Bombay High Court

THE ORIENTAL INSURANCE CO LTD.versusSANTOSH SUBAI YADAV AND ANR.

Decided: 7 September 2026
Disposal: Disposed Off

Holding

The order of the Executing Tribunal is set aside and it is directed to recalculate the interest payable in accordance with the Supreme Court’s principles.

Summary

The petition concerned a dispute over the calculation of simple interest at 7.5% per annum on a compensation award of Rs.86,500 payable by Oriental Insurance Co. Ltd. to the respondent. The petitioner argued that the Executing Tribunal had failed to determine the exact interest amount, contrary to the law laid down by the Supreme Court in Oriental Insurance Co. Ltd. v. V. Kala Bharathi (2014). The Court noted that the Supreme Court decision provides the method for computing such interest and that the tribunal’s omission amounted to a procedural error. Consequently, the Court set aside the tribunal’s order. It directed the tribunal to recompute the interest in accordance with the Supreme Court principles within eight weeks, and thereafter disposed of the writ petition.

Issues considered

How should simple interest at 7.5% per annum be calculated on the compensation amount of Rs.86,500?
Whether the Executing Tribunal erred by not determining the exact interest payable.
Application of the Supreme Court’s ruling in Oriental Insurance Co. Ltd. v. V. Kala Bharathi to the present case.

Subjects

simple interest
insurance compensation
tribunal error
Supreme Court precedent
writ petition
interest calculation

Judgment

                                                                            23-wp-9766-2016.doc


                      Shabnoor
                                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                         CIVIL APPELLATE JURISDICTION

                                       WRIT PETITION NO.9766 OF 2016

SHABNOOR              The Oriental Insurance Co. Ltd.             … Petitioner
AYUB                             V/s.
PATHAN
Digitally signed by   Santosh Subai Yadav & Anr.                  … Respondents
SHABNOOR AYUB
PATHAN
Date: 2026.09.07
16:24:56 +0530
                      Mr. Kalpana Trivedi a/w K. Awasthi, for the Petitioner.
                      Mr. T. J. Mendon, for Respondent Nos.1 and 2.


                                                  CORAM      : AMIT BORKAR, J.

                                                  DATED      : SEPTEMBER 7, 2026
                      P.C.:

                      1.      The only dispute involved in the present petition relates to
                      the calculation of simple interest at the rate of 7.5% per annum on
                      the amount of compensation of Rs. 86,500/-. It appears that there
                      is a dispute between the applicant and the Insurance Company
                      regarding the calculation of the amount of interest. The law in this
                      regard has been laid down by the Supreme Court in Oriental
                      Insurance Company Ltd. v. V. Kala Bharathi and Others , 2014 (2)
                      TAC 370. In the absence of any adjudication on the respective
                      calculations submitted by the parties, the Executing Tribunal
                      appears to have failed to determine the exact amount of interest
                      payable. Accordingly, the impugned order is set aside.

                      2.      The Tribunal shall recalculate and determine the exact
                      amount of interest payable by the Insurance Company in
                      accordance with the principles laid down in the judgment of the




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                                                    23-wp-9766-2016.doc


Supreme Court in Oriental Insurance Company Ltd. v. V. Kala
Bharathi and Others. The said exercise shall be completed within
eight weeks from today.

3.   The writ petition stands disposed of.


                                             (AMIT BORKAR, J.)




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