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2024 Supreme(Ori) 26

IN THE HIGH COURT OF ORISSA
R.K. Pattanaik, J.
SBI General Insurance Company Limited & Ors. - Appellants
Versus
Ananda Kumar Jaiswal & Anr. - Respondents
MACA No.635 of 2016; MACA No.636 of 2016; MACA No.698 of 2016 and MACA No.699 of 2016
Decided On : 19-06-2024

Advocates:
Mr. G.P. Dutta, Advocate, for the Appellant; Mr. Kalpataru Panigrahi, Advocate, for the Respondent.

IMPORTANT POINT
The court established that compensation for injuries in motor vehicle accidents must be just and reasonable, taking into account the actual medical expenses incurred and the functional disability affecting the claimants' earning capacity.

Headnote:

MOTOR VEHICLE ACCIDENT - COMPENSATION CLAIM - M.V. Act, Section 166 - The court discussed the provisions of Section 166 of the Motor Vehicles Act, which allows for compensation claims in the event of accidents caused by negligent driving. The court emphasized the need for just compensation, considering the nature and extent of injuries sustained by the claimants. The interpretation of functional disability and the assessment of medical expenses were pivotal in determining the compensation amounts awarded to the injured claimants.

Fact of the Case:

The case involves multiple appeals against awards for compensation due to injuries sustained in a vehicular accident on March 29, 2013, caused by the negligent driving of a Tipper truck. The injured claimants sought enhancement of compensation, while the Insurance Company contested the quantum awarded by the Tribunal.

Finding of the Court:

The court found that the Tribunal had correctly identified the negligence of the driver and the injuries sustained by the claimants. However, it also recognized the need to reassess the compensation amounts based on the evidence presented, particularly regarding medical expenses and the extent of functional disability.

Issues: 1. Whether the applications for compensation were maintainable? 2. Whether the accident occurred due to the rash and negligent driving of the Tipper's driver? 3. Whether the claimants were entitled to compensation from the Insurance Company and the vehicle owner, and if so, to what extent?

Ratio Decidendi: The court held that the assessment of compensation must consider the actual loss suffered by the claimants, including medical expenses and the impact of disabilities on their earning capacity. The court also clarified that functional disability should be assessed based on the claimant's ability to work and not solely on medical assessments.

Final Decision: The appeals were allowed in part, modifying the compensation amounts to Rs.19,00,000 for one claimant and Rs.6,77,100 for the other, with interest awarded from the date of the claim applications. The Insurance Company was directed to deposit these amounts within eight weeks.

JUDGMENT

R.K. Pattanaik, J.

All the appeals since arising out of a common cause of action stand disposed of by the following order.

2. MACA Nos.635 & 699 of 2016: Both the appeals are filed against the impugned award dated 31st March, 2016 passed in MAC Case No.136 of 2013 by learned 2nd Additional District Judge-cum-5th M.A.C.T., Rourkela, whereby, an amount of Rs.16,20,000/- has been awarded as compensation to the injured claimant with respective reliefs.

3. MACA Nos. 636 & 698 of 2016: Whereas, the instant appeals are filed against an award of Rs.5,62,700/- in favour of the injured claimant (deceased) with an award dated 31st March, 2016 arising out of MAC Case No.89 of 2013 seeking enhancement of compensation opposed by the Insurance Company.

4. The injured claimants filed the appeals for enhancement of compensation, whereas, the Insurance Company primarily questioned the quantum with a plea that the same are on the higher side and without considering the materials on record. In fact, the accident took place on 29th March, 2013 during the morning hours at a time when the injured claimants were hit by the offending vehicle, a Tipper bearing registration No. OR 14 V 9170. The said accident alleged to have taken place due to rash and negligent driving of the offending vehicle by its driver, as a result of which, both the claimants, sustained multiple injuries and were treated as indoor patients. After the alleged accident, the claimants filed the applications under Section 166 of the M.V. Act seeking compensation from the owner of the offending vehicle and the Insurance Company. While dealing with the claim applications, considering the pleadings on record, learned Tribunal framed the following issues, such as, (i) whether, the applications for compensation to be maintainable? (ii)whether, on 29th March, 2013 at about 10.00 A.M., near the spot, both the claimants sustained injuries in a road accident and if such accident took place due to rash and negligent driving of the driver of the alleged Tipper bearing registration No. OR-14-V-9170? and (iii) whether, the claimants are entitled to compensation from the Insurance Company and also the owner of the vehicle, if so, from whom and to what extent?

5. To substantiate the claims, the injured adduced oral and documentary evidence and on the other side, Insurance Company led evidence in MAC Case No.136 of 2013 only. No evidence was received from the owner of the offending vehicle. Considering the entire evidence and on a satisfaction reached at by learned Tribunal that the driver of the Tipper to be rash and negligent and responsible for the accident allowed compensation in favour of the injured claimants, one of whom died subsequently (admittedly, not on account of the injuries sustained in the accident). Being dissatisfied with the impugned awards, the injured claimants as well as Insurance Company filed the present appeals with appropriate reliefs.

6. Heard Mr. Panigrahi, learned counsel for the injured claimants and Mr. Dutta, learned counsel for the Insurance Company.

7. In MAC No. 699 of 2016, the quantum of compensation is challenged by the claimant and also the Insurance Company with a plea of the former that the same is grossly less and to be arbitrary and on the higher side by the latter, hence, liable to be reduced. Mr. Panigrahi, learned counsel for the claimant submits that a sum of Rs.6,40,000/- on the head of medical expenses is too less as because the expenditure borne towards it is to the tune of Rs.18,61,622/- for having been treated as an indoor patient at Ispat General Hospital, Rourkela; Apollo Hospital, Bhubaneswar; and Udaybhanu Clinic & Nursing Home, Cuttack proved through Exts.13, 14 Series, 15 Series and 16. So, therefore, the contention of Mr. Panigrahi is that the amount on the head of medical expenses is to be accordingly enhanced. It is further submitted by Mr. Panigrahi that the injured, considering the grievous injuries sustained by him, disability, age and

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