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2026 Supreme(Ori) 443

IN THE HIGH COURT OF ORISSA AT CUTTACK
G.SATAPATHY, J.
National Insurance Co. Ltd., Kolkata and Another - Appellants 
Versus
Bighnaraj Panda and Another – Respondents
MACA No.1200 of 2024
Decided On : 27-02-2026

Advocates Appeared:
For the Appellants :Mr. S. Satpathy, Advocate
For the Respondents:Mr. R.C. Panigrahy, Advocate.

Compensation for temporary disability must be based on concrete evidence, and standard methods of calculating damages, such as future prospects and multiplier, are not applicable in such cases.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal by Insurance Company challenging the quantum of compensation awarded for injuries sustained in an accident - Compensation initially awarded was Rs.23,14,392/- with interest @ 6% - Claimant sustained 28% temporary disability for five years due to negligent driving - Complications in computing just compensation due to lack of conclusive evidence for medical expenses - Court held that future prospects and multiplier method inapplicable due to nature of temporary disability - Qua medical expenses, revised to Rs.3,00,000/- based on per day hospitalization cost - Final compensation modified to Rs.11,03,000/- plus interest. (Paras 1-10)

(B) Compensation - Quantum of compensation for personal injury claims - The court emphasized that compensation must be based on concrete evidence of actual incurred expenditures and must not rely on hypothetical considerations. (Paras 5-7)

Facts of the case:
The claimant, an advocate, sustained severe injuries in a motorcycle accident due to the negligent driving of a truck driver, leading to hospital admissions and subsequent claims for compensation under the Motor Vehicles Act. (Paras 2-4)

Findings of Court:
Compensation award modified to reflect reasonable medical expenses and loss of earnings as per established principles regarding temporary disability and personal injury claims. (Paras 8-10)

Issues: Whether the initial compensation computed for temporary disability was appropriate and whether the medical expenses were justified based on evidence.

Ratio Decidendi: It was determined that merely establishing a percentage of disability does not directly correlate with loss of earning capacity; rather, the specific impacts and evidence must guide the compensation awarded.

Result: Appeal allowed in part; compensation modified and insurer directed to pay revised amount with interest.

Table of Content
1. compensation awarded in motor vehicle accidents. (Para 1 , 2)
2. arguments challenging compensation assessment. (Para 3 , 4)
3. court's guidance on calculation of compensation. (Para 5)
4. discussion on temporary disability and its considerations. (Para 6 , 7 , 8)
5. entitlement to interest on compensation awarded. (Para 9)

JUDGMENT :

G.Satapathy, J.

1. The appellants-representing the Insurance Company (in short, the “Insurer”) are in an appeal U/S.173 of the Motor Vehicles Act, 1988 (in short, “the Act”) to challenge the quantum of compensation as awarded to the Respondent No.1(R1)-cum-claimant by the impugned judgment dated 28.03.2024 passed by the learned 3rd MACT, Bhubaneswar (in short, the “learned Tribunal”) in MAC Case No.204 of 2016 directing the appellant No.2, who was OP No.2 in the original MAC Case to pay a sum of Rs.23,14,392/- together with simple interest @ 6% per annum w.e.f the date of filing of claim application till actual realization of the amount to the claimant-petitioner in the aforesaid MAC case.

2. Bereft of unnecessary details, the accident which gives to the present appeal took place on 22.06.2015 when R-1 namely Bighnaraj Panda, an advocate by profession (hereinafter referred to as “the claimant”) was coming from Cuttack on NH-5 by riding his Motor Cycle, he was dashed from behind by a Truck bearing Regd. No. OR-21-8813 (hereinafter referred to as “the offending vehicle”) near Bank of India, Rasulgarh Branch, Bhubaneswar as a result the claimant sustained serious injuries and treated at different Hospitals in Bhubaneswar; such as Nilachala, KIMS & SUM Hospitals. According to the claimant, the accident was outcome of the rash and negligent driving of the driver of offending vehicle and accordingly, Mancheswar PS Case No.230 of 2015 was registered which resulted in submission of charge- sheet. In the aforesaid background, when the claimant approached the learned Tribunal in application U/S.166 of the Act for compensation by impleading the owner and insurer of the offending vehicle, he was awarded with compensation indicated supra by the impugned judgment under different heads enlisted therein, but the insurer being aggrieved by the quantum of compensation has preferred this appeal.

3. Heard, Mr. Subrat Satpathy, learned counsel for appellants and Mr. Ramachandra Panigrahy, learned counsel for the R-1 in the appeal and perused the record. None appears for R-2 despite valid service of notice.

4. Rival submissions together with the written notes as filed for the appellants makes it apparently clear that the quantum of compensation is questioned on following points, which needs to be answered: -

(i) Award is computed @ 28% permanent disability, but claimant’s temporary disability was 28% for a period of five years;

(ii) Neither future prospects nor multiplier method is applicable in this case;

(iii) Medical expenditure of Rs.5,10,613/- is hypothetically awarded without any evidence; (iv) Imaginary amount has been awarded under the respective headings at SL. Nos.9 & 10 of the table of compensation as appended to the impugned judgment and lastly, (v) Imposition of penal interest @ 8% per annum is not admissible.

5. Award/determination of just compensation in a case under the Act for injuries or death of a person arising out of use of motor vehicles is a complex and complicated issue, which is required to be considered on hypothetical consideration basing on evidence, mainly with regard to age, avocation/profession & income, more particularly the future income of the deceased/injured, but such computation of compensation for the claimant(s) has been simplified in recent past by the law laid down by the Apex Court in a plethora of decisions. Looking at the grounds of challenge as advanced in this Appeal, since the claimant claims for compensation for injuries and disability, the rulings of Apex Court in Raj Kumar Vrs. Ajay Kumar and another ; (2011) 1 SCC 343 are found relevant in this case. It is no mor

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