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PETITIONER: JAGBIR SINGH & ORS.

       Vs.

RESPONDENT: GENERAL MANAGER, PUNJAB ROADWAYS & ORS.

DATE OF JUDGMENT24/10/1986

BENCH: KHALID, V. (J) BENCH: KHALID, V. (J) PATHAK, R.S.

CITATION:  1987 AIR   70            1986 SCR  (3)1095  1986 SCC  (4) 431        JT 1986   699  1986 SCALE  (2)681  CITATOR INFO :  F          1992 SC1261  (12)

ACT:      Motor Vehicles  Act, 1939:  ss.  110,  110A,  110B  and 110CC-Motor   accident    claim-Quantum   of   compensation- Determination  by  Tribunal-Validity  of-Rate  of  interest- Entitlement of the claimant.

HEADNOTE:      A State  Roadways bus met with an accident resulting in the death of three persons. On an application being filed on behalf of  one of  the persons,  the Motor  Accident  Claims Tribunal awarded  a compensation  of Rs.93,600  to the widow and the  minor children  of the deceased, with interest at 6 per cent per annum.      The claimants as well as the State appealed to the High Court, which  dismissed the  claimants’ appeal,  and  partly allowed the  appeal by  the State.  While holding  that  the accident was  caused by  the rash  and negligent  act of the driver of  the bus,  the High Court reduced the compensation to Rs.79,200 but confirmed the award of interest made by the Tribunal.      In the  special leave petition it was contended for the petitioners-claimants that  they were  entitled to  an  even greater amount  of compensation  on account of the different sources of income arising to the deceased.      Disposing of the special leave pention, the Court, ^      HELD: The  High Court  erred in reducing the quantum of compensation awarded  by the  Tribunal. There was sufficient material  on   the  record  to  justify  the  quantification determined by  the Tribunal  and there was no reason why the amount should  have been reduced. The amount of compensation assessed by  the Tribunal  should, therefore, be maintained. [1097B-D]      The petitioners are entitled to interest at 12 per cent per annum 1096 from the  date of  the application  for compensation  to the date of payment. [1097]      Narchinva V  Kamat &  Anr. Etc.  v. Alfredo Antonio Doe

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Martins &  Ors., AIR  1985 SC  1281 and  Smt. Chameli Wati & Anr. v.  Municipal Corporation  of Delhi & Ors., AIR 1986 SC 1191, referred to.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Special  Leave  Petition (Civil) No. 2023 of 1983.      From the  Judgment and  Order dated 26.8.82 of the High Court of Punjab & Haryana in L.P.A. No. 1172/82.      Hardev Singh and R.S. Sodhi for the Petitioners.      The Order of the Court was delivered by      PATHAK, J. This case has been pending in this Court for some years. On November 21, 1983 we directed issue of notice on the  special leave petition. Almost three years later, on August 11, 1986 when the case was taken up it was found that the  respondents   had  not   entered  appearance   yet  and consequently notice was directed to issue afresh, indicating this time  that the  case would  be decided on the merits of the controversy  itself between  the parties.  On the latter date when  no one appeared for the respondents, the case was adjourned for  two weeks  again to enable the respondents to enter appearance.  Thereafter on September 22, 1986 an order was made  for the last time directing issue of notice to the respondents returnable  on October  20, 1986  and intimating that the special leave petition would definitely be taken up on that  date for  final disposal on the merits of the case. It was  made clear  that the  case would not be adjourned on any account.  We find  that the  respondents continue  to be absent. No  reason has  been shown for their absence, and in the circumstances we proceed to dispose of the case.      A bus  belonging to  the Punjab  Roadways met  with  an accident on  February 13,  1971, which resulted in the death of three  persons. One of those persons was Balbir Singh. An application was  filed by the petitioners, who are the widow and minor  children of Balbir Singh, for compensation before the Motor  Accident  Claims  Tribunal.  By  an  order  dated October 23, 1975 the Tribunal held the claimants entitled to compensation in  the sum of Rs.93,600 with interest at 6 per cent per  annum. Dissatisfied  with the order, the claimants as well as the State 1097 Government appealed to the High Court of Punjab and Haryana. The High  Court dismissed  the appeal filed by the claimants and partly  allowed the appeal by the State. The High Court, while holding  that the  accident was caused by the rash and negligent  act  of  the  driver  of  the  bus,  reduced  the compensation  to   Rs.79,200  but  confirmed  the  award  of interest made by the Tribunal.      After carefully  considering the  matter we  think that the High Court erred in reducing the quantum of compensation awarded by  the Tribunal.  There was sufficient material, in our opinion, to justify the quantification determined by the Tribunal and  we see  no reason  why the  amount should have been  reduced.  It  was  strenuously  contended  by  learned counsel  for   the  petitioners  that  the  petitioners  are entitled to  an even greater amount of compensation, in view of the  different sources  of income arising to the deceased Balbir Singh.  We think,  however, that having regard to the material on  the record  the amount of compensation assessed by the Tribunal should be maintained. Accordingly we restore the order  of the  Tribunal awarding compensation in the sum of Rs.93,600.      In regard  to  the  interest,  however,  we  think  the

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petitioners are  entitled to  a higher rate of interest than that awarded  by the  Tribunal and  confirmed  by  the  High Court. We  find that  in Narchinva V. Kamat and Anr. Etc. v. Alfredo Antonio  Doe Martins  & Ors.,  A.I.R. 1985  SC 1281, this Court  awarded interest at 12 per cent from the date of the accident up to the date of payment. Subsequently in Smt. Chameli Wati  & Anr. v. Delhi Municipal Corporation of Delhi and Others,  A.I.R. 1986  SC 1191,  a larger  Bench of  this Court awarded compensation at 12 per cent per annum from the date of  the application for compensation. We are of opinion that the  petitioners should  be entitled  to interest at 12 per cent  per annum  from the  date of  the application  for compensation to the date of payment. We order accordingly.      The special  leave petition  is disposed  of  in  these terms. P.S.S. 1098