Reliance General Insurance Co. ... vs Thandu Venkateswarlu And 3 Others
2022 Latest Caselaw 971 Tel

              THE HON'BLE JUSTICE G. SRI DEVI

                 M.A.C.M.A. No.1231 of 2013

JUDGMENT:

This appeal is preferred by the Reliance General National

Insurance Company Limited, questioning the award and decree,

dated 17.02.2012 passed in O.P.No.975 of 2010 on the file of

the Chairman, Motor Accidents Claims Tribunal (District Judge),

Nalgonda (for short, the Tribunal).

For the sake of convenience, the parties have been

referred to as arrayed before the Tribunal.

The claimants filed a petition under Section 166 of the

Motor Vehicles Act claiming compensation of Rs.8,00,000/- for

the death of the deceased-Smt. Thandu Renuka, who died in a

motor vehicle accident that occurred on 01.12.2010 while she

was proceeding on Narketpally-Addanki. The accident occurred

due to the rash and negligent driving of the driver of the DCM

Lorry bearing No.AP 28 TA 4388. Hence, the claimants filed the

claim-petition against the respondents 1 and 2, being the owner

and insurer of the said DCM Lorry.

GSD, J Macma_1231_2013

Before the Tribunal, the 1st respondent remained

ex parte. The 2nd respondent filed counter denying the

averments of the claim-petition including the age, income and

avocation of the deceased.

After considering the oral and documentary evidence on

record, the Tribunal came to the conclusion that the accident

occurred due to the rash and negligent driving of driver of the

DCM Lorry and awarded total compensation of Rs.6,90,500/-

with interest @ 9 % per annum from the date of petition till the

date of realization, payable by respondents 1 and 2 jointly and

severally. Aggrieved by the said order, the Insurance Company

filed the present appeal.

Heard and perused the material on record.

The only contention raised by the learned Standing

Counsel for the Insurance Company is that the interest granted

by the Tribunal @ 9% is excessive. He also submits that as held

by the Apex Court in several decisions interest should be

granted @ 7.5%.

GSD, J Macma_1231_2013

As per the decision of the Apex Court in Rajesh and

others v. Rajbir Singh and others1, the claimants are entitled

to interest @ 7.5% per annum on the compensation awarded by

the Tribunal from the date of petition till realization. Hence,

the interest granted by the Tribunal @ 9% per annum is reduced

to 7.5% per annum on the awarded amount of Rs.6,90,500/-

from the date of petition till the date of realization. Except the

modification of the interest, the remaining operative portion of

the impugned order is confirmed.

Accordingly, the Motor Accident Civil Miscellaneous

Appeal is partly allowed by reducing the interest from 9% to

7.5% on the compensation amount of Rs.6,90,500/- awarded by

the Tribunal from the date of petition till the date of

realization. There shall be no order as to costs.

Miscellaneous petitions, if any, pending shall stand closed.

__________________ JUSTICE G. SRI DEVI 03.03.2022 gkv

1 2013 ACJ 1403 = 2013 (4) ALT 35

GSD, J Macma_1231_2013