1 CWP 5434/1999 National Insurance Co. V. Smt.Sayeeda Khatun & ors. IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH JAIPUR ORDER S.B.CIVIL WRIT PETITION NO.5434/1999 National Insurance Co. Ltd. vs. Smt. Sayeeda Khatun & Ors. DATE OF ORDER --- July 07,2010 PRESENT HON’BLE MR.JUSTICE PREM SHANKER ASOPA Mr. S.R. Joshi for the petitioner None present for the respondents BY THE COURT (1) By this writ petition, under Article 227 of the Constitution of India, the petitioner Insurance Company has challenged the notice dated 16.12.1998 (Anx.6) issued by the Motor Accident Claims Tribunal, Jaipur Distt. Jaipur (hereinafter referred to as `the Tribunal') in Execution Petition No.90/1998 whereby the Tribunal has directed the petitioner to deposit the cheque/bank draft of the interest amounting to Rs.26,790/- for the period between 19.8.1998 and 21.11.1998 for payment to the claimant respondents. (2) Briefly stated the facts of the case are that in regard to an accident which took place on 7.5.1987, Claim Petition No.1873/1992 Smt.Sayeeda Khatun and others V. Dayal Chand and another was filed before the Tribunal. The Tribunal, after hearing the parties, vide its judgment and Award dated 27.11.1992, while granting compensation amounting to Rs.6,85,000/- in favour of the claimants, ordered that in the event of non payment of the compensation within a period of two months, the Claimants will be 2 CWP 5434/1999 National Insurance Co. V. Smt.Sayeeda Khatun & ors. entitled to get interest at the rate of 15% from the date of institution of the claim petition. (3) The Insurance Company challenged the Award dated 27.11.1992 before this Court by filing S.B. Civil Misc. Appeal No.147/1993 National Insurance Co. Ltd. V. Smt. Sayeeda Khan and others, which was dismissed on 31.7.1998. Thereafter, the Insurance Company filed DB SAW No.159/1998 before this Court which too was rejected against which special leave petition was filed by the Insurance Company before the Supreme Court. Counsel for the Insurance Company stated at bar that the aforesaid special leave petition has been dismissed by the Supreme Court. (4) On 29.8.1998, the claimants submitted an application (Anx.4) before the Tribunal for appropriation of the amount deposited by the Insurance Company, towards the interest. The Insurance Company also submitted the calculation (Anx5) showing the adjustments of deposit from the Award amount and then calculated interest payable thereon and stated that as a matter of fact, the Insurance Company has paid a sum of Rs.32,268/- in excess. (5) The Tribunal, vide its notice dated 16.12.1998 (Anx.6) in Execution Petition No.90/1998 filed by the Claimants informed the Insurance Company that as per the Award, the interest @ 15% per annum on the amount of compensation was payable from the date of the filing the claim petition and in earlier Execution Petition No.72/1998, calculation of interest was made up to 19.8.1998 and notice was given to the Insurance Company to deposit the amount but the said amount was deposited on 21.11.1998 pursuant to the warrant of attachment. Thus, for the period between 19.8.1998 and 3 CWP 5434/1999 National Insurance Co. V. Smt.Sayeeda Khatun & ors. 21.11.1998, the Claimants have prayed for payment of the interest amounting to Rs.26,790/-. In the above fact situation, the Tribunal directed the Insurance Company to deposit the aforesaid amount of Rs.26,790/-, up to 27.1.1999 by cheque/bank draft otherwise recovery proceedings will be initiated. (6) Thereafter, the Insurance Company filed objection against the said notice and the matter came up before the Tribunal for deciding the objections of the Insurance Company and while rejecting those objections, vide its order dated 8.7.1999, the Tribunal ordered for issuance of a warrant of attachment in respect of Rs.26,790/- being the amount of interest by placing reliance on the judgments in Meghraj & Ors. V. Mst.Baya Bai & Ors. (AIR 1970 SC 161) and Oriental Insurance Co.Ltd. Vs. Harku Devi & Ors. (1991 ACJ 249). (7) Counsel for the petitioner submits that the Insurance Company has paid the amount of award dated 27th November, 1992 on different dates i.e. on 1st March, 1993 and 7th May, 1993 etc. Therefore, the adjustments made by the Insurance Company from the Award amount was proper and the demand of interest vide Annexure-6 is wholly erroneous. (8) No one appears on behalf of the respondents. (9) I have gone through record of the writ petition and further considered the submission of counsel for the petitioner. (10) Before proceeding further, it is relevant to reproduce the relevant portion of para 6 of the judgment of the Supreme Court in Meghraj & Ors. vs. Mst. Baya Bai & Ors. (AIR 1970 SC 161), which is as under: “But the normal rule is that in the case of a debt due with interest any payment made by the debtor is in 4 CWP 5434/1999 National Insurance Co. V. Smt.Sayeeda Khatun & ors. the first instance to be applied towards satisfction of interest and thereafter to the principal”. (11) While passing the order dated 8.7.1999 (Anx.7) the Tribunal has rightly placed reliance on the judgment of the Apex Court in Meghraj & Ors. vs. Mst. Baya Bai & Ors. (supra). In para 7 of the aforesaid judgment it was held that “the normal rule that the amounts deposited in Court should first be applied towards satisfaction of the interest and costs and thereafter, towards the principle would apply”. The aforesaid judgment has been followed by this Court in Oriental Insurance Co.Ltd. vs. Harku Devi & Ors. (1991 ACJ 249). The Tribunal has further rightly calculated the remaining interest amount as Rs.26,790/- from 19th August, 1998 to 28th November, 1998 as the principal amount and the interest have been deposited on 1.3.1993 and 7.5.1993 etc. i.e. after the expiry of two months from the date of passing the Award dated 27.11.1992 when the interest already became due on 27.1.1993. Thus, the Tribunal has acted within its parameter and no interference is called for in the writ petition and the same is, hereby, dismissed. (12) Consequently, the interim order dated 22nd November, 1999 whereby recovery proceedings pursuant to the Award dated 27th November, 1992 were stayed, stands vacated. However, two months' time is granted to the petitioner to deposit the amount, as ordered by the Tribunal from the date of receipt of copy of this order. (Prem Shanker Asopa) J. Bairwa/गोpa ल