Orissa High Court
National Insurance Company Ltd vs Manasmita Biswal And Another on 8 August, 2022
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.605 of 2003
National Insurance Company Ltd. .... Appellant
Mr. P. Panda, Advocate
-versus-
Manasmita Biswal and another .... Respondents
None
.
CORAM:
JUSTICE B. P. ROUTRAY
ORDER
08.08.2022
Order No.
11. 1. Heard Mr. P. Panda, learned counsel for the Appellant-
Insurance Company. None appears for the Respondent No.1-
claimant despite service of notice is made sufficient.
2. Present appeal by the insurer is directed against the judgment
dated 30.06.2003 of learned 2nd M.A.C.T., Northern Division,
Sambalpur in Misc. (A) Case No.25 of 1991 (D) wherein
compensation to the tune of Rs.60,000/- has been granted to the
claimant on account of injuries sustained by him in the motor
vehicular accident dated 22.11.1990 within a period of two
months from the date of order, failing which interest @6% per
annum from the date of filing of claim application has been
directed to be paid till realization.
3. It is submitted on behalf of the Appellant-Insurance Company
that, the interest payable from the date of filing of the claim
application i.e. from 8.2.1991 would be much more than the
principal amount, which is unreasonable, and thus should be
confined up-to the compensation amount at the maximum.
4. It reveals from the connected appeal, i.e. MACA No.272/2003
that this Court refusing to interfere with the award, which was
arising out of the same accident, only reduced the rate of interest
from '9%' to '6%'. In the present appeal, learned Tribunal has
directed for payment of interest @ 6% per annum only, that too in
case of failure by the insurer to deposit the compensation amount
within two months. Admittedly, the present Appellant did not
deposit the award amount within two months. Section 171 of the
M.V. Act authorizes the Tribunal to grant interest upon the
compensation amount from the date of claim application. So, no
merit is seen in the contention of the Appellant. Further, in the
present case the Tribunal has directed for payment of interest only
on default count, which is not permissible and liable to be
corrected.
5. Thus, the present appeal is disposed of with a direction to the
Appellant-Insurance Company to deposit the entire compensation
amount of Rs.60,000/- before the Tribunal along with interest
@6% per annum from the date of filing of the claim application,
i.e. 8.2.1991 within a period of two months from today; where-
after the same shall be disbursed in favour of the claimant on such
terms and proportion to be decided by the Tribunal on her
appearance and on proper identification.
6. On deposit of the award amount before learned Tribunal and
filing of a receipt evidencing the deposit with a refund application
before this Court, the statutory deposit made before this Court
with accrued interest thereon shall be refunded to the Appellant-
Insurance Company.
7. An urgent certified copy of this order be granted on proper
application.
( B.P. Routray)
Judge
B.K. Barik
