(A) Motor Vehicles Act (59 of 1988) , S.168— Death claim – Award of interest – Legality – When matter was pending before tribunal or in appeal before higher forums, claimants were deprived of compensation for future prospects – If they were paid in time, it could be utilised by claimants and on failure, loss of dependency would force claimants to source their livelihood from elsewhere – Same was sought to be compensated at least minimally by award of interest, which very often was nominal also since only simple interest was awarded – If amounts were disbursed to claimants on a rough calculation, on intimation of accident to Insurance Company, subject to award of tribunal, necessarily there would not have been any interest liability at least to extent of disbursement made – In one case, multiplier applied was 13 – Before tribunal, case was pending for 12 years and only amount received by claimants was Rs.50,000/- – Though amounts were awarded for future prospects taking multiplier of 13, in effect, money was received only after period for which multiplier was adopted – In other case, accident had occurred in 2018 and multiplier applied was 17 – Seven years had lapsed from date of accident – Entire award amounts would be paid with interest at rate of 9% from date of filing of claim till date of disbursement, deducting only Rs.50,000/- granted as interim compensation, in one case and 6% in other case as awarded by High Court, deduction to be made for amounts already paid.
2020 AAC 367 (Guj)-Affirmed(Paras 911)
(B) Motor Vehicles Act (59 of 1988) , S.166— Motor Vehicles Act (59 of 1988) , S.171— Claim petition – Delay in disposal of – Effect on interest – There was nothing to indicate that it was only by reason of claimants’ absence that consideration was delayed – Merely because, on various dates, for 4 years, case was posted for claimants’ evidence, it does not necessarily mean that claimants were responsible for delay – There was no reason to hold delay to be sole responsibility of claimants and in that circumstance, interest must run from date of filing of claim petition, to date of payment
(C) Motor Vehicles Act (59 of 1988) , S.171— Motor accident – Award of interest – Rate of – Challenge against – In 1980s, Courts were awarding 12% interest which stood reduced to 9% in 1990s – With advent of 21st century and economic recession world over, interest rates fell considerably – Now rates offered by Nationalised Banks for long term deposits are 7% or more – Considering circumstances especially long delay caused, 9% interest rate granted by tribunal was proper especially noticing accident having occurred in 1995
2020 AAC 367 (Guj)-Affirmed(Para8)
(D) Motor Vehicles Act (59 of 1988) , S.168— Compensation – Death claim – Remarriage of deceased’s widow – Accident had occurred in 1995 – Wife of deceased admitted that she got remarried in 2002 and after that she alongwith her children was living with her second husband – Pension received from deceased husband’s employer was stopped after that – Presumably, family pension was only payable to wife and when she got remarried, same was stopped – However, it could not be said that minor children were not entitled to multiplier as adopted by tribunal – There was no reason to interfere with compensation awarded by tribunal and affirmed by High Court
2020 AAC 367 (Guj)-Affirmed(Para6)