The Divisional Manager vs Krishna Patel & Ors
2025 Latest Caselaw 691 Ori

Orissa High Court

The Divisional Manager vs Krishna Patel & Ors on 15 May, 2025

Author: Biraja Prasanna Satapathy

Bench: Biraja Prasanna Satapathy

     IN THE HIGH COURT OF ORISSA AT CUTTACK
                     MACA No.89 of 2023
The Divisional Manager,           .....      Appellant
Oriental Insurance Company              Mr. G.P. Dutta, Advocate
Ltd.
                             -versus-
Krishna Patel & Ors.            .....     Respondents
                                                Mr. D. Patnaik, Advocate
                                                (Respondent Nos. 1 to 3)
                    CORAM:
THE HON'BLE MR. JUSTICE BIRAJA PRASANNA SATAPATHY
                     ORDER

15.05.2025

Order No.04

1. This matter is taken up through hybrid mode.

2. Heard Mr. G.P. Dutta, learned counsel appearing for the Appellant-Company and Mr. D. Patnaik, learned counsel appearing for the Claimants-Respondent Nos. 1 to 3.

3. The present appeal has been filed by the Appellant-Company challenging Judgment dtd.16.11.2022 so passed by the learned Addl. District Judge-cum-3rd MACT, Jharsuguda in MAC Case No. 131 of 2015. Vide the said Judgment the Tribunal assessed the compensation at Rs.36,73,661/- along with interest @ 6% per annum payable from the date of filing of the claim application till its realization.

3.1. In support of the appeal learned counsel appearing for the Appellant-Company contended that the Tribunal while assessing the compensation, did not deduct income tax and professional tax from the annual income of the deceased. It is also contended that the Tribunal wrongly deducted 1/4th of the annual income of the

deceased towards personal and living expenses instead of 1/3rd, by holding that there are three dependants of the deceased, even though two Claimants have died during the proceeding. It is also contended that the Tribunal should have taken 2/3rd towards the loss of dependency 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 claim application since was dismissed for non-prosecution vide order dtd.01.09.2017 and restored vide order dtd.03.09.2018 and thereafter the Appellant on being noticed, appeared on 13.01.2020, Claimants-Respondents because of such latches are not entitled to get interest for the period from 01.09.2017 to 12.01.2020.

3.3. Making all these submissions learned counsel appearing for the Appellant-Company contended that had the Tribunal properly appreciated the aforesaid contention of the Appellant, the compensation amount so awarded would have been assessed on the lower side and Appellant should have been exempted from paying the interest on the awarded amount for the period 01.09.2017 to 12.01.2020.

4. Even though Mr. D. Patnaik, learned counsel appearing for the Claimants-Respondent Nos. 1 to 3 supported the impugned award, but in course of hearing contended that Claimants-Respondent Nos. 1 to 3 will have no grievance, if the compensation amount will be reduced to Rs.32,00,000/- along with interest @ 6% per annum payable from the date of filing of the claim application till its realization. It is also contended that the Claimants-Respondents will have no grievance if no interest will be awarded for the period 01.09.2017 to 12.01.2020.

5. Mr. G.P. Dutta, 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.

6. Having heard learned counsel appearing for the Parties and considering the submissions made, this Court while interfering with the impugned Judgment dtd.16.11.2022, held the Claimants- Respondent Nos. 1to 3 entitled to get compensation amount of Rs.32,00,000/- along with interest @ 6% per annum, payable from the date of filing of the claim application (except for the period from 01.09.2017 to 12.01.2020) till its realization. This Court accordingly while holding so, directs the Appellant-Company to deposit compensation amount of Rs.32,00,000/- along with interest @ 6% per annum payable from the date of filing of the claim application (except for the period from 01.09.2017 to 12.01.2020) till its realization 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 Claimants-Respondent Nos. 1 to 3 in terms of the Judgment passed on 16.11.2022.

6.1. 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.32,00,000/- shall carry interest @ 7% per annum for the period starting from the expiry of the period of eight (8) weeks till its payment.

6.2. 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 accordingly disposed of.

(BIRAJA PRASANNA SATAPATHY) Judge Sneha

Location: High Court of Orissa, Cuttack