Supreme Court Grants Interest on Enhanced Compensation to Victims’ Family
New Delhi, December 19, 2024 –p The Supreme Court of India, in a recent judgment, ruled in favor of the appellants-claimants in a motor accident compensation case, allowing them to receive interest on enhanced compensation for a disputed period. The ruling, delivered by Justices J.K. Maheshwari and Rajesh Bindal, modifies the previous order of the Kerala High Court, which had denied interest for a significant duration due to procedural delays.
2/23/20252 min read
The case involved a tragic road accident that occurred on August 7, 2006, when the deceased, T.C. John, was traveling in his jeep with his family. A collision with a bus resulted in his death, prompting his widow and three daughters to file a compensation claim of ₹15,00,000 before the Motor Accidents Claim Tribunal (MACT), Thalassery. The Tribunal awarded ₹4,15,000 along with 7.5% annual interest, making the bus driver, owner, and insurance company liable for payment.
Dissatisfied with the compensation amount, the claimants appealed to the Kerala High Court. However, their appeal was delayed by 708 days. The High Court condoned the delay but ruled that the claimants would not receive interest for this period. Additionally, it further denied interest from June 22, 2016, to July 13, 2023, citing a delay in serving the case documents to the insurance company’s counsel.
Challenging this decision, the claimants approached the Supreme Court. Their counsel argued that the delay was due to procedural lapses beyond their control and that the compensation amount should be reassessed, as the deceased was the sole breadwinner of the family. The insurance company, on the other hand, contended that the High Court's order was justified and should not be interfered with.
After reviewing the case, the Supreme Court upheld the enhanced compensation of ₹9,84,500 granted by the High Court but overturned the decision to deny interest for the period between June 22, 2016, and July 13, 2023. The Court ruled that the claimants should not be penalized for procedural delays that were not their fault, stating, "Once the matter was before the Court, the appellants-claimants should not be deprived of the interest."
However, the Supreme Court maintained the High Court’s ruling regarding the 708-day delay in filing the appeal. The claimants will not receive interest for this period since the delay was attributable to them.
With this decision, the Supreme Court has reinforced the principle that procedural delays, particularly those beyond the control of litigants, should not deprive them of rightful compensation. The judgment is expected to serve as a precedent in similar cases, ensuring fair treatment for accident victims and their families.