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Reshmi Dhanuk Dey & Ors. v. The Branch Manager, National Insurance Company Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7422 of 2018)Decided 1 Aug 2018
Civil Appeal No. 7422 of 2018
Chief Justice Dipak Misra · Justice A.M. Khanwilkar · Dr. Justice D.Y. Chandrachud

Background

The appellants (claimants) had approached a Motor Accident Claims Tribunal seeking compensation and then appealed to the Supreme Court via SLP(C) No. 31483/2017 seeking enhancement of the compensation awarded. Before the Supreme Court, counsel for the insurance company proposed a lump-sum settlement figure, which the claimants' counsel accepted, while the insurer's counsel left the final quantum to the Court's discretion.

Decision Breakdown

Having heard both sides, the Court allowed the appeal and fixed enhanced compensation of Rs. 4,00,000 (four lakhs), to be deposited by the insurer with the Tribunal within eight weeks, carrying 9% per annum interest from the date the claim was originally filed before the Tribunal until payment. The Tribunal was directed to disburse the amount to the claimants upon deposit, keeping in mind the Supreme Court's guidelines in Rajasthan State Road Transport Corporation vs. Santosh & Ors., (1994) 2 SCC 176, on disbursal of motor-accident compensation. The appeal was finally disposed of with no further order needed on costs.

Lesson Learnt

In motor-accident compensation appeals, the Supreme Court will readily fix a specific lump-sum figure with interest from the original claim date where the parties broadly agree, rather than remanding the matter, and insurers can be made to pay interest running from the date the claim was first filed, not from the date of the Supreme Court's order.

Official source (sci.gov.in)View Judgment (PDF)

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