Delhi High Court
Oriental Insurance Co Ltd vs Preeti Bhatia & Ors on 5 March, 2012
Author: G.P. Mittal
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 5th March, 2012
+ CM(M) 1348/2011
ORIENTAL INSURANCE CO LTD ..... Petitioner
Through: Mr.Pradeep Gaur, Advocate
versus
PREETI BHATIA & ORS ..... Respondents
Through: Mr.Sanjay Sehgal, Advocate for
R-1.
CORAM:
HON'BLE MR. JUSTICE G.P.MITTAL
JUDGMENT
G. P. MITTAL, J. (ORAL)
1. By a judgment dated 06.04.2012 a compensation of
`37,78,000/- was awarded in favour of the Respondents No. 1
and 2 with interest @ 9% per annum. Para 82 of the judgment
is extracted hereunder:-
"82. I hereby award a total compensation of `.37,78,000/-
(Rupees Thirty Seven lakhs and Seventy Eight thousand
only) to the petitioners along with interest @ 9% per annum
from the date of filing of the petition till realization of the
amount."
2. While directing the Petitioner/Insurance Company to make
payment within 30 days, the Claims Tribunal directed payment
of future interest @ 12% per annum (in case of delayed
payment). The relevant portion of the order is extracted
hereunder:-
"within a period f 30 days from today, failing with
respondent no. 3 Insurance Company shall be liable to
pay future interest @ 12% per annum from the date of
filing of the petition till realization of the amount."
3. The Petitioner/Insurance Company challenged the impugned
judgment mainly on the ground of award of interest @ 9% per
annum. The appeal was later on withdrawn with liberty to
Appellant to file cross-objections in case any appeal for
enhancement of compensation was filed by Respondents No. 1
and 2.
4. The question of payment of interest on the award came up
before the Claims Tribunal on 07.1.2011 when the following
order was passed:-
"Order
07.01.2011
Sh.Shyam Singh along with Rajni Hari, Assistant
Manager for JD/Insurance company.
Main petition was instituted on 28.08.2006 and was
decided on 06.04.2010. Payment was made on
17.09.2010. The counsel for insurance company stated
that they have paid interest @9% per annum. The
payment was to be made within one month from the date
of the decision i.e. from 06.04.2010. But the payment
was made on20.08.2010.
The counsel for insurance company stated they did not
pay interest @ 12% because they went in appeal, but
they admitted that there was no stay from Hon'ble High
Court. So they are required to pay interest @ 12% from
06.05.2010 till 20.08.2010.
Put up on 18.02.2011."
5. Subsequently, on 04.11.2011 the Appellant was directed to pay
interest @12% per annum from the date of filing of the petition
till the date of payment. The order is extracted hereunder:-
"Order
07.01.2011
Ld. Counsel for the DH states that award was passed on
6/4/2010 wherein mentioned that the JD shall deposit the
awarded amount in favour of the DH along with upto
date interest with UCO Bank High Court Branch within a
period of 30 days i.e. 6/5/2010. It is admitted case of the
parties that payment of the award amount was made on
20/8/2010. It is also admitted that the appeal preferred
against the impugned award has been dismissed by the
Hon'ble High Court of Delhi. It is not in dispute that any
order of modification of the impugned award has been
passed by Hon'ble High Court meaning thereby a
judgment/ impugned award shall be presumed to be
correct. Now the JD is directed to deposit the balance
amount after calculating the interest @ 12% per annum
from the date of filing of petition till the last payment
made.
Both the parties are directed to file the complete breaks-
up of the awarded amount along with the affidavit within
a week after exchanging the copies thereof."
6. It is urged by the learned counsel for the Petitioner that it was
very clear from para 82 read with para 92 of the impugned
judgment that the interest @12% per annum was payable only
for the "future" and direction to pay interest @12% per annum
from the date of the filing of the petition was not inconsonance
with the judgment dated 06.04.2010.
7. On the other hand, it is urged by the learned counsel for
Respondents No.1 and 2 that if there was any clerical mistake in
the impugned judgment, the Appellant ought to have
approached the Claims Tribunal for clarification under Section
152 CPC. In fact, the matter came up before the Claims
Tribunal on 04.11.2011 and the Claims Tribunal preferred to
take a view that the interest awarded in case of default in
making the payment within 30 days was @12% per annum from
the date of filing of the petition.
8. Para 82 read with Para 92 made it crystal clear that the interest
was payable @12% per annum only for future. The use of
subsequent words "from the date of filing of the petition"
created confusion. The future interest as stated by the Tribunal
was only from the expiry of period of 30 days from the
impugned judgment. The Claims Tribunal, therefore, could not
have directed the Appellant to pay interest @12% per annum
from the date of filing the Petition. Therefore, the same is set
aside. It goes without dispute that the Respondents would be
entitled to interest @12% per annum per annum only after the
expiry of the period of 30 days from the award.
9. The petition is allowed in above terms.
(G.P. MITTAL)
JUDGE
MARCH 05, 2012/mr
