National Insurance Company ... vs Md. Saif
2021 Latest Caselaw 3164 Jhar

             IN THE HIGH COURT OF JHARKHAND AT RANCHI

                    [Civil Miscellaneous Appellate Jurisdiction]
                            M.A. No. 557 of 2018
       National Insurance Company Limited              .... .. ...          Appellant(s)
                                     Versus
        1.Md. Saif
        2.Ashok Prasad Nayak                                     .. ... ... Respondent(s)
                          ...........

CORAM :HON'BLE MR. JUSTICE KAILASH PRASAD DEO (Through :-Video Conferencing) .........

      For the Appellant(s)            :     Mr. Amaresh Kumar, Advocate.
      For the Respondent (s)          :
                          ..........
04/ 27.08.2021.

Heard, Mr. Amaresh Kumar, learned counsel for the appellant- National Insurance Company Limited.

Mr. Amaresh Kumar, learned counsel for the appellant has submitted that appellant- National Insurance Company Limited has preferred the instant Misc. Appeal against the Award dated 02.04.2018 passed by learned Presiding Officer, M.V.A.C.T., Hazaribag, whereby injured/claimant (Md. Saif) has been awarded compensation to the tune of Rs.2,81,751/- along with interest @ 6% per annum from the date of framing of issue i.e. 30.11.2015 to be paid within 30 days, failing which, the interest shall be payable @ 9% per annum.

Mr. Amaresh Kumar, learned counsel for the appellant has further submitted that though the impugned Award has been passed against the appellant- National Insurance Company Limited, but the learned Tribunal has not considered that there is violation of terms and conditions of the policy by the insured, as such, right of recovery ought to have been granted in favour of the appellant- Insurance Company .

Mr. Amaresh Kumar, learned counsel for the appellant has further submitted that penal interest has been awarded @ 9% per annum, if the awarded amount is not paid within 30 days from the date of framing of issue i.e. 30.11.2015 along with interest @ 6% per annum, which is apparently illegal and not sustainable in the eyes of law as it ought to have been @ 7.5% per annum from the date of filing of the claim application, in view of the judgment passed by the Apex Court in the case of Dharmpal & Sons Vs. U.P. State Road Transport Corporation, reported in (2008) 12 SCC 208 and in view of Section 171 of the MV Act.

Mr. Amaresh Kumar, learned counsel for the appellant has further submitted that there is delay of 50 days in preferring the instant Misc. Appeal and

for condonation of the same, I.A. No.9184 of 2018 has been preferred, as such, delay of 50 days in preferring the instant Misc. Appeal may be condoned.

After hearing, learned counsel for the appellant and perusing the materials available on record including the impugned judgment, it appears that owner of the offending vehicle appeared before the learned Tribunal and submitted his written statement stating therein that the offending vehicle was duly insured vide Policy No.171104/31/11/6300000252 valid for the period from 05.05.2011 to 04.05.2012 and the accident took place on 13.06.2011 i.e. within the insured period. This fact has also been admitted by the appellant-National Insurance Company Limited, before the learned Tribunal in the written statement, as O.P. No.2, but no application was filed nor any plea was made by the Insurance Company before the learned Tribunal that which of the terms and conditions of the policy has been violated nor any issue has been framed by the learned Tribunal, as such, this Court is not inclined to allow the appellant to agitate the same before the appellate court, in view of the judgment passed by the Apex Court in the case of Ramchandra v. Regional Manager, United India Insurance Co. Ltd., reported in 2013 (12) SCC 84.

So far interest is concerned, it is true that interest ought to have been awarded from the date of filing of claim application @7.5% per annum in view of Section 171 M.V. Act and in view of the judgment passed by the Apex Court in the case of Dharmpal (Supra), but for this purpose, this Court cannot issue notice as the interest @ 6% per annum has been awarded by the learned Tribunal from the date of framing of the issue i.e. 30.11.2015 whereas the claim application has been filed in the year, 2011 and thereafter interest @ 9% per annum has been awarded as penal interest if the awarded amount is not paid within 30 days.

This Court considers that the learned Tribunal should not adopt this method. The learned Tribunal ought to have granted interest @7.5% as quantified in the case of Dharmpal (Supra) either from the date of filing of the claim application /date of appearance of the parties/ date of settlement of issue/ date of closure of evidence/date of award, but reason must be assigned.

Under the aforesaid circumstances, this Court is not inclined to interfere with the impugned award as if the interest is granted from the date of filing of the claim application @7.5% per annum, the compensation amount shall remain more or less/ same.

Accordingly, the instant Misc. Appeal stands dismissed. I.A. No.9184 of 2018 stands closed.

The statutory amount deposited by Insurance Company before this Court at the time of the filing of the appeal shall be remitted to the learned Tribunal by the learned Registrar General of this Court, within a period of four weeks from today.

The learned Tribunal/Executing Court after due notice and verification shall disburse the same to the claimant. The balance amount of compensation shall be satisfied by the appellant- National Insurance Company Limited within a reasonable time, as the accident is of dated 13.06.2011.

(Kailash Prasad Deo, J.) Sandeep/