1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE SIDE, BENCH AT AURANGABAD FIRST APPEAL NO. 354 OF 1994 Ahmedbee w/o. Babamiyan, R/o. Naiabadi, Nanded. ....Appellant. Versus 1. Mohd. Shekhu s/o. Gouse, R/o. Naiabadi, Nanded. (R-1 is deleted in M.A.C.T.) 2. Vinodkumar Murlidhar Charkha, R/o. Gokulnagar, Near Peoples High School, Nanded. 3. United India Insurance Company Ltd., Through Manager Malpani Building, Jyoti Corner, Nanded. ....Respondents. Mrs. M.A. Deshpande, Advocate for the appellant. Mr. G.N. Chincholkar, Advocate for the respondent No. 2. Mr. Madhav C. Ghode, Advocate h/f. Mr. D.V. Soman, Advocate for respondent No. 3. CORAM : R.K. DESHPANDE, J. DATE : 5th October, 2009 ORAL JUDGMENT : 1. This appeal is by the original claimant, challenging the judgment 2 and award dated 18.6.1993, passed by the learned District Judge and the Ex-Officio Member of the Motor Accident Claims Tribunal, Nanded to the extent it refuses to grant interest at the rate of 12% p.a. from the date of filing of the application and imposes the condition that it is only upon failure to pay the interest within stipulated period that the interest at the rate of 12% shall become payable. The operative part of the order impugned is reproduced below :- "Respondents No. 2 & 3 jointly and severally do pay to the applicant Rs. 15,000/- for compensation under 'No Fault Liability' within four weeks from the date hereof, failing which it would carry interest at the rate of Rs.12 per cent per annum from the date of application till realization." The Tribunal has directed to pay the compensation of Rs. 15,000/- under no fault liability within a period of four weeks from the date hereof, failing which it would carry interest at the rate of 12% p.a. from the date of the application till its realization. 2. The learned counsel Mrs. Deshpande relied upon the decision of this Court rendered in First Appeal No. 527/1992, decided on 24th of July 2007. She relies upon para 6 and 7 of the said judgment which are reproduced below :- "6. The Tribunal directed that the interest at the rate of Rs.12% p.a. shall be paid if the amount of compensation is not deposited within stipulated period of three (3) months. Here, I do not agree with the finding of the Tribunal. The interest amount is payable from the date of the petition, in the ordinary course, unless there is any particular 3 reason to withhold the same. For example, if the petitioners would commit default by seeking adjournments during the trial or that they will not produce material evidence inspite of undertaking and the matter is protracted at their instance, the interest may be withheld by the Tribunal. Still, however, when the petitioners are not at fault, the interest cannot be withheld without any substantial reason and it has to be awarded from the date of application. The learned advocate Smt.Deshpande, would rely on "Dnyandeo Karbhari Nagare and others Vs. Gitaram Shankar Wakchaure and others" (2005 ACJ 374) in this behalf. My above view is fortified by the said case- law. 7. For the foregoing reasons, I am of the opinion that the Tribunal committed patent error while directing that interest would be payable only if the amount is not deposited within the period of three (3) months. Instead the interest ought to have been granted from the date of the petition till realisation of the entire amount. In this view of the matter,the First Appeal is partly allowed only to the extent of the direction regarding payment of the interest which is quashed and is substituted by following sentences :- "The Respondent Nos.3 and 4 do jointly and severally pay Rs.90,000/- as compensation to the claimants within three (3) months alongwith the interest at the rate of Rs.12% p.a. from the date of the petition till realisation of the entire amount. The interest will be payable till the date of depositing of the entire amount. No costs." 3. In view of the aforesaid decision of this Court, the matter is no longer res-integra and the petition, therefore, needs to be allowed and the following order is passed, modifying the operative part of the order dated 18.6.1993 passed by the Motor Accident Claims Tribunal in N.F.L. 4 No. 31/1988. ORDER The respondent Nos. 2 and 3 are jointly and severally held liable to pay to the applicant Rs. 15,000/- towrds compensation under no fault liability within a period of four weeks from the date of this order along with interest at the rate of 12% p.a. from the date of filing of the application till its realization. The appeal is, thus, allowed. There shall be, however, no order as to costs. [ R.K. DESHPANDE, J. ] ssc/fa354.09