Orissa High Court
M/S. Magma Fin Corp vs Khirabdhi Tanaya Rath & on 22 July, 2025
Author: Biraja Prasanna Satapathy
Bench: Biraja Prasanna Satapathy
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA NOs.1273 of 2024 & 67 OF 2025
M/s. Magma Fin Corp. ..... Appellant
Ltd., BBSR Mr. G.P. Dutta, Adv.
-versus-
Khirabdhi Tanaya Rath & ..... Respondents
Others Mr. S.B. Das, Adv.
(for Respondent
Nos.1 & 2)
CORAM:
THE HON'BLE MR. JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
22.07.2025
Order No.4
1.This matter is taken up through hybrid mode.
2. Since both the appeals have been filed against a
common judgment, both the appeals were heard
analogously and disposed of by the present Common
order.
3. While MACA 1273 of 2024 has been filed by the
insurer challenging the award, MACA No.67 of 2025
has been filed by the claimant seeking enhancement
of the award so passed by the learned District Judge-
cum-1st MACT, Jajpur vide judgment dt.09.09.2024 in
MAC Case No.227 of 2016.
4. While assailing the award, learned counsel
appearing for the appellant-company in MACA
No.1273 of 2024 contended that though the accident
.
took place on 12.01.2015, the FIR was filed after more
than 255 days i.e. on 29.03.2016. It is contended that
since FIR was lodged after more than 255 days of the
alleged accident, plantation of the offending vehicle
cannot be ruled out. A further submission was also
made that even though the accident occurred on
12.01.2015, but the deceased died on 05.01.2019 so
no presumption can be made that the deceased died
due to the accident in question.
4.1. It is also contended that even though in support
of the income of the deceased, ITR for the assessment
year 2011-12 to 2014-15 were exhibited vide Ext.19
to Ext.19/c, but the Tribunal committed a wrong only
by relying in the income reflected for the assessment
year 2014-15 vide Ext.19/c. It is accordingly
contended that if the Tribunal would have assessed
the income by taking the average of the income for the
assessment year 2012-13, 2013-14 & 2014-15 and by
applying the multiplier so applied, the compensation
amount would have been assessed at Rs.23,50,205/-
along with interest. It is contended that default
interest awarded @12% is not sustainable as has been
imposed on a higher side.
4.2. Making all these submissions, learned counsel
appearing for the appellant-insurer contended that the
impugned award needs interference of this Court.
.
5. Learned counsel appearing for the claimant
appellant in MACA No.67 of 2025 while seeking
enhancement of the award, contended that while
assessing the compensation, no compensation has
been awarded towards attendant charges for the
period the deceased remained under treatment for
around 1147 days. It is contended that if
compensation would have been allowed on that
ground, compensation amount of Rs.5,73,500/- would
have been awarded towards attendant charges. With
regard to the submission of the learned counsel for
the insurer regarding delay in lodging the FIR, learned
counsel appearing for the insured relied on the
decision of the Hon'ble Apex Court in the case of
Suhagrani and Others Vs. Manager,
Cholamandalam MS General Insurance Co. Ltd.,
SLP (C ) No.25092 of 2024, disposed of on July 14,
2025, Hon'ble Apex Court in para 9 & 10 of the said
judgment held as follows:
9. xxx xxx xxx
The fact that the jurisdictional police had
conducted investigation and recorded the
statement of various persons during course of
investigation had resulted in filing of the charge-
sheet against the driver of the offending vehicle
which is not in dispute.
xxx xxx xxx
10. xxx xxx xxx
Further it is to be noted that, at no point of
time the insurer has challenged the charge-sheet
filed against the driver of the offending vehicle.
.
5.1. With regard to further submission made by the
appellant, learned counsel appearing for the insured
contended that since the offending vehicle has been
charge-sheeted, in view of the decision in the case of
Ranjeet & Another Vs. Abdul Kayam Neb &
Another, the said plea is not entertainable.
5.2. However, in course of hearing, learned counsel
for the claimants-respondents contended that if this
Court will assess the compensation at Rs.28,00,000/-
with interest so awarded, the claimants-respondents
will have no further grievance. With regard to award
of default interest @12% per annum, it is contended
that this Court may pass appropriate order.
6. Having heard learned counsel for the parties and
considering the submission made, this Court while
disposing both the appeals is inclined to held that the
claimants-appellants entitled to get compensation
amount of Rs.28,00,000/- along with interest @6%
per annum payable from the date of application till its
realisation. While holding so, this Court directs
appellant-company to deposit the aforesaid
compensation amount of Rs.28,00,000/- along with
interest @6% per annum payable from the date of
application till its realisation, before the Tribunal
within a period of eight (8) weeks from the date of
.
receipt of this order. On such deposit of the amount,
the Tribunal shall disburse the same in favour of the
respondents-claimants proportionately in terms of the
Judgment dtd.09.09.2024.
6.1. It is observed that on such deposit of the
amount, the Tribunal shall do well to disburse the
same in favour of the appellant-claimant in MACA
No.67 of 2025 proportionately in terms of the
judgment dt.09.09.2024.
6.2. It is further observed that if the Appellant-
Company will fail to deposit the aforesaid
compensation amount within the time stipulated here-
in-above, the compensation amount of Rs.28,00,000/-
shall carry interest @7% per annum payable from the
date of expiry of the period of 8 (eight) weeks till it is
so deposited.
6.3. It is observed that Account Payee Cheque so
deposited by the appellant-company in MACA No.1273
of 2024 and not yet invested be returned back after
satisfaction of the award.
6.4. Both the M.A.C.As are accordingly stand
disposed of.
Photocopy of the order be placed in the
connected case.
(Biraja Prasanna Satapathy)
Reason: authentication of sangita
order
Judge
Location: high court of orissa, cuttack
Date: 30-Jul-2025 19:47:30
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