FA/4051/1999 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 4051 of 1999 With FIRST APPEAL No. 4052 of 1999 With CIVIL APPLICATION No. 3513 of 2000 In FIRST APPEAL No. 4052 of 1999 To CIVIL APPLICATION No. 3514 of 2000 In FIRST APPEAL No. 4051 of 1999 For Approval and Signature: HONOURABLE MR.JUSTICE D.H.WAGHELA ====================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ====================================== NEW INDIA ASSURANCE CO LTD Versus JAYSHREEBEN CHANDRAKANT CHAUDHARY AND OTHERS ====================================== Appearance : MR SUNIL B PARIKH for Appellant. NOTICE UNSERVED for Respondent Nos.1, 4. MR CJ VIN for Respondent Nos.2 - 3. DELETED for Respondent Nos.5, 7. FA/4051/1999 2/3 JUDGMENT NOTICE SERVED for Respondent No.6. MR DR DHIMAR for Respondent No.6. MR PV NANAVATI for Respondent No.8. MR VIBHUTI NANAVATI for Respondent No.8. ====================================== CORAM : HONOURABLE MR.JUSTICE D.H.WAGHELA Date : 29/01/2008 COMMON ORAL JUDGMENT 1. These appeals under Section 173 of the Motor Vehicles Act, 1988 (for short "the Act") are preferred from the common award dated 22nd September 1998 of MACT (Main), Surat, inter alia, in MACP Nos.375 of 1989 and 495 of 1989 whereunder the claimants were awarded total compensation of Rs.5,27,000/- and Rs.5,03,000/- respectively with interest at the rate of 15% per annum from the date of application till realization. The appeals were restricted to challenging the rate of interest. 2. According to recent Division Bench judgment of this Court (dated 20th November 2006) in National Insurance Company Limited v. Sureshbhai @ Sureshchandra Maganbhai Parmar in First Appeal No.2590 of 2006, it is held that while duration for which the claim petitions had remained pending is one of the relevant consideration, the current rate of bank interest prevailing on the date of the award is also another relevant consideration. Even as the claim petitions in that case were filed in the year 1995, the rate of interest was determined at 9% per annum. Having regard to the fact that, in the facts of the present cases the claim applications were made in the year 1989 and the award was pronounced in the year 1998 and in view of prolonged period till now, the rate of interest awarded on the amount of compensation is required to be suitably modified. Accordingly, the appeals are partly allowed with the direction that the claimants shall be entitled to full FA/4051/1999 3/3 JUDGMENT amount of compensation in terms of the impugned award with interest at the rate of 12% from the date of application till 31st December 1999 and at the rate of 9% from 1-1-2000 till the date of realization. Remaining part of the impugned award remains intact. Appeals stand partly allowed accordingly with no order as to costs. Civil Application in the appeals do not survive and stand disposed as rejected and Rule issued therein stands discharged with no order as to costs. Record and Proceedings may be returned. (D.H.Waghela, J.) /malek