to have
awarded.
Mr. Rajesh Singh, learned advocate appearing for
the respondent no. 1-Insurance Company submits
that the rate of interest has been awarded by the
learned Tribunal as a default clause granting 60 days
time to the Insurance Company for the satisfaction of
the award failing which the awarded sum would carry
interest. However, he fairly submits that the
appellants-claimants are entitled to interest @ 6% per
annum from the date of filing of the claim application
till full realization of the entire amount. He also in his
usual fairness submits that the loss of estate should
have been granted to the claimants as per the settled
proposition of law.
Undisputedly, the principal amount of
compensation of Rs. 13,45,240/- granted by the
learned Tribunal has been received by the claimants.
The judgment and order of the Tribunal shows that
the Insurance Company was directed to make
payment within 60 days from the date of order, in
default, an interest of 6% per annum was directed to
be paid by the Insurance Company to the claimants
from the date of filling of the claim application till full
realization of the entire amount. Thus it is found that
the interest has been granted as a default clause. Be
that as it may, no such interest was granted on the
compensation amount awarded from the date of
filling of the claim application till full realization of
the entire amount. Hence the aforesaid order of the
learned Tribunal needs to be modified to the extent
that the claimants shall be entitled to interest at the
rate of 6% per annum from the date of filling of the
claim application till the date of payment.
It further appears that no such amount under the
conventional head namely loss of estate has been
awarded in favour of the claimants. As per
observation of the Hon'ble Supreme Court in
National Insurance Company Limited versus
Pranay Sethi & Others. reported in 2017 ACJ
2700, the claimants are entitled to an amount of Rs.
15,000/- for loss of estate. Accordingly, the award
stands modified to the aforesaid two counts as
indicated in the foregoing paragraph.
The appellants are entitled to a further sum of Rs.
15,000/- along with interest at the rate of 6% per
annum from the date of filing of the application till
payment of the aforesaid sum.
The principal amount of compensation of Rs.
13,45,240/- as awarded by the Tribunal which has
already been received by the claimants shall also
carry interest at the rate of 6% per annum from the
date of filing of claim application till the date the
payment was made by respondent no.1-Insurance
Company.
The respondent no.1-Insurance Company is
directed to deposit the aforesaid amount by way of an
account payee cheque with the learned Registrar
General, High Court, Calcutta within a period of five
weeks from date.
The learned Registrar General, High Court,
Calcutta shall disburse 50% of the above awarded
amount to the Appellant no. 3 (widow). The rest
balance amount shall be equally distributed in favour
of appellant nos. 1, 2, 4 to 8.
Appellant no.3, being the mother, shall receive the
share of the minor claimants being appellant nos. 5
to 8 and deposit the same in fixed deposit scheme of
any nationalized Bank or Post Office till attainment of
majority by the minors.
With the aforesaid observation the appeal stands
disposed of. All connected application, if any, stand
disposed of. Interim order, if any, stands vacated.
Department is directed to register a FMA No.
against the instant FMAT no. 756 of 2019 in the
present appeal.
Urgent Photostat certified copy, if applied for, be
supplied to the parties after observing all necessary
legal formalities.
(Bivas Pattanayak J.)
