Bharati Prusty Vs Alok Kumar Das

compensation as awarded to them by the impugned judgment dated 29.02.2024 passed in MAC Case No.161 of 2022 by which the learned 1^st Motor Accident Claim Tribunal, Dhenkanal (In short “the tribunal”) directed the Respondent No.2-cum-Insurance company to pay compensation amount of Rs.10,87,120/-

¶15

MACA No.327 of 2025

¶16

Page 1 of 8

¶17

together with interest @ 7% per annum w.e.f. 26.12.2022 till its realization to the claimants in an application U/S.166 of the Act.

¶18

2. Briefly stated, on 27.08.2022 at about 7.00PM one Katara Prusty was dashed by the Swift Dzire Car bearing Regd. No.OD-02-AE-1318 (hereinafter referred to as the “offending car”) leading to his death. According to the legal heirs of the deceased, the accident took place due to rash and negligent driving of the driver of the offending car and the accident was reported to the Police and accordingly, Dhenkanal Sadar PS Case No.399 of 2022 was registered which ultimately culminated in submission of charge-sheet and the deceased being aged about 49 years was earning Rs.18,000/- per month as a Mason. On the aforesaid averments, the claimants preferred a claim application before this tribunal for grant of compensation of Rs.18,00,000/- towards death of the deceased by impleading the owner and insurer of the offending car.

¶19

MACA No.327 of 2025

¶20

Page 2 of 8

¶21

3. Pursuant to the notice of the claim, the

¶22

owner of the offending vehicle did not appear and he was accordingly set ex-parte on 11.10.2023, whereas the Insurer(Respondent No.2 herein) contested the claim by filing written statement disowning its liability and inter alia pleading not to indemnify the owner of the vehicle for violation of policy conditions. On the inter se pleadings of the parties, the learned tribunal framed as many as four issues and allowed the parties to lead evidence. Accordingly, the claimants examined three witnesses vide PWs.1 to 3 and proved the police papers in Dhenkanal Sadar PS Case No.399 of 2022 under Ext.1 to 8 as against no evidence whatsoever by the Insurer.

¶23

4. After appreciating the evidence upon hearing the parties, the learned tribunal passed the impugned judgment directing the Insurer-R2 to pay the compensation amount to the claimants as indicated supra. Being aggrieved with the quantum of compensation, the claimants have preferred this appeal.

¶24

MACA No.327 of 2025

¶25

Page 3 of 8

¶26

5. Heard, Mr. Biswajit Mohanty, learned

¶27

counsel for the appellants and Ms. Padmja Pattanaik, learned proxy counsel appearing on behalf of Mr. Sabita Ranjan Pattnaik, learned counsel for the Respondent No.2 and perused the record. None appears for Respondent no.1 despite valid service of notice of the appeal in terms of the postal tracking report placed on record.

¶28

6. The only legal issue that has been seriously challenged by the appellants is for not extending the benefit of future prospects to the claimants while assessing the loss of dependency for the claimants in the impugned judgment. On a careful perusal of the impugned judgment, it appears that the learned tribunal has computed the compensation under the head of loss of dependency under issue no.III in paragraph 7, however, it is strange that the learned tribunal albeit relied upon the decision in National Insurance Company Ltd., Vrs. Pranay Sethi and Others; (2017) 16 SCC 680, but it has not granted any amount under the heading of loss of future

¶29

MACA No.327 of 2025 Page 4 of 8

¶30

prospects while assessing loss of dependency for the claimants, nonetheless in Pranay Sethi (supra) , the Apex Court has laid down law for grant of future prospects in following manner as found in Paragraph 59.4 of the judgment which reads as under:-

¶31

“59.4. In case the deceased was selfemployed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.”

