Authorised Signatories,S.B.I. G.I.Co.Ltd. Vs Artabandhu@Arati Sahoo — Orissa HC (2024) — LawSathi Research

Authorised Signatories,S.B.I. G.I.Co.Ltd. Vs Artabandhu@Arati Sahoo — Orissa HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

Both appeals disposed of: compensation of Rs.11,18,000/- upheld with interest reduced from 7.5% to 6% per annum effective from the date of filing of the claim application; payment within two months, whereafter disbursement to the claimants on terms and proportion to be fixed by the Tribunal; Insurer's 50%-deduction plea on alleged unmarried status of deceased rejected; statutory deposit with accrued interest refundable to the Appellant on proper application and proof of deposit of the award amount.

Issue for consideration

Whether the Insurer-Appellant's contention — raised taking advantage of the inter se dispute among the claimants — that the deceased was unmarried on the date of accident and therefore a 50% deduction should be made from his income, is sustainable. +1 more

Court's answer

The Insurer had no direct knowledge of the marital status of the deceased nor did it adduce any evidence to that effect; therefore its contention that the deceased was unmarried and a 50% deduction should be made from income is unsustainable and is accordingly rejected, and the Tribunal's treatment of the deceased as married (compensating both parents and widow) stands.

Ratio / Principle

Upon hearing both parties on the quantum of compensation, the interest on the awarded compensation is reduced to 6% (from the 7.5% awarded by the Tribunal).

Key takeaways

Both the appeals are disposed of maintaining the compensation of Rs.11,18,000 (Eleven Lakhs Eighteen thousand) with interest @ 6% per annum from the date of filing of the claim application, payable within two months; thereafter the amount shall be disbursed in favour of the claimants on such terms and proportion as fixed by the Tribunal.ratio¶31
The statutory deposit made by the Appellant in both the appeals, with accrued interest thereon, shall be refunded to the Appellant on proper application and on production of proof of deposit of the award amount before the learned Tribunal.ratio¶36

Detailed headnote1 paragraphs

ORISSA HIGH COURT, CUTTACK (B.P. Routray, J.) — Order dated 08.08.2024 in MACA Nos. 454 & 455 of 2017 (Insurer's appeals) against the common award dated 31.01.2017 of the 3rd MACT, Talcher in MAC Case Nos. 75 & 92 of 2015, whereby compensation of Rs.11,18,000/- with interest @7.5% p.a. was granted jointly to the parents and the widow of the deceased Mathura Sahoo, killed in a motor vehicle accident on 09.09.2015. HELD: (i) The Insurer's contention, advanced exploiting the claimants' inter se dispute on the deceased's marital status, that he was unmarried on the date of accident and hence 50% of income should be deducted, was unsustainable and rejected — the Insurer had neither direct knowledge of nor adduced any evidence on the marital status; the Tribunal's treatment of the deceased as married, compensating both parents and widow, was thus sustained. (ii) On quantum, only the interest was reduced to 6% p.a., running from the date of filing of the claim applications; final entitlement fixed at Rs.11,18,000/-, payable within two months, with disbursement proportions left to the Tribunal. (iii) Statutory deposits with accrued interest refundable to the Appellant on proper application and proof of deposit of the award amount. No statute or precedent is cited in the judgment.

Signature Not Verified

Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, C utta ck Date: 12-Aug-2024 13:06:17

IN THE HIGH COURT OF ORISSA AT CUTTACK

MACA Nos.454 & 455 of 2017

MACA No. 454 of 2017

…. Authorized Signatories, SBI, General Appellant Insurance Co.Ltd.

Mr. S.Roy, Advocate

-versus-

…. Artabandhu @ Arati Sahoo & Ors. Respondents Mr.B.Barik, Advocate

MACA No.455 of 2017 …. The Divisional Manager, SBI General Appellant Insurance Co.Ltd.

Mr.S.Roy, Advocate

-versus-

Sumati Sahoo & Anr.

…. Respondents

Mr. P.K.Mishra, Advocate

CORAM:

SHRI JUSTICE B. P. ROUTRAY

ORDER

08.08.2024

Order No.

The matter is taken up through hybrid mode.

Heard Mr.Roy, learned counsel for the Appellant and Mr.Barik as well as Mr.Mishra, learned counsel for respective Claimant-Respondents.

Two claim applications were filed by two sets of Claimants, who are the parents of the deceased on one hand and the widow on

Page 1 of 3

Signature Not Verified

Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, C utta ck Date: 12-Aug-2024 13:06:17

the other hand. The Tribunal has clubbed both the cases and disposed of by the common award.

Both the appeals are directed against the award dated 31^st January 2017 passed by 3^rd MACT, Talcher in MAC Case No.75 of 2015 and 92 of 2015 granting compensation to the extent of Rs.11,18,000/- along with interest @7.5% in favour of both sets of Claimants, on account of death of the deceased namely, Mathura Sahoo in the motor vehicle accident dated 9^th September 2015.

It is seen that there was an inter se dispute between both sets of claimants regarding marital status of the deceased and the Tribunal considering pleadings from both sides have granted compensation in favour of the parents as well as the widow taking the deceased as a married person on the date of accident. Taking advantage of inter se dispute between the Claimants, it is now contended on behalf of the Insurer that the deceased was unmarried on the date of accident and therefore 50% deduction should be made from the income. But no basis is seen to substantiate such contention of the Appellants. Neither the Insurer had any direct knowledge about the marital status of the deceased nor they have adduced any evidence to that effect. So such dispute raised by the Insurer at this stage is unsustainable and accordingly rejected.

However, upon hearing both parties on the quantum of compensation the interest thereof is reduced to 6%. 7. In the result, both the appeals are disposed of granting compensation amount of Rs.11,18,000 (Eleven Lakhs Eighteen thousand) along with interest @ 6% per annum with effect from the date of filing of the claim application within a period of two months

Page 2 of 3

Signature Not Verified

Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, C utta ck Date: 12-Aug-2024 13:06:17

from today; where-after the same shall be disbursed in favour of the claimants on such terms and proportion to be fixed by the Tribunal.

The statutory deposit made by the Appellant in both the appeals with accrued interest thereon shall be refunded to him on proper application and on production of proof of deposit of the award amount before the learned Tribunal.

Urgent certified copy of this order be granted on proper application.

( B.P. Routray) Judge

S.Das

Page 3 of 3