Kerala High Court
The New India Assurance Company Ltd vs E.K. Satheesan on 23 October, 2025
2025:KER:79070
OP (MAC) NO.24 OF 2020
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
THURSDAY, THE 23RD DAY OF OCTOBER 2025 / 1ST KARTHIKA,
1947
OP (MAC) NO. 24 OF 2020
AGAINST THE ORDER/JUDGMENT DATED 14.11.2019 IN IA
NO.4094 OF 2018 IN OPMV NO.19 OF 2015 OF MOTOR ACCIDENT
CLAIMS TRIBUNAL, TALIPARAMBA
PETITIONER/S:
THE NEW INDIA ASSURANCE COMPANY LTD.,
BRANCH OFFICE, KANNUR POST, KANNUR, PIN-670001,
REPRESENTED BY ITS ASSISTANT MANAGER, LEKHA VIJAYAN
BY ADVS.
SHRI.LAL K.JOSEPH
SHRI.SURESH SUKUMAR
SRI.V.S.SHIRAZ BAVA
RESPONDENT/S:
E.K. SATHEESAN,
S/O. GOVINDAN, IDIYAKUNNIL HOUSE, KURUMATHUR,
MUYYAM POST, TALIPARAMBA TALUK, KANNUR DISTRICT,
PIN-673305.
BY ADVS.
SRI.ZUBAIR PULIKKOOL
SRI.P.S.BINU
THIS OP (MAC) HAVING COME UP FOR ADMISSION ON
23.10.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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OP (MAC) NO.24 OF 2020
2
JUDGMENT
The petitioner, the insurer, was the 2nd respondent in OP(M.V)
No.19 of 2015, on the files of the Motor Accident Claims Tribunal,
Thaliparamba. The said claim petition was filed by the respondent
herein seeking compensation for the injury sustained by him in a
motor accident that occurred on 12.06.2009. The Tribunal passed an
award on 27.10.2015, fixing a total compensation of Rs.88,32,300/-
(eighty eight lakhs thirty two thousand three hundred only) with
interest at the rate of 9% per annum. The petitioner insurer
contends that the said amount was deposited by the company on
18.06.2016.
2. The respondent filed MACA No.2339 of 2016 to the extent
the tribunal entered a finding of contributory negligence and also
sought enhancement of the compensation. The said appeal was
allowed on 05.09.2018 as follows;
"The total amount of compensation as
enhanced by this Court, hence, would be
Rs.1,24,65,900/- [1,17,93,600/- + 11,400 +
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OP (MAC) NO.24 OF 2020
24,000 + 1,000 + 2,74,500 + 11,400 + 1,50,000 +
2,00,000] (Rupees one crore, twenty four
lakhs, sixty five thousand and nine hundred
only]. The Insurance Company shall pay the
amounts within a period of two months
from the date of receipt of a copy of this
judgment with interest as directed by the
Tribunal from the date of application.
Appeal is partly allowed. Parties are left
to suffer their respective costs."
3. Though the insurer filed a Special Leave Petition, the same
was dismissed.
4. Thereafter, the insurer deposited an amount of
Rs.1,41,83,952/- (Rs.1,29,61,112/- as deposited before the tribunal
and Rs.12,27,840/ as TDS). The respondent sought a further sum of
Rs.10,82,757/- (Rupees ten lakhs eighty two thousand seven
hundred and fifty seven only) based on Ext.P5 calculation statement
by appropriating the payments effected on 18.06.2016, by the
petitioner in satisfaction of the original amount, towards the
interest and costs first and thereafter adjusting the remaining
amount towards the principal amount. The petitioner insurer
calculated the amount by calculating the interest on the additional
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OP (MAC) NO.24 OF 2020
amount ordered by this Court, with effect from the date of the
petition, appropriating the amount remitted based on the original
award, towards principal amount and interest, as well as costs
accrued as on the date of the said payment. This is revealed from
Ext.P6 calculation statement filed by the petitioner.
