Supreme Court: Motor accident claim tribunal should give interest on compensation from date of application

The High Court enhanced the amount of compensation by

Rs.14,70,000/and

awarded interest @ 7.5% per annum but

directed that the interest of 7.5% shall be paid only from the

date of filing of the appeal. This is also incorrect. We are

constrained to observe that the High Court was not right in

awarding interest on the enhanced amount only from the date of

filing of the appeal. Section 171 of the Act reads as follows :

“171. Award of interest where any claim is allowed.—

Where any Claims Tribunal allows a claim for

compensation made under this Act, such Tribunal may

direct that in addition to the amount of compensation

simple interest shall also be paid at such rate and from

such date not earlier than the date of making the claim

as it may specify in this behalf.”

Normally interest should be granted from the date of filing of the

petition and if in appeal enhancement is made the interest

should again be from the date of filing of the petition. It is only if

the appeal is filed after an inordinate delay by the claimants, or

the decision of the case has been delayed on account of

negligence of the claimant, in such exceptional cases the interest

may be awarded from a later date. However, while doing so, the

tribunals/High Courts must give reasons why interest is not

being paid from the date of filing of the petition. Therefore, we

direct that the entire amount of compensation including the

amount enhanced by us shall carry an interest of 7.5% per

annum from the date of filing of the claim petition till

payment/deposit of the amount.

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 735 OF 2020

KAJAL Vs  JAGDISH CHAND 

Deepak Gupta, J.

Dated:February 05, 2020.
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