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Issues involved:
The judgment revolves around determining the quantum of interest to be awarded on compensation to the legal representatives of a deceased involved in a fatal accident. Factual Matrix: The deceased, Pradeep Kumar, along with his family members, died in a road accident caused by a bus allegedly driving rashly and negligently. The Motor Accident Claim Tribunal awarded compensation to the appellants, which was challenged in the High Court. The High Court modified the compensation amount and upheld the interest rate at 6% per annum. Rate of Interest Determination: The appellants appealed to the Supreme Court specifically on the issue of interest rate. The court considered the provisions of section 171 of the Motor Vehicle Act, 1988, which allows for the payment of interest in addition to compensation. Referring to previous judgments, the court emphasized that the determination of interest rate is discretionary and should be based on the facts of each case. Precedents and Interest Rates: The court cited various cases where interest rates were determined based on prevailing economic conditions and bank rates. Notably, in a case from 2005, the interest rate was reduced to 7.5% per annum in line with the prevailing bank deposit rates. Applying this principle to the present case, the court awarded interest at a rate of 7.5% from the date of application till the date of payment. Disposition of the Appeal: The Supreme Court disposed of the appeal by directing the payment of interest at the revised rate of 7.5%. The issue of enhancing the compensation amount was not pursued by the appellants, leading to its dismissal. No costs were awarded in the circumstances of the case.
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