Award of interest where any claim is allowed
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Summary
When the Claims Tribunal grants a compensation claim under this Act, it may also order simple interest to be paid in addition to the compensation. The Tribunal will fix the interest rate and the date from which interest runs, but that start date cannot be earlier than the date the claim was made. Interest is added to the money award as directed by the Tribunal.
Example
Priya files a claim for repair costs after a road accident. The Claims Tribunal awards her Rs 50,000 and directs simple interest at 6% per year from the date she filed the claim until payment. Priya therefore receives the compensation plus interest accrued from her claim date.
Bare Act
Enacted textWhere any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal may direct that in addition to the amount of compensation simple interest shall also be paid at such rate and from such date not earlier than the date of making the claim as it may specify in this behalf.
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