Case Law Analysis
|Madhya Pradesh High Court
Section 173 MV Act | Interest on Motor Accident Compensation Must Be Fair, Not Penal: MP HC Gwalior Reduces Rate to 6% Absent Willful Delay
The Madhya Pradesh High Court at Gwalior ruled that interest on motor accident compensation should reflect fairness, not punishment, reducing the rate from 9% to 6% per annum. The court clarified that penal interest rates require exceptional circumstances or willful delay by insurers, setting a precedent for equitable compensation claims under the Motor Vehicles Act.