Madras High Court
Civil Procedure and EvidenceInsurance Law

Tribunal must disburse interest actually accrued on deposited compensation, but need not award further interest or compensation.

Gracy vs The Additional Registrar Gen

Madras High CourtJUDGMENT: September 29, 20262 MIN READSOURCE JUDGMENT
Tribunal must disburse interest actually accrued on deposited compensation, but need not award further interest or compensation.. Gracy vs The Additional Registrar Gen. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners, a widow and her minor son, sought compensation for the loss of the widow’s husband and minor daughter in a road accident.

Source reference: paras. 3–4, p. 5

The Motor Accident Claims Tribunal awarded ₹41,00,000 in M.C.O.P. No. 111 of 2014; on appeal, the High Court enhanced the award to ₹1,65,00,000, which the insurer deposited.

Source reference: paras. 3–4, p. 5

Before the appeal was decided, the insurer had deposited ₹25,000 on 21 August 2017 and ₹50,04,159 on 9 January 2018. Those sums were kept in the District Court’s savings account rather than placed in term deposits.

Source reference: paras. 5–6, pp. 6–7

The petitioners sought the interest they said they had lost, along with compensation for mental agony.

Source reference: paras. 5–6, pp. 6–7

A report from the Principal District Judge stated that ₹7,07,779 in interest accrued on the larger deposit and ₹3,826 on the ₹25,000 deposit, totalling ₹7,11,605.

Source reference: paras. 7–8, pp. 7–8
02

Issues

Whether the petitioners were entitled to receive the interest actually accrued on the deposited sums while they remained in the District Court savings account.

Source reference: paras. 6–8, pp. 7–8

Whether they were entitled to any further interest or compensation beyond the amount actually accrued.

Source reference: paras. 9–11, pp. 8–9
03

Law Applied

The order cites no statute, precedent, or specific legal doctrine.

Source reference: paras. 11–12, p. 9

The Court’s operative approach was to direct disbursement of the interest shown by the Principal District Judge’s report and to decline any additional interest or compensation in the proceedings.

Source reference: paras. 11–12, p. 9
04

Reasoning

The Court relied on the Principal District Judge’s report, which confirmed that both deposits had been held in the District Court savings account and quantified the interest accrued on them at ₹7,11,605.

Source reference: paras. 7–8, pp. 7–8

It held that this accrued interest could be disbursed to the petitioners, but found no basis in the proceedings to award any further amount towards interest or compensation.

Source reference: para. 11, p. 9
05

Holding

The Court directed the Principal District Judge, Pudukkottai, to disburse ₹7,11,605 to the petitioners within four weeks of receiving a copy of the order.

It granted no further interest or compensation and disposed of the writ petition without costs.

Source reference: paras. 11–13, p. 9
Madras High Court

Original Court PDF

GracyvsThe Additional Registrar Gen

Madras High Court · September 29, 2026

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