5. The tribunal, however, through Ext.P7 accepted the claim
of the respondent herein and directed payment of an amount of
Rs.10,82,757/- (Rupees ten lakhs eighty two thousand seven
hundred and fifty seven only), pursuant to which, Ext.P8 revenue
recovery notice was issued. Challenging the same, this original
petition is filed.
6. The learned counsel for the petitioner submits that on the
petitioner remitting the award amount on 18.06.2016, by virtue of
the operation of Order XXI Rule 1(4) of the Code of Civil Procedure,
the interest ceased to run for the amount so deposited. It is further
contended that when the said amount was revised in appeal, the
liability to pay interest from the date of the petition is only for the
enhanced amount, and there is no liability to pay interest for the
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OP (MAC) NO.24 OF 2020
amount already deposited. The learned counsel also relies on the
judgment of the Supreme Court in Bharat Heavy Electricals Ltd. v.
R.S Avtar Singh and Co. [2012 KHC 4585] to support his
contentions.
7. The learned counsel for the respondent disputes the above
and contends that the calculation statement submitted by the
respondents showed the way in which the amounts had to be
appropriated, and which was rightly accepted by the tribunal.
8. Having heard the learned counsel appearing for the
petitioner and the learned counsel for the respondent, the
impugned order cannot be sustained, as it has not taken into
account the payment made by the insurer on 18.06.2016, for the
purpose of calculating the interest for the said portion. The
contentions of the petitioner have not been adverted to in the
impugned order. The impact of Order XXI Rule 1(4) of the Code of
Civil Procedure has also not been considered.
9. Under such circumstances, I am inclined to set aside the
impugned order and direct the tribunal to reconsider the issue
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based on the calculation statements filed by both sides and after
affording an opportunity of hearing to the parties. Fresh orders as
directed above shall be passed within two months from the date of
receipt of a copy of this judgment. Since Ext.P7 is set aside, the
proceedings initiated as per Ext.P8 shall not be proceeded till orders
are passed by the tribunal as directed above.
The original petition is allowed as above.
SD/-
MOHAMMED NIAS C.P.,
JUDGE
JJ
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OP (MAC) NO.24 OF 2020
APPENDIX OF OP (MAC) 24/2020
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE AWARD DATED 27.10.2015
IN OP(MV) 19/2015 PASSED BY THE MOTOR
ACCIDENTS CLAIMS TRIBUNAL, THALIPARAMBA.
EXHIBIT P2 TRUE COPY OF THE LODGMENT SCHEDULE
SUBMITTED BY THE COUNSEL FOR THE
PETITIONER ON 17.06.2016, BEFORE THE
MOTOR ACCIDENTS CLAIMS TRIBUNAL,
THALIPARAMBA.
EXHIBIT P3 TRUE COPY OF THE JUDGMENT DATED 5.9.2018
IN MACA 2339/2016.
EXHIBIT P4 TRUE COPY OF THE LODGMENT SCHEDULE
SUBMITTED BY THE COUNSEL FOR THE
PETITIONER, ON 20.4.2019.
EXHIBIT P5 TRUE COPY OF THE CALCULATION STATEMENT
BASED ON WHICH THE ADDITIONAL CLAIM WAS
MADE BY THE RESPONDENT.
EXHIBIT P6 TRUE COPY OF THE CALCULATION STATEMENT
DATED 19.10.2019 SUBMITTED BY THE COUNSEL
FOR THE PETITIONER, BEFORE THE TRIBUNAL.
EXHIBIT P7 TRUE COPY OF THE ORDER 14.11.2019 IN
IA.4094/2018 IN OP(MV) 19/2015 PASSED BY
THE MOTOR ACCIDENTS CLAIMS TRIBUNAL,
THALIPARAMBA.
EXHIBIT P8 TRUE COPY OF THE NOTICE BEARING RRC
NO.2019/6455/13 DATED 25.01.2020.