¶32

7. It is, however, found from the record that

¶33

the deceased was aged about 49 years plus which in anyway 50 years at the relevant time of his death and in absence of any concrete evidence, the income of the deceased was calculated by relying upon the minimum wages prevailing at the time of accident, but the learned tribunal has ignored to extend the benefit of future prospects for calculating loss of dependency to the claimants, however, in view of Pranay Sethi (Supra) an addition of 25% to the net income of the

¶34

MACA No.327 of 2025 Page 5 of 8

¶35

deceased towards future prospects is considered relevant and, therefore, the loss of dependency is required to be recomputed by adding 25% to the net established income of the deceased after deduction towards his personal living expenses and thereafter multiplying the same with appropriate multiplier. It is not in dispute that in absence of any concrete and reliable evidence, the learned tribunal has taken the income of the deceased at Rs.326/- per day by relying upon minimum wages which is in fact not challenged by any of the parties in this appeal, but the same should have been taken at Rs.330/- per day by adding Rs.4/as a fraction of variable dearness allowance (VDA) as on the date of death of the deceased on 30.08.2022 since the minimum wage of unskilled employee with VDA was Rs.326/- per day w.e.f. 01.04.2022 and the said VDA was increased by Rs.7/- w.e.f. 01.10.2022. Thus, the monthly income of the deceased would come around Rs.330/- X 26 = Rs.8,580/- by excluding the 4 Sunday as rest day as per rule-7 of Odisha Code on Wages Rule-2021. Adding 25% to it towards future

¶36

MACA No.327 of 2025 Page 6 of 8

¶37

prospects, the aforesaid amount would come around Rs.10,725/- per month and, therefore, the net annual income of the deceased would be Rs.10,725 X 12 = Rs.1,28,700/- and thereby, deducting 1/3^rd from it towards personal and living expenses of the deceased, the net annual contribution of the deceased to his family would come to Rs.85,800/-. Applying 13 multiplier to it, the loss of dependency of the claimants would be recomputed at Rs.11,15,400/-.

¶38

8. Since the deceased died on 30.08.2022, the claimants are entitled to two enhancements @ 10% in every three years on Rs.70,000/towards conventional heads, such loss of estate, loss of consortium and funeral expenses in view of the law laid down by Pranay Sethi (Supra) . Thus, the modified compensation to which the claimants are entitled is calculated at Rs.11,99,400/- which is rounded up to Rs.12,00,000/- together with simple interest @ 7% per annum w.e.f. till realization. Hence, the claimants are entitled to modified compensation amount of Rs.12,00,000/- together with interest @ 7% per annum

¶39

MACA No.327 of 2025

¶40

Page 7 of 8

¶41

w.e.f the date of filing of the claim application till realization, but since the award has already been satisfied in terms of the impugned judgment, the Respondent No.2 is hereby directed to pay the differential compensation amount to the claimants within eight weeks hence by calculating the award together with accrued interest thereon in terms of this judgment and deducting the amount already paid by it.

¶42

9 . In the result, the appeal stands allowed on

¶43

contest, but in the circumstances, there is no order as to costs and consequently, the impugned judgment is modified to the extent indicated above and in case of deposit of the differential compensation amount, the same shall be disbursed to the claimants-appellants proportionately in terms of the award passed by the learned Tribunal.

¶44

Signature Not Verified

¶45

Digitally Signed Signed by: JAYAKRUSHNA DASH Reason: Authentication Location: High Court of Orissa, C utta ck Date: 02-May-2026 16:54:18

¶46

(G. Satapathy) Judge

¶47

Orissa High Court, Cuttack, Dated the 1^st day of May, 2026/Jayakrushna

¶48

MACA No.327 of 2025

¶49

Page 8 of 8

Bharati Prusty v. Alok Kumar Das

Case brief

What is this about?

What did the court decide?

Bharati Prusty v. Alok Kumar Das

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

Rudra Madhab Mohapatra Vs State of Odisha

Tapan Kumar Nayak Vs State of Odisha

Pananga Narayan Dash @ Pinu Vs State of Odisha

Siba Sarbhang Vs State of Odisha

Jay Krushna Barik Vs State of Odisha

Hira Barik Vs Subrat Kumar Nayak