JAGBIR SINGH & ORS.versusGENERAL MANAGER, PUNJAB ROADWAYS & ORS.

                                                                                          A

        .,.                         JAGBIR SINGH & ORS.
                                                  v.
                 GENERAL MANAGER, PUNJAB ROADWAYS & ORS.
                                          ,                                               B
                                       OCTOBER 24, 1986

                            IR.S. PATHAK AND V. KHALID, JJ.J
        )._
                   Motor Vehicles Act, 1939: ss. 110, IJOA, JJOB and JJOCC-
              Motor accident claim-Quantum of compensation-Determination by
              Tribunal-Validity of-Rate of interest-Entitlement of the claimant.          c
~
                    A State Roadways bus met with an accident resulting in the death
              of three persons. On an application being filed on behalf of one of the
              persons, the Motor Accident Claims Tribunal awarded a compensation
    ...       of Rs.93,600 to the widow and the minor children of the deceased, with      D
              interest at 6 per cent per annum.

                    The claimants as well as the State appealed to .the High Court,
              which dismissed the claimants' appeal, and partly allowed the appeal
              by the State."While. holding that the accident was C?nsed by the rash and
              negligent act of the driver of the bus, the High Court reduced the          E
    )'        compensation to Rs. 79,200 but confirmed the award of interest made by
              the Tribunal.

                    In the special leave petition it was contended for the petitioners-
<             claimants that'they were entitled to an even greater arn~unt of compen-
              sation on account of the different sources of income arising to the         F
              deceased.
    i\
                    Disposing of the special leave pebtion, the Court,
    -\
                    HELD: The High Court erred in reducing the quantum of corn-
              pensation awarded by the Tribunal. There was sufficient material on         G
              the record to justify the quantification determined by the Tribunal and
              there was no reason why the amount should have been reduced. The
              amount of compensation assessed by the Tribunal should, therefore, be
              maintained. I1097B-D]
    ~
                    The" petitioners are entitled to interest at 12 per cent per annum    H

                                               1095
    1096                   SUPREME COURT REPORTS              [1986] 3 S.C.R.

A   from the date of the application for compensation to the date of             ~
    payment. [1097FJ

          Narchinva V Kamat & Anr. Etc. v. Alfredo Antonio Doe Martins
     & Ors., AIR 1985 SC 1281 and Smt. Chameli Wati & Anr. v. Municipal
B    Corporation of Delhi & Ors., AIR 1986 SC 1191, referred to.

           CIVIL APPELLATE JURISDICTION: Special Leave Petition
     (Civil) No. 2023 of 1983.

         From the Judgment and Order dated 26.8.82 of the High Court
    of Punjab & Haryana in L.P.A. No. 1172/82.
c
           Hardev Singh and R.S. Sodhi for the Petitioners.

           The Order of the Court was delivered by

D          PATHAK, J. This case has been pending in this Court for some
     years. On November 21, 1983 we directed issue of notice on the special
     leave petition. Almost three years later, on August 11, 1986 when the
     case was taken up it was found that the respondents had not entered
     appearance yet and CO!)sequently notice was directed to issue afresh,
     indicating this time that the case would be decided on the merits of the
E    controversy itself between the parties. On the la tier date when no one
     appeared for the respondents, the case was adjourned for two weeks
     again to enable the respondents to enter appearance. Thereafter on
     September 22, 1986 an order was made for the last time directing issue
     of notice to the respondents returnable on October 20, 1986 and in-
     timating ihat the special leave petition would definitely be taken up on
F    that date for final disposal on the merits of the case. It was made clear
     that the case would not be adjourned on any account. We find that the
    ·respondents continue to be absent. No reason has been shown for their
     absence, and in the circumstances we proceed to dispose of the case.

           A bus belonging to th-e Punjab Roadways met with an accident
G
     on February 13, 1971, which resulted in the death of three persons.
     One of those persons was Balbir Singh. An application was filed by the
     petitioners, who are the widow and minor children ofBalbir Singh, for
     compensation before the Motor Accident Claims Tribunal. By an or-
     der dated October 23, 1975 the Tribunal held the claimants entitled to
     compensation in the sum of Rs.93,600 with interest at 6 per cent per
H    annum. Dissatisfied with the order, the claimants as well as the State
         JAGBIR SINGH v. PUNJAB ROADWAYS [PATHAK, J.]              1097

Government appealed to the High Court of Punjab and Haryana. The           A
High .Court dismissed the appeal filed by the claimants and partly
allowed the appeal by the State. The High Court, while holding that
the accident was caused by the rash and negligent act of the driver of
the bus, reduced the compensation to Rs.79,200 but confirmed the
award of interest made by the Tribunal.
                                                                           B
      After carefully considering the matter we think that the High
Court erred in reducing the quantum of compensation awarded by the
Tribunal. There was sufficient material, in our opinion, to justify the
quantification determined by the Tribunal and we see no reason why
the amount should have been reduced. It was strenuously contended
by learned counsel for the petitioners that the petitioners are entitled   c
to an even greater amount of compensation, in view of the different
sources of income arising to the deceased Balbir Singh. We think,
however, that having regard to the material on the record the amount
of compensation assessed by the Tribunal should be maintained.
Accordingly we restore the order of the Tribunal awarding compen-
sation in the sum of Rs.93,600.

      In regard to the interest, however, we think the petitioners are
entitled to a higher rate of interest than that awarded by the Tribunal
and confirmed by the High Court. We find that in Narchinva V~ Kamat
and Anr. Etc. v. Alfredo Antonio Doe Martins & Ors., A.LR. 1985 SC
1281, this Court awarded interest at 12 per cent from the date of the      E
accident up to the date of payment. Subsequently in Smt. Chameli
Wati & Anr. v. Delhi Municipal Corporation of Delhi and Others,
A.LR. 1986 SC 1191, a larger Bench of this Court awarded compen-
sation at 12 per cent per annum from the date of the application for
compensation. We are of opinion that the petitioners should be
entitled to interest at 12 per cent per annum from the date' of the        F
application for compensation to the date of payment. We order
accordingly.

      The special leave petition is disposed of in the~e terms.
                                                                           G
P.S.S.