Friday 17 October 2014

Whether award of compensation can be executed as money decree?

Or. 21 R. 1 - Applicability - Execution of award of compensation as money decree - Award of compensation by Motor
Accidents Claims Tribunal under Motor Vehicles Act - Held, to be treated as money decree by virtue of R. 472 of A.P.
Motor Vehicles Rules and can be sought to be executed by invoking Or. 21 R. 1 CPC, 
V. Kala Bharathi v. Oriental Insurance Co. Ltd., (2014) 5 SCC 577

Civil Procedure Code, 1908
Or. 21 Rr. 1(1), (4) and (5) [before and after the 1976 Amendment] - Execution of money decree - Rule of appropriation -
Decree comprising principal amount as well as interest up to date of realisation and costs - No direction made in decree,
nor any agreement entered into between parties regarding mode of payment of decretal amount - Payment deposited by
judgment-debtor falling short of decretal amount - Held, in such circumstances, normal rule that amount deposited must
first be adjusted towards interest and costs and then towards principal amount, would apply - This rule continues to
prevail and remains unaffected by 1976 Amendment to CPC, 
Civil Procedure Code, 1908
Or. 21 R. 1 - Execution of award of compensation - Rule of appropriation - Adjustment of interest - Award passed by
Motor Accidents Claims Tribunal comprising amount of compensation, interest thereon and costs - Normal rule that
amount deposited by judgment-debtor to be first adjusted towards interest and costs and then towards principal amount
of compensation - Application of, held, would not amount to imposition of interest on interest, prohibited under S. 3(3)(c)
of Interest Act, 1978 as interest is not included in amount of compensation, 
Civil Procedure Code, 1908
Or. 21 R. 1 - Applicability - Execution of award of compensation as money decree - Award of compensation by Motor
Accidents Claims Tribunal under Motor Vehicles Act - Held, to be treated as money decree by virtue of R. 472 of A.P.
Motor Vehicles Rules and can be sought to be executed by invoking Or. 21 R. 1 CPC, 
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