Motor Vehicles Act Section 105 — Principles and method of determining compensation and payment thereof

CHAPTER VI SPECIAL PROVISIONS RELATING TO STATE TRANSPORT UNDERTAKINGS

Civil

Summary

Sub-section (1) states that when a State transport undertaking is required to pay compensation, it must make that payment within one month from the date the compensation amount is determined or fixed. The provision includes a condition that if the undertaking fails to pay within that one-month period, it must pay interest on the amount at a rate of seven percent per year, calculated from the date the payment was due.

Official Text

(1) Where, in exercise of Provided that where the State transport undertaking fails to make the payment within the said period of one month, it shall pay interest at the rate of seven per cent. per annum from the date on which it falls due.