The determination of just compensation under the Motor Vehicles Act, 1939, should be guided by the principles of restitution in integrum and the interest theory can be applied to fix an amount of compensation which will be equivalent to the annual loss for compensating the claimants.

S. C. MOHAPATRA, J.

( 1 ) DETERMINATION of just compensation to the persons injured and the legal representatives of the persons, who became victims of the collision between a passenger bus of the appellant and 37-Up Howrah-Madras Janata Express, is the subject-matter of these four appeals under S. 110-D of the Motor Vehicles Act, 1939 (in short 'the Act' ). The learned single Judge who heard these four appeals has referred them to be decided by a Division Bench, since he could not accept the principle adopted by an earlier single Judge decision of this Court reported in AIR 1983 Orissa 193 (Commissioner, N. C. C. Group, Cuttack v. Smt. Nirmala Maharana ). The passage in dispute reads as follows :-"the average bank rate of interest has been 10 per cent on term deposits for a term of three years and above. If Rs. 25,000/- is deposited, it would earn interest of 2,500/- a year and that should adequately compensate the claimants taking into account the possibility of variation of the rate of interest and the losing value of the rupee on account of deflation. "

( 2 ) MR. Y. S. N. Murty, the learned counsel for the appellant, taking advantage of the order of reference where the learned single Judge referred the appeals to be decided by the Division Bench challenged the award of the Tribunal on all points. In spite of the fact that the learned single Judge gave clear findings on all points, except determination of the just compensation, we permitted Mr. Murty to argue on all points since on account of the matter being referred to a Division Bench the appellant lost the tight of appeal to Division Bench against the order of the learned single Judge.

( 3 ) ALL the claim applications were heard together by the Tribunal and one set of evidence was led There was one common award against Which these four appeals have been filed. The learned single Judge heard all the four appeals together. Since these appeals arise out of the same facts and common questions are involved, we heard them analogously and they are disposed of by this common judgement.

( 4 ) THESE four appeals arose out of the following facts : on 29-7-1975 at about 10. 30 am. the passenger bus (ORG 2351) left the Puri-Cuttack Road (State High Way No. 8) towards Vani Vihar. After a very short distance it was to cross a manually operated railway level crossing, the driver had to stop the bus on the railway track to give space to a truck coming from the opposite direction to pass. The bus which had starting trouble from before became immobile on account of the starter going off. A few minutes after the train was seen to be reaching the level crossing. The imminent approach of the train caused panic to the passengers who began to get down and run for safety. Shortly after the train dashed against the immobile bus on the track with a few passengers left inside resulting fatal injuries to two passengers and serious bodily injuries to two others. Legal representatives of the two deceased passengers and the two injured passengers filed the four claim petitions under S. 110-A of the Act against the appellant and We South Eastern Railways for compensation.

( 5 ) INJURED Umakanta Singh, who is respondent 1 in M. A. No. 190 of 1971, was aged about 21 years at the time of accident and was a Post Graduate student in Political Science in Utkal University. As a result of the accident, he sustained multiple injuries and his right leg had to be amputated after a prolonged treatment from 29-7-1975 to 28-3-1976 and he had to artificial limb fitted at Poona. His claim is on the following counts : (i) Mental shock. . Rs. 6,000/- (ii) Physical pain. . Rs. 5,000/- (iii) Expenses incurred for treatment from the date of accident till the date of filing of the claim petition on 14-11-1975. . . Rs. 4,000/- (iv) Future probable expenditure. . Rs. 6,000/- (v) Loss of pleasure in life and longevity. . Rs. 10,000/- (vi) Loss of future career and income at Rs. 400/- per month till the injured completes th