New India Assurance Company ... vs Km. Rekha And Others
2021 Latest Caselaw 4474 UK

 IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL

         Writ Petition (M/S) No. 2357 of 2017



New India Assurance Company Limited
                                          ..................Petitioner
                        Mr. P.C. Maulekhi, Adv. for the petitioner

                        -versus-

Km. Rekha and others
                                             .........Respondents
                        Mr. Manish Lohani, Advocate assisted by
                          Mr. Sandeep Kothari, Advocate for the
                                                   respondents



Sri S.K.Mishra, J.

Judgment 10.11.2021

1. Learned Mr. P.C. Maulekhi, learned counsel appearing for the petitioner and Mr. Manish Lohani, learned counsel appearing for the opposite party.

2. In this writ application, the petitioner has challenged the order passed by the learned Tribunal on 18.08.2017 directing the Insurance Company to pay further amount by adjusting the amount already paid. The Insurance Company is disputing the interest. The facts are not in dispute. The Tribunal awarded a sum of Rs. 2,37,600/- to the claimants and directed that the same shall be paid within a stipulated period, failing which, it shall carry a penal interest @ 8% per annum from the date

of filing of the application. The award was passed on 02.05.2009 and the right of recovery was also granted.

3. However, the claimant as well as the owner of the vehicle preferred an appeal before this court, which was registered as AO No. 210 of 2009 and AO 277 of 2009. Both the appeals are disposed of by combined judgment dated 11.01.2017, wherein the following operative order was passed.

"In the peculiar facts and circumstances, I enhance the compensation to the tune of Rs. 5 (five) lakhs along with 8 percent interest from the date of institution of the petition up to the date of the payment. The insurance Company shall be liable to pay this difference. The amount so deposited by Mr. Raj Kumar Sharma shall be returned to him with interest which it has earned during the course of such deposit. The amount given by the Insurer shall be adjusted".

4. Interpreting this order, the learned counsel for the petitioner submits that since they have already deposited a sum of Rs. 2,37,600/- towards the awarded amount and Rs. 44,510/- towards the interest for the period 17.07.2009 to 14.03.2017, they are not liable to pay any interest on Rs. 2,37,600/-. It is not disputed that the case was instituted on 14.03.2007, therefore, the Insurance Company is liable to pay a sum of Rs. 2,62,400/- which is the deferential amount and it is

also liable to pay 8% interest on this differential amount from 17.07.2009 to 14.03.2017 and 8% interest on the entire Rs. 5,00,000/- from 18.07.2009, till the actual realization of the amount.

5. In that view of the matter, we do not find any justification of interference in this case.

6. The writ application is dismissed being devoid of merit.

7. The Insurance Company shall pay the deposit of remaining accrued interest within a period of 45 days from today.

8. Urgent certified copy of this order be granted on proper application.

(S.K.Mishra) Judge A/-