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2025 Supreme(Ori) 753

IN THE HIGH COURT OF ORISSA AT CUTTACK 
SANJEEB K PANIGRAHI, J.
udam Behera & Anr. - Petitioner
Versus
State of Odisha & Anr. – Respondent
W.P.(C) No. 24286 of 2025
Decided On : 31-10-2025

Advocates Appeared:
For the Petitioners: Mr. Bijaya Kumar Parida-2, Adv. Along with Associates
For the Respondents: Smt. Sarita Moharana, ASC

Judicial discretion must prioritize genuine financial needs of claimants in compensation matters, allowing for decisions that support educational and personal necessities as per individualized circumstances.

Headnote:(A) Constitution of India, 1950 - Articles 226 and 227 - Motor Vehicles Act, 1988 - Premature withdrawal of fixed deposit amount - Petitioners sought full withdrawal for educational expenses after a portion was allowed - Court emphasized the need for sympathetic consideration of genuine financial necessities. (Paras 2-4, 9, 10, 15)

(B) Judicial discretion - The court must exercise discretion judiciously, ensuring legitimate needs of claimants are prioritized - The application should not be dismissed mechanically; a thoughtful approach must consider individual circumstances. (Paras 10-12)

Facts of the case:
The Petitioners, parents of a deceased accident victim, sought full withdrawal of a fixed deposit intended for their daughter’s higher education after the Tribunal initially allowed partial withdrawal. The financial necessity for educational expenses prompted the petition.

Findings of Court:
The court held that the petitioners' genuine financial circumstances warranted a full withdrawal of funds for educational purposes, challenging the prior order’s refusal.

Issues: Central questions included the validity of the petitioners’ financial claim and whether the court should allow full withdrawal of the fixed deposit.

Ratio Decidendi: The court underscored the importance of compassionate judicial discretion, emphasizing that claimant’s genuine educational needs must be factored into decisions regarding fixed deposits and compensation.

Result: Writ Petition allowed.

Table of Content
1. petitioners' claim for withdrawal of fixed deposit. (Para 1 , 2)
2. arguments from petitioners and opposite parties. (Para 3 , 4)
3. court's reasoning on compensation and withdrawals. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
4. conclusion allowing the petitioners' writ petition. (Para 15 , 16 , 17 , 18)

Judgment :

Sanjeeb K Panigrahi, J.

1. The Petitioners, through the present Writ Petition filed under Article 226 and 227 of the Constitution of India, 1950, seek to assail the Order dated 20.05.2025 passed by the Learned 1st Additional District Judge-Cum-1st Motor Accident Claims Tribunal, Cuttack in MAC No. 1129 of 2020, whereby the prayer of the Petitioner for premature withdrawal of the entire fixed deposit amount was allowed in part. The Petitioner further prays for a direction permitting premature withdrawal of the entire fixed deposit amount to meet the educational expenses pertaining to the higher studies of her daughter.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(i) The Petitioner, being the parents of their deceased, who unfortunately lost his life in a motor vehicle accident, instituted a claim before the Learned Tribunal seeking just compensation under the provisions of the Motor Vehicles Act, 1988, which was registered as M.A.C No. 1129 of 2020.

(ii) Thereafter, the said M.A.C Case was adjudicated and disposed of by the Learned Tribunal, whereby compensation was awarded in favour of the Petitioners. The Learned Court below, while disbursing the awarded amount, directed that a sum of Rs. 3,00,000/- (Rupees Three Lakhs Only) be kept in fixed deposit in the name of the Petitioners for a period of 5 years in any Nationalized Bank, with liberty to draw the accrued interest periodically.

(iii) Subsequently, the daughter of the Petitioners was selected for pursuning higher study in Air Hostess at the Frankfinn Institute. In view of the financial requirement for her admission and course fees, the Petitioner filed an application before the Learned Court below seeking permission for premature withdrawal of the fixed deposit amount standing in their name, for the limited purpose of meeting the educational expenses of their daughter.

(iv) Thereafter, by order dated on 20.08.2025, the Learned Court below partly allowed the said application, permitting the Petitioners to withdraw a portion of the fixed deposit amount directing that the balance sum shall continue to remain in fixed deposit in their names for the remaining period as originally stipulated. Aggrieved by the said rejection, the Petitioner has preferred the present Writ Petition.

II. SUBMISSIONS ON BEHALF OF THE PETITIONERS

3. The learned counsel for the Petitioners respectfully and earnestly made the following submissions in support of his contentions:

(i) The Petitioners have assailed the impugned order dated 20.05.2025, passed by the Learned Learned 1st Additional District Judge-Cum-1st Motor Accident Claims Tribunal, Cuttack in MAC No. 1129 of 2020, on the ground that the said order suffers from legal infirmity and procedural irregularity, warranting interference by this Court in exercise of its supervisory jurisdiction under Article 226 and 227 of the Constitution of India.

(ii) By the impugned order dated 20.05.2020, the Learned Court below rejected the Petitioner’s prayer for the premature withdrawal of the entire fixed deposit amount, holding that only partial withdrawal could be permitted in accordance with the directions earlier issues at the time of disbursement of the award amount.

(iii) It is contended that the son of the Petitioners unfortunately succumbed to injuries sustained in a motor vehicle accident, and thereafter, the Petitioners, being the parents and legal representatives of the deceased, filed a claim petition before the Motor Accident Claims Tribunal seeking just compensation under the provisions of the Motor Vehicles Act, 1988.

(iv) Thereafter, the Tribunal, upon adjudication of the claim, awarded

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