Partly allowed

Oriental Insurance Company Ltd., Rourkela v. Tapaswini Nayak

Orissa HC16 Aug 2024MACA/686/2022

Case brief

AI extract

What is this about?

The High Court upheld the High Tribunal's quantum of compensation by deducting applicable taxes. The court rejected the insurer's claim regarding non-involvement of the vehicle, accepting police findings and witness evidence.

What did the court decide?

Appellant directed to deposit reduced compensation of Rs.63,40,000 with 6% interest.

Oriental Insurance Company Ltd., Rourkela Vs Tapaswini Nayak — Insurance | Orissa HC (2024)

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IN THE HIGH COURT OF ORISSA AT CUTTACK

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MACA No.686 of 2022

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Oriental Insurance Co. Ltd.

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…. Appellant Mr. P.K. Mahali, Advocate

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-versus-

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…. Tapaswini Nayak and others Respondents Mr. R.K. Nayak, Advocate for Respondents 1 to 4

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CORAM: JUSTICE B. P. ROUTRAY

ORDER 16.08.2024

Order No.

From the Office note, it appears that in the order dated 26.06.2024, the nomenclature of the case has been inadvertently mentioned as “FAO” instead of “MACA”. The same is corrected as “MACA”.

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Heard Mr. P.K. Mahali, learned counsel for the AppellantInsurance Company as well as Mr. R.K. Nayak, learned counsel for Claimant-Respondents 1 to 4.

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Present appeal by the insurer is directed against the judgment dated 22.08.2022 of learned 4^th M.A.C.T., Keonjhar in M.A.C. Case No.13/44 of 2019-2014, wherein compensation to the tune of Rs74,20,105/- has been granted along with simple interest @7% per annum to the claimants from the date of filing of the claim application, i.e. 03.02.2014 on account of death of the deceased in the motor vehicular accident dated 09.11.2023.

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Signature Not Verified

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Page 1 of 3

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Digitally Signed Signed by: BASANTA KUMAR BARIK Reason: Authentication Location: High Court of Orissa, C utta ck Date: 20-Aug-2024 15:11:58

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Mr. P.K. Mahali, learned counsel contends on behalf of the Appellant that, the offending vehicle was not at all involved in the accident, but has been falsely embroiled in the accident by the claimants. Since the owner has disputed the involvement of the offending vehicle in the accident, the liability saddled on the insurer is illegal.

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The offending vehicle is the motorcycle bearing Regd. No.OR09-F-7645. Initially the FIR was lodged without specifying the registration number of the offending vehicle. But subsequently in course of investigation, the Police finding involvement of the same in the accident has submitted the charge-sheet against its owner-cum-driver stating involvement of the vehicle in the accident. The submission of charge-sheet has never been challenged by the owner either before the court or before any higher forum. Thus the version of the owner cannot be believed to exclude the involvement of the offending vehicle from the accident. On the other hand, the claimants have examined the eye-witness Viz.P.W.2, who has specifically stated about involvement of the offending vehicle in the accident and there is no rebuttal material to disbelieve his evidence. Keeping in view the evidence of P.W.2 and the submission of charge-sheet by the Police, the contentions urged by Mr. Mahali to exclude involvement of the offending vehicle is rejected.

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So far as the quantum of compensation is concerned, it is seen that learned Tribunal has computed the loss of dependency without deduction of statutory tax amount. After deduction of income tax and professional tax from the salary of the deceased,

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Signature Not Verified

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Digitally Signed Signed by: BASANTA KUMAR BARIK Reason: Authentication Location: High Court of Orissa, C utta ck Date: 20-Aug-2024 15:11:58

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Page 2 of 3

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the compensation amount is reduced to Rs.63,39,590/-, rounded to Rs.63,40,000/- payable along with 6% interest per annum.

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In the result, the Appellant – Insurance Company is directed to deposit the reduced compensation of Rs.63,40,000/- (rupees sixty-three lakhs forty thousand) before the Tribunal along with interest @6% per annum from the date of filing of the claim application, i.e.03.02.2014 within a period of two months from today; where-after the same shall be disbursed in favour of the claimants-Respondents 1 to 4 on such terms and proportion to be fixed by the Tribunal.

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On deposit of the award amount before the learned Tribunal and filing of a receipt evidencing the deposit with a refund application before this Court, the statutory deposit made before this Court with accrued interest thereon shall be refunded to the Appellant-Insurance Company.

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The MACA is disposed of with aforesaid directions.

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An urgent certified copy of this order be granted on proper application.

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( B.P. Routray) Judge

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B.K. Barik

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Digitally Signed Signed by: BASANTA KUMAR BARIK Reason: Authentication Location: High Court of Orissa, C utta ck Date: 20-Aug-2024 15:11:58

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Signature Not Verified

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Page 3 of 3

Oriental Insurance Company Ltd., Rourkela v. Tapaswini Nayak

Case brief

What is this about?

What did the court decide?

Oriental Insurance Company Ltd., Rourkela v. Tapaswini Nayak

Case brief

What is this about?

What did the court decide?

What the court decided

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