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2026 Supreme(Ori) 47

IN THE HIGH COURT OF ORISSA AT CUTTACK
G. SATAPATHY, J.
Manager Legal (TP Cell), M/s. Tata AIG G.I. Co. Ltd. – Appellant
Versus
Jaladhar Dalai and Others – Respondents
MACA No. 939 of 2024
Decided On : 09-01-2026

Advocates Appeared:
For the Appellant : A. Patnaik
For the Respondent: B. Mohanty

The court found that mere consumption of alcohol by the deceased did not bar compensation claims as it lacked evidence of contributing to the accident, affirming that liability rests upon the negligent actions of the motorcycle rider.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Claim for compensation - Appeal against compensation for death in motor vehicular accident - Quantum of compensation revised from Rs.11,18,000/- to Rs.13,01,280/- with interest @ 6% per annum - Evidence indicates the accident occurred due to rash and negligent riding by the motorcycle rider, not contributorily by the deceased who was a pillion rider - No substantial proof of the deceased's inebriation affecting liability established by the appellant-insurer. (Paras 6, 8, 10)

(B) Compensation Calculation - Proper income calculation should consider minimum wages rather than self-reported income - Claimants were entitled to additional heads of damages, including treatment expenses. (Paras 9, 10)

Facts of the case:
The negligence of the motorcycle's rider led to the fatal accident involving a young mason, who was the deceased and sole breadwinner for his family. The insurer challenged the claim based on alleged intoxication of the deceased.

Findings of Court:
Maintained liability of the insurer and revised compensation amount based on proper income computation and treatment costs.

Issues: The main issues included the deceased's culpability regarding alleged consumption of alcohol and the method of calculating compensation amount.

Ratio Decidendi: The court established that mere consumption of alcohol by a pillion rider doesn't negate liability without proof of causation in the accident, reaffirming that compensation should reflect calculated lawful entitlements.

Result: Appeal dismissed; cross-objection allowed with modification of compensation to Rs.13,01,280/-.

Table of Content
1. introduction of case facts and background (Para 1 , 2)
2. tribunal proceedings and evidential hearings (Para 3 , 4 , 5)
3. parties' arguments on maintainability and compensation (Para 6)
4. court's analysis on alcohol's relevance and compensation calculation (Para 7 , 9)
5. final judgment on appeal and award modification (Para 10)

JUDGMENT :

G. SATAPATHY, J.

1. This is an appeal U/S.173 of MOTOR VEHICLES ACT , 1988 (in short “the Act”) by the appellant-insurer calling in question the judgment dated 05.01.2024 passed by learned 1st M.A.C.T., Cuttack (hereinafter referred to as “the learned Tribunal”) in M.A.C. Case No.1287 of 2019 awarding compensation of Rs.11,18,000/- together with interest @ 6% per annum w.e.f. date of filing of the claim application i.e. 18.10.2019 in an application U/S. 166 of the Act for the loss of the sole bread earner of the family in a motor vehicular accident.

2. The short facts required for disposal of this appeal and the cross-objection filed by the Respondents-Claimants are that on 15.05.2019 at about 7P.M. in the evening while Binod Dalai (hereinafter referred to as “the deceased”) was going to Jajpur side in a motor cycle bearing Regd. No. OD-04- M-2647 (Hero Motor cycle) as a pillion rider, suddenly the rider of the motorcycle lost its control at Malada Chhak and applied for brake, for which, the deceased fell down on the road and sustained head injuries leading to his admission initially at CHC, Jajpur, but subsequently being serious referred to SCB MCH, Cuttack, where he succumbed to injuries on 08.06.2019 while undergoing treatment. According to the R-1 to 3-cum-claimants, the accident occurred due to rash and negligent riding of the motorcycle and the deceased was aged about 23 years and was earning Rs.15,000/- per month from his profession as mason and they have spent Rs.3,00,000/- towards the treatment of the deceased. On the aforesaid averments, the R-1 to 3-cum-claimants filed an application before the learned Tribunal praying to grant compensation of Rs.12,00,000/- by impleading the insurer and owner of the motorcycle as Ops in such claim application.

2.1. In reply to the notice of the claim, the appellant who was the OP No.2 before the learned Tribunal filed its written statement denying all the assertions made against the insurance company and it inter-alia has pleaded that the claim is not maintainable for the accident occurring on account of consumption of liquor by the deceased. On the other hand, the owner- cum-R-4 who was OP No.1 before the learned Tribunal filed his separate written statement denying the claim and his liability by questioning the maintainability of the claim application.

3. On the basis of rival pleadings, the learned Tribunal stuck five issues and allowed the parties to lead evidence. Accordingly, the claimants-R-1 to 3 examined 03 witnesses and relied upon documents under Ext.1 to 11, as against two documentary evidence under Exts A & B by the insurer-cum- appellant together with oral evidence of two witnesses, who are the doctor and the police.

4. After appreciating the evidence upon hearing the parties, the learned Tribunal has passed the impugned judgment granting compensation of Rs.11,18,000/- to the R-1 to 3-cum-claimants together with interest @ 6% per annum with apportionment of the compensation amount. Being aggrieved with the award, the appellant-insurer preferred this appeal, but being dissatisfied with the quantum, the claimant filed cross-objection which is already available on record.

5. Heard, Mr. Avijit Patnaik, learned counsel for the appellant-insurer and Mr. Biswajit Mohanty, learned counsel for the claimants-R-1 to 3-cum-cross-objector. None appears for R-4, who albeit being represented by a counsel to counter the submission advanced for the parties.

6. The primary questions as emanated from the rival submissions are the maintainability of the claim and the quantum of compensation, since the appellant-insurer claims the claim to be n

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