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2025 DAILYLAW 12379 (UTT)

SMT SAKHI v. ORIENTAL INSURANCE COMPANY LIMITED

AO/421/2024 · 2025-08-14

Subhash Upadhyay

body2025

Judgment text

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2025:UHC:7319 HIGH COURT OF UTTARAKHAND AT NAINITAL Appeal From Order No. 421 of 2024 14 August, 2025 Smt Sakhi --Appellant Versus Oriental Insurance Company Limited --Respondent ----------------------------------------------------------------- Presence:- Mr. Veer Kunwar Singh, Advocate for the applicant. Mr. Deepak Rawat, Advocate for the respondent. ----------------------------------------------------------------- Hon'ble SUBHASH UPADHYAY, J. The present appeal from order has been filed assailing judgment and order dated 19.08.2023 passed by learned 1st Additional District Judge/ Motor Accident Claim Tribunal, Udham Singh Nagar in Claim Petition No.03 of 2017, “Smt. Sakhi and Others Vs. Brahmaswaroop and Others”. 2. The claimants had filed the aforesaid petition under Section 166 of The Motor Vehicle Act, 1988 against the respondent claiming compensation for the death of late Shri Ramkumar. Claimant no.1 is the wife of the deceased and claimant nos.2 to 5 are the children of the deceased Ramkumar. 3. Learned counsel for the claimant contended that on 08.01.2016, the deceased while coming back home from his workplace/ Public Works Department, Provincial Division Rampur was hit by a vehicle. The deceased was aged about 55 years working as a Beldar and was earning ₹22,472/- (wrongly mentioned at some places in the 1 2025:UHC:7319 impugned order as ₹22,4272/-). A compensation of ₹30,50,000/- was claimed by the claimants. 4. The claimants have challenged the award on the sole ground that learned Motor Accident Claim Tribunal has erred in awarding interest @ 6% per annum from the date of award whereas interest should be paid from the date of filing petition. 5. Learned counsel for the claimant submits that in the impugned award claimants were held to be entitled for interest @6% per annum from 03.01.2017 i.e. the date of filing claim petition but in the operative portion of the order it has been mentioned that the insurance company shall pay interest @ 6% per annum from the date of award i.e. 19.08.2023. A sum of ₹18,90,232/- was awarded as compensation in favour of the claimants along with interest @ 6% per annum from the date of award i.e. 19.08.2023. 6. The claimants have not challenged the impugned order on any other ground, except the illegality of the order for grant of interest from the date of award and not from the date of filing of claim petition. As such, the Court has to determine as to whether the order passed by learned Motor Accident Claim Tribunal awarding the interest from the date of award is justified or not? 7. The issue whether the interest is payable from the date of award or from the date of filing of claim petition is not res integra. The Hon’ble Apex Court in catena of judgments has held that interest should be awarded from the date of filing of claim petition. Learned Motor Accident Claim Tribunal has also discussed this 2 2025:UHC:7319 aspect and observed in the preceding paragraphs of the operative portion of the order that the claimants are entitled for the award of interest @6% from the date of filing of claim petition i.e. 03.01.2017, however, it appears that due to some oversights, inadvertent mistake in the operative portion of the impugned order it has wrongly been mentioned that claimants are entitled for interest from the date of award i.e. 19.08.2023. The said direction issued as such is not sustainable and is liable to be modified. 8. Learned counsel for the Insurance Company, Mr. Deepak Rawat, also does not dispute this settled principle of law that interest is to be paid from the date of filing claim petition but contends that the appellants have approached this Court after a delay of 326 days and the insurance company is not liable for payment of interest on the said delay of 326 days. 9. He further contends that the appellants could have approached the Motor Accident Claim Tribunal concerned for correction of the said mistake and, as such, insurance company is not liable to be penalized for payment of interest for the said delay of 326 days in filing the present appeal from order. 10. Per contra, the learned counsel for the appellant submits that as the delay has been condoned by the Hon’ble Court, as such, the insurance company is liable to pay interest for the entire period. 11. After hearing learned counsel for the parties, this Court is of the opinion that appellant is entitled for interest @ 6% per annum on the awarded amount from 3 2025:UHC:7319 the date of filing of claim petition i.e. 03.01.2017 till payment is made, excluding the period of 326 days i.e is the period of delay in filing Appeal from Order by the claimant. 12. The award passed by learned Motor Accident Claim Tribunal awarding interest @ 6% per annum to the claimants from the date of order i.e. 19.08.2023 is modified. Learned Motor Accident Claim Tribunal is directed to recalculate interest @ 6% per annum on the awarded amount i.e. 18,90,232/- from the date of filing claim petition on 03.01.2017 till the date payment is made, excluding the period of 326 days i.e. the period of delay in filing the Appeal from Order by the claimant. 13. Learned Motor Accident Claim Tribunal shall calculate the details of the amount to be paid as interest and after adjusting the amount already paid to the claimants the balance amount shall be paid to the claimants by the Insurance Company in the ratio determined by the Tribunal within four weeks from the date of production of certified copy of this order. 14. The records of the trial be remitted back to the Motor Accident Claim Tribunal concerned. With the aforesaid directions the Appeal from Order is disposed of. (Subhash Upadhyay, J.) 14.08.2025 Sukhbant 4 SUKHBANT SINGH Digitally signed by SUKHBANT SINGH DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=71978f9c61bfde0ba69967c787b1764ea7bc7dd129a8a6380d49b188 5e628615, postalCode=263001, st=UTTARAKHAND, serialNumber=2D8B71B8D8E345F6B7F95B1DD4FB4BEBD2B7D72C42261361 AED33172F152148D, cn=SUKHBANT SINGH Date: 2025.08.22 10:22:35 +05'30'