SUPREME COURT OF INDIA

Before:- S.B. Majmudar and D.P. Mohapatra, JJ.

Civil Appeal No. 5668 of 1999 and Arising out of SLP (C) No. 3260 of 1999. D/d. 1.10.1999

Devi Dayal Kansal And Others - Appellants

Versus

Raj Roop And Another - Respondents

Motor Accident - Interest on enhanced compensation - Grant of - Compensation payable to dependants of deceased enhanced by High Court - However neither the payment of interest on enhanced compensation was directed nor any cogent reason as to why interest not allowed was noted - Held, interest should be granted on the same - Appeal allowed.

[Para 3]

ORDER

S.B. Majmudar, J. - Leave granted.

2. We have heard learned counsel for the parties finally in this appeal.

3. The short question is whether the appellant claimants who are dependants of the deceased who died on account of motor accident, should be awarded interest on the enhanced amount granted by the High Court. Learned counsel for Respondent 2 who is the only contesting respondent submitted that it was a discretionary order. We cannot agree to that submission. Respondent 1 who is the driver has not thought it fit to contest the proceedings and has remained served. In our view, once the High Court has thought it fit to enhance in appeal compensation payable to the dependants of the deceased, in fairness, interest should have been granted on the enhanced compensation unless there was any cogent reason for denying them the benefit which does not exist in the facts of the present case and the High Court has also not noted the same. Only on this short ground, the appeal is allowed to the limited extent that enhanced compensation granted by the High Court will bear interest at the rate of 12 per cent per annum from the date of the claim petition till realisation. Respondent 2 shall comply with this order at the earliest.

4. No costs.

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