The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK MACA No.750 of 2019 Divisional Manager, Shriram G.I.CO.Ltd. …. Appellant Mr. A.A. Khan, Advocate Purandar Naik & Another -versus- …. Respondents Mr. P.K. Behera, Adv. (for Respondent No1) CORAM: JUSTICE BIRAJA PRASANNA SATAPATHY Order No.
Decision
ORDER 05.09.2024 07. 1. This matter is taken up through Hybrid Arrangement (Virtual/Physical) Mode. 2. Heard Mr. A.A.Khan, learned counsel appearing for the appellant and Mr. P.K. Behera, learned counsel appearing for the Respondent No.1. In spite of appearance, nobody is there on behalf of Respondent No.2, when the matter was taken up. 3. This appeal has been filed by the appellant- company challenging judgment dt.13.08.2019 so passed by the learned Addl. District Judge-cum-III MACT, Dharmagarh in MAC No.44 of 2017. Vide the said judgment, the Tribunal while allowing the claim of the Respondent No.1-claimant, directed the appellant- company to pay compensation amount of Rs.48,000/- // 2 // along with interest @ 9% per annum payable from the date of filing of the application till its realization. 3.1. It is the main contention of the appellant- company that the appellant being a gratuitous passenger, and since it is not disputed that the insured vehicle is a goods carrier, the claimant-Respondent No.1 was not liable to get any compensation. But the Tribunal wrongly allowed the claim vide the impugned judgment. It is also contended that the interest allowed @9% per annum on the compensation amount is on the higher side. Making all these submissions, learned counsel appearing for the appellant contended that the impugned judgment is not sustainable in the eye of law. 4. Mr. P.K. Behera, learned counsel appearing for the claimant-Respondent No.1 on the other hand contended that in view of the decision of the Hon’ble Apex Court in the case of Anu Bhanvara Etc. v. IFFCO Tokio General Insurance Company Limited and Others, reported in AIR 2019 Supreme Court 3934, even if the claimant-Respondent No.1 is a gratuitous passenger, but the appellant-company is liable to pay the amount with right of recovery against the owner of the vehicle. Page 2 of 5 // 3 // Hon’ble Apex Court in paragraphs-11 & 12 of the said judgment held as follows: “11. We have heard learned counsel for the parties and perused the record as well as the various decisions cited by learned counsel for the parties. The insurance of the vehicle, though as a goods vehicle, is not disputed by the parties. The claimants in the present case are young children who have suffered permanent disability on account of the injuries sustained in the accident. Thus, keeping in view the peculiar facts and circumstances of this case, we are of the considered view that the principle of “pay and recover” should be directed to be invoked in the present case. 12. Accordingly, these appeals are disposed of with the direction that the respondent no.1 – insurance company shall be liable to pay the awarded compensation to the claimants in both the appeals. However, respondent no.1 – insurance company shall have the right to realize from the the respondents no. 2 and 3 (driver and owner of the vehicle) in accordance with law.” said amount of compensation 4.1. However, with regard to grant of interest @9% per annum, Mr. Behera, learned counsel for the claimant- Respondent No.1 contended that this Court can pass appropriate order in that regard. 5. Having heard learned counsel appearing for the parties and considering the submission made, this Court finds that because of the injury sustained in the accident in question, Respondent No.1-claimant moved the claim application before the Tribunal in MAC No.44 of 2017. It is not disputed by either of the parties that the claimant-Respondent No.1 was a gratuitous Page 3 of 5 // 4 // passenger in the offending vehicle, which was also a goods carrier. Placing reliance on the decision of the Apex Court as cited (supra), this Court is of the view that the appellant-company is liable to pay the compensation, but with the rider that it can recover the same from the owner of the offending vehicle. 5.1. With regard to grant of interest @9% per annum, it is the view of this Court that the Tribunal has allowed the interest at the higher side taking into account the prevailing rate of interest. 5.2. Therefore, this Court, while not interfering with the impugned judgment, is only inclined to interfere with regard to the rate of interest, allowed @9%, while upholding the compensation awarded at Rs.48,000/-. This Court taking into account the prevailing rate of interest at the relevant time, is inclined to reduce the interest from 9% per annum to 6% per annum. 5.3. Accordingly, this Court while disposing the appeal, directs the appellant-company to deposit the compensation amount of Rs.48,000/- along with interest @6% per annum payable from the date of application till its realization with right of recovery against Respondent No.2-owner. This Court directs appellant-company to deposit the aforesaid amount, as directed, within a period of 8(eight) weeks from the date of receipt of this order. Page 4 of 5 // 5 // 5.4. It is further observed that on such deposit of the amount, the same shall be disbursed in favour of the Respondent No.1-claimant in terms of the judgment passed on 13.08.2019. 5.5. It is further observed that if the appellant- company will fail to deposit the amount, as directed within the stipulated period, then the compensation amount of Rs.48,000/- shall carry interest @ 7% per annum for the period starting from the date of expiry of the period of eight (8) weeks till it is so deposited before the Tribunal. 5.5. Only after deposit of the amount in question, as directed, appellant-company will be permitted to take refund of the statutory deposit along with accrued interest thereon, if any, from the Registry on proper identification. With the aforesaid observation and direction, the MACA is disposed of. (Biraja Prasanna Satapathy) Judge Subrat Signature Not Verified Digitally Signed Signed by: SANGITA PATRA Reason: authenticatin of order Location: high court of orissa, cuttack Date: 11-Sep-2024 14:25:26 Page 5 of 5