Dinesh Kumar Patra v. M/S BIBHUTI

CORAM: MR. JUSTICE ADITYA KUMAR MOHAPATRA Order No. ORDER 30.07.2026

This matter is taken up through Hybrid Arrangement (Virtual /Physical Mode).

Heard learned counsel the Appellant-Insurance Company as well as learned counsel appearing for Respondent-Claimant. Perused the appeal memo as well as the impugned judgment dated 30.09.2022.

Learned counsel for the Appellant-Insurance Company at the outset contended that the present appeal has been filed by the Appellant-Insurance Company under Section 173 of the Motor Page 1 of 4. Vehicles Act, 1988 thereby challenging the judgment and award dated 30.09.2022 passed by the District Judge –cum- Motor Accident Claims Tribunal, Rayagada in MAC Case No.24 of

2019. By virtue of the impugned judgment and award the learned Tribunal, while considering an application of the claimant- Appellant under Section 166 of the Motor Vehicles Act, wherein a claim was made for payment of a compensation of Rs.23 lakhs, after hearing the Parties and taking evidence, has allowed the claim case and finally awarded a sum of Rs.23,45,000/- along with interest @ 9% per annum with effect from the the date of filing i.e. 05.11.2019.

Learned counsel for the Appellant-Insurance Company at the outset contended that the present appeal has been filed by the Appellant Insurance Company challenging the quantum of compensation as well as and other legal grounds. In course of hearing, learned counsel for the Appellant-Insurance Company referred to the grounds taken in the appeal memo and submitted before this Court that the impugned award is unsustainable in law and accordingly, the same should be set aside.

Learned counsel appearing for the Claimant-Respondent on the other hand submitted that the learned Tribunal has not committed any illegality in passing the impugned award dated

30.09.2022 and awarding a compensation of Rs.23,45,000/- along with the interest as has been indicated therein, to the Claimants. Page 2 of 4.

On a careful consideration of the submission made by the learned counsel appearing for both sides and upon a thorough analysis of the factual background of the present case and further on a close scrutiny of the impugned award dated 30.09.2022 at Annexure-1, this Court is of the view that the matter can very well be resolved in the spirit of Lok Adalat. Accordingly, this Court proposed to the leaned counsel for the Parties to amicably settle the matter. Learned counsel for the Respondent-Claimant on instruction contended that the appellant should be satisfied if the compensation is Rs.20,50,000/- instead of Rs.23,45,000/- along with the interest as has been awarded by the Tribunal.

Learned counsel appearing for the Insurance Company though initially objected to it, however eventually left it to the discretion of the Court and contended that the insurance company shall abide by whatever decision is taken by this Court in the facts and circumstances of the present case. On a careful analysis of the materials on record as well as the facts and circumstances of the present case, this Court is of the view that it would be just, fair and proper if the Appellant-Insurance Company pays a compensation of Rs.20,50,000/- to the claimant-respondents along with the interest as has been awarded by the Tribunal. Accordingly, while disposing of the present appeal, this Court modifies the award dated 30.09.2022 to the extent that the Appellant- Insurance Company shall now pay a compensation of Rs.20,50,000/- to the Respondents along with interest @ 6% per annum, with effect from 05.11.2019 till the date of filing of claim application. Other conditions as mentioned Page 3 of 4. in the Tribunal’s order shall remain intact.

In view of the aforesaid modification, the Appellant- Insurance Company is directed to deposit the amount before the Tribunal within a period of eight (8) weeks hence. Subject to such deposit, learned Tribunal shall carry out the award as per the order passed by it dated 30.09.2022, subject to the modification indicated hereinabove. It is further directed that on an application being made by the Appellate-Insurance Company, the statutory deposit along with accrued interest be refunded to the Insurance Company. ( A.K. Mohapatra ) Judge Sisir Page 4 of 4.