New India Assurance Co. Ltd vs Sabitri Birua & Others
2022 Latest Caselaw 1716 Jhar

                     IN THE HIGH COURT OF JHARKHAND AT RANCHI
                                    M.A. No. 511 of 2017
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New India Assurance Co. Ltd., Chaibasa, West Singhbhum ... Appellant

-versus-

Sabitri Birua & Others ... Respondents

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CORAM : HON'BLE MR. JUSTICE ANANDA SEN

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For the Appellant: Mr. Alok Lal, Advocate For the Respondent: Mr. R.P. Gupta, Advocate

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7/ 28.04.2022 Mr. Alok Lal, learned counsel appearing for the appellant-

Insurance Company has raised a question, which needs to be answered. The question, which Mr. Alok Lal, learned counsel for the appellant, raises is that compensation component on account of future prospect, which is granted in terms of the judgment of the Hon'ble Supreme Court in the case of National Insurance Company Limited versus Pranay Sethi & Others reported in (2017) 16 SCC 680, should be kept out of the purview of Section 171 of the Motor Vehicles Act and should also not be considered under Section 34 of the Code of Civil Procedure or Section 3 of the Interest Act. He submits that no interest in terms of Section 171 of the Motor Vehicles Act can be awarded on the compensation component which is quantified under the head "future prospect". He further argues that rate of interest should not be 9% per annum and it should be as per the Bank Deposit Rates.

List this case after two weeks.

In the meantime, balance amount of Rs.20,00,000/- (Rupees Twenty Lakh) out of the compensation amount awarded in Motor Accident Claims Case No.32 of 2014, should be paid to the claimants by the Insurance Company.

(Ananda Sen, J.) Kumar/Cp-02