Impleadment of insurer at belated stage relates back to filing date, making it liable for interest from that date.

On May 24, 1995, the deceased, Devendrabhai Batra, was a passenger in a Maruti Car (GJ-16-A-9951) traveling from Mumbai to Surat. A tanker (GJ-1-V-4769) struck the car from behind after the car driver had stopped on the highway.

The deceased succumbed to injuries, leading to a claim petition (MACP No. 873/1995). The Tribunal originally awarded ₹5,63,158 with 9% interest, attributing negligence 50:50 between the car and tanker drivers.

The insurance company appealed, challenging the negligence ratio and the award of interest from the date of filing, given they were impleaded as a party only in 2015.

1. Whether the Tribunal erred in attributing 50% contributory negligence to the driver of the Maruti car when the tanker hit it from behind.

2. Whether the insurance company is liable to pay interest from the original date of filing the claim petition or from the date of their impleadment.

The impleadment of a party relates back to the date of the original filing of the claim petition for the purpose of interest.

Oriental Insurance Company Ltd. v. Aminaben Rahimbhai Kadiwala & Ors. (2001 (2) GLR 1108)

Khenyei v. New India Assurance Company Limited (2015 (9) SCC 273), which allows a claimant to recover the full award from any one of the joint tortfeasors in cases of composite negligence, leaving the insurer with a right to recover from other tortfeasors.

The Court analyzed the manner of the accident and found that while the car driver contributed to the hazard by stopping on a highway, the tanker driver, who hit the stationary/slow vehicle from behind, bore a greater degree of responsibility.

Consequently, the Court modified the negligence ratio from 50:50 to 70% for the tanker and 30% for the car.

Regarding the interest, the Court rejected the appellant's argument that interest should only run from the date of impleadment (2015). Citing Aminaben Rahimbhai Kadiwala, the Court reasoned that impleadment inherently relates back to the suit's institution; thus, the insurer remains liable for interest at 9% from the 1995 filing date.

The Court upheld the award of 9% interest from the date of the claim petition's filing.

Under the principle of composite negligence, the Appellant (insurer of the car) is directed to deposit the entire awarded amount with interest first, with the liberty to recover 70% of said amount from the owner and driver of the tanker through execution proceedings.