JUSTICE v. NARASINGH Date of hearing & Judgment
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK MACA No.574 of 2007 In the matter of an application under Section 173 of the Motor Vehicles Act, 1988. M/s. New India Assurance Co. Ltd …. Appellant -versus- 1. Smt. Ippili Anasuya Ippili Samba Murty 2. 3. Smt. Allipati Nirmala 4. Kintali Vijaya 5. 6. Pitambara Pradhan 7. M/s. Oriental Ippili Ashok …. Respondents Insurance Co. Ltd 8. P. Subudhi Rao 8(a). Smt. P.
Legal Reasoning
Sandhyarani 8(b). Smt. P. Sudharani 8(c). Smt. P. Usharani 8(d). Sri. P. Anil Kumar For Appellant : Mr. G.P. Dutta, Advocate For Respondents : Mr. N.K. Sahu, Advocate Mr. M. Sinha, Adv. (O.P. No.7) Page 1 of 7 CORAM: JUSTICE V. NARASINGH Date of hearing & Judgment : 22.08.2025 V. Narasingh, J. I.A. Nos. 2112 of 2025, 2113 of 2025 & 2114 of 2025 1. These applications are filed for substitution, setting side abatement and condonation of delay in filing the substitution petition. 2. 3. Heard learned counsel for the parties. Considering the recitals in the I.As, abatement is set aside, delay is condoned and substitution of deceased Respondent No.8 is allowed. 4. 5. Consolidated cause title is taken on record.
Decision
The I.As. are accordingly disposed of. MISC CASE No. 489 of 2008 1. This Misc Case has been filed for condonation of delay in filing the appeal. 2. 3. Heard learned counsel for the parties. Taking to account the submissions and considering the recitals in the Misc. Case, delay in filing the appeal is condoned. 4. Accordingly, the Misc. Case stands disposed of. Page 2 of 7 MACA No.574 of 2007 1. Heard learned counsel for the Appellant- Insurance Company and learned counsel for the Respondent-Claimants. 2. The Appellant-Insurance Company has filed this appeal challenging the impugned judgment dated 16.09.2006 passed by the learned 3rd M.A.C.T, Rayagada in MJC No.140/1998 awarding compensation of Rs.1,63,968/- along with interest at the rate of 6% per annum from the date of filing of the application till the date of payment, failing which, it shall carry interest at the rate of 9% per annum from the date of the award. 3. The brief facts of the case of the Claimants is that on 26.08.1994 the deceased I. Venkata Ramana was travelling along with his co-villagers in a Bus bearing registration number OR-10-4543 from their village to Bissam Cuttack. Near Chatikana Level Crossing, the alleged bus and the truck bearing registration No.ORG 7546 which was coming from the opposite direction collided with each other as a result of which the deceased and other passengers sustained grievous injuries. Thereafter, he was shifted to the hospital but unfortunately he succumbed to the said Page 3 of 7 injuries at the hospital. Since the deceased was a business man and earning Rs.5000/- per month, a claim application was filed claiming compensation of Rs.4,00,000/-. 4. Both the owners of the offending vehicle were set ex parte. Appellant-Insurance Company appeared and filed its counter denying the assertions made in the claim petition. On the pleadings of the parties, the following issues were framed: “1. Whether the accident occurred due to rash and negligent driving of the driver of the offending vehicles ? 2. Whether the Petitioners are entitled to get the compensation and if so, to what extent and from whom ? 3.To What relief ?” In order to substantiate the claim, Claimant- Petitioner Nos. 2 and 5 examined themselves as P.W. 2 and 5 whereas P.W.3 and 4 are independent witnesses, documents were exhibited on behalf of the Claimants and marked as Exts.1 to 13. No witness was examined on behalf of the owners of the offending vehicle as well as the Appellant-Insurance Company. But the Oriental Insurance Company has filed four documents which were marked as Exts.A to D. Considering the evidence on record, learned Tribunal directed for compensation of Rs.3,27,937/- i.e. Page 4 of 7 Rs.1,63,968/- each with interest at the rate of 6% per annum from the date of application till the date of payment, failing which, it shall carry interest at the rate of 9% per annum. 5. The impugned award is assailed, inter alia, on the ground of policy violation since the driver of the offending truck had no valid and effective driving license on the date of accident. And, in the absence of insurance particulars, the present Appellant-New India Assurance Company ought not to have been saddle with the liability. 6. On perusal of the impugned award, it is seen on the basis of the evidence on record vide Exts.1 to 13, learned Tribunal held that the insurance policy and driving licence of both the drivers of the offending vehicles were valid till 12.02.1995 as such covering the date of accident on 26.08.1994. Learned Tribunal also came to the finding regarding validity of the driving licence by referring to the evidence on record adduced vide Ext.9 and Ext.D. 7. Admittedly, no evidence was adduced on behalf of the present Appellant-Insurance Company. 8. It may not be out of place to note here that by the impugned order, the learned Tribunal while directing to pay compensation of Rs.3,27,937/- has Page 5 of 7 apportioned the same as Rs.1,63,968/- each to be payable by the present Appellant-New India Assurance Company as well as Respondent No.7-Oriental Insurance Co. Ltd. 9. It is submitted by the learned counsel appearing for the Oriental Insurance Company that the said Insurance Company has satisfied their part of the award. 10. On a conspectus of materials on record, this Court does not find any infirmity in the impugned award directing the present Appellant to pay 50% of the compensation amount to the tune of Rs.1,63,968/- along with interest of 6% per annum from the date of representation of the application i.e.04.03.1995. 11. This Court is persuaded to hold, on the touchstone of the just compensation, that award of interest @ 9% in default of payment is liable to be set aside. 12. Accordingly, award compensation of Rs.1,63,968/- along with 6% interest from 04.03.1995 is affirmed. And, it is reiterated that the stipulation of penal interest @ 9% is set aside. 13. The awarded amount be paid to the Respondents-Claimants within a period of six weeks Page 6 of 7 from the date of receipt/production of a copy of this judgment. 14. In the event the amount is not paid within the time as stipulated, the Insurance Company shall be liable to pay the interest @ 9% per annum from the date of award i.e. 16.09.2006 till its actual payment. 15. Within a period of six weeks on submission of proof regarding the disbursal of the amount, statutory deposit along with accrued interest shall be refunded to the Appellant as per due procedure. 16. The MACA is accordingly disposed of. No costs. (V. NARASINGH) Judge Orissa High Court, Cuttack Dated the 22nd August, 2025/Santoshi Signature Not Verified Digitally Signed Signed by: SANTOSHI LENKA Reason: Authentication Location: High Court of Orissa, Cuttack Date: 22-Sep-2025 15:44:00 Page 7 of 7