Anju Kumari and Sonam Kumari and Nirmala Devi and Ganesh Prasad Gupta V. Divisional Manager, New India Assurance Co. Ltd. and Akhilesh Kumar Dubey and Ashok Kumar Yadav

MA/498/2018

AI Insights

The case involves an appeal by the appellants, Anju Kumari, Sonam Kumari, Nirmala Devi, and Ganesh Prasad Gupta, seeking interest on the compensation awarded to them by the Motor Accident Claim Tribunal, Bokaro, and a reassessment of the deceased's income which was considered to be Rs. 5000 per month instead of the claimed Rs. 10,000. The Tribunal had denied interest on the grounds of delays caused by the appellants in the trial process. The respondents, including the Divisional Manager of New India Assurance Co. Ltd., contested the claims. The High Court of Jharkhand at Ranchi, presided by Justice Ananda Sen, reviewed the Tribunal's decision and the evidence presented.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798712 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 22-08-2022
• Assessment Year: misc
• Laws Referred To: Section 171 of the M.V. Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MANISH KUMAR
• Assessee Lawyers: NIKHIL RANJAN
• Keywords: Interest on compensation; Motor Accident Claim; Assessment of Income; Delay in Trial
• Section: 171

Judgement Text

" IN THE HIGH COURT OF JHARKHAND AT RANCHI M.A No. 498 of 2018 ------ 1. Anju Kumari 2. Sonam Kumari 3. Nirmala Devi 4. Ganesh Prasad Gupta …. …. Appellant(s). Versus 1. Divisional Manager, New India Assurance Co. Ltd. 2. Akhilesh Kumar Dubey 3. Ashok Kumar Yadav …. …. Respondent(s) ------ CORAM : HON'BLE MR. JUSTICE ANANDA SEN. ------ For the Appellant(S) : Mr. Nikhil Ranjan, Advocate For the Respondent : Mr. Manish Kumar, Advocate ------ 7/22.08.2022 This appeal has been filed by the appellants praying for interest on the amount of compensation awarded to them vide judgment dated 7.6.2018 passed by District Judge-II- cum-P.O, Motor Accident Claim Tribunal, Bokaro in Motor Accident Claim Case No.86 of 2009. He further adds that the income has not been properly assessed by the Tribunal. 2. Counsel for the appellants submits that Tribunal while passing the award has held that since there was latches on the part of the appellants and the trial got delayed due to the latches of the appellants, the appellants are not entitled for any interest in terms of Section 171 of the M.V. Act. After going through the records he submits that the claim application was filed on 4.11.2009 and the same was disposed of on 7.6.2018 thus the appellants are entitled for interest for a period of nine years @ 9% per annum. The Tribunal has not mentioned as to how the appellants were at fault in pursuing their appeal which consumed nine years. Thus in absence of any reasoning, the appellants are entitled for interest @ 9% per annum on the awarded amount. He further submits that the claimants have claimed the monthly income of the deceased to be Rs.10,000/- but the Tribunal has considered the same to be Rs.5000/- without any reasons, which also needs rectification and enhancement. 3. Mr. Manish Kumar, counsel appearing on behalf of the respondents submits that though the claim application was filed on 4.11.2009 but the claimants took more than three years to adduce evidence, which clearly suggests that the claimants were at fault. He further submits that there is no document to suggest that the deceased was earning Rs.10,000/- per month. The deceased was running Photo studio and Hotel but there is no document to suggest that the deceased was running a Hotel or a Photo studio. Claimants produced some document but these documents only suggest that he has taken some loan from State Bank of India, Bokaro branch. 4. After hearing the parties and since lower court record is already before me, I am disposing of this appeal at this stage itself as the issues lies in a very narrow compass. -2- The accident, the involvement of the offending vehicle bearing Registration No. UP 60A 6852 is not disputed nor manner in which the accident had occurred and the fact of Insurance is also not disputed. The liability is also not challenged. The only issue which has to be decided in this case is whether the claimants are entitled for interest on the awarded amount or not and if yes then on what rate and whether the Tribunal has correctly assessed the income of the deceased or not. 5. After going through the lower court records, especially the evidence, I find that a claim has been made that the deceased was earning Rs.10,000/- per month from Studio Anjali and Hotel Basera but there is no document on record to suggest that there was any hotel in the name of the deceased. These two establishment, needs licence and some permission from local authorities. These permissions are also not available. Further Income tax return of the deceased has also not been produced. If there are two establishments which has been established by the deceased, there should have been some Income Tax Returns either of the deceased or of the establishments or same documents. In absence of any documents the Tribunal has correctly assessed the income of Rs.5000/- per month. 6. So far as interest is concerned, I find that this claim application was filed on 4.11.2009. An application was also filed under Rule 22 of the Bihar Motor Vehicles Rule praying for exemption of payment of court fee. The interim compensation to the claimants was paid by the order dated 20.8.2011 and thereafter the court fee was directed to be paid. The case was fixed for evidence on 4.01.2012 and evidence of the claimants was closed on 28.4.2016. It took four years for the claimants to close their evidence. Thereafter from 2016 the opposite party led their evidence and the Tribunal ultimately decided the claim application on 7.6.2018. These facts clearly suggests that there was some latches on the part of the claimants in delaying the disposal of this claim application. The claimants thus are not entitled for any interest for four years which they took to conclude their evidence. I feel that they are entitled for interest for a period of four years, which cannot be attributed to the claimants. Thus the Insurance Company will calculate interest for the period of four years on the awarded amount @ 7% per annum and pay the same within a period of eight weeks to the claimants. 7. With the aforesaid observation, this appeal is allowed. (ANANDA SEN , J) anjali/cp2 "