Orissa HC Dismisses Insurer’s 52-Day-Late Appeal, Yet Cuts Accident Compensation Interest From 9% To 6% With Claimant’s Heirs’ Consent

The Motor Accident Claims Tribunal, Keonjhar, awarded the claimant ₹1,20,000 with simple interest at 9% per annum from the date of filing of the claim petition until realization.

The insurer appealed under Section 173 of the Motor Vehicles Act, 1988, challenging the interest rate, but the appeal was filed 52 days late.

The insurer sought condonation of delay, attributing it to the time taken to obtain legal opinion, secure internal approval, and engage counsel.

The claimant’s legal representatives stated that they had no objection to reducing the interest rate to 6% per annum.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against an award of a Claims Tribunal.

In considering the insurer’s application for condonation, the Court assessed whether the stated reasons adequately explained the delay; it found that the averments lacked precise details and were unconvincing.

The Court also considered the claimant’s legal representatives’ express lack of objection to reducing the interest rate.

The Court found the insurer’s explanation—internal processing, legal consultation, and engagement of counsel—insufficiently particularised to justify condonation.

It also considered the substantial time elapsed since the accident and the Tribunal’s award in declining to reopen the matter through a delayed appeal.

However, because the claimant’s legal representatives consented to a lower rate, the Court reduced the interest from 9% to 6% per annum, payable from the date of filing of the claim until realization.

It nevertheless reduced the interest on the compensation from 9% to 6% per annum and directed the insurer to pay the compensation with interest at that rate within eight weeks.

The statutory deposit and accrued interest were directed to be refunded upon proof that the compensation had been deposited before the Tribunal.