Orissa High Court
Reliance General vs Lalit Kumar Sahoo And on 13 February, 2025
Author: Biraja Prasanna Satapathy
Bench: Biraja Prasanna Satapathy
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.320 of 2024
Reliance General
Insurance Company Ltd. .... Appellant
Mr. G.P. Dutta, Advocate
-versus-
Lalit Kumar Sahoo and
Another .... Respondents
Mr. S.C. Swain, Advocate for R-1
CORAM:
JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
13.02.2025
I.A. No.867 of 2024
Order No.
04. 1. This matter is taken up through Hybrid Arrangement
(Virtual/Physical) Mode.
2. Heard learned counsel for the parties.
3. Considering the grounds taken, the delay in filing the
appeal is condoned subject to payment of cost of Rs.5000/- to
be deposited before the Orissa High Court Bar Association
Welfare Fund by 19.02.2025.
4. I.A. is disposed of.
(Biraja Prasanna Satapathy)
Judge
P.T.O.
// 2 //
1. Heard Mr. G.P. Dutta, learned counsel appearing
for the Appellant-Company and Mr. S.C. Swain, learned
counsel appearing for the Respondent No.1-Claimants.
2. This appeal has been filed by the Appellant-
Company challenging Judgment dtd.26.03.2022 so
passed by the learned Addl. District Judge-cum-3rd
MACT, Dhenkanal in MAC Case No.250 of 2014. Vide
the said Judgment the Tribunal assessed the
compensation at Rs.27,39,000/- along with interest @
7% per annum payable from the date of filing of the
claim application till its realization. Learned Tribunal
also allowed default interest @ 9% per annum.
2.1. Learned counsel for the Appellant-Company
contended that while assessing the compensation at
Rs.27,39,000/-, the Tribunal never take into
consideration as to whether the offending Alto Car
bearing Registration No. AP/09/CP-5406 caused the
accident on 13.06.2014 and whether due to the rash
and negligent driving of the accused driver, accident
occurred, causing death of the deceased. It is contended
that even though such a plea was taken before the
Tribunal by the Appellant-Company, but the same was
never taken into consideration while assessing the
compensation at Rs.27,39,000/-.
// 3 //
2.2. In support of the appeal, learned counsel for the
appellant-company contended that the Tribunal without
proper appreciation has awarded compensation at the
higher side on different heads as well as interest @ 7%
per annum, which is also on the higher side.
2.3. Making all these submissions learned counsel
appearing for the Appellant-company contended that
had the Tribunal properly appreciated the stand of the
Appellant, the compensation amount so awarded would
have been on the lower side. It is accordingly contended
that the impugned award is not sustainable in the eye of
law and requires interference of this Court. It is also
contended that default interest @ 9% per annum is also
not sustainable as it has been imposed without any
basis.
3. Even though Mr. S.C. Swain, learned counsel
appearing for the Claimant-Respondent No.1 supported
the impugned award, but in course of hearing contended
that the Claimant-Respondent No.1 will have no
grievance, if the compensation amount will be reduced
to Rs.27,00,000/-, with interest @ 6% per annum so
awarded by the tribunal. But with regard to award of
default interest @ 9% per annum, learned counsel
appearing for Claimant-Respondent No.1 contended that
this Court may pass appropriate order in that regard.
// 4 //
4. Mr. G.P. Dutta, learned counsel appearing for the
Appellant-Company left the aforesaid proposition made
by the learned counsel for the Claimant-Respondent
No.1 to the discretion of this Court.
5. Having heard learned counsel appearing for the
Parties, considering the submissions made and after
going through the materials placed, this Court while
interfering with the impugned Judgment dtd.26.03.2022
is inclined to reduce the same and held the Claimant-
Respondent No.1 entitled to get compensation amount of
Rs.27,00,000/- with interest @ 6% per annum payable
from the date of filing of the application till its
realization. However, this Court is inclined to quash the
award of default interest @ 9% per annum, so allowed by
the Tribunal. While holding so, this Court directs the
Appellant-Company to deposit the aforesaid
compensation amount along with interest within a
period of eight (8) weeks from the date of receipt of this
order. On such deposit of the amount, learned tribunal
shall do well to disburse the amount proportionately in
terms of the judgment dated 26.03.2022 in favour of the
Claimants/Respondent No.1.
5.1. However, it is observed that if the amount as
directed will not be deposited by the Appellant-Company
within the aforesaid time period of eight (8) weeks, the
compensation amount of Rs.27,00,000/- shall carry
interest @ 7% per annum for the period starting from
// 5 //
the expiry of the period of eight (8) weeks till it is
deposited before the Tribunal.
5.2. It is observed that only after deposit of the amount
as directed, appellant will be permitted to take refund of
the statutory deposit along with accrued interest if any
from the Registry on proper identification.
6. The appeal is accordingly disposed of.
(Biraja Prasanna Satapathy)
Judge
Basudev
Location: High Court of Orissa, Cuttack
