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Supreme Court of India

T.C. JOHN @ YOHANNAN (DECEASED) THROUGH LRS.versusV.J. ANTONY AND OTHERS

Citation
[2024] 12 S.C.R. 1143
Decided
19 December 2024
Disposal
Case Partly allowed

Holding

Interest cannot be denied for the period 22‑06‑2016 to 13‑07‑2023 as the delay was caused by the claimants’ counsel, although denial of interest for the 708‑day appeal filing delay is justified.

Summary

The case arose from a motor vehicle accident in 2006 in which T.C. John died, leaving his widow and three daughters as claimants. The claimants obtained a compensation award of ₹4,15,000 with interest from the Motor Accidents Claim Tribunal, and later filed an appeal before the Kerala High Court, which was delayed by 708 days but was condoned on the condition that no interest would be payable for the period of delay. The High Court also denied interest for the period 22‑06‑2016 to 13‑07‑2023, citing a delay by the claimants’ counsel in furnishing the paper book to the insurer’s counsel. The claimants contended that they should not be penalised for their counsel’s delay and sought interest on the enhanced compensation. The Supreme Court held that while the delay in filing the appeal justified denial of interest for the 708‑day period, the claimants could not be deprived of interest for the 2016‑2023 period as the delay was attributable to their counsel and not to the claimants themselves. Accordingly, the Court modified the High Court order, granting interest at the same rate for the 22‑06‑2016 to 13‑07‑2023 period and allowed the appeal in part.

Issues considered

  • Whether the High Court was justified in denying interest for the period 22‑06‑2016 to 13‑07‑2023 on the ground of delay by the claimants’ counsel.
  • Whether denial of interest for the 708‑day delay in filing the appeal is permissible.

Headnote

Issue for Consideration Whether the High Court was justified in denying the interest for the period between 22.06.2016 to 13.07.2023, which was the period of delay in supplying the copy of paper book to the standing counsel for the insurance company. Headnotes† Motor Denial of interest – The High Court had partly accepted appeal while enhancing the compensation, however, it denied the interest for the delay of 708 days in filing appeal and interest for the period between 22.06.2016 to 13.07.2023 – Justified or not: Held: As far as assessment

Subjects

Enhancement of compensationInterestCondonation of delayDenial of interestMotor accident claim

Judgment

               [2024] 12 S.C.R. 1143 : 2024 INSC 1016

           T.C. John @ Yohannan (Deceased) Through Lrs.
                                 v.
                       V.J. Antony and Others
                      (Civil Appeal No. 14749 of 2024)
                              19 December 2024
             [J.K. Maheshwari and Rajesh Bindal,* JJ.]


                            Issue for Consideration
       Whether the High Court was justified in denying the interest for the
       period between 22.06.2016 to 13.07.2023, which was the period of
       delay in supplying the copy of paper book to the standing counsel
       for the insurance company.

                                  Headnotes†
       Motor Vehicle Accident claim – Denial of interest – The
       High Court had partly accepted appeal while enhancing the
       compensation, however, it denied the interest for the delay of
       708 days in filing appeal and interest for the period between
       22.06.2016 to 13.07.2023 – Justified or not:
       Held: As far as assessment of compensation is concerned,
       the same does not call for interference by this Court – The
       appellants-claimants, for the period between 22.06.2016 to
       13.07.2023, have been denied interest on the ground that there
       was delay on the part of the counsel for the appellants-claimants
       in not supplying the copy of the paper book to the counsel for the
       insurance company – Once the matter was before the Court, the
       appellants-claimants should not be deprived of the interest for the
       period between 22.06.2016 to 13.07.2023 – It cannot be said to
       be the fault on the part of the appellants-claimants, comparable
       to a fault in filing the appeal beyond the period of limitation – In
       the case in hand, the appeal was barred by 708 days – The High
       Court while condoning the same, specifically directed that the
       appellants-claimants will not be entitled to any interest for the
       aforesaid period, in case the amount of compensation is enhanced –
       The order is quite reasonable – The aforesaid delay in filing the
       appeal was attributable to the appellants-claimants, hence, they will


* Author
1144                                                        [2024] 12 S.C.R.

                                  Supreme Court Reports


      not be entitled to the interest for the period of 708 days – At the
      same time, after having filed the appeal and during the pendency,
      the appellants-claimants should not be made to suffer directing for
      non-payment of interest, because for such default claimants alone
      could not be held responsible – Consequently, denial of interest to
      the appellants for the period between 22.06.2016 to 13.07.2023
      as directed is not justified. [Paras 9, 10, 11]

                                         List of Keywords
      Enhancement of compensation; Interest; Condonation of delay;
      Denial of interest.

                                     Case Arising From
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 14749 of 2024
      From the Judgment and Order dated 07.09.2023 of the High Court
      of Kerala at Ernakulam in MACA No. 1072 of 2015

                                 Appearances for Parties
      Harshad V. Hameed, Dileep Poolakkot, Advs. for the Appellant.
      Ms. Mrinal Kanwar, Vaibhav, Mayank Mikhail Mukherjee, Ujjwal
      Singh, Advs. for the Respondents.

                       Judgment/Order of the Supreme Court

                                            Judgment

      Rajesh Bindal, J.

1.    Leave granted.
2.    The present appeal arises out of impugned judgment1 and order
      dated 07.09.2023 passed by the High Court2vide which the appeal
      filed by the appellants-claimants was partly accepted enhancing the
      compensation payable to the appellants-claimants. The grievance
      raised by the appellants-claimants is that the High Court has denied
      interest to them for the period between 22.06.2016 to 13.07.2023.


