Orissa High Court
The Divisional Manager vs Priyanka Subudhi @ Sahoo & on 26 June, 2025
Author: Biraja Prasanna Satapathy
Bench: Biraja Prasanna Satapathy
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.3 of 2024
The Divisional Manager, United ..... Appellant
India Insurance Co., Ltd. Mr. S. Satpathy, Advocate
-versus-
Priyanka Subudhi @ Sahoo & ..... Respondents
Ors. Mr. B.K. Mohanty, Advocate
(Respondent Nos.1 to 3)
Mr. J. Sahoo, Adv. for Resp. No.4
CORAM:
THE HON'BLE MR. JUSTICE BIRAJA PRASANNA SATAPATHY
ORDER
26.06.2025
Order No.06
1. This matter is taken up through hybrid mode.
2. Heard learned counsel appearing for the Parties.
3. The present appeal has been filed by the Appellant-Company
challenging Judgment dtd.20.05.2023 so passed by the learned 1st
ADJ-cum-1st MACT, Cuttack in MAC Case No. 820 of 2019. Vide
the said Judgment the Tribunal assessed the compensation at Rs.74,
22,750/- along with interest @ 6% per annum payable from the date
of filing of the claim application till its realization. The Tribunal
also awarded default interest @ 12%, if the compensation so
assessed is not deposited within the stipulated time period.
3.1. It is also contended that though it is not disputed that the
accident occurred due to head on collision in between both the
vehicles, but contributory negligence was not taken note of by the
Tribunal while assessing the compensation. It is accordingly
contended that the impugned award needs interference of this Court.
3.2. It is also contended that the award of penal interest @ 12% is on
the higher side taking into account the prevailing bank interest rate.
3.3. It is accordingly contended that had the Tribunal properly
appreciated the aforesaid contention of the appellant, the
compensation would have been assessed at a lower side.
4. Learned counsel appearing for the Claimants-Respondents
though on the other hand supported the impugned Judgment and
contended that the Tribunal has rightly assessed the compensation,
but in course of hearing learned counsel appearing for the
Claimants-Respondents contended that the Claimants-Respondents
will be fully satisfied, if this Court will assess the compensation
amount at Rs.66,00,000/- along with interest @ 6% per annum
payable from the date of filing of the claim application till its
realization. With regard to award of 12% default interest, learned
counsel appearing for the Respondents-Claimants contended that
this Court can pass appropriate order in that regard.
5. Learned counsel appearing for the Appellant-Company left the
aforesaid proposition made by the learned counsel for the
Claimants-Respondents to the discretion of this Court, contended
that right of recovery so allowed by the Tribunal as against Owner-
Respondent be confirmed as no appeal challenging such right has
been preferred by the owner-Respondent No.4.
6. Having heard learned counsel appearing for the Parties and
considering the submissions made, this Court while waiving out the
default interest levied @ 12% per annum, is inclined to held the
Claimants-Respondents entitled to get compensation amount of
Rs.66,00,000/- along with interest @ 6% per annum payable from
the date of application till its realization and confirm the right of
recovery as against Owner-Respondent No.4. While holding so, this
Court directs the Appellant-Company to deposit the compensation
amount of Rs.66,00,000/- along with interest @ 6% interest per
annum payable from the date of filing of the claim application till its
realization 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 in
terms of the Judgement dtd.20.05.2023.
6.1. However, it is observed that if the amount as directed is not
deposited within the aforesaid time period of eight (8) weeks, the
compensation amount of Rs.66,00,000/- shall carry interest @ 7%
starting from the expiry of the period of eight (8) weeks till the
amount is so deposited.
6.2. It is also observed that if any application will be filed by the
Appellant seeking recovery of the compensation from
Owner/Respondent No.4, the same be considered and disposed of in
accordance with law and by giving due opportunity of hearing to
Respondent.
6.3. On such deposit of the amount, the Appellant-Company shall be
permitted to take back the statutory deposit along with accrued
interest if any from the Registry on proper identification.
7. The appeal is disposed of accordingly.
(BIRAJA PRASANNA SATAPATHY)
Location: HIGH COURT OF ORISSA, CUTTACK
Date: 26-Jun-2025 17:38:53 Judge
Subrat
