Orissa High Court
Manager Legal vs Ranjita Sahoo And Others on 18 July, 2025
Author: Biraja Prasanna Satapathy
Bench: Biraja Prasanna Satapathy
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.603 of 2023
Manager Legal, M/s. TATA
AIG G.I.Co. Ltd.
.... Appellant
Mr. G.P. Dutta, Advocate
-versus-
Ranjita Sahoo and Others
.... Respondents
Mr. P.K. Mishra, Advocate for R-4
Mr. B.K. Mohanty, Advocate for R-1 to 3
CORAM:
JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
18.07.2025
I.A. No.712 of 2025
Order No.
05. 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.
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, Mr. B.K. Mohanty, learned
counsel appearing for the Respondent Nos.1 to 3-
Claimants and Mr. P.K. Mishra, learned counsel for O.P.
No.4.
2. This appeal has been filed by the Appellant-
Company challenging Judgment dtd.06.02.2023 so
passed by the learned 3rd Addl. District Judge-cum-4th
MACT, Cuttack in MAC Case No.1079 of 2016. Vide the
said Judgment the Tribunal assessed the compensation
at Rs.11,83,907.20/- along with interest @ 6% per
annum payable from the date of filing of the claim
application till its realization.
2.1. Learned counsel for the Appellant-Company
contended that while assessing the compensation at
Rs.11,83,907.20/-, the Tribunal never take into
consideration as to whether the offending vehicle caused
the accident on 30.04.2016 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.11,83,907.20/-.
// 3 //
2.2. In support of the appeal, learned counsel for the
appellant-company further contended that the Tribunal
failed to appreciate the fact that the offending vehicle
was issued with a Package Policy covering own damage
and third party liability to the paid driver under IMT-17.
The policy also does not cover the use of the vehicle to
carry passenger, except its employees. Since the
deceased was an occupant in the offending vehicle, the
appellant is not liable to pay any compensation. It is also
contended that the tribunal committed a wrong in taking
the income for thirty days and failed to take note of
various factors such as sickness of the deceased,
festivals, personal difficulties and medical exigencies etc.
The tribunal also awarded default interest @ 12%,
without any basis and the same is 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.
3. Even though Mr. B.K. Mohanty, learned counsel
appearing for the Claimant-Respondents Nos.1 to 3
supported the impugned award and contended that with
regard to the stand taken in the appeal that the
appellant is not liable on the ground that the deceased
// 4 //
was an occupant in a private vehicle and accordingly not
entitled to get the compensation, is no more res-integra
in view of the decision rendered by this Court in MACA
No.975 of 2023. But in course of hearing contended that
the Claimant-Respondents Nos.1 to 3 will have no
grievance, if the compensation amount will be reduced
to Rs.11,30,000/-, with interest @ 6% per annum so
awarded by the tribunal. But with regard to award of
default interest @ 12% per annum, learned counsel
appearing for Claimant-Respondents Nos.1 to 3
contended that this Court may pass appropriate order in
that regard. Learned counsel for Respondent Nos.1 to 3
also contended that the cross appeal filed by the
claimants be treated as not pressed.
4. Mr. G.P. Dutta, learned counsel appearing for the
Appellant-Company left the aforesaid proposition made
by the learned counsel for the Claimant-Respondents
Nos.1 to 3 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.06.02.2023
is inclined to reduce the same and held the Claimant-
Respondents Nos.1 to 3 entitled to get compensation
amount of Rs.11,30,000/- with interest @ 6% per
annum payable from the date of filing of the application
till its realization. However, this Court is inclined to
// 5 //
quash the award of default interest @ 12% 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 06.02.2023 in favour of the
Claimant-Respondents Nos.1 to 3.
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.11,30,000/- shall carry interest @ 7% per
annum for the period starting from 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. Learned counsel for
the Claimants-Respondent Nos.1 to 3 filed a memo praying
for withdrawal of the cross appeal.
6. The appeal is accordingly disposed of and the Cross
Appeal stands dismissed as withdrawn.
Signed by: BASUDEV SWAIN Judge
Location: High Court of Orissa, Cuttack
Date: 21-Jul-2025 11:43:46 Basudev
