V. KALA BHARATHI vs THE ORIENTAL INS.CO.LTD.,BR.CHITOOR

The Supreme Court addressed the issue of whether amounts deposited by a judgment debtor should be adjusted first towards interest or the principal decretal amount under the Motor Vehicles Act, 1988. The Court held that the amounts should be adjusted first towards interest, establishing that the principle of accrual method applies in such cases. The judgment clarified the obligations of the Insurance Company regarding interest payments after the award amount was deposited, affirming the Executing Court's order that fixed the liability of the Insurance Company.