#interest on compensation

An insurer’s denial of a valid medical claim was deemed a deficiency of service under the Consumer Protection Act, 2019, prompting the Tripura State Consumer Disputes Redressal Commission to order compensation for mental agony with statutory interest. Policyholders can now claim mental-agony damages when insurers unjustifiably reject claims.

Even though the Punjab & Haryana High Court condoned a 1,388-day delay in filing the Section 54 appeal, it ruled that such condonation does not trigger interest on the awarded compensation. The decision clarifies that delay relief and interest entitlement are separate legal concepts, denying landowners any additional monetary award for the period of delay.

The Punjab & Haryana High Court held that interest payable on land-acquisition compensation must be calculated on a simple-interest basis, not compounded, and that a petition filed after five years cannot raise a new objection. It also ordered correction of the arithmetic error under Section 152 CPC. The ruling affects all landowners receiving compensation under the 1894 Act.

The Bombay High Court (Aurangabad Bench) ruled that interest on land acquisition compensation accrues from the date of the award under Section 11, not the notification date under Section 4(1). This aligns with the Full Bench decision in State of Maharashtra v. Kailash Shiva Rangari, impacting pending and future land acquisition disputes in Maharashtra.

The Bombay High Court affirmed that compensation for permanent disability in motor accident claims must cover the full lifetime cost of artificial limb replacements, including interest, ensuring victims receive true restitution for lifelong medical needs. This sets a critical precedent for insurers and tribunals in calculating long-term disability awards under the Motor Vehicles Act.

The Sikkim High Court has ruled that statutory interest under Section 171 of the Motor Vehicles Act is not an ancillary award but an integral component of just compensation, requiring inclusion even when compensation is recalculated on appeal. This clarifies a critical oversight in appellate awards and ensures claimants receive full statutory entitlements, impacting insurers, claimants, and tribunals nationwide.

ITAT Delhi rules that interest paid under Section 28 of the Land Acquisition Act, 1894, forms part of enhanced compensation and is exempt under Section 10(37) of the Income Tax Act. The decision overturns the CIT(A)'s order, clarifying that such interest cannot be taxed as income from other sources, impacting landowners receiving enhanced compensation.

The Bombay High Court has ruled that under Section 171 of the Motor Vehicles Act, interest on compensation must accrue from the date the claim application is filed, regardless of delays in paying court fees or resolving procedural objections. This protects claimants from penalization for administrative or financial delays and reinforces the Act’s social welfare intent by ensuring timely compensation is not undermined by technicalities.

Landowners under the KIAD Act are entitled to statutory interest at 9% from the moment physical possession is taken, regardless of whether compensation was agreed upon voluntarily. This ruling closes a loophole used by authorities to deny interest in consensual settlements, reinforcing that statutory entitlements cannot be waived by private agreement.

The Bombay High Court has held that a pillion rider is a third party under comprehensive motor insurance, making the insurer jointly liable for compensation in accident claims. This ruling overrides insurer arguments excluding pillion riders and aligns with the protective intent of the Motor Vehicles Act, affecting millions of two-wheeler users across India.

Bombay HC condones a 105-day delay in filing a motor accident appeal but denies interest for 16 years of litigation inaction, ruling that prolonged procedural negligence disentitles claimants to interest despite bona fide delay. This sets a precedent that condonation of delay does not automatically preserve interest claims under the Motor Vehicles Act.

Bombay High Court holds that interest under Section 4A(3) of the Employees' Compensation Act begins from the date of accident, not after one month. Key precedent for compensation claims.