M/S. National Insurance Co.Ltd. Vs Puspanjali Das — Orissa HC (2024) — LawSathi Research

M/S. National Insurance Co.Ltd. Vs Puspanjali Das — Orissa HC (2024) — LawSathi Research

What the court decided

AI extract

Outcome

Award modified: compensation reduced from Rs. 18,62,000/- to Rs. 18,00,000/- payable with interest at 6% per annum from the date of application; appellant insurer to deposit the sum within eight weeks for immediate disbursement to claimant respondent Nos. 1 to 3; statutory deposit with accrued interest refundable to the insurer on proof of deposit before the Tribunal.

Issue for consideration

Whether the quantum of compensation awarded by the learned Tribunal was correct — the appellant contending it was on the higher side (deceased's monthly income wrongly fixed at Rs. 10,000/- merely on the owner's Salary Certificate, which should be reassessed per Government minimum-wage notification as for skilled labour), and the claimants contending it fair and reasonable given Ext.9 and the deceased's engagement as a Conductor (Ext.8).

Court's answer

Having considered Ext.9 (Salary Certificate) and the fact that the deceased was duly engaged by the owner of the offending vehicle, the Court held the compensation of Rs. 18,62,000/- fixed by the Tribunal to be slightly on the higher side and required it to be rounded off to Rs. 18,00,000/- payable with interest @ 6% as allowed by the Tribunal.

Ratio / Principle

The Court was not inclined to disbelieve the engagement of the deceased as a Conductor with an assured monthly income (supported by Ext.9 Salary Certificate and Ext.8 Conductor Licence issued by the OMVD, Chandikhol).

Key takeaways

The appeal stands allowed in part and the impugned award dated 24th April, 2023 in M.A.C. Case No. 1067 of 2017 is modified to the extent indicated (compensation reduced to Rs. 18,00,000/-).ratio¶¶22
The appellant Insurance Company was directed to deposit Rs. 18,00,000/- along with interest at 6% per annum from the date of application within eight weeks, which on deposit shall be immediately disbursed to claimant respondent Nos. 1 to 3.ratio¶¶22
The statutory deposit along with accrued interest shall be refunded to the appellant Insurance Company on proof that such deposit was made before the learned Tribunal within the stipulated period.

Detailed headnote1 paragraphs

High Court of Orissa at Cuttack (R.K. Pattanaik, J.; order dated 09.04.2024) in MACA No.925 of 2023 — National Insurance Co. Ltd. appealed the award dated 24.04.2023 in M.A.C. Case No.1067 of 2017 (2nd Addl. District Judge-cum-3rd M.A.C.T, Cuttack) solely on quantum; the accident and involvement of the offending vehicle were not in dispute. The Tribunal had fixed the deceased's monthly income at Rs.10,000/- relying on the Salary Certificate dated 05.03.2018 issued by the owner of the vehicle (Ext.9); the deceased's engagement as a Conductor was supported by a copy of his Conductor Licence issued by the OMVD, Chandikhol (Ext.8). While accepting the deceased's engagement as a Conductor with an assured monthly income, the Court held the award of Rs.18,62,000/- slightly on the higher side, rounded the compensation down to Rs.18,00,000/- payable with interest at 6% per annum from the date of application, allowed the appeal in part, directed the insurer to deposit within eight weeks for immediate disbursement to claimant respondent Nos.1 to 3, and ordered that the statutory deposit with accrued interest be refunded to the insurer on proof of deposit before the Tribunal.

IN THE HIGH COURT OF ORISSA AT CUTTACK

MACA No.925 of 2023

M/s. National I n surance Co., Ltd., …. A ppellant

Mr. M.Sinha, A d vocate

-Versus-

Puspanjali Das & others

& others …. Res p ondents Mr. P .C. Pattanaik, Advocate for Respondent Nos. 1 to 3

COR A M: MR. J USTICE R.K. PATTANAIK

ORDER

09.04.2024

Order No.

1. Heard Mr. Sinha, learned counsel for the a ppellant Insurance Com p any and Mr. Pattanaik, learned counsel for the claimants respo n dents Nos. 1 to 3.

None a p pears for respondent No. 4.

Instant a ppeal is filed by the appellant Insurance C ompany assailing the i m pugned award dated 24^th April, 2023 p assed in M.A.C. Case N o . 1067 of 2017 by learned 2^nd Additional District Judge-cum-3^rd M .A.C.T, Cuttack on the grounds stated ther e in.

Mr. Si n ha, learned counsel for the appellant Insurance Company chall e nges the quantum of compensation on th e ground that learned Tri b unal assessed and fixed the monthly inco m e of the deceased at Rs. 10,000/- without any further evidence m erely by referring to the S alary Certificate issued by the owner of th e vehicle in question, hence, therefore, he is to be treated as a skilled labour and monthly in c ome is to be accordingly assessed keepin g in view

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the Governmen t Notification and the minimum wage app l icable at the relevant poi n t of time.

Mr. P a ttanaik, learned counsel for the c laimants respondents No s . 1 to 3, however, justifies the impugned award on the ground tha t a Salary Certificate which is marked as E xt.9 has been accepted b y learned Tribunal and when the accid e nt took place, the decea s ed was engaged as a Conductor which is s u pported by Ext.8, a co p y of the original Conductor License issue d by the OMVD, Chandi k hol.

The ac c ident is not in dispute nor the involveme n t of the offending vehic l e. The only question, which is involved , is with respect to the quantum of compensation allowed by learned Tribunal as on t he one hand, claimed by Mr. Sinha to b e on the higher side and o n the other hand, stated to be fair and re a sonable. The owner of t he offending vehicle issued the Salary Certificate dated 5^th March, 2018 marked as Ext.9. The deceased was engaged as a Conductor w hich is also supported by Ext.8. Having c o nsidered Ext.9, the fact t h at the deceased was duly engaged by the o wner of the offending v e hicle, the Court is of the considered view that the amount of com p ensation of Rs. 18,62,000/- is slightly on t h e higher side, which as required to be rounded off with an amou n t of Rs. 18,000,00/-. In o ther words, the Court is not inclined to d isbelieve the engagemen t of the deceased as Conductor with an assured monthly incom e . Nevertheless, the compensation, in the humble view of the Co u rt, should be at Rs. 18,00,000/- payable al o ng with interest @ 6% as allowed by learned Tribunal.

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7. Hence, it is ordered.

In the result, the appeal stands allowed i n part. Consequently, t h e impugned award dated 24^th April, 2023 p assed in M.A.C. Case N o . 1067 of 2017 by learned 2^nd Additional District Judge-cum-3^rd M .A.C.T, Cuttack is hereby modified to the e xtent as aforesaid with a direction to the appellant Insurance Co m pany to deposit a sum o f Rs.18,00,000/- along with interest at th e rate of 6% per annu m from the date of application filed wit h in eight weeks, which o n being deposited, shall immediately be dis b ursed in favour of the c l aimant respondent Nos.1 to 3. The Cou r t further directs that the s tatutory deposit along with accrued intere s t on the same shall be r efunded to the appellant Insurance Com p any on proof of such d e posit made before the learned Tribunal w ithin the above stipulate d period.

(R.K.Pattanaik) Judge

Kabita

Signature Not Verified

Digitally Signed Signed by: KABITARANI MAJHI Designation: Secretary Reason: Authentication Location: OHC,Cuttack Date: 11-Apr-2024 12:18:33

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