RANCHI, India, Sept. 7 -- Jharkhand High Court issued the following order on Aug. 7:

1. Judgment dated 12.02.2015 passed in Compensation Case No.47/10 is under challenge in this miscellaneous appeal whereby and whereunder award of compensation under Section 166 of the M.V. Act has been made in favour of the claimants by fixing liability on the insurance company to pay the compensation amount of Rs.11,75,000/- with interest @ 9% per annum.

2. Finding of fact that Rajesh Kumar while going on his motorcycle bearing registration no.JH 01J 7479 met with a motor vehicle accident involving a bus bearing registration no.CG 14A 3174 is not in dispute. It is also not in dispute that the said bus was under the insurance cover of the appellant-insurance company.

3. This appeal is preferred mainly on the ground that it was a case of contributory negligence as the evidence on record suggested that head on collusion took place between motorcycle and bus, therefore, the principle of res ipsa loquitur will apply in fastening equal liability on the owner/insurer of both these vehicles. Main grievance of the insurance company, firstly is that without recording any finding on this point, the compensation has been awarded fixing liability on the appellant- insurance company. Secondly, the interest @ 9% per annum on the principal compensation amount, is also under challenge as it is not in consonance with the interest to be awarded as per the ratio laid down in Sarla Verma & Others Versus Delhi Transport Corporation & Another, (2009) 6 SCC 121 and further followed in National Insurance Company Ltd. vs. Pranay Sethi, reported in (2017) 16 SCC 680 case. Furthermore, penal rate of interest @ 12% per annum has also been awarded for which there is no such provision.

4. Learned counsel for the claimants appearing on behalf of the insurer of the motorcycle (opposite party no.4- United Indian Insurance Company Ltd.) submits that charge sheet was filed against driver of the bus and the witnesses also deposed that the accident took place because of the rash and negligent driving by the driver of the bus which has been dealt under Issue Nos.4, 5 and 6 in para 16 of the award.

5. Having considered the submissions advanced on behalf of both sides, this Court does not find any infirmity so far, the Issue Nos.4, 5 and 6 have been decided by holding that the accident took place due to rash and negligent driving by the driver of the bus.

6. However, considering the ratio laid down by the Apex Court in Dharampal & Others Vs. U.P. State Road Transport Corporation, (2008) 12 SCC 208, interest @ 7.5% on the compensation amount from the date of filing of the claim application will be applicable. No further penal interest will be chargeable.

With this modification in the interest, the miscellaneous appeal is disposed of.

Statutory amount deposited by the appellant at the time of filing of appeal, be remitted to the Tribunal for being adjusted to the full and final compensation amount to be paid by the insurance company to the claimants within sixty days of the order.

Disclaimer: Curated by HT Syndication.