National Insurance Co vs Soyam Prava Sarangi
2026 Latest Caselaw 1134 Ori

Orissa High Court

National Insurance Co vs Soyam Prava Sarangi on 9 February, 2026

Author: V. Narasingh

Bench: V. Narasingh

                       `


                      IN THE HIGH COURT OF ORISSA AT CUTTACK

                                M.A.C.A. No.794 of 2013
                 In the matter of an application under Section 173 of the
                 Motor Vehicles Act, 1988.

                National Insurance Co.
                Ltd., represented through      ...            Appellant
                its Officer-in-charge,
                Orissa Legal Cell,
                Cantonment Road,
                Cuttack- 1


                                        -versus-


                1. Soyam Prava Sarangi
                2. Bimalananda Sarangi
                3. Purna Chandra Sarangi       ....        Respondents
                4. Harshamani
                   Sarangi(Deleted)
                5. Deepak Kumar
                   Mohanty



                       For Appellants    : Mr. A. Das, Sr. Advocate


                      For Respondents : Mr. P.K. Mishra, Advocate

                                                         (For R.1-3)




                                                                      Page 1 of 9
M.A.C.A. No. 794 of 2013
                               CORAM: JUSTICE V. NARASINGH

                       DATE OF FINAL HEARING         : 30.10.2025
                       DATE OF JUDGMENT              : 09.02.2026

V. Narasingh, J.

1. Heard Mr. Das, learned senior counsel for the

Appellant-Insurance Company and Mr. Mishra learned

counsel for the Respondent Nos.1 to 3.

2. The Appellant- Insurance Company has filed

this appeal challenging the impugned award dated

14.02.2013 passed by the learned 4th M.A.C.T, Puri

in M.A.C No.120/59 of 2010 awarding compensation

of Rs. 15,37,600/- along with 7% interest from the

date of filing of the application, i.e.,10.03.2010 till

the date of payment.

3. The brief facts of the Claimants are that on

09.01.2010 while the deceased Balunkeswar Sarangi

was returning to his village from Pipili by riding a

bicycle on the extreme left side of the road, at about

8 P.M near Telephone Exchange, Pipli on Puri-

Bhubaneswar public road, the bus bearing

registration No. OR-13-A-1011 coming from behind

the deceased, due to high speed being driven in a

rash and negligent manner the driver could not

control the vehicle as a result of which the bus

dashed against the bicycle of the deceased and the

deceased sustained severe injuries. Thereafter he

was shifted to the hospital. While he was undergoing

treatment he succumbed to the said injuries on

30.01.2010. As such, claim application was filed

claiming compensation of Rs. 19,71,000/-

4. The owner of the offending vehicle was

arrayed as Opposite Party No.1 and the Insurer (The

National Insurance Co. Ltd) as Opposite Party No.2.

The owner-Opposite Party No.5 herein did not contest

and was set Ex-Parte vide order dtd. 11.08.2010.

5. The Insurance Company- Opposite Party No.2

before the learned Tribunal and Appellant herein

contested the case and filed its written statement

resisting the claim.

On the pleadings of the parties, the following

issues were framed:

"1. Is the claim application maintainable?

2. Whether on 9.1.10 at about 8 P.M near Telephone exchange of Pipli on Puri- Bhubaneswar road the deceased Balunkeswar Sarangi met with accident involving the vehicle bearing registration No.OR-13-A-1011 (Bus) and died?

3. Was the driver of the offending vehicle rash and negligent in causing the accident?

4. Are the petitioners entitled to get compensation, if so, to what extent and from which O.P?

5. To what relief?"

In order to substantiate their claim, Claimant

No.1-Opposite No.1 herein examined herself as P.W.1

and one eyewitness was examined as P.W.3 and

another independent witness was examined as P.W.2

and documents were exhibited on behalf of the

Claimants and marked as Exts.1 to 9.

Though no witness was examined on behalf of

the Insurance Company, certain documents were

exhibited and marked as Exts.A and B.

Considering the evidence on record, learned

Tribunal directed for payment of compensation of

Rs.15,37,600/- along with 7% interest per annum

from the date of filing of the claim petition till the

date of payment.

6. The primary ground on which the Appellant-

Insurance Company assails the award of

compensation is that admittedly the registered owner

of the vehicle in question Mr. Bijayananda Mohanty

died on 24.10.2009 and the accident in question took

place on 09.01.2010 and thereafter the ownership of

the vehicle was transferred to the present Opposite

Party No.5-Mr. Deepak Kumar Mohanty, the son of

the original registered owner but the insurance policy

was renewed in the name of the deceased Mr.

Bijayananda Mohanty and referring to the same, it is

asserted that the said insurance policy of the

offending vehicle was in name of a dead person, as

such the insurer is not liable to pay the

compensation.

7. It is apt to note that no evidence in this regard

was led by the Appellant-Insurance Company before

the Tribunal though such ground was urged before

the Court at the time of argument.

8. The learned Tribunal referring to the judgment

of the Apex Court in the case of United India United

India Insurance Co. Ltd. v. Santro Devi, (2009)

1 SCC 558 has arrived at the conclusion that the

insurance policy having been renewed, it is not open

for the Insurance Company to take a plea that the

same was obtained in the name of a dead person. On

a bare perusal of the insurance policy, which has

been exhibited as Ext.A, there is no dispute that the

offending vehicle was in fact insured, though the

name of the registered owner has been wrongly

reflected.

9. The Insurance Company having accepted the

premium amount in respect of the vehicle cannot shy

away from its responsibility and relying on such

principle and also taking into account that no

evidence was led by the Appellant-Insurance

Company, its prayer to be absolved from liability was

negated by the learned Tribunal.

10. On an analysis of the materials on record, in

the light of the Judgment cited in the case of Santro

Devi(Supra), this Court does not find any infirmity

in the appreciation of the materials and evidence on

record to fasten the Appellant-Insurance Company

with liability and in this regard, this Court finds

substance in the submission made by the learned

counsel for the Claimants-Respondents that the

underlying principle of awarding compensation is that

the interest of the victim has to be protected.

11. On considering the rival submissions and

taking into account the ground urged by the learned

Senior Counsel that the quantum as awarded is very

much on the higher side, this Court is of the

considered view that reducing the compensation from

Rs.15,37,000/- to Rs.14,50,000/- with 6% interest

from the date of application i.e.,10.03.2010 till its

deposit before the Tribunal would meet the ends of

justice.

12. The awarded amount be paid to the

Respondents-Claimants within a period of six weeks

from the date of receipt/production of a copy of this

Judgment.

The amount, if any, already paid shall be

deducted.

13. The compensation which was awarded on

account of Claimant No.4- the mother of the

deceased before the Tribunal shall be apportioned

equally amongst Claimant- Opposite Party Nos.1 to 3.

14. Within a period of six weeks on submission of

proof regarding the deposit of the amount towards

compensation, as modified, statutory deposit along

with accrued interest shall be refunded to the

Appellant as per due procedure.

15. The MACA is accordingly disposed of. Costs

made easy.

16. In view of the disposal of the MACA, pending I.A.s, if any, stands disposed of.

(V. NARASINGH) Judge

Orissa High Court, Cuttack Dated the 9th February, 2026/Ayesha

Location: High Court of Orissa, Cuttack