Orissa High Court
The Divisional Manager (Legal) vs Sonali Sahoo And Others on 16 March, 2022
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.257 of 2020
The Divisional Manager (Legal), .... Appellant
M/s.Oriental Insurance Company
Limited
Mr. A.A. Khan, Advocate
-versus-
Sonali Sahoo and others .... Respondents
Mr. P.K. Mishra, Advocate for Respondent Nos.1& 2
CORAM:
JUSTICE B. P. ROUTRAY
ORDER
16.03.2022
Order No.
05. 1. Heard Mr. A.A. Khan, learned counsel for the Appellant-
Insurance Company as well as Mr. P.K. Mishra, learned counsel
for the Respondent Nos.1 & 2-claimants.
2. Present appeal by the insurer is directed against the judgment
dated 19.7.2019 of learned 1st MACT, Jagatsinghpur in MAC
Case No.88 of 2016 wherein the Tribunal has granted
compensation to the tune of Rs.47,40,112/- along with 7%
interest per annum to the claimants from the date of filing of the
claim application, i.e.12.7.2016 on account of death of the
deceased in the motor vehicular accident dated 26.4.2016.
3. Mr. A.A. Khan, learned counsel for the Appellant submits that
acceptance of income of the deceased at Rs.28,212.50 paise per
month by the Tribunal is not supported with sufficient evidence
since any IT Return copy beyond assessment year 2013-14 has
not been produced. Further, as per the oral evidence of the
claimants, the deceased was earning Rs.20,000/- per month.
Therefore, the amount of compensation needs to be reduced to
substantial extent.
4. Mr. P.K. Mishra, learned counsel for Respondent Nos.1 & 2
submits in reply that admittedly the deceased was the owner of a
jewelry shop and he used to file IT returns since 2006-07 onwards
till 2013-14. It is true that for some reasons, no IT return from
2013-14 onwards could be filed. Therefore, the assessment of the
monthly income at Rs.28,212.50 paise as derived by the Tribunal
based on the ITR of 2013-14 cannot be said as complete illegal.
5. It needs to be mentioned here that, the general presumption for
non-filing of IT returns, particularly in respect of such a person
who used to file his return regularly, is that he does not have that
much of taxable income for the period he did not file the return.
6. However, considering the grounds advanced by both the
parties, a reduced compensation to the tune of Rs.41,00,000/-
along with 6% interest is proposed to the parties in course of
hearing. Mr. P.K. Mishra, learned counsel for the claimants-
Respondent Nos.1 & 2 agrees to the same and Mr. A.A. Khan,
learned counsel for the Appellant-Insurance Company leaves it to
the discretion of the Court. The compensation amount is
accordingly fixed to that extent.
7. The Appellant - Insurance Company is directed to deposit the
reduced compensation of Rs.41,00,000/- (rupees forty-one lakhs)
along with interest @6% per annum from the date of filing of the
claim application, i.e.12.7.2016 before the Tribunal within a
period of two months from today; where-after the same shall be
disbursed in favour of the claimants on such terms and proportion
to be decided by the Tribunal. It goes without saying that the
penal interest of 9% is waived.
8. On deposit of the award amount before the learned Tribunal
and filing of a receipt evidencing the deposit with a refund
application before this Court, the statutory deposit made before
this Court with accrued interest thereon shall be refunded to the
Appellant-Insurance Company.
9. The MACA is disposed of with aforesaid directions.
10. An urgent certified copy of this order be granted on proper
application.
( B.P. Routray)
Judge
B.K. Barik
