D.M.,National Insurance Co.Ltd.,Cuttack Vs Muktikanta Mohapatra — Orissa HC (2025) — LawSathi Research

D.M.,National Insurance Co.Ltd.,Cuttack Vs Muktikanta Mohapatra — Orissa HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Compensation reduced to Rs.48,00,000/- with interest @ 6% per annum from the date of filing of the claim application till realization; deposit directed within eight weeks, failing which interest @ 7% per annum till payment; statutory deposit refundable to the Appellant-Company; Tribunal to disburse in terms of judgment dated 26.09.2024.

Issue for consideration

Whether the Tribunal committed a wrong in not making deduction towards income tax and professional tax while assessing the income of the deceased. +3 more

Ratio / Principle

Interfering with the impugned judgment dated 26.09.2024, the Court held Claimants-Respondent Nos. 1 to 4 entitled to compensation of Rs.48,00,000/- along with interest @ 6% per annum payable from the date of filing of the claim application till its realization.

Key takeaways

The Appellant-Company was directed to deposit the compensation of Rs.48,00,000/- with interest @ 6% per annum within eight (8) weeks from the date of receipt of the order.ratio¶21
On such deposit, the Tribunal was directed to disburse the amount in favour of Claimants-Respondent Nos. 1 to 4 in terms of the judgment passed on 26.09.2024.ratio¶21
If the directed amount is not deposited within eight weeks, the compensation of Rs.48,00,000/- shall carry interest @ 7% per annum from the expiry of the eight-week period till its payment.

Detailed headnote1 paragraphs

MACA No.15 of 2025 (High Court of Orissa at Cuttack, Biraja Prasanna Satapathy J., order dated 15.05.2025): The insurer-appellant (D.M., National Insurance Co. Ltd., Cuttack) challenged the award dated 26.09.2024 of MACT-I, Balasore in MAC Case No. 80 of 2020, whereby compensation of Rs.53,89,540/- with 6% interest was granted to the claimants (Muktikanta Mohapatra & Ors.). The insurer contended (i) non-deduction of income tax and professional tax from the deceased's income, (ii) contributory negligence as the deceased was not wearing a helmet, and (iii) that the claimants had planted the offending vehicle. The claimants submitted they would have no grievance if compensation were reduced to Rs.48,00,000/- with 6% interest, and the insurer left the matter to the Court's discretion. The Court interfered with the impugned judgment, fixed compensation at Rs.48,00,000/- with 6% interest from the date of filing of the claim application till realization, directed deposit within eight weeks (failing which the amount to carry 7% interest from expiry of that period till payment), permitted withdrawal of the statutory deposit upon such payment, and directed the Tribunal to disburse the amount in terms of the judgment dated 26.09.2024. Appeal disposed of. The insurer's specific contentions were not adjudicated point-wise.

IN THE HIGH COURT OF ORISSA AT CUTTACK MACA No.15 of 2025

D.M., National Insurance Co. ..... Appellant Ltd., Cuttack Mr. B. Dasmohapatra, Advocate

Muktikanta Mohapatra & Ors. ..... Respondents

Mr. B.B. Singh, Advocate (Respondent Nos. 1 to 4)

CORAM:

THE HON'BLE MR. JUSTICE BIRAJA PRASANNA SATAPATHY ORDER

15.05.2025

Order No.06

This matter is taken up through hybrid mode.

Perused the tracking report. Since notice has been duly served on Respondent No. 5, notice against the said Respondent is treated as sufficient.

Heard Mr. B. Dasmohapatra, learned counsel appearing for the Appellant-Company and Mr. B.B. Singh, learned counsel appearing for the Claimants-Respondent Nos. 1 to 4.

The present appeal has been filed by the Appellant-Company challenging Judgment dtd.26.09.2024 so passed by the learned MACT-I, Balasore in MAC Case No. 80 of 2020. Vide the said Judgment the Tribunal assessed the compensation at Rs.53,89,540/along with interest @ 6% per annum payable from the date of filing of the claim application till its realization.

4.1. In support of the appeal learned counsel appearing for the Appellant-Company contended that the Tribunal while assessing the income of the deceased, since deduction towards income tax and

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professional tax was not made, the Tribunal committed a wrong. It is also contended that since from the evidence it was provided that the deceased was not wearing helmet at the time of accident, on the ground of contributory negligence, the compensation amount should have been assessed on the lower side. It is also contended that the Claimants illegally planted the offending vehicle to grab the compensation.

4.2. Making all these submissions learned counsel appearing for the Appellant-Company contended that had the Tribunal properly appreciated the aforesaid contentions of the Appellant, the compensation amount so awarded would have been assessed on the lower side.

Even though Mr. B.B. Singh, learned counsel appearing for the Claimants-Respondent Nos. 1 to 4 though supported the impugned award, but in course of hearing contended that Claimants-Respondent Nos. 1 to 4 will have no grievance, if the compensation amount will be reduced to Rs.48,00,000/- along with interest @ 6% per annum payable from the date of filing of the claim application till its realization.

Mr. B. Dasmohapatra, learned counsel appearing for the AppellantCompany left the aforesaid proposition made by the learned counsel for the Claimants-Respondents to the discretion of this Court.

Having heard learned counsel appearing for the Parties and considering the submissions made, this Court while interfering with the impugned Judgment dtd.26.09.2024, held the ClaimantsRespondent Nos. 1 to 4 entitled to get compensation amount of Rs.48,00,000/- along with interest @ 6% per annum, payable from

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the date of filing of the claim application till its realization. This Court accordingly while holding so, directs the Appellant-Company to deposit compensation amount of Rs.48,00,000/- along with interest @ 6% per annum payable from the date of filing of the claim application 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 ClaimantsRespondent Nos. 1 to 4 in terms of the Judgment passed on 26.09.2024.

7.1. 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.48,00,000/- shall carry interest @ 7% per annum for the period starting from the expiry of the period of eight (8) weeks till its payment.

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.

The appeal is accordingly disposed of.

(BIRAJA PRASANNA SATAPATHY)

Judge

Sneha

Signature Not Verified

Digitally Signed Signed by: SNEHANJALI PARIDA Reason: Authentication Location: High Court of Orissa, C utta ck Date: 27-May-2025 16:11:26

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