Change in Interest rate in MCOP Case by High Court
5 years ago
Sir,
My brother died in Feb' 2002 in Road Motor accident, related MCOP case judgement came on 2008 with compensation of Rs.3,39,000/- with 9% compound interest; But Insurance company appealed in High court against order in the same year, But, in 2018 High court Verdict once again confirmed the lower Court order of compensation Rs.339000/- , BUT REVISION IN INTEREST RATE OF 7.5% COMPOUND INTEREST FROM PREVIOUS 9%.
Sir, now my query is whether this revised Interest rate for onlycurrent year (present bank Repo rate period) or Throughout 16 years from the Date of case filling;
My lawyer says for throughout 16 years,
but another lawyer says " Bank interest rate will every year or half yearly or quarterly depending on RBI direction; But your amount was deposited in 2008 itself with 9% compound interest rate which was the prevailing bank rate in those period in Bank after Lower court Verdict; this amount accrued or multipled over the years with prevailing interest rates of each years; Your deposited amount is already multiplied, now you can't change the final figure; Only current year interest rate will be changed to 7.5% as per High court new order"...like that.
Sir, I am very much confused now, which is correct? I spent a lot over the years with my time, work, patience & money, etc.,
If throughout the year is correct, is there any provision or option to appeal for regain previously ordered 9% interest rate?
Is there any time limit for appealing?
Should I appeal in High Court only or else can I appeal in Lower court itself where our previous order came?
Please advice..
Thanks for your Noble support & Service.
Regards,
Whenever there is confusion then file an application before the same Judge and to clarify the issue that is rate of interest. Always the insurance people take the benefit. Get it clarified otherwise say of your advocate is correct.
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Mani M
Replied 5 years ago
7.5% interest rate - simple interest or Compounding interest in MCOP Case?
Follow up question:
Sir,
Thank you for your immediate response and guidance in this regard.
If 7.5% interest for the whole period (17 years), whether this interest is Compound Interest or Simple interest? i.e., Final amount based on Compound Interest or Simple interest?
There are 2 situations.. upto the date of amount deposited by insurance side ( from 2002 to 2007)- simple interest or Compound interest?
Another one after bank deposit (from 2007 to 2019)- simple interest or bank's quarterly compounding interest?
Accident on 06-04-2002
Date of case filing: 18.09.2002
Date of award in Lower court: 14.06.2005
Award amount: RS.339000
Originally Interest rate awarded: 9%
Lawyer Cost: RS.12,379
Date of Deposit: 14.03.2007
Total Deposited amount to the court/ bank by insurance company: 4,69,000 (including Appeal Deposit amount of 25,000)
High court order Date against insurance company's appeal: 15.12.2017
Modified interest rate: 7.5% per annum
Can you please help me in this matter?
How much is the final amount to be considered in cheque petition?
Thanks for your support & noble services
First, you can not go the Lower Court against the order of the High Court.
You calculate yourself.if you are happy with that amount it is fine.
If you are not happy then adopt the second method.
In any case they will pay.
Sort it out with Insurance people.
Shanti Ranjan Behera
Advocate
Mani M
Replied 5 years ago
7.5% interest rate - simple interest or Compounding interest in MCOP Case?
Follow up question:
Sir,
Thank you for your immediate response and guidance in this regard.
If 7.5% interest for the whole period (17 years), whether this interest is Compound Interest or Simple interest? i.e., Final amount based on Compound Interest or Simple interest?
There are 2 situations.. upto the date of amount deposited by insurance side ( from 2002 to 2007)- simple interest or Compound interest?
Another one after bank deposit (from 2007 to 2019)- simple interest or bank's quarterly compounding interest?
Accident on 06-04-2002
Date of case filing: 18.09.2002
Date of award in Lower court: 14.06.2005
Award amount: RS.339000
Originally Interest rate awarded: 9%
Lawyer Cost: RS.12,379
Date of Deposit: 14.03.2007
Total Deposited amount to the court/ bank by insurance company: 4,69,000 (including Appeal Deposit amount of 25,000)
High court order Date against insurance company's appeal: 15.12.2017
Modified interest rate: 7.5% per annum
Can you please help me in this matter?
How much is the final amount to be considered in cheque petition?
Thanks for your support & noble services
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