#Section 171 MV 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.

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.

Punjab and Haryana High Court holds that interest on motor accident compensation is discretionary under Section 171 MV Act, not automatic, and must be just and reasonable.