The United India Insurance Co.Ltd vs C Sandhay Rani / Deepa Rani
2022 Latest Caselaw 2897 Tel

     THE HON'BLE SRI JUSTICE SAMBASIVA RAO NAIDU

                           MACMA No.993 of 2018

JUDGMENT :

Aggrieved by the award passed by the Motor Vehicles

Accidents Claims Tribunal, Mahabubnagar in

M.V.O.P.No.454 of 2011, the appellant who is shown as

second respondent in the above said O.P. preferred this appeal

with a prayer to set aside the award.

While advancing the arguments, the learned counsel

for the appellant fairly submitted that already the Court

below granted liberty to the insurance company to pay the

award amount together with interest and then recover the

same from the owner of the vehicle. The main grievance

of the appellant herein is the Tribunal committed

an error in awarding interest @ 9% per annum instead of

7.5% per annum as held by the Apex Court in

Sarala Verma and others Vs Delhi Transport Corporation1.

(2009) 6 SCC 121 SSRN,J

Now the learned counsel submitted that the award may

be modified on the same lines. Even though, the learned

counsel disputed the finding of the Court below about the

calculations, I am of the opinion that the amounts arrived by

the Court below are quite reasonable. However, in view of the

Judgment of Hon'ble Apex Court in Sarala Verma (supra)

and National Insurance Co., Ltd., Vs Pranay Sethi2 cases,

the rate of interest can be reduced from 9% per annum to 7.5%

per annum without disturbing the other findings.

Therefore, appeal is partly allowed by reducing the rate

of interest awarded on the compensation from 9% per annum

to 7.5% per annum and other findings are not disturbed.

Miscellaneous applications, if any pending, shall stand

closed. There shall be no order as to costs.

______________________________ JUSTICE SAMBASIVA RAO NAIDU 17th June, 2022.

PLV

(2017) 16 SCC 680 SSRN,J