B.M vs Babita Das And Others
2025 Latest Caselaw 877 Ori

Orissa High Court

B.M vs Babita Das And Others on 4 July, 2025

Author: Biraja Prasanna Satapathy

Bench: Biraja Prasanna Satapathy

            IN THE HIGH COURT OF ORISSA AT CUTTACK

                           MACA No.565 of 2024

        B.M., M/s. National
        Insurance Co. Ltd.,
        Cuttack                              ....                    Appellant
                                                     Mr. P.K. Mahali, Advocate


                                          -versus-
        Babita Das and Others
                                             ....                   Respondents
                                         Mr. K. Panigrahi, Advocate for R-1 to 4


                             CORAM:
                  JUSTICE BIRAJA PRASANNA SATAPATHY
                                            ORDER

04.07.2025 I.A. No.1362 of 2024 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 subject to payment of cost of Rs.1500/- to be paid before the Orissa High Court Bar Association Welfare Fund by 08.07.2025.

4. I.A. is disposed of.

(Biraja Prasanna Satapathy) Judge

P.T.O. // 2 //

1. Heard Mr. P.K. Mahali, learned counsel appearing for the Appellant-Company and Mr. K. Panigrahi, learned counsel appearing for the Respondent Nos.1 to 4-Claimants.

2. This appeal has been filed by the Appellant- Company challenging Judgment dtd.30.06.2023 so passed by the learned 2nd Addl. District Judge-cum-3rd MACT, Cuttack in MAC Case No.35 of 2010. Vide the said Judgment the Tribunal assessed the compensation at Rs.25,28,006/- 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.25,28,006/-, the Tribunal never take into consideration as to whether the offending vehicle bearing Registration No. OR-05-E-1517 caused the accident on 20.09.2009 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.25,28,006/-. It is contended that on

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the ground of contributory negligence, the compensation amount should have assessed at a lower side.

2.2. In support of the appeal, learned counsel for the appellant-company further contended that the Tribunal without proper appreciation did not deduct any amount towards income tax and only deducted Rs.100/- towards Professional tax. The Tribunal never take into consideration the cross examination of P.W. 2 who is stated to be the eye witness, while his statement shows that P.W. 2 was not present at the time of accident. 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. K. Panigrahi, learned counsel appearing for the Claimant-Respondents Nos.1 to 4 supported the impugned award, but in course of hearing contended that the Claimant-Respondents Nos.1 to 4 will have no grievance, if the compensation amount will be reduced to Rs.22,00,000/-, with interest @ 6% per annum so awarded by the tribunal. But with regard to

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award of default interest @ 12% per annum, learned counsel appearing for Claimant-Respondents Nos.1 to 4 contended that this Court may pass appropriate order in that regard.

4. Mr. P.K. Mahali, learned counsel appearing for the Appellant-Company left the aforesaid proposition made by the learned counsel for the Claimant-Respondents Nos.1 to 4 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.30.06.2023 is inclined to reduce the same and held the Claimant- Respondents Nos.1 to 4 entitled to get compensation amount of Rs.22,00,000/- 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 @ 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 30.06.2023 in favour of the Claimant-Respondents Nos.1 to 4.

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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.22,00,000/- 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.

6. The appeal is accordingly disposed of.

(Biraja Prasanna Satapathy) Judge

Basudev

Location: High Court of Orissa, Cuttack Date: 07-Jul-2025 13:57:13