1    MACA no.1072 of 2015
2    High Court of Kerala at Ernakulam
[2024] 12 S.C.R.                                                      1145

              T.C. John @ Yohannan (Deceased) Through Lrs. v.
                           V.J. Antony and Others

3.    The facts as available on record in brief are that the accident took
      place on 07.08.2006 when the deceased was travelling in his jeep
      along with his wife(now widow) and children and a bus hit their
      jeep, resulting in death of the deceased. The appellants-claimants,
      consisting of deceased’s widow and three daughters, filed claim
      appeal3 before the Tribunal4 seeking compensation of ₹15,00,000/-.
      The Tribunal passed an award of ₹4,15,000/- along with interest @
      7.5% per annum in favour of the appellants-claimants, making the
      driver, owner and the insurance company of the bus liable to pay
      the same.
4.    Aggrieved against the award dated 18.11.2011 passed by the
      Tribunal, the appellants-claimants filed appeal before the High Court.
      There was a delay of 708 days in filing the appeal. The same was
      condoned vide order dated 24.08.2023 with the condition that on
      the enhanced compensation, if allowed, the appellants-claimants will
      not be entitled to claim interest for the period of delay of 708 days.
      Further the period for which there was delay in service of copy of
      paper book upon the standing counsel for the insurance company
      shall be decided at the time of final disposal of the appeal.
5.    The High Court partly accepted the appeal while enhancing the
      compensation further by an amount of ₹9,84,500/- along with
      interest @ 8% per annum. It was directed that appellants-claimants
      shall not be entitled to the interest for the delay period of 708 days
      in filing the appeal as was directed vide order dated 24.08.2023.
      Further appellants-claimants were not allowed interest for the period
      between 22.06.2016 to 13.07.2023, which was the period of delay
      in supplying the copy of paper book to the standing counsel for the
      insurance company.
6.    Learned counsel for the appellants-claimants submitted that the
      appellants-claimants are poor and illiterate persons. The deceased
      was the only bread earner for the family, working as driver, died
      leaving behind his widow and three daughters as his dependents.
      The family was having a hard time to make both ends meet. The
      amount of compensation as assessed is on lower side as the income
      of the deceased was not assessed properly and hence, appropriate


3    OP (MV) no.655 of 2007
4    Motor Accidents Claim Tribunal, Thalassery
1146                                                      [2024] 12 S.C.R.

                        Supreme Court Reports



     compensation was not awarded. It was further argued that the appeal
     having been filed before High Court, there had been a delay in the
     process on account of the fault of the counsel of appellants-claimants,
     which should not be taken against the appellants-claimants as they
     were not at fault. Hence, the insurance company should be made
     liable to pay interest on the enhanced compensation. The appellants-
     claimants should not be deprived of interest for the period between
     22.06.2016 to 13.07.2023.
7.   On the other hand, learned counsel for the respondents submitted
     that the assessment of compensation by the High Court is already
     on higher side, however, still the insurance company, accepting the
     same, has not preferred any appeal. The order of the High Court
     does not call for interference even with reference to claim regarding
     interest for the period between 22.06.2016 to 13.07.2023, during
     which the copy of the paper book was not supplied by the counsel for
     the appellants-claimants to the counsel for the insurance company.
8.   Heard the learned counsels for the parties and perused the record
     available.
9.   As far as assessment of compensation is concerned, in our view
     the same does not call for interference by this Court. The accident
     took place on 07.08.2006. The income of the deceased, claimed
     to be working as a driver, has been properly assessed at ₹8,750/-
     per month by the High Court. Under other heads also, appropriate
     amount of compensation has been awarded. Hence, award to that
     extent does not call for interference.
10. The appellants-claimants, for the period between 22.06.2016 to
    13.07.2023, have been denied interest on the ground that there
    was delay on the part of the counsel for the appellants-claimants
    in not supplying the copy of the paper book to the counsel for the
    insurance company. Once the matter was before the Court, the
    appellants-claimants should not be deprived of the interest for the
    period between 22.06.2016 to 13.07.2023. It cannot be said to
    be the fault on the part of the appellants-claimants, comparable
    to a fault in filing the appeal beyond the period of limitation. In
    the case in hand, the appeal was barred by 708 days. The High
    Court while condoning the same, specifically directed that the
    appellants-claimants will not be entitled to any interest for the
    aforesaid period, in case the amount of compensation is enhanced.
[2024] 12 S.C.R.                                                      1147

              T.C. John @ Yohannan (Deceased) Through Lrs. v.
                           V.J. Antony and Others

     The order is quite reasonable. The aforesaid delay in filing the appeal
     was attributable to the appellants-claimants, hence, they will not be
     entitled to the interest for the period of 708 days.
11. At the same time, after having filed the appeal and during the
    pendency, the appellants-claimants should not be made to suffer
    directing for non-payment of interest, because for such default
    claimants alone could not be held responsible. Consequently, denial
    of interest to the appellants for the period between 22.06.2016 to
    13.07.2023 as directed is not justified.
12. For the reasons mentioned above, the present appeal is partly allowed.
    The impugned order passed by the High Court is modified to the
    extent that the appellants-claimants shall be entitled to compensation
    as directed and interest at the same rate for the period between
    22.06.2016 to 13.07.2023.
13. Accordingly, the appeal is partly allowed with no order as to costs.

     Result of the case: Appeal partly allowed.



     †
         Headnotes prepared by: Ankit Gyan


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T.C. JOHN @ YOHANNAN (DECEASED) THROUGH LRS. versus V.J. ANTONY AND OTHERS — [2024] 12 S.C.R. 1143 - Legal Desk AI