Judgment:
ORDER
Manmohan Sarin, J.
1. Learned counsel for the appellant submits that the respondent had given up their claim to the balance awarded amount in case the awarded amount of Rs.1,50,000/- deposited by the appellant was paid to the respondent without furnishing security. The appellant had accepted this suggestion and as a consequence of which the amount of Rs.1,50,000/- was released to the respondents without security.
2. The question which comes up for consideration is whether by giving up the claim on the balance awarded amount of Rs.50,000/- out of Rs.2,00,000/- the respondents have also given up their claim to interest on the sum of Rs.1,50,000/-.
3. Learned counsel for the appellant submitted that the said amount of Rs.1,50,000/- was released on the respondent foregoing the balance awarded amount, which also included the amount of interest on the said sum of Rs.1,50,000/-. I am unable to agree. The perusal of the order dated 25.1.1994 passed on C.M. No.1920/93 reveals that the appellant had deposited a sum of Rs.1,50,000/- on 10th of August, 1993 as directed by this Court vide orders dated 12th July, 1993. The said amount had been ordered to be released to the respondent-claimants on furnishing adequate security. The respondents-claimants were unable to furnish security and availed the benefit of the amount ordered to be released. It was in these circumstances that the learned counsel for the respondents-claimants No.1 to 7 on instructions submitted that the respondents were ready to forego the balance awarded amount of Rs.50,000/- if the amount of Rs.1,50,000/- deposited as aforesaid was released without furnishing security. It would be seen that the respondents had only foregone their claim with regard to the balance awarded amount of Rs.50,000/- and not for the interest on the amount of Rs.1,50,000/-. This becomes apparent from the order dated January 25, 1994 passed in FAO No.148/93 which reads as under:-
'Now the only question which remains for consideration is whether the appellant/insurance company is liable to pay interest on the awarded amount or not as directed by the Tribunal.'
4. The submission of the appellant that the respondents are not entitled to claim interest on the said amount of Rs.1,50,000/- is devoid of merit.5. Coming to the question of award of interest learned counsel for the appellant has not been able to show that the discretion exercised by the Motor Accident Claims Tribunal in awarding interest at the rate of 12% per annum from the date of petition is vitiated by any irregularity. There is nothing on record which would disentitle the respondents from being awarded interest as rightly done by the Motor Accident Claims Tribunal in this behalf.
6. The appellant accordingly is directed to pay interest at the rate of 12% per annum on the sum of Rs.1,50,000/- from the date of petition till 10th August, 1993, the date on which the said amount was deposited by the appellant.
7. The interest amount, in equal shares by means of cheques drawn in favor of respondents No.1 and 3 to 7, since the respondent No.2 Smt. Mahadevi has died as recorded in order dated 25.1.1994, be deposited by the appellant with the Motor Accident Claim Tribunal within 4 weeks and the learned Motor Accident Claims Tribunal would disburse the same to the respondents No.1, and 3 to 7.
8. The appeal is disposed of with the aforesaid directions.